European self-storage investment to pass €1bn milestone
Investment volumes into the European self-storage sector are set to reach a record €1.12bn (£970m) this year, according to a report from CBRE and the Federation of European Self Storage Associations.
Volumes for 2023 are expected to surpass the record level achieved in 2022 of €740m.
CBRE said the sector’s performance had been driven by solid revenue rises and cost-efficient operating models.
Investment volumes into the European self-storage sector are set to reach a record €1.12bn (£970m) this year, according to a report from CBRE and the Federation of European Self Storage Associations.
Volumes for 2023 are expected to surpass the record level achieved in 2022 of €740m.
CBRE said the sector’s performance had been driven by solid revenue rises and cost-efficient operating models.
Callum Paddock, director in CBRE’s operational real estate team, said: “While the sector is not immune to the ongoing wider market challenges, self-storage assets offer appealing, long-term fundamentals and as a result, investor appetite is robust.”
Operator sentiment also remains positive. A 96% majority of operators expect net rental rates to either increase or remain the same, while 90% expect to retain or increase occupancy.
Average occupancy across all stores in Europe stands at 78.5%. However, occupancy rates varied at a country level, ranging from 90% in Denmark to below 60% in developing markets such as Poland and Portugal.
Supply of storage space is expected to reach 150.7m sq ft across Europe by the end of 2023. The report recorded 221 new developments in the pipeline, with 59% either under construction or having planning approval.
Researchers noted that store acquisitions were unlikely to come through at scale in the next two years, following recent consolidation in the market. This will lead investors to consider converting existing buildings into self-storage or explore new developments to satisfy demand.
Rennie Schafer, chief executive at Fedessa, said: “The findings of our survey show that consumer awareness of the self-storage offering remains low, particularly in continental Europe, this further evidences the potential growth in the industry as more people become aware of how self-storage can help them through their life changing moments or in establishing their businesses.”
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