1、FEDESSA European Self Storage Annual Survey 2021 2021 Jones Lang LaSalle IP,Inc.All rights reserved.The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal.All such documentation and information remains the

2、 property of Jones Lang LaSalle and shall be kept confidential.Reproduction of any part of this document is authorized only to the extent necessary for its evaluation.It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle.All information contained here

3、in is from sources deemed reliable;however,no representation or warranty is made as to the accuracy thereof.Rennie Schafer Chief Executive Officer +44(0)1270 623 150 rschaferfedessa.orgPaola Barraza Events and Membership Manager +32(0)460 96 872 pbarrazafedessa.orgFEDESSAJLLfedessa.orgjll.co.uk/self

4、storageOllie Saunders Lead Director +44(0)20 7087 5843 Tom CainesDirector,Self Storage Capital Markets+44(0)20 7087 5860 Izeldi Loots Director,Self Storage Valuation and Advisory+44(0)20 7087 ContactsPenny Bell Associate,Self Storage Capital Markets+44(0)7720 070 471 Martin SzamfeberAssociate,Self S

5、torage Valuation and Advisory+44(0)20 7087 5631 Robbie Elrick Associate,Self Storage Valuation and Advisory+44(0)1313 016 Daniel Thorpe Senior Research Analyst+44(0)20 7087 5765 Robert GwytherAssociate,Self Storage Valuation and Advisory+44(0)7709 510 391 Philip MusprattData Scientist+44(0)20 7087 5

6、284 Clive DruryJLL Sweden+46(0)7314 631 Riccardo Bianchi JLL Italy+39(0)3351 059 924 Evan LesterJLL Spain+34(0)917 877 725 Paul CooperJLL France+33(0)1537 586 Charlie James Corporate Finance+44(0)20 7087 5162 FEDESSA JLL|European Self Storage Annual Survey 20213|FEDESSA JLL|European Self Storage Ann

7、ual Survey 2021|4Introduction The survey provides data and insight into the growth of the sector and its performance,plus examines some of the key future trends that are emerging.This report shows that there has been a consistently strong and robust performance during the Coronavirus pandemic across

8、 Europe,with strong occupancy and rental levels,continuing growth in supply,coupled with ever increasing investor interest in the sector.The last decade has seen the total number of facilities more than triple.There are now 5,173 facilities across Europe,providing nearly 11 million square metres of

9、self storage space compared to 1,711 facilities a decade ago.The six biggest markets in Europe,where self storage has been established for almost two decades,have 78%of the Rennie SchaferChief Executive OfficerFEDESSAOllie SaundersLead DirectorEuropean Self Storage,JLLmarket share by number of facil

10、ities and 84%of the total available floor space.Whilst these markets continue to grow,the market share of the big 6 continues to fall as we see ongoing growth in the less established markets as well as new countries establishing self storage markets.JLL and FEDESSA received responses this year from

11、over 90 operators in 18 different countries across Europe who operate nearly 900 facilities with almost 3 million square metres of lettable space,which covers around a third of the total market.We are very grateful to all of the members who took the time to contribute to this years survey.We hope th

12、at you find this report informative and welcome any feedback from our readers so that we can continue to improve the report in future years.This is the tenth annual survey carried out by the Federation of European Self Storage Associations(FEDESSA)amongst its member associations and their member ope

13、rators.The report has been produced jointly with JLL for the seventh consecutive year.FEDESSA JLL|European Self Storage Annual Survey 20215|Executive summary In 2021 we estimate there are now 5,173 self storage facilities offering 11m square metres of space in EuropeThe top ten operators in Europe r

14、epresent18%of the number of facilities and 37%of the total available spaceRental rates outstanding for more than 30 days fell from8.7%in 2020 to only 3.7%despite the impact of the pandemicThe average rent in Europe is268.74 per square metre per annum,a 7%increase from last years results78%of facilit

15、ies in Europe are located in the six most mature countriesThe average occupancy in Europe increased to81.5%from79.8%Nearly half of the facilities in our dataset had occupancy levels of over 85%Operators remain optimistic in their outlook,with 86%of those surveyed expecting improved profit expectatio

16、ns over the next year and 72%expecting improved occupancy ratesThere are 104 facilities under construction,53 in the planning process stage and 90 speculative within the survey sample Staff numbers per facility continue to fall.There are now an average of 1.34 full time staff per facility compared t

17、o 1.77 in 2015.7%of facilities in our dataset are now fully unmannedFEDESSA JLL|European Self Storage Annual Survey 2021|6“Record low interest rates,low to negative government bond yields and the amount of private equity dry powder in Europe reaching$300bn at the end of 2020(according to Preqin)will

18、 be the driver to greater allocation of funds into alternative real estate sectors such as self storage,particularly as investors look to diversify their portfolios and as the sector provides an attractive form of stable income.”Daniel Thorpe,Senior Research Analyst,JLLEconomic overview European REI

19、T performance The COVID-19 pandemic and subsequent lockdown had resulted in the global economic growth coming to an abrupt halt from March 2020.Fast forward to 2021 and at the time of writing lockdowns across Europe are coming to an end and we are seeing significant GDP growth.Forecasted GDP growth

20、across the Eurozone is at 4.8%for 2021 and 4.5%in 2022.Looking at the performance of the European REITs over the past 3 and 12 months and its clear to see optimism return to the real estate market.The resilient nature of the self storage sector is clear to see,with total returns growing by 25%over t

21、he last 3 months and by nearly 50%over the past year.The weighted average spot price to net asset value(P/NAV)for self storage REITs was the second highest in 2021 at 44%,just below the industrial sector.A high P/NAV shows that the value of an investment trust is trading higher compared to its net a

22、sset value.This,amongst other factors,shows a high level of optimistic sentiment towards the particular sector or companies.The only sector to outperform self storage over a 12 month time frame is retail.Retail and hospitality was heavily impacted by the nature of the pandemic and reoccurring lockdo

23、wns across Europe.As restrictions wind down,non-essential retail is beginning to regain some of the losses occurred throughout 2020.In terms of market capitalisation self storage REITs make up 2%of all European real estate investment trusts,this is growing at a fairly fast pace but is still some way

