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1、U K A N N U A L R E P O R TSELF STORAGEDATA COMPILED FROM 2023 CALENDAR YEARCONTENTSCONTENTSINTRODUCTION&METHODOLOGYP.501SUMMARY OF KEY FINDINGSP.702OUTLOOKP.3709STORE FEATURESP.3308INDUSTRY OVERVIEWP.903AWARENESS&INTENTION TOUSEP.4310INDUSTRY HIGHLIGHTSP.1104RESEARCH&CONTACT METHODSP.4711ECONOMIC O

2、VERVIEWP.1305REASONS FORUSEP.5112FUTURE OF SELFSTORAGEP.1906PERFORMANCEP.2507CUSTOMER DEMOGRAPHICS&USAGEP.5513CONTRIBUTORSP.631401This is the seventeenth year the Self Storage Association UK(SSA UK)has surveyed its members in producing an annual industry report.The report covers all viewpoints of th

3、e industry,collecting data from operators,customers and the general public,making it one of the most comprehensive reports on a self storage market in the world.There have been some changes to the sample group this year as the industry becomes more consolidated and new independent stores are opened.

4、With around a quarter of stores in the UK completing the survey,representing over 40%of the storage space,the sample size is exceptionally robust.The SSA UK has also invested in a more detailed analysis of the size and make-up of the UK industry,particularly smaller regional sites and the split of e

5、xternal and internal storage sites.This has been used for the industry supply section of the report.For the ninth year,the report has been produced in conjunction with Cushman&Wakefield.Their extensive experience in valuing self storage properties around the world,as well as knowledge of the broader

6、 property market,has further added to the valuable information in this report.The economic overview provided by Cushman&Wakefield included in the report also gives context to the achievements of the industry.“RENNIE SCHAFERCEO SELF STORAGE ASSOCIATION UKINTRODUCTION&METHODOLOGYThe operator survey wa

7、s completed by 72 companies with 688 stores in total.Each one a member of the SSA UK.The survey was completed in the months of January and February based on data from the 2023 calendar year,unless otherwise stated.Compared to the industry as a whole,the data set is slightly weighted to larger operat

8、ors,as less of the small independent operators complete the survey.The public survey,conducted online by YouGov on behalf of the SSA UK,was completed between January 15th and 16th 2024.It was an online survey with data taken from a statistically selected and weighted sample that represents a sample

9、of the demographics of the adult UK population.This year,2,076 people completed the survey.Also included in the report is data from the customer survey completed in January 2023,from 29 self storage companies who have over 152 stores in total.1,837 customers responded to the survey of which 82%were

10、domestic customers and 18%business customers.This survey was sent to the main contact on the self storage contract.The survey was entirely voluntary and without reward.I would like to thank all the SSA UK members who responded so promptly to the survey this year and the team at Cushman&Wakefield for

11、collating the data,providing commentary and analysis and producing the final report.Im sure you find a lot of valuable insight in this report,it certainly shows the industry has remained resilient despite challenging economic conditions.SELF STORAGE ANNUAL REPORT 2024P.4P.502SUMMARY OFKEY FINDINGSIN

12、DUSTRY CHURN RATE UP FROM 81%LAST YEAR98%UK STORAGE SPACE PER HEAD OF POPULATION HAS INCREASED TO 0.89 SQ FT UP FROM 0.82 SQ FT 84%8.1%OF STORES ARE INTERNAL AND 16%ARE CONTAINER BASEDINCREASE IN STORAGE SPACE IN THE YEARPERCENTAGE POINTS IN 2023OCCUPANCY RATES DOWN 2.5AVERAGE RENTAL RETURNS PER SQ

13、FT,UP1%26.23EAST MIDLANDS HAS THE HIGHEST OCCUPANCY OF MATURE STORES AT ONLYOF CUSTOMERS ARE NOT HAPPY WITH THEIR SELF STORAGE SOLUTION82.5%4%OF STORES DID NOT HAVE A STAFF MEMBER PERMANENTLY ONSITE13%5%37%73%53%40%60%OF OPERATORS ARE PLANNING MORE INVESTMENT IN NEW SITES 44%CONVERSION RATE INCREASE

14、D TO 24%SQ FT OF SELF STORAGE SPACE IN THE UK IN2023OF BUSINESSES ARE ACTIVELY USING AI60M25%OF SSA UK MEMBERS FELT THAT ADDING SUSTAINABILITY IMPROVEMENTS TOTHEIR BUSINESS INCREASED ITSVALUE95%INCREASE IN OPERATORS INTERESTED IN MIXED-USE DEVELOPMENTOF CUSTOMERS PREFER TO CONTACT THEIR STORE BY PHO

15、NEOF CUSTOMERS ARE RESIDENTIALOF CUSTOMERS TRAVEL LESS THAN 15 MINUTES TO THEIR SELF STORAGE UNITOF CUSTOMERS CONTACTED THE FIRST STORE THEYCHOSEOF CUSTOMERS THINK SELF STORAGE IS GOODVALUEINDUSTRY ANNUAL TURNOVER 1.08BSELF STORAGE ANNUAL REPORT 2024P.6P.703INDUSTRY OVERVIEWIn 2023,the SSA UK conduc

16、ted anin depth study into the supply ofself storage in the UK.Of the 1,694 internal storage stores,1,078 were deemed to be significant.That being,over 100 units in size and being compliant with the British Standard for self storage which defines minimum levels of security and access.The number of sm

17、all container based storage sites continues to grow,particularly in rural areas.In 2023,a number of larger urban stores were opened,the largest of which was Big Yellow Kings Cross London,with a maximum lettable area of 125,000 square feet.However,this kind of mega site is becoming less common,with t

18、he average store size being 22,173 square feet,down from almost 30,000 in 2017.Even excluding the addition of container sites to the market,the average internal storage store size is just under 30,000 square feet,down from over 35,000 in 2017.ORGANISATIONNO.OF STORESTOTAL SPACEBIG YELLOW (INC ARMADI

19、LLO)1096.5MSAFESTORE1335.7MACCESS603.4MSHURGARD432.3MLOKNSTORE432.2MSTORAGE KING422MFLEXISS(SURESTORE AND SELF STORAGE COMPANY)19 894,800 LOCK STOCK SELF STORAGE(CONTAINER STORAGE)28 833,760 READY STEADY STORE27 815,000 CINCH SELF STORAGE20 806,000 ORGANISATIONNO.OF STORESTOTAL SPACESAFESTORE1335.7M

20、BIG YELLOW855.5MACCESS603.4MSHURGARD432.3MLOKNSTORE432.2MSTORAGE KING422MLOCK STOCK SELF STORAGE(CONTAINER STORAGE)28 833,760 READY STEADY STORE27 815,000 ARMADILLO241MCINCH SELF STORAGE20 806,000 ORGANISATIONTOTALINTERNALCONTAINERSSPACE(SQ FT)60,000,00050,284,800(84%)9,715,200(16%)STORES2,7061,694(

21、63%)1,012(37%)TURNOVER1,080,000,000STORAGE SPACE PER HEAD OF POPULATION0.89 SQ FTTOTAL SPACE UNDER OWNERSHIP ORMANAGEMENT AS OF MARCH 2024TOTAL STORES UNDER ONE BRAND AS OF MARCH 2024Even in major cities like London,there are less stores of over 90,000 square feet beingbuilt.The number of unmanned s

22、tores is also increasing.From the survey sample 13%of stores did not have a staff member permanently on site.This is not just smaller stores in regional locations.There are many significant stores in prime locations that are remotely managed.Consolidation of the industry has continued as operators c

23、ontinue to grow their portfolios through a combination of acquisition,organic growth and new developments.There is a very limited number of operators with 5 20 significant self storage sites left in the market,particularly in the major cities.This study found many businesses that claimed to be self

24、storage,but were in fact removals storage,mobile storage,warehousing or other forms of storage.It also found a number of self storage businesses that were marketing locations that did not actually exist.In this report,a self storage unit is defined as a securable static space less than 500 square fe

25、et in size that is to be used by a person or business for the storage of their goods.The customer will have exclusive and ready access to the space.Ready access means the ability to access the unit at will during normal office hours without intervention.It is not intended that the unit be used as aw

26、orkspace,trade counter or place where business activities other than storage or storage related activities take place.Storage related activities would include goods receiving,dispatch and packing that involve the goods in storage.This unit would be rented under a self storage contract that was not p

27、art of,or tied to,an additional agreement such as a residential tenancy,office space,workspace or similar.Stores that do not have these kinds ofunits as the bulk of their storage,are not considered to be self storage for the purpose of this report.This definition would not include mobile storage whe

28、re portable units are delivered to customers and then returned on request as this does not meet the criteria of static space or ready access.Similarly,it would not cover peer-to-peer storage in most cases as this also would not meet the criteria ready access without intervention.Based on this defini

29、tion,the SSA UK found there were 2,706 self storage stores in the UK,of which 1,012 were predominately container based storage,that is using shipping containers as the storage unit.There were around 1,400 individual self storage operators,and 60 million square feet of storage space.The industry turn

30、ed over just under 1.1 billion in 2023.SELF STORAGE ANNUAL REPORT 2024P.8P.9INDUSTRY HIGHLIGHTSLOKNSTOREDECEMBER2023BIG YELLOWSAFESTORE THE STORAGE TEAMNUVEENTHE STORAGE TEAMOCTOBER2023MARCH2023 MAY2023FEBRUARY 202304Acquired two stores in Yorkand Kettering totalling 90,000 sq ft from Go Store Manag

31、ement.Acquired an 83,000 sq ft industrial warehouse for conversion in Eastbourne.Purchased from Alfa Laval Ltd for 5.25million.Finalised a capital raise of110 million.Open new stores in Morden and Wigan.Acquired Easistores portfolio of four assets for 84 million.StorageKing will operate the stores o

32、n behalf of Nuveen.Acquired Rent-a-Spaces shell and core building in Winsford.TNT will fit out to provide 45,000 sq ft.SAFESTORE CINCH SELF STORAGE SEPTEMBER2023Acquired a leasehold interest in an 14,500 sq ft industrial building for conversion in Eastleigh.Acquired a 1.15 acre brownfield site for i

