Self Storage Report 2022-template-v8

OUTLOOK AND BUSINESS CONFIDENCE

There has been a considerable swing towards operators considering mixed-use for future development, but the number definitely committed to do so in future developments remains low. This type of development includes adding shop fronts, workshops, retail, residential or other uses to their site in addition to self storage. This can increase the prominence and appeal of the site and attract more customers as well as potentially open up different properties for viable development. It will be interesting to see if the added interest this year converts to more such developments in the coming years.

100

90

80

MUCH BETTER THAN LAST YEAR

SOME IMPROVEMENT

70

ARE YOU MAKING ANY SUSTAINABILITY IMPROVEMENTS

45%

60

SAME AS LAST YEAR

40%

2020

2021

TO YOUR BUSINESS IN 2022/23?

50

35%

SLIGHT DOWNTURN

39%

40

LESS PROFITABBLE

30%

34%

30

25%

20

20%

24%

10

15%

20%

19%

19%

18%

0

16%

10%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

5%

3%

There is less optimism for profits increasing this year than last year. Only 5% of survey respondents predict a better 2022, down from 18% last year. However, the industry remains positive with only 9% of respondents predicting a downturn in profits, up from 5% last year and 62% overall expecting some increase in profits. Given the significant increase in profitability over the last 2 years and growing inflationary pressures, some may be expecting a downturn or at least levelling of profits, but the operators believe there is still improvement to be made.

2%

5%

0%

NO

YES, CHANGING OR OPERATING PRACTICES TO REDUCE ENERGY OR WASTE

YES, BUILDING A NEW STORE OR EXPANDING A STORE WITH MORE SUSTAINABLE ENERGY OR

YES, PHYSICALLY MODIFYING MY EXISTING STORE WITH MORE ENERGY SAVING OR ENVIRONMENTALLY SUSTAINABLE CHANGES

OTHER

YES, BUILDING NEW STORES INCORPORATING AN ESG CRITERIA AND MORE SUSTAINABLE ENERGY OF BUILDING METHOS UNDER THE MINIMUM ENERGY EFFICIENCY STANDARDS

BUILDING METHODS

This is the second year we have asked this question and already there is a large movement towards implementing more environmentally sustainable practices in the industry. Now only 20% of respondents have indicated they are not currently making any sustainability changes to their business. A new option added this year is the ESG building of new stores, which has indicated some operators are already using sustainable building methods for new development. Self storage businesses by their nature are not large consumers of energy, especially when measured against the size of their physical footprint. However, the construction of stores relies heavily on steel and concrete which have traditionally been less environmentally friendly. This is why having stores both operated and constructed using sustainable materials and practices is a significant step forward for the industry. At the moment it is mainly the larger operators that have committed to reducing their carbon footprint. Another factor to consider is that it is almost always more sustainable to retrofit an existing building than to build a new one from the ground up. Will this change the way operators grow their portfolios in the future?

ARE YOU CONSIDERING FUTURE MIXED-USE DEVELOPMENT FOR EITHER EXISTING OR FUTURE STORES?

70%

63%

60%

50%

45%

40%

40%

30%

24%

20%

14%

13%

10%

0%

NO INTEREST IN MIXED USE

I AM CONSIDERING IT FOR A FUTURE DEVELOPMENT/ EXPANSION

I WILL BE USING IT IN A FUTURE DEVELOPMENT/ EXPANSION

2020

2021

54

53

S E L F S T O R A G E A N N U A L I N D U S T R Y R E P O R T 2 0 2 2

S E L F S T O R A G E A S S O C I A T I O N U K - C U S H M A N & W A K E F I E L D

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