24、 behind the USA where self storage makes up 9%of the total market capitalisation.European REITs Total Return%-10%0%10%20%30%40%50%60%Europe SelfStorage IndexEuropeIndustrial IndexEuropeHealthcare IndexEuropeOffice IndexEuropeResidential IndexEuropeDiversified IndexEuropeRetail IndexEurope Lodging/Re

25、sorts Index3 Month%12 Months%Total return%Source:JLL/FTSE RussellFEDESSA JLL|European Self Storage Annual Survey 20217|P/NAV European REITs-60%-40%-20%0%20%40%60%80%IndustrialSelf StorageHealthcareStudentResidentialDiversifiedOfficeDeveloperRetailPrice to net asset value%Source:JLL/FTSE RussellConst

26、ruction and shipping costsThe construction industry is facing somewhat of a perfect storm.The COVID-19 pandemic in Europe has led to very high labour shortages,and to the supply side risks associated with the construction sector and the raw materials needed.Steel prices have more than doubled in the

27、 past 12 months with manufacturers in China impacted by the pandemic reducing supply,combined with increasing nickel prices and rising shipping costs.Adding to this,one of the worlds longest container ships the Ever Given ran aground in the Suez Canal disrupting global trade for six days.The Lloyds

28、List estimates that the Ever Given held up an estimated$9.6bn of trade each day it was stranded.As the pandemic lockdowns are lifting,the economy has started its recovery.As a result,construction activity has surged.In June the construction industry recorded its fastest growth in 24 years in the UK.

29、However,on-going supply side issues have resulted in construction costs also increasing to the highest levels seen since the PMI series began in 1997.The RICS estimate that overall construction costs will continue to rise by 8%over the next year.The global shortage of construction materials and asso

30、ciated costs will remain high throughout 2021 and possibly into 2022.Commodity Prices and Construction Costs(%YoY)-6-4-2024681012-80-60-40-2002040608000420052006200720082009200001920202021LME Metals(LHS,YoY%)Germany construction material costs(RHS)UK const

31、ruction material costs(RHS)Source:JLL/LME/RHSFEDESSA JLL|European Self Storage Annual Survey 2021|8Investment OverviewThe self storage sector is continuing and cementing its journey from being an alternative asset class in Europe to an established one.During the pandemic it has proven its resilient

32、nature as it did during the global financial crisis in 2008.The industry recorded excellent rent collection levels from customers and an increase in occupancy and rental levels making it very attractive in comparison to asset classes which suffered during the pandemic like retail and hospitality.The

33、 difference between the two crises was of course that debt markets remained relatively active and the pandemic period did not see a liquidity shock.On the back of excellent operational results and consistent cash flows,the low interest rate environment and active debt and investment markets,transact

34、ional activity in the self storage industry is thriving.Existing trends have been fast forwarded by the pandemic,like with many other sectors.The fragmented nature of the industry and the frustration of capital wanting to enter the sector have seen an acceleration of the following key trends:Consoli

35、dationThere is an increased focus on consolidation in the sector and many platforms are preparing to operate across jurisdictions in Europe.The consolidation play is especially focused on the lower end of the quality curve where operations can be improved to provide high returns on investment and th

36、ere is a greater availability of opportunities.As this report shows there is a decreasing number of mid tier operations available for acquisition,with a growing gap between the large operators and then the small 1 to 3 site operations.When multi-site platforms of reasonable quality become available

37、there is usually a competitive market of interested buyers.“Weve seen another strong year of growth in the self storage investment market,with a number of major institutional and private equity funds entering the sector in a meaningful way.Demand remains strongest for larger,well-established portfol

38、ios with a dominant brand and dedicated head office team.However,a lack of these ready-made portfolios means we have expanded our offering to include more creative structures such as sale-managebacks,development agreements and different forms of joint venture and equity raises.This year has seen sev

39、eral noteworthy joint ventures concluded on smaller seed platforms,where lack of scale is supplemented by an attractive development pipeline to ensure portfolio growth.Consolidation of mom and pops still make up a large percentage of deals by number(as opposed to lot size),but we are seeing factors

40、such as ESG credentials and obsolescence play a growing role in bidding processes.”Tom Caines,Director,JLL EMEA Alternative Investment “Self storage in Europe have now become an attractive asset class among investors,and several companies are listed.With the growing number of professional and instit

41、utional investors who enter Self storage,I believe consolidation will continue in our industry.In addition to the capital market as a key driver,we also see that scale is becoming increasingly important.Investments in IT and marketing is becoming increasingly more complex,and it requires greater inv

42、estments.In the Self Storage Group weve seen great synergies in combining M&A with organic growth when we enter new markets in Scandinavia.This is a strategy we will continue to follow,and there are still a lot of opportunities in our fragmented industry.”Fabian Emil Sbak,CEO Self Storage Group ASA

43、FEDESSA JLL|European Self Storage Annual Survey 20219|“A key strategic focus at Storage King is our third-party management platform offering,Management 1st,which we launched in 2019.Management 1st is suited to self storage operators who are looking for expertise and resources to increase returns fro

44、m their properties.Essentially it offers operators a platform to increase enquiry generation and occupancy through a significant and experienced marketing and operational capability.There is also the added benefits of a dedicated contact centre and active revenue management,which allows for flexible

45、 pricing to maximise revenue and increase occupancy.Our experience shows that traditional digital marketing agencies dont have the required level of sector knowledge to be considered self storage digital specialists,and with over 100 years of collective experience in the self storage sector,our spec

46、ialist team knows what it takes when it comes to enquiry generation.As a result of our track record,our product has been well received in the UK and Europe.We believe that much of the success weve experienced through our Digital 1st platform is because it provides an opportunity for smaller independ

47、ent operators to leverage the significant digital capabilities of a Real Estate Investment Trust at a fraction of the cost.”Chris Oosthuizen,Executive Manager:Digital FirstSearch for yield and quality productThe low interest rate environment fuels a search for yield.The attractive yield on cost of s