33、n Swindon for 2.4million.A new 56,700 sqft facility will be built.CINCH SELF STORAGE SYNDICATEAUGUST2023Acquired an industrial warehouse forconversion in Newbury.Funded by Pithos Capital and Davidson Kempner Capital Management,acquired the UK Storage Company for 120million.LOKNSTOREEQT PARTNERSJULY2

34、023Acquired a new 60,000 sq ft landmark site in Eastbourne.Acquired two development properties in Cricklewood and Sunbury for 13.1 million.STOREBOXQ1 AND Q2:CINCH SELF STORAGE JUNE2023Acquired Outer Space Storages 38,000 sq ft facility in Farnworth,Bolton for 3.95 million.Acquired properties in Sout

35、hend-on-Sea,Edmonton,Haverhill and Chippenham.SELF STORAGE ANNUAL REPORT 2024P.10P.1105ECONOMIC OVERVIEWTHE STATE OF THE ECONOMYFOCUS ON SUPPLY CHAINDISRUPTIONOver the last 12 months,there has been a slow and steady improvement in the inflationary environment,largely as a result of the Bank of Engla

36、nds hiking of the interest rates.At the time of writing,the general feeling is that“we are not out of the woods yet”,with the Bank of England having now voted to keep rates stable at 5.25%for five consecutive meetings.Market expectations are very much that we are now at the peak of interest rates hi

37、kes,although the Bank of England has cited that“more evidence was needed”prior to any monetary loosening.This is similar to the approach of both The Fed and the ECB.There continues to be a risk of company failures impacting the economy.2023 saw 25,158 insolvencies-the record year for company insolve

38、ncies,up 13.7%on 2022.For perspective,2009 saw 24,035 insolvencies.During December alone there were 2,002 insolvencies,2%higher than the corresponding month in 2022.This number is higher than at any point since the Global Financial Crisis.The increase in interest rates,in a relatively challenging ec

39、onomic environment is putting pressure on a number of businesses to service debt.The Houthi attacks in the Red Sea have led to significant re-routing andlonger shipping routes.In response,the US and UK have conducted a series of joint air strikes against Houthi targets.Thedisruption in the area is a

40、nother in a line of disruptions to the global supply chain,with the route responsible for approximately 15%of global sea traffic,which has been halved as a result of the conflict,causing traffic to be diverted and adding around 20 days to journey times.This has driven up the cost of container freigh

41、t according to Freightos to 3,352 at the end of February from 1,048 in October.In perspective,however,it is worth noting that this is still well down on the pandemic-high of 8,030.51.Atpresent,this added cost is not being passed onto consumers.The pause in interest rate hikes in the UK was driven pa

42、rtially by slower inflation,but also by aresult of weakening economicdata.There is likely to be caution across the central banks and governments of advanced economies,with the UK entering a technical recession in late 2023,after contracting 0.3%in the three months to December.Overall,the economy gre

43、w by just 0.1%during the course of 2023,with the outlook muted-HM Treasury comparison of independent forecasters suggesting growth of 0.4%for2024.2007 20082000002320202009Source:ONS10.05.00.0-5.0-10.0-15.0ANNUAL GDPIn truth,the inflationary pressures,energ

44、y pricing shocks and tightening of monetary policy are still having an impact and will weigh on the economy,certainly during the first half of 2024.There is likely to be continued pressure on businesses and subsequently employment,and the impact of increased mortgage rates may take awhile to filtert

45、hrough.SELF STORAGE ANNUAL REPORT 2024P.12P.13LABOUR MARKETINFLATION&INTEREST RATESThe labour market,while softening slightly,has remained resilient albeit the view of the picture has been distorted by data reporting issues.The most recent estimates of the market put the unemployment rate now at 3.8

46、%.The Bank Rate remains stable at 5.25%,after five consecutive meetings.CPI growth increased in January to 4.0%.Similarly,CPIH rose by 4.2%,the same as the month previous.Early year inflationary data has had an upward impact on the cost of borrowing.The 5-year SONIA which had been running at 3.4%a m

47、onth ago at the beginning of the year is now back up to4.0%.Confidence in the banking sector is still relatively fragile as a result of continued interest rate rises,and bond volatility.This is likely to temper the supply of debt available to investors,although net lending tocommercial property has

48、remained relatively robust,despite negative survey data.Similarly,Government bonds 10 year UK gilts are now running at c.4.2%,compared to c.3.6%amonth previous.Nevertheless,this is still c.50bps lower than c.4.7%in November.The previous elevation in the risk-free rate has driven re-pricing of commer

49、cial real estate and had an adverse impact on property values,downward re-pricing is likely to have a positive impact.The number of job vacancies continues to decrease,albeit marginally for the 19th consecutive period.The number of vacancies in the three months to January totalled 932,000.Consecutiv

50、e falls means that total vacancies are down by 28%from May 2022 when vacancies hit its peak.Despite recent falls,the job market is still 8%above the pre-pandemic,pre-Brexit high of 865,000,back in December 2018.Due to the lagging nature of the data,information on redundancies is unlikely to give a t

51、rue indication of the current health of the economy.Nevertheless,the data that runs from November-January saw the number of redundancies remain relatively low at 4.6 per 1,000 employees.It is now above the ten-year average of 4.2 for the first time since the pandemic.ILO REDUNDANCY RATESource:ONS202

52、3202020000121416EMPLOYEES(THOUSANDS)0%1%2%3%4%5%6%7%8%9%02004006008001,0001,2001,4002001520202023UNEMPLOYMENT RATEVACANCIES(THOUSANDS)UNEMPLOYMENT RATEUK VACANCIES(THOUSANDS)Source:ONSUNEMPLOYMENT&JOB VACANCIESCPIHSource:ONS0%2%4%6%8%10%12%89 9052010201520

53、2020235 YEAR SONIA RATESSource:Moodys-1%0%1%2%3%4%5%6%2002410 YEAR GILTSSource:Bank of England1.5%1.0%0.5%0.0%2.0%2.5%3.0%3.5%4.0%4.5%5.0%20024SONIA RATE5.25%SELF STORAGE ANNUAL REPORT 2024P.14P.15HOUSING MARKETHigh interest rates,strong inflation,and aweaker economy have impac

54、ted buyers confidence,leading to a slowdown in housing market activity.However,there are early signs of optimism with mortgage rates reducing,and approvals increasing.Approvals in December were 2.3%above the previous month,and 26%up on the corresponding period last year.Mortgage rates have started t

55、o decline in anticipation of base rate cuts.As an example,on 2-year fixed mortgage with a90%LTV,average rates have now declined to 5.5%from 6.6%in August 2023.Completed transactions remain down on previous benchmarks,however,the level of decline is slowing.An estimated 80,420 sales completed in Dece

56、mber 2023,0.8%below November,17.8%below the same time last year,and 18.4%below pre-pandemic levels(December 2017-2019 average).Nationwide reported a 0.7%seasonally adjusted monthly increase in house prices in January 2024.Annual house price growth is now at-0.2%,an improvement on last month(-1.8%).D

57、emand and pricing are expected to pick up in the second half of the year,in line with base rates being cut,further reducing mortgage rates,and election uncertainty subsides(with the election outcome most likely in autumn 2024).London will perform more positively than the UK as a whole,with slower hi

58、storic growth making London look more“affordable”,stronger household disposable income forecasts,more cash buyers,and a continued recovery in international buyers following the pandemic.Pent-up housing market demand from a slower market in 2023 and 2024 will lead to a surge in demand,translating int

59、o strong house price growth in 2025.Cushman&Wakefield forecasts house prices to increase 5.5%in the UK and 6.6%in London in 2025.The rental market has been robust although at the time of writing,the UK average rent had fallen for three consecutive months.Nevertheless,the rent is 1,260 pcm,7.5%higher

60、 than a year previous.The RICS January 2024 residential survey showed a net balance of+26%of respondents reporting an increase in demand in January 2024.New rental supply remained in negative territory,with anet balance of-19%of respondents reporting adecline in landlord instructions.THE COST OF LIV

61、ING While there continues to be significant pressure on households,a number of pressures that were seen during 2023 have now been at least partially relieved.GfKs measure of consumer confidence has recovered from lows of around-30 to-21 eve,despite a fall in February.The index is nevertheless still

62、firmly in negative territory but reflects optimism for easing environment over the year ahead.The most notable easing of pressure has been the fall in energy prices,with gas prices falling 31%y-o-y.Nevertheless,41%of adults who pay energy bills say that its difficult to afford them;down from 49%a ye

63、ar previous.Similarly 44%are using less fuel in order to cut back on expenditure.One positive element(albeit,not necessarily from the BOEs perspective)is that with wages continuing to grow,and inflation increasing at a much lower rate,we are now seeing real wage growth continue.The cost of mortgages

64、 is likely still feeding into households expenditure,with an average annual payment of c.3,000 per household;with costs increasing for those who rent.Furthermore,UK consumers owe an estimated 22 billion of unpaid essential bills,up 34%on levels seen pre-pandemic.Credit figures show that households a

65、re borrowing much less and saving much more than a year ago.UK rental stock shows no signs of improving.Private landlords have been exiting the market,as many are exposed to rising mortgage rates and changing landlord regulations.Despite the Build to Rent sector increasing by 17%over the last year,t

66、here are still only 100,372 complete units(BPF).The renter demand pool is becoming even more robust.There are more renters overall,growing from 3.9 million private renter households in 2011 to 5 million in 2021(Census 2021)in England and Wales.The number of renters is forecast to grow,not only due t

67、o a growing population but also owing to affordability constraints in the sales market.MORTGAGE APPROVALS GROWTH IN DECEMBERUP ON THE CORRESPONDING PERIOD OF 20232.3%26%The combined result of this is that the number of house moves declined which will have an impact on self storage demand.In 2023,the

68、re were 1.064million house moves(TwentyCi Home mover report),this was down from 1.2 million in 2022.Ofthose moves it is estimated that 23-24%(250,000)were self fulfilled(British Association of Removers).That is they used their own transport or a man with a van rather than afull removalscompany.SELF

69、STORAGE ANNUAL REPORT 2024P.16P.17In the past few years the self storage industry has undergone anunprecedented period ofchange largely driven by adoption oftechnology.From completing contracts online,tokeyless locks,automated stores and sustainability initiatives,the modern self storage store looks

70、 different to itspredecessor.What more change is in store for the industry and what should operators be doing to future proof their stores?Welook at some of the changes likely to impact the sector.Improvements in data collection will allow for operators to have a better understanding of consumer nee

