Although 2022 started positively, with a growing economy and a strengthening labour market, geopolitical events soon took over. The Russian invasion of Ukraine hugely increased energy and other commodity prices resulting in enormous pressure on the already inflationary backdrop. Price increases come on top of already tight commodity markets due to the pandemic as well as numerous pandemic-related supply constraints.

As 2023 approaches, high inflation and rising interest rates have resulted in downward pressure on growth and the eurozone and most EU countries have now entered an economic recession.

Despite this, it was projected by The World Bank that energy prices will fall by 11% in 2023, agricultural prices by 5%, and metal prices by 15%, compared to 2022 averages. The World Bank has also projected that the underlying drivers of current inflation will be resolved slowly during 2023.

“Further Growth Expected in 2023 European Self Storage Sector.”

CBRE, a global leader in commercial property advised that further growth is to be expected within the European self storage sector in 2023, and experts within the organisation have an overall positive outlook.

“It’s been a record-breaking 12 months for investment in the self storage market and increasing customer demand.”

The recent report from the Federation of European Self-Storage Associations (FEDESSA) indicated that continued growth is expected in the European self storage sector. According to the research, there has been a 5% increase in self-storage supply year-on-year along with an increase in occupancy of existing space, with further room for growth expected, particularly in less mature self-storage markets in Eastern Europe.

– UK remains the market leader in terms of stock, however, European stock levels have increased by 75% over the past five year

– Average rent per square metre in Europe is €290 per sqm per annum, up 7.9% from last year

– Commercial customers have increased from 24% in 2019 to 29% in 2022

“The past two years have been exceptional for the self-storage industry.  Many operators are now at optimal occupancy so future revenue growth will need to come from rate increases or the addition of new space. 

Increasing inflation and economic downturn will be a challenge for the industry, however, as has been shown in the past self-storage is change driven and a downwards economy just brings a different type of customer to the industry.” – Rennie Schafer, CEO, SSA UK

The economic climate has also presented some unexpected opportunities for businesses within the industry.

‘We have big plans for the future, with already three confirmed new locations across the UK in 2023’

One of the pioneers of self-storage in the UK, Space Station, recently took over the day-to-day running of Fort Locks in Banbury as part of its expansion programme. Since October 2020, when it was acquired by global real estate investment firm, Heitman, Space Station received almost £50m in investment and is set to receive more significant funding in the next five years.

“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.” – Kevin Prince, CEO at Space Station

Space Station is one of many self storage businesses around Europe with rapid and exciting growth plans.

At Kuboid, it’s been another year of success and we and our customers remain positive for 2023. If you want to find out more about the self storage industry get in touch! We have a genuine passion for the industry and we’re happy to share our knowledge and expertise.