48、elf storage developments have made investors take note and have shifted the focus on building yield rather than buying yield,but also due to a frustration at the lack of modern stores.A development play takes time and does not offer investment at scale.Institutions are increasingly lowering their mi

49、nimum lot size requirement to access the attractive yields in a development play along with an acquisition strategy to ensure growth and scale.SpecialisationThere has been an increased specialisation by industry participants who focus on developing turn-key self storage facilities or who focus on th

50、e management of facilities.Operators who have scale and geographical spread have a real advantage in offering attractive management fees and management reach.FEDESSA JLL|European Self Storage Annual Survey 2021|10In the 12 months to September 2021,investment activity in the self storage sector has b

51、een high.As well as direct investment in self storage real estate assets,we also saw investors access the market though the creation of joint ventures and sale and leasebacks.Angelo Gordon and Marcol have announced that they have committed 250m in a joint venture agreement with Marcol to fund the gr

52、owth of a new self storage platform in Germany:Space Plus.Space Plus is headed by Russell Jordan who has previously built and sold a self storage portfolio in the Netherlands.Angelo Gordon are also invested in Easybox in Italy and the deal positions them well to become a multi-jurisdiction self stor

53、age investor.The Moorfield Group announced a 100m joint venture with Stor-age Property REIT to fund further development and acquisitions in London and the South East in the UK.Stor-age manage their UK properties through the Storage King brand who have also acquired the 30,100 sq.ft.Blackpool self st

54、orage facility in the second quarter of 2021 for 3.6m.In the first quarter of 2021 The Self Storage Group,a listed company based in Norway,purchased 5 assets branded as Dit Pulterkammer which total 9,300 sq m for DKK102m.This represents an average capital value per square meter of DKK10,967.The Carl

55、yle&Safestore joint venture continues to be active in the market with the most recent purchase of Opslag XL in the Netherlands,in January 2021,for an undisclosed amount.The three properties total 7,500 sq m of lettable area with two being freehold properties in the Hague and one,a short leasehold in

56、 Amsterdam.As previously reported,other acquisitions in 2020 by the joint venture include M3 in the Netherlands and Lokabox in Belgium.“Key deals Heitman acquired Space Station,the UKs oldest private self storage company,on the off-market sale of 10 assets across London and the South East.The 374,00

57、0 sq ft portfolio has been acquired by Heitman LLC for an undisclosed sum late 2020.Space Station offers them a platform with which they plan to expand across the UK and Europe.In May 2020,Heitman also acquired RentASpace in Shrewsbury,West Midlands for an undisclosed amount.In July 2021,Big Yellow

58、has acquired the remaining 80%stake in Armadillo,previously owned by USS,an Australian investment trust.The acquisition was reported at 119m which is a yield of 7.7%on net operating income.Previously we reported on the Secure Store stores in Letchworth and Leighton Buzzard in the UK that was sold to

59、 US Capital,Padlock Capital Partners and operated by Cinch self storage.JLL acted for Secure Store.Padlock Capital have since acquired facilities or development sites in Bicester,Chippenham,Huntingdon,Enfield,Wimbledon and most recently acquired a 12,500 sq ft facility in Brighton.Volta Global,also

60、US Capital,are continuing their expansion in the Netherlands through 1Box and have acquired several smaller portfolios one of which JLL acted for the seller.1Box now own and operate more than 17 assets across the Netherlands.Legal and General continues to acquire sites through sale and manage-back a

61、greements with SureStore and have acquired a further two stores in Lichfield and Bury in the UK in the latter part of 2020.FEDESSA JLL|European Self Storage Annual Survey 202111|Industry overviewEstimating the exact growth of the industry can be challenging as a proportion of the year on year change

62、s can be attributed to improved data collection.The definition of what is classed as self storage can vary country to country,for example,some countries include container facilities in their definition of self storage while others do not.Market share by number of facilities0%20%40%60%80%100%20172018

63、201920202021UKFranceSpainNetherlandsGermanyNorwayRest of EuropeUKFranceSpainNetherlandsGermanyNorwayRest of EuropeSource:JLL/FEDESSAMarket share by floor space0%20%40%60%80%100%200202021UKFranceSpainNetherlandsGermanySweden Rest of EuropeUKFranceSpainNetherlandsGermanyRest of EuropeSource

64、:JLL/FEDESSAThe self storage industry in Europe has grown rapidly over the last decade.We estimate that there are now 5,173 facilities providing nearly 11.0m square metres of self storage space.FEDESSA JLL|European Self Storage Annual Survey 2021|12Six countries have 78%of the total number of facili

65、ties in Europe,and 84%of the total floor space.Back in 2017 the big six had 85%of facilities and 87%of the total floor space in Europe.This market share of the top 6 has been gradually decreasing as self storage grows in the less established markets.Market share of the largest operatorsThe self stor

66、age industry in Europe is fragmented with most facilities owned and operated by smaller independent operators.Major operators,who we have defined as having ten or more facilities,occupy less than 50%of the total number of facilities in the established countries in Europe.However as major operators t

67、end to have larger stores,they account for more than 50%of the storage space in many markets.What is noticeable in these countries is an absence of mid-tier operators who would occupy four to nine facilities.Even in the established UK market,recent consolidation has widened the gap between small and

68、 major operators.Market share of the largest operators(10+facilities)0%20%40%60%80%SpainNetherlandsUK(incl containers)ItalyBelgiumSwedenGermanyFranceFacilitiesSpaceSource:JLL/FEDESSAThe largest operator in Europe is Shurgard who currently (as at May 2021)occupy 244 facilities.This represents 4.7%of

69、the total number of facilities in Europe and 11.3%of the available floor space.The largest operators generally have larger facilities,this is highlighted by the fact that the ten largest self storage brands represent 17.7%of the total number of facilities but 36.5%of the total available space.When c

70、ompared to last years figures we have seen that the market share of the top ten brands has increased,a reversal of the trend we had been seeing over the past few years.This shows that the top 10 self storage brands are consolidating and expanding at a greater rate.There is also more cross Europe exp