71、ds and requirements.This will allow for predictive analytics that can forecast demand and drive pricing models.Mobile apps will continue their growth,and will expand to more wearable technology.This will allow for more contactless check-ins.It will also enable consumers to be able to request transpo

72、rtation of their goods(more on this later),as well as keep an eye on storage security,temperature,ventilation and humidity.The increase of electronic locks and online interaction with customers will result in more in-store automation with less reliance on in-store staff interacting with customers.Th

73、ese new automated sites will also allow for more small scale stores,often in areas currently not serviced by self storage.AUTOMATION WILL BECOME MORE UBIQUITOUSThe basic standard of self storage security will increase.No longer will passive security systems be acceptable.AI security monitoring syste

74、ms will be commonplace to identify suspicious activity in store.Tighter checking of customer ID and sharing of information between stores and across the industry as a whole will identify problem customers and potential criminals.Digital locks will be commonplace not just in self storage but in the r

75、esidential market,heading physical keys into obsolescence.There will be increased biometric identification of customers and this could also be linked to access control systems.Within the store,individual unit alarms,IR beams,in-room sensors and other such technology will provide a higher level of se

76、curity for those customers looking for such.Some stores may even segregate their stores into higher security levels at a higher price and cheaper,lower securityunits.TECHNOLOGY WILL CONTINUE TO IMPROVE SECURITY 06FUTURE OF SELFSTORAGEP.18P.19SELF STORAGE ANNUAL REPORT 2024There will be more lifestyl

77、e customers.That is long term residential customers that genuinely use their self storage unit as their room away from home,storing different items at different periods of their life.Self storage will become more commonplace in society and better understood by the public.Particularly in higher wealt

78、h demographics.There will be an increase in business use,primarily small businesses as the benefit of flexible storage and automated delivery options appeals to local businesses and the warehousing and logistic real estate marketchanges.The industry will be less reliant on house-move based customers

79、 as the level of churn in stores decreases and other customer segments emerge.While younger generations may not gather as many material belongings as their parents,those they do keep will be important and valuable to them.As house design becomes more focussed on living spaces rather than storage,the

80、se goods will be placed into self storage for safe keeping.New types of self storage stores will evolve,particularly at the smaller end of the market.This will be driven by supply-side opportunities as we see increased obsolescence of the built environment in a number of locations for certain sector

81、s.This will likely become a route of greater exposure tothe sector for institutional investors.There will also be increased overlap with larger scale warehousing and logistics sector,particularly through the advent of flexible storage solutions,with greater provision of full-or part life cycle logis

82、tics services at levels that do not justify the establishment ofdedicated real estate facilities.External,drive-up style self storage will continue to develop offering more than just shipping containers as a storage solution.Drop down style self storage will offer a range of unit sizes for external

83、storage stores.THE TYPICAL CUSTOMER WILL CHANGETHERE WILL BE FURTHER SPECIALISATION AND SEGMENTATION OFTHEMARKETRobotic assistance will become more affordable and be implemented in self storage stores to assist customers with loading,unloading and moving their goods;with labour intensity and stress

84、reduced for customers and staff alike.Potentially of a greater impact is the use of drones,driverless cars or other vehicles to enable a secure option of delivery of goods in or out of self storage stores.While initially this is likely to be more focussed on commercial customers delivering goods,it

85、could also be that residential customers could send their drone or automated vehicle totake their goods in and out of storage.If so,increased accessibility could result in more goods being put in storage,due to the diminished hassle,and the ability toservice across greater distances.It is possible t

86、hat some self storage stores could become drone hubs,either land or air based,for last mile deliveries as well as customers goods.DELIVERY OPTIONS WILLCHANGEP.20P.21SELF STORAGE ANNUAL REPORT 2024Since 2005,self storage in the UK has tripled from 18 million sq ft to 60 million sqft as of the end of

87、2023.With the sector still in its nascency in the UK,the self storage footprint is likely to grow significantly in the short and medium term.At present,we estimate that there is just 0.89 sq ft of self storage space per person.This is considerably smaller than markets such as Australia and the US wh

88、ich supply 2 sq ft and 7 sq ft per capita respectively,suggesting a significant potential upside.Additionally,the UK still has some way to go in terms of market awareness.While 8.7%of the population are considering using self storage space,only 43%believe they understand what self storage is.This me

89、ans that the current supply of space is unlikely to be meeting potential market demand as evidenced by rising occupancy rates,which achieved 77.5%in 2023.Long term,structural demographic drivers are likely to support the growth of the sector as they have already done so.An increasing population has

90、increased the overall potential customer base.This has coincided with an increase in major life events namely births,deaths and divorces all of which can often stoke the need for additional space.There has also been substantial evolution in the housing market.Soaring prices due to demand heavily out

91、weighing supply has led to homes becoming increasing unaffordable,driving an increase in PRS,and with that,associated house movement.THE SECTOR WILL CONTINUETO GROW Concurrently,rapidly increasing rents(as well as smaller household sizes)are putting pressure on the size of dwellings,meaning moving i

92、nto smaller units is more common.Both of these factors moving home more often and moving into smaller dwellings are key drivers of self storage demand.Looking ahead,these factors are expected to continue along broadly similar trajectories through to 2040.The number of births is expected to decrease

93、over the next five years before starting to increase modestly,while the number of deaths are projected to gradually increase as the population ages.The 20-74 year old population(those most relevant to the self storage market)is expected to increase at a diminishing annual rate through to a peak in 2

94、038,when it begins to subside marginally.Finally,housing unaffordability measured through comparing house prices to earnings is also expected to continue to rise,with a growing share of the population living in PRS tenures.As such,the strength of demand in the sector is expected to continue,albeit t

95、his is likely to be at a slower rate as the sector matures.Any imbalance between demand-supply will drive rental growth over the years to come even as the market continues toexpand.POPULATION 60000580005600054000620006400066000680007000072000THOUSANDS2005201520252035 2039Source:ONS,Moodys,Cushman&Wa

96、kefieldPopulation(ONS)HOUSING UNAFFORDABILITY64208520252035 2039Source:ONS,Moodys,Cushman&WakefieldHousing UnaffordabilityBIRTHS AND DEATHSSource:ONS,Moodys,Cushman&Wakefield2018 202020252030203520403000020000500006000070000BIRTHS(ONS)DEATHS(ONS)SELF STORAGE INTHE UK IN 202360M

97、 SQ FTP.22P.23SELF STORAGE ANNUAL REPORT 202407PERFORMANCEOccupancy levels dropped by 2.5 percentage points,resulting in a 5.8 percentage point drop over the last two years.However,this is coming off record high occupancy levels attained during the pandemic and occupancy levels are still just above

98、pre-pandemic levels.There were also significant amounts of additional self storage space added to the market during the year.When considering mature stores that are not filling newly added space,the drop in occupancy was similar but obviously the level is higher,falling just under 80%.A mature self

99、storage store should never be at 100%occupancy,as this is indicative ofpoor yield management where there is no product left to sell.Many operators consider optimal occupancy to be around 85%,but this depends on pricing strategies and unit mix.It is interesting to note that not all regions experience

100、d a drop in occupancy,with the East Midlands improving the most,although it did also have the largest drop in 2022.While most regions had relatively stable returns per square foot,London and East Midlands had significant increases,albeit for East Midlands off a low base.This is significant for the E

101、ast Midlands,as they also increased occupancy resulting in a more profitable year for them.While it could be argued that London is less impacted with the rising cost of living due to the higher average wealth of its residents,markets like the North,that have a lower household income did not see a dr

102、op in returns like the South West.These differences could be attributed to increases in supply or the discounting practices of local operators.Occupancy dropped towards pre-pandemic levels and below the long term growth trend,however,returns had a moderate increase to remain at a record highlevels.T

103、he industrys low cost base,along with easing energy prices,meant that cost increases were also kept to a minimum,combined with asmall decrease in profit margins across theindustry.Note that this data was previously calculated on a weighted basis and is now calculated on total occupied space,hence th

104、ere may be some discrepancies with data in previous reports.The industry had amore challenging year in 2023 as the cost of living and inflationary pressures impacted enquiry levels.This will impact average occupancy,as these stores will have lower occupancy as they fill up.It also should be consider

105、ed,that the last time the industry had a significant occupancy drop was the global financial crisis of 2008,when there was also a drop in revenue per square foot.This year revenue increased despite increasing discounting.90.0%85.0%80.0%75.0%70.0%65.5%60.0%100.0%90.0%80.0%70.0%60.0%50.0%40.0%30.0%20.

106、0%10.0%0.0%OCCUPANCYOCCUPANCY FOR MATURE STORESRETURN PER SQUARE FOOT BY REGION2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 202368.7%79.8%76.1%79.8%70.2%80.2%77.2%82.5%83.3%76.1%73.1%76.2%80.7%80.0%76.8%77.5%79.5%73.9%81.5%82.3%77.8%20222023202.2628.1628.5423.3722.7022.9115.3420.5819

107、.8025.9738.8028.0326.4723.8722.6921.1720.8220.4420.3426.23LONDONEAST MIDLANDSYORKSHIRE&THE HUMBERSOUTH WESTNORTHSOUTH EASTEAST OF ENGLANDUKWEST MIDLANDS&WALESSCOTLANDLONDONEAST MIDLANDSYORKSHIRE&THE HUMBERSOUTH WESTNORTHSOUTH EASTEAST OF ENGLANDUKWEST MIDLANDS&WALESSCOTLANDSELF STORAGE ANNUAL REPORT

108、 2024P.24P.25The impact of increased discounting is further emphasised when considering asking rents,which have increased significantly since last year.However,overall returns have not increased to the same level due to the erosion of returns from the discounting.The chart also shows how typically s

109、elf storage pricing is not on a linear scale,and large units earn less per square foot than small units.Churn rate is an important measure in self storage,it shows how many new customers you need to increase occupancy.For this report,churn is measured by the total number of customers that moved out

110、during the year divided by the total units occupied at the end of the year.In simple terms,it represents the percentage of total customers who move out in a year.A churn of 100%on a store of 300 occupied units means you need replace 300 customers in a year just to maintain occupancy.In a period wher

