April has been another busy month for the self storage industry, with several notable developments and changes taking place. From new facility openings to industry acquisitions and innovative technological advancements, the self storage sector is evolving and adapting to meet the changing needs of consumers.

Take a closer look at some of the most significant changes that have occurred in the self storage industry over the past month and what they might mean for the industry going forward.

Extra Space, Life Storage to Merge, Create $47B Self Storage Giant

In a deal that will create the largest self storage operator in the U.S., Extra Space Storage will acquire Life Storage, the REITs announced on April 3. The deal will create a company with an estimated enterprise value of $47 billion and a pro forma equity market value of $36 billion. The combined company will have more than 3,500 locations serving upward of two million customers and will retain the Extra Space name.

“We are impressed with the management team’s strategic repositioning of the Life Storage portfolio over the last seven years, creating a highly diversified portfolio of quality storage assets in strong growth markets.” – Extra Space CEO Joe Margolis

Cynergy Bank to Serve U.K. Self-Storage Businesses

U.K.-based Cynergy Bank will begin offering loans to local self storage operators and investors, including those for facility acquisitions and refinancing. The company cited the industry’s growth and trading volume in the region as reasons for its interest in the sector.

“The self storage sector has demonstrated year-on-year growth and has proved to be very resilient. Cynergy Bank’s mission is to offer the U.K.’s scaling businesses a real alternative to mainstream lenders. With our knowledgeable relationship managers, we quickly learn our customers’ needs, understand the market and can deliver certainty at speed.” – Kenny Stewart, head of commercial banking for Cynergy

Nuveen Real Estate’s European Value Add Strategy acquires high-quality UK self storage portfolio from Easistore

Nuveen Real Estate, one of the largest investment managers in the world, announces that it has acquired a high-quality self storage portfolio in the UK, from Easistore, on behalf of its European Value Add strategy. Nuveen will partner with one of the UK’s leading operators, Storage King, to leverage its operational expertise. The vendor was advised by Levy Real Estate.

“Over the last few months we have worked closely with our joint-venture partner, Stor-Age, to enter the UK self storage market and this acquisition provides an excellent seed portfolio. Well-located assets near densely populated residential areas have demonstrated a consistent level of rental growth in recent years and we have identified an opportunity to be an early mover in this sector, which offers substantial scalability potential in the UK.” – David Pearce, Fund Manager, Real Estate, Europe at Nuveen

Lok’nStore pleased with same-store performance in first half

The group, which has stores at Oldbury and Wolverhampton, was up 1.5 per cent to £13.58 million.

 “Lok’nStore is reporting excellent results with same-store sales rising 11.2 per cent.” – Lok’nStore Chairman Andrew Jacobs

Technology is Changing The self storage industry

Technology has opened up many possibilities for self storage operators to embrace innovation and efficiency Cris Burnam, CEO of StorageMart shares with Forbes how technology continues to have a significant impact on the self storage industry.

“Technology like self storage management software and mobile apps automates processes and improves the customer experience while reducing costs. These technologies can be a real game-changer for storage facilities, but self storage operators should always base decisions about tech investments on the notion of upgrading the customer journey and boosting efficiencies. As these technologies evolve, so too will opportunities for self storage businesses to use them to maximize profits and simplify processes—and keep customers happy.” – Cris Burnam, CEO of StorageMart

Space Station has added a new Banbury location to its nationwide portfolio

Since October 2020, when it was acquired by global real estate investment firm, Heitman, Space Station has received almost £50m in investment, and is set to receive more significant funding in the next five years. This new management contract takes Space Station’s nationwide portfolio up to 13 storage facilities, containing more than 5,000 individual storage units across London, Thames Valley, Birmingham and the Midlands.

“We have seen significant positive growth over the past couple of years in terms of personal and business storage with many people looking to make more room in their homes and businesses. It is an exciting time for us, and we have big plans for the future, with already three confirmed new locations across the UK in 2023.” – Kevin Prince, CEO at Space Station

Stay up-to-date on the latest developments in the UK self storage industry with Kuboid and keep an eye out for our monthly industry updates.

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