71、ansion from the major operators.Safestore now has stores in the Netherlands,Belgium and Spain to complement their established French and UK stores.Homebox have expanded into Switzerland,Germany,Spain and Portugal from their French base.Other operators are also expanding into adjoining and developing

72、 markets,reversing a trend in recent years where aside from Shurgard,most operators were concentrating on a single country or region.FEDESSA JLL|European Self Storage Annual Survey 202113|Top 10 operators by number of facilities0%5%10%15%20%25%0500300ShurgardHomeboxSafestoreBigYellowOKMin

73、ilagerAccessSelf StorageBluespaceMyPlaceSelfstorageCityvarastoCitySelf-StorageNumber of facilitiesCumulative market share 2018(%)Cumulative market share 2019(%)Cumulative market share 2020(%)Cumulative market share 2021(%)Top 10 operators by floor space0%5%10%15%20%25%30%35%40%0 150,000 300,000 450,

74、000 600,000 750,000 900,000 1,050,000 1,200,000 1,350,000ShurgardHomeboxSafestoreBig YellowAccessSelf StorageMyPlaceSelfstorageBluespaceLoknStoreUnePiece en PlusPelicanSelf StorageSq m of facilitiesCumulative market share 2020(%)Cumulative market share 2019(%)Cumulative market share 2021(%)Source:JL

75、L/FEDESSAFEDESSA JLL|European Self Storage Annual Survey 2021|14Floor area per capitaIceland has the greatest amount of available self storage space per person closely followed by the UK and the Netherlands.Iceland also has the lowest population density of all the European countries and a large numb

76、er of small self storage sites.This graph highlights that there is still significant room for growth in countries that already have a sizable self storage market,noticeable examples of this are France,Belgium and Germany who are all below the European floor space per capita average.It is interesting

77、 to note that the five Nordic countries are all in the top seven along with the most mature market,the UK and the Netherlands which was also early to adopt self storage.Floor space per capita(sq m)0.0000.0100.0200.0300.0400.0500.0600.0700.080LithuaniaRomaniaCzech RepublicPolandLatviaItalyHungaryEsto

78、niaPortugalGermanySwitzerlandAustriaBelgiumFranceSpainIrelandFinlandNorwayDenmarkSwedenNetherlandsUK(incl containers)IcelandFloor space per capita(sq m)Europe average 2021Source:JLL/FEDESSANumber of facilities per million population The number of facilities per million population tends to be higher

79、in the Scandinavian countries where they have a greater number of smaller facilities.Norway leads the way with 44.6 facilities for every one million people but has the lowest average facility size.The average across Europe is 10.4 per million population,but this has been gradually increasing over th

80、e last couple of years.Back in 2019 the average was 8.6 facilities per million people.Facilities per million pop01020304050RomaniaCzech RepublicLithuaniaItalyPolandLatviaHungaryGermanyPortugalEstoniaBelgiumIrelandFranceSpainFinlandSwitzerlandAustriaNetherlandsSwedenUK(incl containers)DenmarkIcelandN

81、orwayFacilities per million popEurope average 2021Source:JLL/FEDESSAFEDESSA JLL|European Self Storage Annual Survey 202115|Sustainability Legislation is being used in many countries to force compliance in tackling the need for greater sustainability.Building specifications are developing to meet bot

82、h legal and market requirements.At the same time,there is real proactivity from property asset managers who are making decisions either to preserve value in older buildings by making sure in the future they meet the sustainability requirements,or by adding value by investing in upgrading specificati

83、ons or looking at the viability of developing new buildings with higher environmental criteria.Funds are being established which look to invest solely into Net Zero Carbon(NZC)buildings.Whilst there is not yet an agreed upon definition of an NZC building,or a globally accepted process of certificati

84、on,the UK Green Building Council,in partnership with JLL,published a framework definition in 2019 to cover the concepts.The two approaches are in the construction and the operational use.These relate to achieving net zero in both the operational use of the building,but also in the embedded carbon in

85、 the construction of the actual building.The 2050 vision is for all buildings(new and existing)to be net zero carbon across the whole life cycle.The interim ambition is for all new buildings to be zero carbon in operation and at least 40%less in embodied carbon by 2030.Our survey shows that importan

86、t steps are being taken to reduce energy consumption.There has been a good adoption of energy saving technology and sensors,and in consumer products,but still relatively poor take up in solar panels,green roofs,and electric charging points.Evidence from JLLs database shows that approximately 85%of s

87、tores in the top 6 countries in Europe are typically first-generation sites that were opened as the industry emerged in Europe.These are typically in older converted industrial properties that will be in need of retrofitted improvements to them,along with the real possibility that there will be incr

88、easing levels of obsolescence and some“stranded assets”as legislation is introduced.We also expect to see emerging new technologies and building construction techniques to reduce embedded carbon in new build assets.JLLs paper on the ESG in self storage is available at:https:/www.jll.co.uk/en/views/t

89、he-next-generation-of-self-storageSustainable measures implemented by survey respondents0%10%20%30%40%50%60%70%80%90%LED LightingPassive InfraredDetectionRecyclablePackaging/boxesSolar PanelsGreen RoofsElectric Vehicle Charging20202021Source:JLL/FEDESSAThe real estate industry,like many others,is ta

90、king the risks of the climate crisis very seriously.The built environment contributes around 40%of total carbon emissions.FEDESSA JLL|European Self Storage Annual Survey 2021|16Average rents per square metre per annumThe weighted average rent across Europe was 268.74 per sq m per annum.The last year

91、 has seen the biggest increases in rental rates ever recorded by our survey,rising by 7.4%.The pandemic did cause rental rates to initially fall,but only by around 3%at the peak of lockdown restrictions in Europe which was soon recovered.Survey results Based on the data provided by over 90 operators

92、,covering nearly 3.0m square metres of self storage space,we are able to provide a good overview of the industry in Europe as at 31st March 2021.Where applicable we have incorporated data from the SSA UK survey into the results which was completed based on data from 31st December 2020.The largest re