111、e it is harder to get new customers,this becomes critical.Stores with lower churn need to replace less customers each year and will have a longer average length of stay.When evaluating the success of the industry,it is important to consider occupancy in relation to revenue.Adrop in occupancy could b

112、e offset by a larger increase in revenue,while this was not the case in 2023,it is still encouraging that there was not a drop in both revenue and occupancy.Profitability only decreased by 2%in the year.One factor in the more moderate increase in return,is the increase in discounting.Upfront discoun

113、ts that were largely wound back during the pandemic have returned.Insome cases,at a greater level.50%off multiple months initial storage is not uncommonly advertised by operators.OFF ON THE INITIAL MONTHS OF STORAGE.50%Large units do have less“wasted”space on corridors,but even considering,this smal

114、l units will generally provide a greater yield than large units.Unit mix is a more complex equation,as customer demand will not be exclusively for smaller units.Smaller units means more customers are required to achieve the same occupancy levels.There is a growing disparity within the sample group o

115、n churn.Some operators have largely maintained the low churn achieved during the pandemic,and others have returned to above 100%.It would be interesting to correlate discounting practices with churn,to see if up front discounts influence churn.It is evident that mature sites have less churn.This is

116、partly attributed to the fact that mature sites are generally older and the older a site the more long-term customers it will accumulate.The increasing gap indicates new customers are not staying as long as they previously did,meaning sites in fill up stage are requiring even more customers to reach

117、 occupancy levels.PROFITABILITYRENT(PER ROOM)RENT(PER SQ FT)30.020.015.010.05.00.085.0%80.0%75.0%70.0%65.5%60.0%PROFITABILITYOCCUPANCYRENTAL RETURNS1009080 70 6050403020100140%120%100%80%60%40%20%0%1.101.000.900.800.700.600.500.400.30ASKING RENTS(PER WEEK)CHURN RATERENT(PER ROOM)RENT(PER SQ FT)INDUS

118、TRY CHURN RATEMATURE STORES CHURN RATE25K SQ FT 50K SQ FT75K SQ FT100K SQ FT150K SQ FT200K SQ FT200202024%118%76%120%97%81%98%113%97%55%112%81%63%71%This is an indication that operators are finding it harder to source or convert new customers.As most of the public have never us

119、ed self storage before,the industry has historically relied on up front discounts to encourage people to use the service.The intention is to have them stay longer than they anticipate and return to the full rate for the majority of their stay.It is often debated if it is easier for a self storage st

120、ore to increase occupancy or rates after a downturn.This depends largely on local conditions,churn and existing pricing policies.The test for the industry will be in the coming 12 months to see if the trend of decreasing occupancy rates continues or returns to its long term upward trend while operat

121、ors continue to push rate increases.20017 2018 2019 2020 2021 2022 2023OPERATORS FREQUENTLY PROMOTESELF STORAGE ANNUAL REPORT 2024P.26P.2735302520151050NUMBER OF STORES OPENED SELF STORAGECONTAINER STORAGE34222502011 2012 2013 2014 2015 2016 2017 2018 2019

122、 2020 2021 2022 2023An increasing conversion rate with decreasing occupancy shows that it is not the operators failing to convert enquires,but that enquiry levels have dropped.This is likely a combination of softening of pandemic driven changes to peoples housing and the increasing cost of living.Le

123、ss house moves will have also had an impact.Increasing growth in the industry will also put pressure on occupancy,especially in a period when customers are harder to find.The industry continues to add space,both through new stores and organic growth.There is a strong pipeline for future sites and de

124、spite escalating times to obtain planning,the industry looks set for solid growth for at least the next three years.Note that this chart only represents the sample group for year on year comparison and does not represent all new store openings across the industry.The industry has consolidated in rec

125、ent years,there are a small number of large operators with 20+stores and a very large number of small operators with less than five stores,with very few mid-sized operators.35%30%25%20%15%10%5%0%CONVERSION RATE2000202020%90%80%70%60%50%40%30%20%10%0%NUMBER OF STORES

126、OPENED PER OPERATORNONEONETWOTHREEOVER THREE76%88%74%75%86%72%75%64%66%19%11%21%17%5%14%16%20%23%3%4%6%4%9%7%2%7%5%6%5%5%4%3%2%1%1%1%1%2%The large operators are continuing their aggressive expansion plans,with the largest ever number of operators opening more than three sites in the year.Some of thi

127、s is likely due to catching up after the pandemic slowed the pace of construction generally.68%13%9%8%2%20017 2018 2019 2020 2021 2022 2023SELF STORAGE ANNUAL REPORT 2024P.28P.29Small stores are moving from part-time employees to full-time,having more full-time for the first time.Likely d

128、ue to the tightening employment market,where often you need to offer a full-time contract to attract or retain staff.3.02.52.01.51.00.50.025K SQ FT150K SQ FT200K SQ FTThe industry has a relatively low cost base.Despite employing few people per store,staff costs remain the highest cost,with rates and

129、 taxes the second largest cost.It is worth noting that despite the rising energy costs,utility costs only increased by one percentage point over last year.The percentage of staff costs decreased this year,reflective of the general reduction of staff in stores.Management costs on the other hand incre

130、ased as more operators use management services and centralised or third party marketing and sales services.EXPENSESAVERAGE NUMBER OF STAFF FOR DIFFERENT FACILITY SIZES2%1%27%18%15%14%8%6%6%4%Overall the industry is reducing the number of staff per store.The ability to source staff will be contributi

131、ng to this.It is also likely due to increasing use of automation in the industry,more reliance on central sales and operational teams by the larger operators and lowering of staffed times of stores.STAFF COSTSMANAGEMENT COSTSONLINE MARKETINGUTILITIESOTHER MARKETINGINSURANCEMERCHANDISEREPAIRS AND MAI

132、NTENANCEOTHER EXPENSESRATES AND TAXESAVERAGE NUMBER OF STAFFFULL TIMEPART TIME2.02.22.71.61.31.2SELF STORAGE ANNUAL REPORT 2024P.30P.3108The progression to smaller stores continued in 2023.The percentage of mega stores of 90,000sqft+remained the same,however,there was a decrease in the percentage of

133、 stores in the 50,000 75,000 range.45,000 remains the most popular store size but more stores of less than 15,000 are being added.The growth in very small stores islikely to be a result of the expansion of the industry into smaller rural hamlets and introduction of automation allowing for smaller,un

134、mannedstores.As criminal activity in the UK increases and criminal technology,such as micro cameras,become more readily available,self storage operators need to also invest in improving security.One of the biggest growth areas has been the use of CCTV monitoring services.There are now dedicated self

135、 storage monitoring services in the UK,allowing more pro-active use of CCTV to prevent crimes.More operators are upgrading their CCTV to cover internal corridors,not just access points.Stores are also moving away from PIN code access control,moving to phone app entry systems orother two factor authe

136、ntication systems.A new question asked this year was in regard to operators use of Artificial Intelligence in their business.A quarter of operators are actively using AI,albeit the most common use being to assist with content creation.More advanced uses such as for pricing models or analysing data,a

137、re less common.PERCENTAGE OF STORES BY SIZESECURITY FEATURES IN STORES BUSINESSES USING ARTIFICIAL INTELLIGENCE30%25%20%15%10%5%0%100 9080 7060 50 403020100TOTAL USING AIFOR PRICING STORAGE UNITSARTWORK CREATIONTO SCRAPE/ANALYSE COMPETITOR DATATO WRITE BLOGS OR OTHER CONTENTIN A CHAT BOTTO ANALYSE O

138、UR DATASOME OTHER MEANS25%16%14%13%9%9%4%3%4%5%5%9%9%9%6%6%11%6%6%7%4%3%1%1%1%3%3%Up to 5,000 10.000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 90,000+PHOTO ID REQUIREMENTSCCTV PERIMETER&ENTRANCECCTV INSIDE ALL CORRIDORSCOMPUTERISE

139、D GATE ACCESS CONTROLS24 HOUR ACCESSMONITORED SECURITY CAMERASINDIVIDUAL ROOM ALARMSPHONE APP BASED ENTRY SYSTEMPHONE APP FOR BUSINESSSECURITY PATROLS/MANNED GUARDELECTRONIC LOCK ON DOORS96%95%78%50%44%43%32%29%26%19%4%STORE FEATURESSELF STORAGE ANNUAL REPORT 2024P.32P.33TYPE OF STORE OWNERSHIP20112

140、000020202120222023SHORT LEASEHOLD FREEHOLD/LONG LEASEHOLD 90%100%80%70%60%50%40%30%20%10%0%85%83%82%80%78%79%78%80%80%77%77%80%78%82%15%17%18%20%22%21%22%20%20%23%23%20%22%18%Having prices displayed online continues to become more common as the number of customers ob

141、tained grows to 82%,up from 79%last year.While some operators may wish to hide prices from customers online and prefer to communicate with them personally,customers want to see store prices online when evaluating their options.It is almost certain that businesses not putting their prices online are

142、missing out on some customer enquiries.More operators are putting their prices in a public space,rather than providing them to customers after they have entered their contact details or requested a quote.While this may be more appealing to the customer it allows easier data scraping for price compar

143、ison sites.It also potentially commoditises the product for customers that do not understand the industry and the differing features between self storage businesses.Most operators still do not provide the ability to book a unit online.This chart represents companies,not stores.Given that the major o

144、perators allow booking online,the percentage of stores providing this service would be much higher.This chart shows the reluctance of smaller independent operators to allow customers to book units online.With the belief they have more ability to close a sale or upsell if the customer contacts them d

145、irectly.Simpler management systems or websites cannot facilitate online bookings or real time inventory management.There is also an additional cost associated with online payment systems or online ID verification.While there was a movement back towards freehold sites in 2023,the long term average is

146、 relatively stable.Owners prefer freehold sites and the bulk of leasehold sites are container or other external sites.Some operators will use leasehold sites as a means to enter the industry with less capital,with the aim to acquire freehold at a later date.In other cases,a leasehold site is taken d

147、ue to its location and lack of freehold opportunities nearby.CAN CUSTOMERS RESERVE A UNIT THROUGH YOUR WEBSITE?DISPLAYING PRICES ONYOURWEBSITERESERVE AND PAY FOR A UNITRESERVE A UNIT ONLYNO59%24%18%NO PRICES ONWEBSITEYES AFTER COLLECTING DATA FROM CUSTOMERYES IN A PUBLIC AREA FOR EVERYONE TO SEE44%1

