According to the latest studies, there are almost 70,000 self storage facilities around the world. In the UK alone, there is 60 million sq ft of rentable storage space, and it was reported in 2023 that the annual consolidated turnover reached over £1 billion.
Experts now consider self storage as an underrated real estate asset, but how did self storage evolve into the buoyant and rapidly growing industry it is today?
A long time ago
There’s actually some evidence of the self storage concept in ancient China, dating back to around 2000 years ago. The Chinese stored belongings in clay pots in an underground storage pit. These pits would be guarded and monitored to make sure no one but the owner could remove their pot.
1950-1959
Self storage started to emerge in the UK when the invention of the steam train prompted the aristocracy to spend more time travelling around the country and thus needing space to store their belongings.
1958 – Lauderdale Storage in Florida became the first self storage business in the US to cater specifically to permanent residents.
1960-1969
1960s – The first self storage facility chain opens in Texas named, ‘A-1 U-Store-It U-Lock-It U-Carry-the-Key’. The chain grows very popular due to the fact that most homes in Texas do not have basements.
1970-1979
1970s – Rodger Dudding a British business magnate, nicknamed, “Mr. Lock Up”, enters the self storage industry by purchasing ten lock-up units from his landlord. He now has an estimated net worth in excess of £100m.
1979 – Doug Hampson takes inspiration from the storage industry in America and opens Abbey Self Storage, the first self storage chain in Europe.
1980-1989
1980s – Self storage starts to gain real traction and popularity.
1990-1999
1990s – Modern storage facilities grow slowly throughout the ’90s, at which time demand outpaced supply and caused a rush of new developments.
1998 – Big Yellow and Safestore – the largest self storage companies in the UK were founded. They are both constituents of the FTSE 250 Index and listed on the London Stock Exchange. Today, they have combined revenues of around £500m.
2000-2009
2008 – The UK enters, ‘The Great Recession’. The self storage industry proves to be resilient and is supported by the 5.1% total return the sector delivered to investors during this time.
2010-2019
2010 – Popular US TV shows increase public awareness about self storage (Storage Wars, Storage Hunters).
2019 – Private Equity firms increase traction and invest in the self storage industry.
2020-Now
2020 – The world is hit by the Covid 19 pandemic. Once again, the sector proves to resilient and according to the 17th Annual Industry Report by the SSA UK, it continues to experience notable growth.
The Self Storage Market Today
Consistently, the self storage sector has proven its resilience. The economic fallout from the pandemic has spurred a new demand from business owners taking their operations online and utilising self storage to reduce costs and increase flexibility. Demand has also risen from employees needing to clear space at home to create home offices as a result of new remote working practices.
The UK market has grown at an average rate of 10% per year and is now worth over £1 billion, and the number of facilities across Europe have increased by 70% in the last 5 years. In the US, there are estimated to be around 54,000 facilities. This represents more than all the McDonalds, Subway and Starbucks operations combined. Experts believe that the industry remains strong and will continue to grow in the coming years.
Keep up to date with the latest self storage news and insights.
Self Storage Resources:
Self Storage Industry Report 2024