93、ntal rate increases were seen in Italy,Portugal and the Netherlands.All three of these countries saw year on year increases of over 20%.Average Rents Per sqm 268.74 250.21 0 50 100 150 200 250 300 350 400 PolandCzech RepublicBelgiumNorwayRussiaNetherlandsSwedenIrelandDenmarkSpainGermanyPortugalFranc

94、eAustriaFinlandItalyUnited KingdomSwitzerlandAverageWeighted Europe Average 2021Weighted Europe Average 2020Source:JLL/FEDESSA/SSA UKFEDESSA JLL|European Self Storage Annual Survey 202117|OccupancyThe average occupancy across Europe saw a 1.7 percentage point increase from 79.8%in June 2020 to 81.5%

95、in 2021.Occupancy levels are now higher than what was seen in February 2020 before the COVID-19 pandemic hit Europe and in 2019.The largest occupancy increases were seen in Spain,Ireland and the Netherlands.We should take care when comparing occupancy rates in isolation as there are a number of cont

96、ributing factors that influence occupancy.New facilities tend to have lower occupancy rates as they typically take three to five years to reach maturity.For example,the average occupancy rate for a facility in our dataset that is under five years old is 68%when compared to facilities that are more t

97、han 10 years old which have an average occupancy rate of over 85%.Average occupancy81.5%79.8%0%10%20%30%40%50%60%70%80%90%100%RussiaPolandCzech RepublicItalyGermanyFinlandAustriaSwitzerlandNorwayPortugalUnited KingdomSpainBelgiumSwedenIrelandFranceDenmarkNetherlandsOccupancy 2021Europe Average 2021E

98、urope Average Jun 2020Source:JLL/FEDESSA/SSA UKFEDESSA JLL|European Self Storage Annual Survey 2021|18Optimal occupancy for a mature self storage facility located in a major metropolitan area is usually considered to be between 85%-90%.This allows the business to continue to offer space to customers

99、 and maximise the yield for the business.28%of the facilities in our survey were within this sweet spot.It should also be noted that often self storage businesses are fitted out in stages,sometimes one floor at a time.The next stage will often be fitted out when existing occupancy reaches around 70-

100、80%keeping the occupancy for the store lower than optimal until the final stage is completed.When we compare the breakdown of occupancy current lettable area to the maximum lettable area we see that there is a significantly higher proportion of facilities in below 50%MLA occupancy.This shows that fa

101、cilities,particularly newer ones have considerable expansion potential.Breakdown of occupancy CLA4%24%26%28%14%4%Occupancy range0%-49.9%50%-79.9%80%-84.9%85%-89.9%90%-94.9%95%-100%Breakdown of occupancy MLAOccupancy range0%-49.9%50%-79.9%80%-84.9%85%-89.9%90%-94.9%95%-100%9%28%22%29%14%4%Source:JLL/

102、FEDESSA/SSA UKFEDESSA JLL|European Self Storage Annual Survey 202119|Business/Domestic split by area and unitsThe European average of occupied space by business customers has decreased from 32%in 2019 and 2020 to 27%in our latest survey.This is a reversal of the trend we had seen over the last three

103、 years of business customers taking a greater percentage of floor area.This is potentially linked to the contraction in GDP during the pandemic.It is also possibly linked to the increasing occupancy of the industry.The yield is generally higher on smaller units,so as a store reaches mature occupancy

104、 operators may look to reconfigure larger units to smaller sizes where demand allows.Smaller units are generally less suited to business customers.It will be interesting to note if this changes again as the economy recovers from the pandemic.Business customers occupy a greater percentage of space an

105、d a fewer number of units.On average business customers occupy 22%of the number of units,preferring the larger units which do have a lower yield per square metre than smaller units.The majority of business customers are small start-ups,for them self storage offers a flexible solution for office spac

106、e,storage and distribution of goods,without the need for lengthy leases.Operators are now catering more for business customers offering free Wi-Fi,meeting rooms,mailboxes and courier services.The benefit for operators are that business customers tend to stay for longer periods of time than domestic

107、customers,giving a stable source of income.Business/domestic split by self storage space0%20%40%60%80%100%PolandCzech RepublicIrelandItalySwitzerlandSpainNorwayBelgiumNetherlandsAustriaFrancePortugalUKRussiaGermanyDenmarkSwedenFinlandDomestic unit%Business unit%Domestic average 2021Domestic average

108、2020Domestic average 2019Business/domestic split by self storage units0%20%40%60%80%100%PolandIrelandItalyCzech RepublicAustriaGermanySwitzerlandSpainBelgiumNetherlandsUKFranceNorwaySwedenDenmarkRussiaPortugalFinlandAverage of Domestic Space%Average of Business Space%Domestic average 2021Domestic av

109、erage 2020Domestic average 2019Source:JLL/FEDESSA/SSA UKFEDESSA JLL|European Self Storage Annual Survey 2021|20Average facility sizesThe comparison between facility sizes in Europe is extremely broad.This comes down to a number of factors;cost of land,location,operator,size of the countrys market,bu

110、siness/domestic customer split etc.The graph below shows the difference in CLA size,looking at the range between the 1st quartile and the 3rd quartile of current lettable self storage space.The quartiles are used instead of a min and max to reduce the impact of outliers.Norway has the smallest avera

111、ge facility size at around 1,000 sq m,while the Netherlands are the largest on average at just over 5,000 sq m.CLA facility size by country01,0002,0003,0004,0005,0006,0007,000NorwayFinlandPolandSwitzerlandSpainSwedenRussiaPortugalIrelandItalyGermanyDenmarkAustriaFranceNetherlandsCLA sq mRange betwee

112、n 1st and 3rd quartileMeanSource:JLL/FEDESSASource of enquiriesFor the first time in the FEDESSA survey we have added social media as a source of enquiry.Many operators have been embracing social media as a tool for generating enquiries,building their brand and driving website traffic for some time.