148、8%38%SELF STORAGE ANNUAL REPORT 2024P.34P.3509Industry operators are more optimistic for the coming year than they were at the start of 2023,with 47%expecting the market to improve and only 17%expecting a decline in profits.Of the 17%only 3%believe it will be a hard year,down from 9%the previous yea

149、r.At the time of taking the survey inflation had eased but interest rates were still high and there was a lot of global uncertainty.It should also be noted that the survey is taken in the middle of winter which is traditionally the softest period for the industry in terms of enquiries and conversion

150、s.It seems that operators are confident that conditions pick up significantly in the summer.OUTLOOKOVERALL OPTIMISM FOR 20240%10%20%30%40%50%60%70%80%90%2000020202120222023IT WILL BE A HARD YEARSOME IMPROVEMENTSLIGHT DOWNTURNMUCH BETTER YEARSAME AS LAST YEAREXPECTATI

151、ON FOR RENTAL RATES IN 2024EXISTING CUSTOMER RATESNEWCUSTOMER RATESINCREASE GREATER THAN INFLATIONINCREASE LESSTHAN INFLATIONDECREASENO CHANGE80%70%60%50%40%30%20%10%0%68%1%2%18%14%53%28%18%90%100%80%70%60%50%40%30%20%10%0%DECREASEINCREASESTAY BROADLY THE SAMEEXPECTATIONS FOR INCENTIVES OVER THE YEA

152、R AHEAD BY REGION SCOTLANDWEST MIDLANDS AND WALESEAST MIDLANDSSOUTH EASTNORTHEAST OF ENGLANDLONDONYORKSHIRE&THE HUMBERSOUTH WEST100%97%78%77%90%5%1%88%11%91%9%91%4%3%3%7%2%5%19%20%3%3%93%There remains confidence in the market to raise prices of existing customers.However,expectations are that new cu

153、stomers will remain hard to find and require more competitive pricing.It is not unusual for operators to push new rates on existing customers harder.Once people have used the service,they experience the value and are more willing to pay higher rates than they may have initially.This strategy clearly

154、 works better for businesses with lower churn rates.If you have more customers staying for a short period of time,they are using the cheaper rates and discounts and the impact of increasing rates on long-term customers is reduced.This further reinforces the benefit of businesses with lower churn rat

155、es during times when acquiring new customers is more challenging.After significantly increasing discounts in 2023,most operators expect to retain the current discounting levels.Operators in the South East and East of England being the exception.That said,when considering last years survey,operators

156、did not predict the level of increase in incentives that actually occurred.The issue with discounting in the industry is it can have a cascading effect.One operator starts a heavy discount campaign,possibly to fill up new space or maybe as a panic reaction for a downturn in enquiries.Other operators

157、 then match the discount,sometimes without considering their own data and if the competitors actions are actually impacting their business.Suddenly the initial discount is being replicated by many operators.As stated earlier the impact of these discounts ismagnified by the churn of the business.SELF

158、 STORAGE ANNUAL REPORT 2024P.36P.37EXPECTATIONS FOR GROWTH OF STORES FROM SAMPLE GROUP202420252026904030208227ACQUIREDDEVELOPEDThe increasing cost of debt is impacting operators plans to grow their businesses,but the industry is split as to whether the impact is positive or neg

159、ative.Almost as many operators are planning on increasing their development plans as those planning on reducing them.There remains a very bullish expectation for future growth by operators.In 2022,the prediction for growth in 2024 was 51 developments and 30 acquisitions,this has been increased to 70

160、 developments and 34acquisitions.Furthermore,the sample group is getting closer to hitting their growth expectations.In 2023,they predicted 66 new developments and achieved 62.There is a strong pipeline for development of new stores from both the major listed companies and the smaller independents.I

161、MPACT OF THE INCREASING COST OF DEBT AND INFLATION ON THE FUTURE DEVELOPMENT OF YOUR BUSINESSWE ARE CONTINUING AS PLANNEDWE ARE PLANNING MORE INVESTMENT IN NEW SITES THAN PREVIOUSLYWE HAVE REDUCED OUR PLANS TO INVEST IN OUR CURRENT SITESWE HAVE REDUCED OUR PLANS TO INVEST NEW SITES0554045

162、5011%44%7%38%Despite significant consolidation in the industry,there also continues to be properties placed on the market for sale,although more so in secondary cities and regional locations than London and other prime markets.Those properties of quality that are listed,experience strong bidding int

163、erest from prospective purchasers.Note that this chart only represents growth expectations of the sample group and not the industry as a whole.It should also be considered that self storage generally has relatively low debt levels for aproperty based industry,hence they have less exposure to increas

164、ing interest rates and cost of debt.There is no evidence that the current increasing cost of debt has forced any self storage business into liquidation in the UK.Given that development ofa self storage store often takes two or more years,especially with the current delays in planning approvals,many

165、operators appear to be taking advantage of cheaper and more available property in the current market,with the expectation that the current conditions are short term.SELF STORAGE ANNUAL REPORT 2024P.38P.39Interest in mixed use development is increasing,with 34%considering mixed use development,up fro

166、m 29%last year.However,the number of actual mixed use developments has only improved marginally,12%up from 10%last year.Such developments can open up opportunities on high profile sites that may not sustain self storage alone.However,they are also much more complex,often come with planning challenge

167、s and require an equally interestedpartner.Like many other industries,self storage is being impacted by an unprecedented period of technological change.Innovations in terms of automation,access control,artificial intelligence,security and data management are all changing the way stores are operated

168、and customers interact with self storage businesses.Pricing strategies are becoming more complex and data driven.It is somewhat surprising that more companies are not investing in new technologies.BUSINESSES IMPLEMENTING NEW TECHNOLOGY IN THE NEXT 2 YEARS 20202028070605040302010067%80%60%

169、59%The industry continues to invest in sustainability improvements in their businesses,although the number of operators investing in sustainability(66%)is down from last year(78%).This could be as more operators have already completed their sustainability upgrades,particularly as the drop was largel

170、y in the area of modifying stores to be more energy saving.It could also be that some operators are pulling back from such improvements until the market improves.In a separate survey of its members,the SSA UK found that 95%of them felt that adding sustainability improvements to their business increa

171、sed its value.OF SSA UK MEMBERS FELT THAT ADDING SUSTAINABILITY IMPROVEMENTS TOTHEIR BUSINESS INCREASED ITSVALUE95%INTENTION TO INTRODUCE SUSTAINABILITY IMPROVEMENTS34%14%21%14%4%14%NO SUSTAINABILITY CHANGESCHANGING OUR OPERATING PRACTICES TO REDUCE ENERGY OR WASTEBUILDING A NEW STORE OR EXPANDING A

172、 STORE WITH MORE SUSTAINABLE ENERGY OR BUILDING METHODSPHYSICALLY MODIFYING MY EXITING STORE WITH MORE ENERGY SAVING OR ENVIRONMENTALLY SUSTAINABLE CHANGESOTHER SUSTAINABILITY CHANGESBUILDING NEW STORES INCORPORATING AN ESG CRITERIA AND MORE SUSTAINABLE ENERGY OF BUILDING METHODS UNDER THE MINIMUM E

173、NERGY EFFICIENCY STANDARDSCONSIDERATION OF MIXED USENO INTEREST IN MIXED USEI WILL BE USING IT IN A FUTURE DEVELOPMENT/EXPANSIONI AM CONSIDERING IT FOR A FUTURE DEVELOPMENT/EXPANSIONSELF STORAGE ANNUAL REPORT 2024P.40P.41ARE YOU AWARE OF A SELF STORAGE STORE IN YOUR LOCAL AREA?I KNOW ONE OR MOREI DO

174、NT KNOW ANY30202001720182019 2020 20212022 2023 202452%48%54%47%55%45%55%45%61%60%60%39%40%41%61%39%61%39%57%43%54%46%10AWARENESS&INTENTION TO USEOnly 43%of the UK population surveyed believe they understand what self storage is,and only 9%claim to know the servicewell.It is li

175、kely that the bulk ofthis group are people who have actually used the service inthepast.When considering awareness on a regional level,London and the South unsurprisingly lead.This is where the bulk of self storage stores are in the UK.With many large stores in prominent locations.However,there has

176、been limited improvement in awareness in London over the past 5 years,while awareness in the North has risen from 40%to 45%.Most self storage operators in the UK spend the bulk of their marketing budget on Google AdWords or similar online campaigns,usually targeting people already looking for storag

177、e.Common keywords are“self storage near me”or“self storage in a location”.This kind of advertising directs customers already looking for self storage to a business but it does not grow the market.In other markets,like Australasia,industry awareness was improved through mass media advertising,usually

178、 by the larger operators.TV and radio advertising was common,as were prominent billboards.This exposed the industry to a broader range of people.In the UK,there has been very little mass media advertising across the sector,particularly over the last five years.This can be partly attributed to the ev

179、olution of media and associated advertising.As a point of comparison,when the industry was growing across Australasia,this was driven by TV and print advertising,which has since seen its market sharediminish.Self storage is a needs based purchase,so people who do not perceive they have a need for th

180、e service are unlikely to understand or be aware of it.However,there has been limited movement in awareness over the past eight years,as the chart below shows,which is somewhat concerning for the industry asit is likely that there are customers that have a potential need for self storage,that are no

181、tconsidering it as they do not understand theservice provided.30254035504520151050AWARENESS OF SELF STORAGEI HAVE NEVER HEARD OF SELF STORAGEI HAVE HEARD OF SELF STORAGE BUT KNOW NOTHING ABOUT THE SERVICE IS OFFEREDI HAVE HEARD OF SELF STORAGE AND KNOW A REASONABLE AMOUNT ABOUT THE SERVICE IS OFFERE

182、DI HAVE HEARD OF SELF STORAGE AND KNOW THE SERVICE THAT IS OFFERED VERY WELL2002020224GOOD AWARENESS BY LOCATION3020106050400NORTHERNIRELANDSCOTLANDMIDLANDSNORTHEASTENGLANDWALESLONDONSOUTH29%42%42%45%45%47%48%51%51%SELF STORAGE ANNUAL REPORT 2024P.42P.43The Polish self storage

