The rise of self-storage
25 Sep 2021
Following the growth of the self-storage industry in Australia, New Zealand is currently experiencing similar growth in supply of self-storage facilities with relatively low barriers to entry and strong population growth dynamics driving generally strong occupancy rates across the country. While supply has historically comprised of a mix of converted warehouses, shipping containers and purpose-built storage units, strong returns have encouraged increased supply of higher quality purpose-built facilities.
In addition to the increasing supply, there has been a marked increase in investment demand from both private and institutional sources locally and out of Australia with yields in the range of 5.5-6.5% for good quality and well-run facilities showing a premium over comparable sized industrial assets. These buyers have been targeting opportunities often from small single property operators to plug into nationwide operations.
Over in Australia, self-storage demand is booming as a culture of consumerism, e-commerce growth, shrinking living spaces and rising population drive demand from individuals and families for secure and convenient facilities for storing personal belongings.
CBRE’s Kyle Richardson provides detail on what’s driving growth in the sector and why investors are so interested in self-storage assets in this Insights piece.
In addition to the increasing supply, there has been a marked increase in investment demand from both private and institutional sources locally and out of Australia with yields in the range of 5.5-6.5% for good quality and well-run facilities showing a premium over comparable sized industrial assets. These buyers have been targeting opportunities often from small single property operators to plug into nationwide operations.
Over in Australia, self-storage demand is booming as a culture of consumerism, e-commerce growth, shrinking living spaces and rising population drive demand from individuals and families for secure and convenient facilities for storing personal belongings.
CBRE’s Kyle Richardson provides detail on what’s driving growth in the sector and why investors are so interested in self-storage assets in this Insights piece.