113、Looking at the fall in other enquiries we assume that operators had been categorising social media leads as such.Source of enquiries0%10%20%30%40%50%60%70%80%Website%Signage%Directories%Referrals%Social Media%Other%2001920202021Source:JLL/FEDESSA/SSA UKFEDESSA JLL|European Self Storage An

114、nual Survey 202121|Online pricingPrice transparency continues to increase with 82%of operators listing prices on their websites,compared to 80%last year and 74%in 2019.The trend towards greater online functionality and more sophisticated platforms has been accelerated by the COVID-19 pandemic.There

115、was a big leap in the ability to reserve units via the website(from 71%in 2019 to 80%in 2021),and the ability to reserve,book and pay online(from 25%in 2019 to 58%in 2021).Operators tend to have different views on reserving units online,with some encouraging customers to either phone or visit the fa

116、cility.This enables operators to fully explain what size facility would be best for the customer and offer additional add on services.However,online platforms have become more advanced with self storage websites offering live chat customer service,and storage size estimators.The pandemic has also ma

117、de many customers more comfortable with online transactions,especially in the older age groups.Prices on website0%20%40%60%80%100%ItalySpainPortugalPolandUKSwitzerlandFranceNetherlandsGermanySwedenAustriaBelgiumDenmarkFinlandIrelandNorwayRussiaCzech RepublicAbility to completely book and pay for uni

118、t on website0%20%40%60%80%100%PolandItalyPortugalNorwaySpainUKFranceDenmarkIrelandSwedenAustriaSwitzerlandNetherlandsGermanyBelgiumFinlandRussiaCzech RepublicSource:JLL/FEDESSA/SSA UKAbility to reserve unit on website0%20%40%60%80%100%PortugalPolandItalySpainUKIrelandSwitzerlandGermanyNetherlandsDen

119、markSwedenAustriaBelgiumFranceFinlandNorwayRussiaCzech RepublicAbility to complete the storage contract online0%20%40%60%80%100%PortugalSpainItalyPolandIrelandFranceAustriaSwitzerlandDenmarkGermanyNetherlandsSwedenNorwayBelgiumFinlandRussiaCzech RepublicFEDESSA JLL|European Self Storage Annual Surve

120、y 2021|22EquipmentThe nature of a survey means that we do see fluctuations in the sample size,and as such,direct comparisons to previous years should be taken with some caution.However,they do allow us to analyse general trends in the industry.In the example below we see the proportion of facilities

121、 that offer certain equipment or services over a 5 year period.The number of facilities with fire detection alarms for example have increased every year we have conducted this question in the survey,whilst sprinkler systems conversely,have decreased.One fairly noticeable trend is the proportion of f

122、acilities offering 24-hour access decreasing quite substantially from last years survey.Often operators are becoming selective on who they offer 24 hour access to.Charging a premium for such service or only allowing business customers and other users with a genuine need,rather than a blanket 24/7 ac

123、cess for all customers.EquipmentEurope Average 2017Europe Average 2018Europe Average 2019Europe Average 2020Europe Average 20210%20%40%60%80%100%Customers goodsinsuranceFixed Electronicaccess controlIndividual unitalarmsCCTVFire detectionalarmsSprinkler systems24 hour accessMobile devicebasedaccess

124、system(eg,Bluetooth,Wifi,NFC)Source:JLL/FEDESSAFEDESSA JLL|European Self Storage Annual Survey 202123|TenureThere are a range of different tenures within the self storage business model,from owner occupied freehold business to management contracts.There is a preference towards freehold ownership in

125、Europe,with 77%of facilities on average owned by the operator.This is high compared to other asset classes such as hotels and care homes.The proportion of freehold ownership has increased from 74%in 2019.Development of freehold assets enable operators to find more favourable debt terms,however due t

126、o the availability and cost of land,particularly in metropolitan areas,this is not always viable.Its worth tracking to see if this trend will change over time,as operators consider leasehold properties or management contracts.Split between tenure0%20%40%60%80%100%Czech RepublicPortugalSwitzerlandSpa

127、inPolandNorwayFinlandSwedenNetherlandsAustriaItalyUKDenmarkGermanyFranceBelgiumIrelandRussiaFreeholdLeaseholdFreehold average 2021Freehold average 2020Source:JLL/FEDESSA/SSA UKFEDESSA JLL|European Self Storage Annual Survey 2021|24FEDESSA JLL|European Self Storage Annual Survey 202125|Biggest threat

128、 to industrySource:JLL/FEDESSAWe asked operators their views on what they perceive as the biggest threat to the self storage industry over the next 12 months.We asked this same question last year,and over a quarter of operators highlighted the ongoing impact of COVID-19 as the biggest threat.This ye

129、ar,the impact of COVID-19 saw only 13%of operators view it as the biggest threat.A third of operators highlighted oversupply as the biggest threat,with similarly related issues such as rising land costs and planning permission difficulties in 2nd and 3rd place.This is somewhat surprising given that

130、self storage is still relatively young in Europe,especially when compared to the USA.However,in major urban markets it can be very competitive particularly in the countries with more established self storage marketsOutlookOversupplyRising land costDifficulty relating to planning applicationsRecessio

131、nIncrease in taxes applied to self storage buildingsDramatic cost increase in metal supply and other building materialsShort term oversupply resulting in decreasing prices/price wars.NoneMetals price increasingEnvironmental regulationsIncrease in rentsAvailability of suitable properties Ongoing Impa

132、ct of Covid,eg more lock downs,less community movementFEDESSA JLL|European Self Storage Annual Survey 2021|26Profitability86%of respondents felt that profitability would increase over the next 12 months.This is the most optimistic results we have had;in 2018 76%anticipated increased profitability.Wh

133、at are your profit expectations for your self storage business in the coming 12 months?0%10%20%30%40%50%60%70%80%SignificantimprovementContinualimprovementUnsettledresultsSlight downturnSource:JLL/FEDESSA Rental growthInterestingly,operators were slightly less confident in regard to rental growth wi

134、th only 59%predicting an increase.However,over a third of operators were expecting rental rates to stay the same and only 5%of operators were expecting a decrease in rental rates over the next 12 months,which is more optimistic compared to historic years.What do you expect to happen to net rental ra

135、tes over the next 12 months?0%10%20%30%40%50%IncreasesignificantlyIncrease slightlyRemain thesameDecreaseSource:JLL/FEDESSA Occupancy ratesNo operator is expecting occupancy rates to decrease over the next year,with nearly three quarters of operators anticipating occupancy rates to increase over the

136、 next 12 months.What do you expect to happen to occupancy rates over the next 12 months?0%10%20%30%40%50%IncreasesignificantlyIncrease slightlyRemain thesameDecreaseSource:JLL/FEDESSA Development pipelineThis year,in order to get a clear indication of how many new facilities are in the development p

137、ipeline we asked operators the number of sites under construction,awaiting planning permission and speculative.Purely from the sample group,we found that there were 104 new facilities currently under construction,12%of the total facilities surveyed,and a further 53 with planning permission approved.