183、market is one of the younger,less developed markets in Europe but it has ahigher level of public awareness than most other continental countries,including more mature markets such as the Netherlands.In Poland,the major operator,Less Mess,conducts regular advertising campaigns to promote the industry

184、,using a mix of traditional and onlinemedia.Store visibility remains clearly the best means for the public identifying a local self storage store.This further supports the lack of offline marketing.Social media presence is on the increase as more businesses are using this medium for promotion and pe

185、ople use it asource of referral or review.Obviously,increasing demand for the product will benefit the industry,but there also needs to be enough supply to meet this demand.At the moment,the UK is largely in a supply driven market where the limitation on growth is the availability of property to dev

186、elop rather than a lack of demand.If the number of customers needing self storage suddenly rose by 20%then there simply would not be enough storage space to accommodate them.In the current supply driven market operators have more control over their pricing and can maximise yield and occupancy levels

187、.When breaking this data down into people that are having a change in their home,such as renovating,installing a home office,adding more family members or moving home,the intention to use self storage increases significantly.People going through a change in their home are more than three times more

188、likely to consider using self storage than those who are not.The number of people using self storage is increasing as the industry increases its available storage space.There is clearly potential for growth,with 8.7%of the people surveyed saying they are considering using self storage in the next 12

189、 months,up from 7%the previous year.Itshould be noted that each year,there are more than three times as many people considering using self storage as actually using it.It is important for the industry to understand why these people chose not to use the product and where they stored their goods inste

190、ad.HOW WERE YOU MADE AWAREOF YOUR LOCAL SELF STORAGE STORE?70%STORE IS VISIBLE ON ROAD13%FRIEND OR FAMILY11%OUTDOOR ADVERTISING7%ONLINE ADVERTISING5%OTHER6%DONT KNOW/CANT RECALL2%YELLOW PAGES3%ADVERTISING ON RADIO3%ADVERTISING IN A LOCAL PAPER3%ADVERTISING ON TV7%SOCIAL MEDIAINDUSTRY UNDERSTANDING20

191、2420202016Ive seen some self storage buildings but Im not entirely sure what theyre forI dont have anything Id put into self storageSelf storage buildings are like a big warehouse inside Self storage contracts are flexible from 1 month to 12 months and longerSelf storage offer a range of unit sizes

192、to suit peoples needsSelf storage buildings are very secureSelf storage buildings always look closedId imagine that it would be expensive to store things in self storageSelf storage is mostly used by businessesOnly I can access my goods in self storage,not the store staff30208%36%10%57%38

193、%33%43%39%32%17%When the public is questioned further about their understanding of self storage,it becomes clearer that much of the population do not understand the fundamentals of the service.Only 57%knew self storage offered a range of unit sizes and 36%understood only they had access totheir unit

194、 and not the store staff.That said,understanding is trending upwards and the number of people who state they have nothing to put into self storage is trending downwards.39%of people think self storage is expensive,which is of some concern considering if that sample 60%of them thought it would be che

195、aper than itisand only 21%had an accurate perception of price.PEOPLE THINK SELF STORAGE ISEXPENSIVE39%INTENTION TO USE BASED ON CHANGE TO HOMEOTHERSHOME CHANGERS30200050400I AM CONSIDERING USING SELF STORAGE IN THE NEXT 12 MONTHSDONT KNOWI AM CURRENTLY USING SELF STORAGEI AM NOT USING/CON

196、SIDERING USING SELF STORAGE IN THE NEXT 12 MONTHS2%3%4%15%7%6%76%87%7%6%I AM NOT USING/CONSIDERING USING SELF STORAGE IN THE NEXT 12 MONTHSUSE OF SELF STORAGE IN NEXT 12 MONTHS20242020201686%84%83%9%I AM CONSIDERING USING SELF STORAGE IN THE NEXT 12 MONTHS6%7%6%DONT KNOW3%2%2%I AM CURRENTLY USING SE

197、LF STORAGESELF STORAGE ANNUAL REPORT 2024P.44P.4511RESEARCH&CONTACT METHODSNot surprisingly,a Google search was the most common way people expected to search for a local store,but 30%of people were still using the location of a local store.When similar questions were asked of customers that were usi

198、ng self storage,we see that local knowledge remained a major means offinding their self storage store,as did referrals from friends and family.Less than half of customers said they found the storage business they are using by searching online.These customers were then asked if they also performed an

199、 online search for more information,to which 52%responded positively.This means 26%of customers were never exposed to the bulk of the industrys marketing,which is online.This was also reflected when the general public were asked if they would prefer to rent astorage unit using online or offline meth

200、ods.Other than an increase towards online during the pandemic,the responses have been largely stable,currently 48%online and 19%with no preference.of customers did not search online for the store they chose at all.Using purely offline methods to find and contact the store.26%This suggests they may b

201、e using the search engine to find a specific store,rather than a general search.It is also interesting to note that 24%would ask friends orfamily.Is this because they know people who have used self storage,or are they possibly looking for people who may just know the product better than they do?Note

202、 that respondents could choose all that apply from this question,hence the total ofall responses isabove 100%.This year,the survey was changed tofurther examine the online methods people prefer to use when contacting aself storage store.It showed that 13%of people prefer to contact a store usingonli

203、ne chat.The industry generally is not providing a high level of online chat,many operators have chat functions that are unmanned and require the operator to email back.Others are experimenting with chat bots for common questions.There are few operators offering live chat with rapid response,particul

204、arly out of hours.VIA AN INTERNET SEARCH(E.G.GOOGLE,YAHOO ETC.)LOCATION(I.E.YOU KNOW A STORE NEARBY)ASK A FRIEND OR FAMILY MEMBERSOCIAL MEDIA(E.G.FACEBOOK,LINKEDIN ETC.)DONT KNOWVIA THE PHONE DIRECTORY(E.G.YELLOW PAGES ETC.)VIA MY LOCAL PAPEROTHER76%30%24%14%6%8%5%1%HOW WOULD YOU FIND A LOCAL SELF S

205、TORAGE STORE TO CONTACT?20242023202220212020HOW WOULD THE GENERAL PUBLIC PREFER TO BOOK A SELF STORAGE UNIT?ONLINENO PREFERENCEIN STORE605030402010019%21%19%20%20%33%33%33%25%33%46%48%48%55%46%HOW DID CURRENT CUSTOMERS FIND THIER SELF STORAGE STORE?HOW WOULD YOU MOST PREFER TO CONTACT A SELF STORAGE

206、 STORE?WHATSAPP OR ANY MESSAGING SERVICENONE OF THESE302520151050DONT KNOWBY PHONEVISITING THE STOREONLINE CHATEMAIL29%22%22%13%7%5%2%HOW DID CURRENT CUSTOMERS FIND THEIR SELF STORAGE STORE?INTERNET SEARCHREFERRAL FROM A FRIEND OR FAMILYBILLBOARD SIGNAGE/BUILDING ADVERTISINGONLINE ADVERTISEMENTSOCIA

207、L MEDIALOCAL KNOWLEDGE AWARE OF THE LOCATION OF THE BUSINESS49%34%10%5%1%1%LOCAL PAPERTELEPHONE DIRECTORY1%1%SELF STORAGE ANNUAL REPORT 2024P.46P.47HOW DO CUSTOMERS PREFER TO CONTACTTHEIR STORE ONCE MOVED IN?BY VISITINGBY EMAILBY ONLINE CHATTHROUGH AN APPTHROUGH SOCIAL MEDIA0554021%3%2%1%

208、36%BY PHONE37%40%of customers only contacted the store they chose.They were likely already aware of its presence or had been referred by someone.They could have also researched multiple stores online but then stored with the first one they contacted.Customers are contacting more stores over time,lik

209、ely a result of the ease customers can contact multiple stores online.This question includes contact by email,phone,in-person,or other electronic means.More customers are looking to online review sites to verify their decision before selecting a self storage store.30%of customers surveyed had used a

210、n online review site,with Google being the most commonly used.Actively monitoring and promoting reviews is important for businesses for a range of reasons,especially in self storage where potential customers have likely not used the service before and are looking for reassurance they are making the

211、right choice.A free alternative remains the biggest competitor to the industry as a whole.So-called disruptors to the industry,such as paying someone else to store your goods or having units delivered to you,continue to have minimal impact on the industry,with few customers considering them as a via

212、ble option for self storage.Once customers have access to their self storage unit,they have a clear preference to contact the store in person by visiting or calling rather than using online methods.This seems to contradict the trend for some operators to move towards unmanned stores or reduced staff

213、ing hours.This year,in the general public survey,there was also an increase in the number of people who said they were not comfortable with unmanned stores.While the fairly willing group grew,there was a drop in the number of people who were very willing and more of the dont know group moved into un

214、willing.Will this trend continue as more unmanned sites are rolled out across the country this year?If this data is broken down into people using self storage,then the results are strikingly different.Customers of self storage are much more likely to accept unmanned stores.This could be linked to a

215、lack of awareness and understanding of the industry.People who have never used self storage do not understand the security,access control and other elements common in the industry and have more concerns about unmanned stores than those customers who have already experienced the service.Like many asp

216、ects of self storage,once the customer has experienced it,they understand and value it.The challenge remains for the industry to convince potential customers who have never used self storage to consider unmanned sites.WILLINGNESS TO USE AN UNMANNED STORE5045403530252015105VERYWILLINGFAIRLYWILLINGNOT

217、 VERYWILLINGNOT ATALL WILLINGDONTKNOWNET:COMFORTABLENET:NOTCOMFORTABLE02024202320222021202010%35%25%15%15%45%40%ATTITUDE TO UNMANNED STORESFROM CUSTOMERSDONTKNOWNET:COMFORTABLENET:NOTCOMFORTABLESELF STORAGE CUSTOMERSALL DATA15%14%45%63%23%40%HOW MANY SELF STORAGE FACILITIESDID YOU CONTACT?JUST THISO

218、NE5 ORMORE240%345%3%35%18%DID YOU USE ANY ONLINE REVIEW SITESBEFORE SELECTING YOUR SELF STORAGE STORE?NOFEEFOGOOGLEREVIEWSTRUSTPILOTFACEBOOKYES,BUT UNSUREOF NAME OFONLINE REVIEWSITEOTHER(PLEASESPECIFY)9%1%6%2%8%4%70%WHAT OTHER OPTIONS DID YOU CONSIDER?ANOTHER SELF STORAGE PROVIDERA FREE ALTERNATIVE