138、The 90 speculative stores,almost twice as many as in planning again demonstrates the optimism of the industry.This data only reflects the sample group and there will be operators that did not complete the survey that also have stores in various stages of development or planning.Development pipeline1

139、045390020040060080010001200Currently openUnder constructionPlanning approvedPre-planning/Awaitingplanning approvalFacilitiesSource:JLL/FEDESSAFEDESSA JLL|European Self Storage Annual Survey 202127|RussiaRoving focusThe self storage market in Russia is relatively new,with the first facilities opening

140、 a little more than 10 years ago.The market in Moscow is the most advanced in the country with 76 facilities totalling 199,057 sqm and growing by more than 5%in terms of supply for the second consecutive year*.There are 4 operators that own and operate more than 5 stores and they provide high-qualit

141、y facilities in the city.The supply per capita in Moscow is at around 6.37 per million population,significantly behind the supply ratio of the capital cities of the major self storage markets across Europe.“Moscow is one of the best self storage markets in Europe,in my view.And it is massively under

142、supplied.For a population of close to 15 million people there are only,I would say about 50 institutional quality self storage facilities.It took us a while to learn how to find a customer and now we are able to fill a typical 4,500 sq m MLA facility in less than 2 years.All our mature facilities(9

143、out of 10)in Moscow are at 95-99%occupancy even after we increased prices already twice this year.”Dimitri Logvinenko,Managing Director of TopBox CityFacilites in the City 2020Facilities in the Country 2020Capital City Concentration of supplyFacilities per Million Population CityLondon2361900*12.42%

144、27.38Paris6352012.12%9.29Berlin4028514.04%11.53Madrid11052021.15%17.17Stockholm3120615.05%32.12Amsterdam223226.83%16.73Moscow76375*20.26%6.37The average facility size is at around 2,600 sqm with around 80%of the number of customers renting being domestic use clients.The rental rate achieved is impac

145、ted by the quality of location,as in any other market.Around one third of operators offer some sort of delivery and packing service with the number of clients using on-demand storage with boxes being collected and delivered on the rise.Managing Director of TopBox,Dimitri Logvinenko whose company ope

146、rate facilities in Russia,Germany and Poland notes that there are similar demand drivers of self storage in Moscow than in the other European countries they operate in.“Mostly,it is an event driven need to store belongings for people or organizations that are in transition.Then come other reasons su

147、ch as decluttering or seasonal storage.”Awareness of self storage in the two largest markets in Russia,Moscow and St Petersburg is still very low and is estimated to be around 5-10%.Customers are still in the discovery phase and learning how the product can benefit them.“In Moscow,people just stop b

148、y to find out what this building is all about.Whereas in Germany,most of the people who stop by intend to use the service and eventually become our customers.In Moscow the conversion of passing by customers is much less than in Germany.Online marketing is of course the number one channel of bringing

149、 in customers.So,we do focus on making sure that our online marketing campaigns are effective and our websites are informative and easy to use.”says Dimitri.The biggest challenge in Russia remains attracting equity and finance through sources outside of Russia.Most companies grow their business thro

150、ugh company profits and bank financing,however financing through local banks can be expensive.*Source:Russian Self Storage Association FEDESSA JLL|European Self Storage Annual Survey 2021|28JapanIt is estimated that there are about 14,000 rental storage facilities in Japan with about 1,200 operators

151、.As would be expected the industry began in Tokyo and today around half of the storage space is in the Tokyo and Kansai areas.The level of storage equates to around 1 unit for every 110 households.As the industry matures it is spreading across Japan with recent growth in smaller cities and regions a

152、s dispersed as Hokkaido,Tohoku in the north and Kyushu farther south.There is still significant potential for growth in these regional markets.One of the more unique qualities of the self storage market in Japan is the size of units in self storage buildings and the strong presence of container stor

153、age.Real estate prices in Tokyo are amongst the highest in the world,the average price of construction per meter even exceeds Hong Kong.With this in mind,it is no wonder self storage operators want to maximise the returns on their footprint.Most stores have a much lower average unit size than Europe

154、 or even most Asian countries.Demand for smaller units is strong and this allows operators to maximise the yield on their property investment.Conversely,container based storage has also boomed in Japan.This obviously offers larger storage spaces options for customers.A lack of planning regulation ha

155、s allowed container storage operators to place storage containers on all sorts of land all over Japan,even in the cities.This is now being examined by the authorities as some see them as not aesthetically pleasing or in keeping with the community development.There is more container storage space in

156、Japan than storage rooms.Currently around 5%of the population of Japan are using a container based storage solution while 4.7%are using a self storage room.The occupancy rate of rental units is strong.Most sites achieve around 45%in the first year of opening.This climbs to 82%after the second year a

157、nd almost 90%after the third year.Annual turnover of self-storage was 75 billion yen in 2020.Even under the pandemic conditions,it increased by 3%from the previous year.Awareness and usage of the industry is similar to the more developed European markets like the UK with around 75%of people being aw

158、are of the product,25%with a good understanding.Overall usage exceeds most European markets with around 5%of the population using self storage.Self Storage is very prevalent in Japan,with Tokyo being the main hub.As the first Asian city to have self storage back in 1990,it now showcases around 10,00

159、0 small,medium,and large facilities.Japan has one of the most diversified self storage industries in Asia which includes a heavy assortment of container storage.“As a large,densely populated city,with relatively small living spaces,Tokyo reflects many of the ideal fundamental characteristics for a s