219、E.G.PARENTS GARAGE,FRIENDS HOUSE,ETCRENTING A GARAGE IN THE AREASTORAGE WITH A REMOVALS COMPANYPAYING TO STORE YOUR GOODS IN SOMEONE ELSES HOUSE RENTING A WAREHOUSE IN THE AREAMOBILE SELF STORAGE WHERE A UNIT OR BOX IS DELIVERED TO YOU55%16%12%7%4%3%2%SELF STORAGE ANNUAL REPORT 2024P.48P.4912REASONS

220、 FOR USEThe level of commercial customers in self storage has remained relatively stable over the last fewyears.There was a small increase in commercial customers and space during the pandemic and this has largely been maintained since,although this year,the number of commercial customers is down on

221、e percentage point and space is up one percentage point.When surveying the general public,of those who said they were considering using self storage,the most common reason was to generally create more space in their home.Although when combining the two reasons related to moving house,this accounted

222、for 32%of responses,down from 36%lastyear.The number of people looking tocreate more space to work from home rose from 8.9%to 12%,suggesting that people may be settling into hybrid or remote working and establishing more dedicated working spaces at home.These results are similar to the survey of cus

223、tomers,where 30%dont have enough space at home and 33%are using it for house move related reasons.WHY DO YOU NEED SELF STORAGE?051015202530IM MOVING AND I AM BETWEEN PROPERTIES AT THE MOMENT16%I NEED TO CREATE MORE SPACE AT HOME(NOT INCLUDING WORKING FROM HOME REASONS)29%OTHER14%FOR BUSINESS REASONS

224、(E.G.TO STORE MY BUSINESS STOCK OR EQUIPMENT,USE AS DISTRIBUTION HUB,ETC.)13%IM MOVING AND DONT HAVE ENOUGH SPACE IN THE NEW HOME16%MY HOME IS BEING/WILL BE RE-DECORATED AND I NEED TO STORE MY BELONGINGS WHILST ITS BEING CARRIED OUT24%I HAVE RECENTLY HAD AN IMPORTANT LIFE EVENT(E.G.BIRTH OF A CHILD,

225、MARRIAGE,DEATH/INHERITANCE,SEPARATION/DIVORCE ETC.)12%I NEED TO CREATE MORE SPACE AT WORK12%TO CREATE MORE SPACE TO WORK FROM HOME12%I NEED TO STORE MY BELONGINGS DURING THE UNIVERSITY HOLIDAYS0%OF COMMERCIAL AND RESIDENTIAL CUSTOMERSRESIDENTIAL CUSTOMERS COMMERCIAL CUSTOMERS27%73%OF CUSTOMERS%OF SP

226、ACE34%66%SELF STORAGE ANNUAL REPORT 2024P.50P.51For those customers who stated they first used self storage due to a life changing moment,death in the family is the single biggest reason.Of the other reasons not listed,common responses were the return of an elderly family member home,living on a boa

227、t,a death,the inability to move to a larger house or travelling.Business customers tend to be longer term users of self storage.While used by businesses of all sizes,the largest group of customers are small businesses and online retailers.These customers have often grown their businesses to a point

228、where they need extra storage outside their homes for stock,records or other materials.Some are also looking for more room to pack or organise goods.It is not unusual for abusiness to start with a relatively small unit and then increase the size or number of units taken as the business grows.LIFE CH

229、ANGING MOMENTS THAT LED CUSTOMERS TO SELF STORAGEOTHER(PLEASE SPECIFY)DEATH IN THE FAMILYENDING A RELATIONSHIPINTERNATIONAL MOVECHANGE IN EMPLOYMENT ENTERING A NEW RELATIONSHIPKIDS RETURNING HOME BIRTH OF A CHILD05530%30%13%10%9%4%3%2%15%14%12%10%8%9%6%4%3%2%2%2%1%14%REASONS RESIDENTIAL C

230、USTOMERS CHOSE THEIR SELF STORAGE STORE PACKAGING MATERIALS AVAILABLE FOR PURCHASE ON SITEGOODS PICK UP SERVICEPROXIMITY OF LOCATION TO HOME OR WORKAFTER HOURS ACCESS(BEFORE 8.30AM-AFTER 5.00PM)SECURITY VIDEO MONITORING OF STORAGE AREASCONVENIENT ACCESS TO SITEON SITE MANAGER OR ATTENDANT CLEANLINES

231、S AND PRESENTATION DRIVE UP ACCESS TO STORAGE UNITSTORAGE UNIT INSULATION AND VENTILATIONINDIVIDUAL ALARM ON STORAGE UNITLOCATION EASY TO FINDUNDERCOVER DOCKING-LOADING AREAUSE OF VAN OR TRAILER AT NO COSTLACK OF SPACEHOLDING AREA FOR DISTRIBUTION OF GOODSARCHIVE OF RECORDSNO ROOM FOR HOME RECORDSFL

232、EXIBLE SOLUTION FOR UNCERTAIN ECONOMIC CONDITIONSTEMPORARY STORAGE WHILE CHANGING ADDRESSTEMPORARY STORAGE WHILE RENOVATING BUSINESS PREMISESITEMS NO LONGER NEEDED OR WANTED SEASONAL STOCKHAVE ITEMS CLOSE TO OUR CLIENTS BUSINESS REASONS FOR USING SELF STORAGE40%21%13%9%5%3%1%1%1%1%0554045

233、SELF STORAGE ANNUAL REPORT 2024P.52P.5313CUSTOMER DEMOGRAPHICS&USAGEMore males use self storage than females,although itshould be considered that these surveys are based onthe person that signed the self storage contract.While more males may complete the contract and be the main contact for the self

234、 storage business,they could be sharing the use of the unit with other females.When we survey the general public,the gap reduces to 47%of females who say they have used self storage.Self storage customers are generally older than the national average.It takes time to gather possessions to put into s

235、torage or experience the life changing moments that lead people to use self storage.Self storage is also a discretionary spend and is more commonly used by people with higherearnings.The portion of space taken by commercial customers has been increasing at a very gradual rate,up from 59%in 2015,whil

236、e the number of units has remained relatively stable.Commercial customers also stay longer than residential customers,helping to reduce churn.The age of self storage customers has not reduced significantly in the last 10 years,if anything it is increasing.That is not to say that self storage does no

237、t attract younger customers,but they tend to use the service for shorter periods.Long-term customers,or lifestyle users in the UK,often start their self storage journey in their 40s and they stay customers as they age.0.7%43.8%55.5%OTHERFEMALEMALEAGE OF CUSTOMERS VS NATIONAL AVERAGE AGES024681012141

238、618SURVEYNATIONAL20-2425-2930-3435-3940-4445-4950-54AGE IN YEARS55-5960-6465-6970-7475-7980-844%15%11%7%10%12%15%5%8%3%7%7%7%6%6%4%1%8%8%8%8%8%8%9%1%1%CUSTOMER TYPEUNITSSPACERESIDENTIALCOMMERCIAL25%75%36%64%SELF STORAGE ANNUAL REPORT 2024P.54P.55Self storage customers have more wealth than the natio

239、nal average.The high percentage of people with nil income is likely due to be retirees and students.Particularly during the last 12 months and the cost of living crisis,self storage has been less affordable as a discretionary spend for people on lower wages and has attracted less customers in this d

240、emographic.Generally speaking,stores in lower socioeconomic regions did not perform as well in 2022,however there are notable exceptions.A large number of self storage customers are repeat users.The fact that 23.7%of customers have used multiple providers,shows that customers see the value in self s

241、torage once they have experienced it.Often using a different provider when they move home or have a subsequent need for the product.The industry does not tend to do a lot of re-marketing to past customers,but this data suggests that this could be an opportunity for growth.As noted elsewhere in this

242、report,the bulk of self storage business customers are small businesses.However,it is actually large businesses that are over represented in self storage.Just over 1%of all businesses in the UK have more than 50 people,yet these make up 7%of self storge customers in the survey.This shows that self s

243、torage is used and valued by arange of businesses,from micro to large.Separation or divorce is the second largest life changing moment that leads people to consider self storage,so it is no surprise that divorced or separated people are almost twice aslikely to use self storage.What is interesting i

244、s that they also make up a larger portion of long term customers,that is customers that stay for over 12 months.People who use self storage at the end of a relationship are more likely to become lifestyle customers,making them a more attractive customer for self storage operators to target.HOUSEHOLD

245、 INCOME OF CUSTOMERS5,000 OR MORE(260,000 OR MORE)4,000-4,999(208,000-259,999)600-799(31,200-41,599)800-999(41,600-51,999)1,000-1,249(52,000-64,999)1,250-1,499(65,000-77,999)1,500-1,999(78,000-103,999)2,000-2,499(104,000-129,999)2,500-2,999(130,000-155,999)3,000-3,499(156,000-181,999)3,500-3,999(182

246、,000-207,999)400-599(20,800-31,199)300-399(15,600-20,799)200-299(10,400-15,599)1-199(1-10,399)NIL10%5%7%8%14%12%9%8%6%8%2%3%1%1%1%3%AVERAGEHOUSEHOLDINCOMEMARITAL STATUS01020304050NEVER MARRIED/SINGLEWIDOWEDDIVORCED ORSEPARATEDMARRIED/CIVILPARTNERSHIPNATIONALSURVEY32%35%6%6%14%8%48%50%055U

247、SE THIS AND ANOTHERPROVIDERUSE THISPROVIDERBEFOREUSEANOTHERPROVIDERBEFOREUSE EITHERTHIS ORANOTHERPROVIDERBEFOREREPEAT USE8.8%8.5%23.7%32.2%21%7%5%7%61%SIZE OF BUSINESSES THAT USE SELF STORAGE50 AND ABOVE21-5011-204-101-3BUSINESS USESELF STORAGE ANNUAL REPORT 2024P.56P.57Demonstrating how important s

248、elf storage is to the development of local businesses,20%of commercial customers operate their business entirely from their self storage unit.While self storage may not directly employ as many people as other industries,it is a local business hub,enabling small businesses to grow.Without self storag

249、e stores in local communities,many small businesses would not be able to function,too large to operate from home and too small to afford permanent shop fronts or warehouse space.Selfstorage provides a flexible,affordable solution that can grow withtheir business.As expected,business users take large

250、r unit sizes.One of the benefits of business customers is that they stay longer and tend to pay on time.The downside is that they take larger units which almost always have a lower return per square foot than smaller units.Often when stores open or expand they build large units to encourage long ter

251、m business customers and fill up space quickly.However,when they get to maturity and have no more space to add,they then look to break these large units into smaller sizes that produce a higher yield.Length of stay is an often quoted term when discussing self storage,but it is often misused.Length o

252、f stay can be measured in many ways.Some measure it at a fixed point in time,as this data set is,which means a customer that moved in this month has a length of stay that is only a month,when they may end up staying severalyears.Some measure it on move out date for customers in a given time period,h

253、owever,this does not count the very long term customers that never move out.Most measurements probably understate the actual average length of stay.What is more relevant is that customers fall into two groups.Short term,3 9 months,and long term 18 months and more.The short term customers come for a

254、specific need,fulfil that need and then move out.Long term customers often also come for a short term need but then see the ongoing value of the product and stay for an extended period of time.As stores mature,they naturally gather more long term customers and their average length of stay increases.

255、The challenge for self storage businesses is to convert more short term customers into long term.Retail continues to be the most common business type to use self storage,usually used to store or sort stock.However,retail use has been steadily decreasing since its peak of 23%during the pandemic.Profe

256、ssional services have been steadily increasing over the past 3 years.This could be as the office market changes,or businesses are down sizing office space to accommodate remote working and using self storage for storing records,marketing merchandise and other materials.CUSTOMER LENGTH OF STAYBUSINES

257、SDOMESTIC9-10 YEARS7-8 YEARS5-6 YEARS3-4 YEARS1-2 YEARS7-12 MONTHS4-6 MONTHS3 MONTHS10+YEARSDONT KNOW19%13%16%10%21%24%15%23%8%9%3%6%1%4%4%7%1%1%9%7%051015202530BUSINESSES THAT OPERATE FROM THEIR SELF STORAGE UNITYESTHE BULK OF THE BUSINESS IS RUN FROM THE STORAGE UNITNOWE HAVE ANOTHER OFFICE OR STO

258、RAGE CENTRE WHERE WE PREDOMINATELY RUN THE BUSINESS FROM80%20%SIZES OF UNITS TAKEN BY DOMESTIC VS BUSINESS CUSTOMERSBUSINESSDOMESTICMORE THAN1001 SQ FT501-1000 SQ FT201-500 SQ FT101-200 SQ FT51-100 SQ FT10-50 SQ FT0-10 SQ FT10%7%43%33%28%27%13%14%0%4%4%1%8%8%TYPES OF BUSINESSES USING SELF STORAGEBAN

259、KING AND FINANCIAL SERVICESRETAIL19%16%15%8%6%6%6%5%3%3%3%3%2%1%1%1%1%PROFESSIONAL SERVICESOTHERCONSTRUCTION&BUILDINGMEDIA AND ENTERTAINMENTNOT FOR PROFIT/CHARITYWHOLESALEHEALTHCAREECOMMERCEMANUFACTURINGEDUCATIONINFORMATION TECHNOLOGYTELECOMMUNICATIONSAUTOMOTIVEGOVERNMENTTRAVELPERSONAL SERVICES51015

260、200TRANSPORTUTILITY COMPANY(water,gas,electricity,etc.)LENGTH OF STAYSELF STORAGE ANNUAL REPORT 2024P.58P.59VALUE FOR MONEY OF SELF STORAGE3020SELF STORAGE IS GOOD VALUE FOR MONEY60%21%19%DONT KNOWSELF STORAGE IS POOR VALUE FOR MONEYThe split of long and short term customers is more clear

261、ly shown inthe chart on the right.56%of customers that have stayed 6 months or less,expect to move out within three months.The longer a customer stays generally,the less likely they are to move out.We know that of the 56%of customers that expect to move out within 9 months of moving in.Many will sta

262、y longer,as less than 30%ofcustomers stay for less than 6 months and only 43%oneyearor less.Considering that most people believe self storage will be cheaper than it is before they research the industry,it is a testament to the quality of service the industry provides that only 19%of people state th

263、at it is poor value for money.This supports the up front discounting that is offered by many operators to entice customers to use self storage.The theory is that once they have experienced the service,they will appreciate the value when they are moved to a higher ongoing fee.Combined with the fact t

264、hat customers almost always stay longer than initially planned.However,this strategy only works if the discounts are matched with solid standard pricing and ongoing price increases.Interestingly,while being close to their unit is important to customers,the reality is,most do not access their unit re

265、gularly.It is often a misconception that self storage businesses attract alot of traffic and are full of customers accessing their goods.Most stores only see a few customers each day,these are mostly commercial customers.Only 25%of customers access their unit more than once amonth.When considering d

266、omestic customers,this drops to 18%.Customer satisfaction is higher than value for money.The bulk of customers are very satisfied with the service provided.Only 3%of people are dissatisfied and of this,only 1%are very dissatisfied.This is much higher than most other customer facing industries,especi

267、ally when customers have limited options given the restriction of locations.Self storage is sold on the convenience and ability to access your goods.Your“room away from home”.It is not surprising that customers prefer a store that is close to where they live or work.It is likely that people who trav

268、el further to their unit,do not access it much.For example,they may be storing goods while living or travelling outside the country.When considering the future of self storage,will this change as we move to drone deliveries and driverless cars,where customers may not need to actually visit their sto

269、rage unit to get their goods out?11%24%10%28%14%5%8%DISTANCE TO TRAVEL TO YOUR SELF STORAGE UNIT LESS THAN 5 MINUTES6-10 MINUTES11-15 MINUTES16-20 MINUTES21-30 MINUTES46 MINUTES OR MORE31-45 MINUTESEXPECTED MOVE OUT DATE AND LENGTH OF STAY25200THOSE THAT EXPECT TO MOVE OUT IN NEXT 6 MONTH

270、SALL9-10YRS7-8YRS5-6YRS3-4YRS1-2YRS7-12M4-6M3M17%13%20%36%16%17%14%21%17%8%5%4%0%1%0%2%2%3%5%1%10+YRSDONTKNOWHOW OFTEN DO YOU ACCESS YOUR SELF STORAGE UNIT?FEWER THAN 3 TIMES A YEAR3 TO 6 TIMESPER YEARABOUT ONCE A MONTHONCE OR MORE A DAYMORE THANONCE A WEEKABOUT ONCE A WEEKBUSINESSDOMESTIC12%12%4%2%

271、16%19%27%35%17%31%18%9%CUSTOMER SATISFACTIONVERY DISSATISFIEDDISSATISFIEDINDIFFERENTSATISFIEDVERY SATISFIED58%31%7%3%1%SELF STORAGE ANNUAL REPORT 2024P.60P.6114CONTRIBUTORS“A.H.TRIPP&SON LTDMYSTORE SELF STORAGE ADAM SELFSTORENOW STORAGE LTD APEX SELF STORAGEORANGE BOX SELF STORAGE LTDARMADILLO SELF

272、STORAGEREADY STEADY STOREBARN STORERUTLAND SELF STOREBEYOND STORAGESELF STORAGE TAMESIDEBIG YELLOW SELF STORAGESHEEPLANDS SELF STORAGEBILTING STORAGESHURGARD SELF-STORAGEBLUE SELF STORAGESPACE STATION SELF STORAGEBUDE SELF STORAGESPACEBANK DIY CINCH SELF STORAGESQUAB STORAGECLACTON SELF STORAGESQUAR

273、EFOOT SELF STORAGEDUGGLEBY STORAGE STAR SELF STOREEASY ACCESS SELF STORAGE STOCK N LOCKFLEXISSSTORAGE KINGHOGLEAZE STORAGE LTDSTORAGE WORLDINCREDIBLE BULK SELF STORAGESTORAGEMARTINDOOR SELF STORAGE,DARTMOUTH&TOTNESSTORE&GO DERRYKANGAROO SELF STORAGESTOREBOXKEEPSAFE STORAGE CENTRESSUFFOLK SELF STORAG

274、EKENT SPACETENTEN STORAGE LOCK STOCK SELF STORAGE LIMITEDTHE SPACE PROGRAMLOKNSTORE LTDURBAN LOCKER SELF STORAGEMAGENTA STORAGE VANGUARD SELF STORAGEMEGASTORAGE LTDWESTORE SELF STORAGEMERTHYR SELF STORAGEYOUR SPACE SELF STORAGE LTDMS SELF STORAGE LTDTHANK YOU TO ALL THE SSA UK MEMBERS THAT COMPLETED

275、 THE MEMBERS SURVEY THIS YEAR.ITWAS A HUGE BENEFIT TO BE ABLE TO INCREASE THE SAMPLE GROUPS REFLECTIVE OFHOW THE INDUSTRY IS MATURING.WE COULD NOT PRODUCE THIS REPORT WITHOUT THEIR ASSISTANCE.NOTE THAT SOME MEMBERS WHO COMPLETED THE SURVEY CHOSE NOT TO BE INCLUDED IN THIS LIST.SELF STORAGE ANNUAL RE

276、PORT 2024P.62P.63Head of Self Storage|Cushman&WakefieldT+44(0)7584 857 149EPHILIP MACAULEYHead of UK Research&Insight|Cushman&WakefieldT+44(0)7341 109 340EDARYL PERRYHead of Business Intelligence UK&I|Cushman&WakefieldT+44(0)734 186 7583EIlda.KILDA KREKURTISenior Business Intelligence Analyst|Cushma

277、n&WakefieldT+44(0)7775 543 299ECCHRISTIE WARDCEO|Self Storage Association UKT+44(0)1270 623 150ERENNIE SCHAFEROperations Director|Self Storage Association UKT+44(0)1270 623 150EHELEN BOURKEMembership Services Officer|Self Storage Association UKT+44(0)7539 969 841EEMMA GREENWOODMembership Services Officer-Self Storage Association UK T+44(0)7547 672 541ESTEPHEN RAMAGECONTACTSCONTACTSP.64P.65SELF STORAGE ANNUAL REPORT 2024NOTESP.66P.67SELF STORAGE ANNUAL REPORT 2024SELF STORAGE ANNUAL REPORT 2024P.66P.67 SELF STORAGE ASSOCIATION UKAND CUSHMAN&WAKEFIELD.ALL RIGHTS RESERVED.