160、elf-storage market and ongoing low(but growing)levels of awareness continue to support operational performance,despite new supply.The main challenge in this high barrier-to-entry city is new development and conversion activity,which can be slow,and expensive.On the other hand,weve found the Japanese

161、 market is often at the forefront of innovation within the sector(in terms of using technology and disruptive storage models),which makes it an interesting(and fun!)place to operate.”Rishi Patel,Investment Director at M3 CapitalFEDESSA JLL|European Self Storage Annual Survey 202129|Awareness and usa

162、ge28.7%27.7%48.1%48.7%17.8%18.1%4.7%5.0%Stoarge roomsContainer StorageI have never heard of self storageI have heard of self storageI know what self stoarage isI am currently using self storageSource:Rental storage association JapanLike most markets in Europe the pandemic did not negatively impact t

163、he industry in Japan.It even created demand as more people required space for home working.The delivery room concept of storage is also increasing where boxes are sent to households and then moved into storage.As a measure to prevent COVID-19 infection,the number of“non-contact stores”where people c

164、an sign up,close contracts,and move in with no human contact,has increased.Remote monitoring systems have also been implemented in more locations.Major operators in Japan of Storage rooms excluding containersCompanyRooms Share(total 230,000)Quraz CO.,LTD.16.4%Reise Co.,Ltd.(includes Reise Tokyo)13.7

165、%Arealink Co.,Ltd.10.8%Kase Group Co.,Ltd.(Kase Warehouse)8.7%Ambitious Co.,Ltd.4.8%Keiyo Butsuryu CO.,Ltd.2.9%Storage Plus C0.,Ltd.1.9%Nihon Parsonal Storage Co.,Ltd.1,7%Sankyo Frontier Co.,Ltd.1.3%US Hirota Co.,Ltd.1.3%The nature of the demand for storage rooms in Japan is changing.In the past,cus

166、tomers prioritised facilities that were cheaper and closer to their residence.Nowadays,clean and bright facilities with temperature and humidity control are popular.Safety and security where you can see the inside from the outside is now preferred by customers.This has led to more modern self storag

167、e developments,with high security,good lighting and use of glass for increased visibility.Such as the developments from Quraz illustrated here.There are far fewer newer facilities that are dimly lit with minimal security.Thanks to Tokuo Yoshida,Executive Director,Rental Storage Association Japan for

168、 assistance with this article.FEDESSA JLL|European Self Storage Annual Survey 2021|30FEDESSA JLL|European Self Storage Annual Survey 202131|Membership of FEDESSAThe following associations are current members of FEDESSA:Belgian Self Storage Association ASBL Self Storage Association Denmark Pienvarast

169、oyhdistys ry Finland CISS-La Chambre Interprofessionnelle du Selfstockage France Verband Deutscher Selfstorage Unternehmen e.V.-Germany Irish Self Storage Association AIS-Associazione Imprese di Self Storage Italy The Netherlands Self-storage Association Norwegian Self Storage Association AESS Asoci

170、acin Espaola de Self Storage-Spain Self Storage Association Sweden 3SA Swiss Self-Storage Association Ukrainian Self Storage Association Self Storage Association United KingdomMethodologyAn online survey was sent to operators in each country by FEDESSA and JLL.Data was requested at both company and

171、facility level to gain as much comprehensive information as possible.Some associations exclude certain operators,Additional information Annexx,Francefor example those who only provide containerised storage.JLL collated the results and conducted operator interviews,with data provided from the followi

172、ng sources:Economic overview:Research provided by JLL research team Industry overview:Collected by each member association and consolidated by FEDESSA with analysis by JLL Key deals:Information collated by JLL Survey results:Collected and consolidated by JLL from online survey responses of FEDESSA m

173、embers.Number of sites verified from operator responses and on operator websites Outlook:Collected and consolidated by JLL from online survey responses of FEDESSA members Roving focus:Collected and consolidated by JLL European supply data:Information consolidated by FEDESSA.Interviewees Daniel Thorp

174、e,Senior Research Analyst,JLL Tom Caines,Director,JLL EMEA Alternative Investment Fabian Emil Sobak,CEO Self Storage Group ASA Chris Oosthuizen,Executive manager,Digital First Dimitri Logvinenko,Managing Director of TopBox Rishi Patel,Investment Director at M3 CapitalFEDESSA JLL|European Self Storag

175、e Annual Survey 2021|32European supply data Table to show country,population,estimated number of facilities,CLA,floor space per capita and facilities per million population.PopulationEstimated num-ber of facilitiesCurrent lettable area(sq m)Floor space per capita(sq m)Facilities per million populati

176、onCountry2019(UN)YoY change2021YoY change2021YoY change2021YoY change2021YoY changeAustria 9,043,072 140140,0000.015 15.5 Belgium 11,632,334 97215,0000.018 8.3 Czechia 10,724,553 815,0000.001 0.7 Denmark 5,813,302 171280,0000.048 29.4 Estonia 1,325,188 77,1000.005 5.3 Finland 5,548,361 74165,0000.03

177、0 13.3 France 65,426,177 6101,380,0000.021 9.3 Germany 83,900,471 297670,0000.008 3.5 Hungary 9,634,162 1945,0000.005 2.0 Iceland 3,43,360 1124,0000.070 32.0 Ireland 49,82,904 43108,0000.022 8.6 Italy 6,03,67,471 91243,0000.004 1.5 Latvia 18,66,934 37,5000.004 1.6 Lithuania 2,689,862 33,0000.001 1.1

178、 Netherlands 17,173,094 340920,0000.054 19.8 Norway 5,465,629 252180,0000.033 46.1 Poland 37,797,000 58125,0000.003 1.5 Portugal 10,167,923 4773,0000.007 4.6 Romania 19,127,772 1025,0000.001 0.5 Spain 46,745,211 5451,010,0000.022 11.7 Sweden 10,160,159 217506,6840.050 21.4 Switzerland 8,715,494 133133,3290.015 15.3 United Kingdom(incl containers)68,207,114 19974,691,6040.069 29.3 Europe in Total496,857,547 5,173 10,967,217 0.022 10.4