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1、2023202320232023SELF STORAGEANNUAL REPORTDATA COMPILED FROM 2022 CALENDAR YEARCONTENTSCONTENTS01020306070809OPERATOR SURVEYPUBLIC SURVEYCUSTOMER SURVEYCONTRIBUTORS05UK ECONOMIC OVERVIEWINTRODUCTION&METHODOLOGYSUMMARY OF KEY FINDINGSINDUSTRY OVERVIEW04INDUSTRY HIGHLIGHTSP.04P.08P.12P.16P.20P.34P.58P.

2、72P.9401 01INTRODUCTION&METHODOLOGY01INTRODUCTION&METHODOLOGYThis is the 16th year the Self Storage Association UK(SSA UK)has been surveying its members and producing an annual industry report.The report covers all viewpoints of the industry,collecting data from operators,customers and the general p

3、ublic.The last few years have seen some changes in the industry,following the impact of the pandemic and now as we move into a period of inflationary pressure.There have been some changes to the sample group this year as the industry becomes more consolidated and independent stores are opened.With a

4、round a quarter of stores in the UK completing the survey,representing around 40%of the storage space,the sample size is exceptionally robust.For the past eight years,the report has been produced in conjunction with Cushman&Wakefield.Their extensive experience in valuing self storage properties arou

5、nd the world,as well as knowledge of the broader property market,has further added to the valuable information in this report.The economic overview provided by Cushman&Wakefield included in the report also gives context to the achievements of the industry.The operator survey was completed by 57 comp

6、anies with 602 stores in total.They were all members of the SSA UK.The survey was completed in the months of January and February based on data from the 2022 calendar year,unless otherwise stated.Compared to the industry as a whole,the data set is slightly weighted towards larger operators as fewer

7、of the small independent operators complete the survey.“The customer survey was completed in January 2023 across 29 self storage companies across the UK,which have over 152 stores in total.A total of 1,837 customers responded to the survey,of whom 82%were domestic customers and 18%were business cust

8、omers.This survey was sent to the main contact on the self storage contract.The survey was entirely voluntary and without reward.The latter part of the survey asked specific questions addressed to either private or domestic customers or business customers.The public survey was carried out online by

9、YouGov on behalf of SSA UK on January 23 and 24.It was an online survey with data drawn from a statistically selected and weighted sample of the adult UK populations demographics.The survey was completed by 2,102 participants this year.I would like to thank the members of the SSA UK,who responded so

10、 promptly to the survey this year,and the team at Cushman&Wakefield for collating the data,providing commentary and interpretation of the data and producing the final report.A special thanks to all the operators who allowed us to survey their customers.I hope that you find value in this report,it ce

11、rtainly shows the industry has continued its strong performance coming out of the pandemic.RENNIE SCHAFERCEO SSA UKSELF STORAGEANNUAL REPORT 2023P.6P.702 02SUMMARY OF KEY FINDINGS02SUMMARY OF KEY FINDINGSCHURN AT 81%OCCUPANCY STABLE AT 83.3%RENTAL RETURNS UP4%TO27.19PER SQ FTEBITDA UP 3%GROWTH IN SE

12、LF STORAGE SPACE5.7%OVER2M SQ FT78%OF OPERATORS MAKING SUSTAINABILITY IMPROVEMENTS TO THEIR BUSINESSOF CUSTOMERS SAY THEIR NEEDS FOR SELF STORAGE HAVE CHANGED DUE TO COST OF LIVING17%OF BUSINESS CUSTOMERS RUN THEIR ENTIRE BUSINESS FROM THEIR SELF STORAGE UNIT20%OF CUSTOMERS HAVE HAD THEIR UNIT FOR O

13、VER 5 YEARS20%OF CUSTOMERS TRAVEL LESS THAN 15 MINUTES TO THEIR UNIT62%OF PEOPLE IDENTIFIED A SELF STORAGE BRAND FROM ITS ROADSIDE STORE PRESENCE66%OF THE PUBLIC THINK SELF STORAGE IS TOO EXPENSIVE36%OF CUSTOMERS HAVE USED SELF STORAGE BEFORE32%OF SELF STORAGE CUSTOMERS EARN ABOVE THE NATIONAL AVERA

14、GE WAGE55%OF THE PUBLIC HAVE A GOOD UNDERSTANDING OF SELF STORAGE50%LESS THANOF ADDITIONAL SPACE OCCUPIED COMPARED TO LAST YEARSELF STORAGEANNUAL REPORT 2023P.10P.1103 03INDUSTRY OVERVIEW03INDUSTRY OVERVIEWTHE SELF STORAGE INDUSTRY CONTINUES TO EVOLVE AND THE EXACT DEFINITION OF SELF STORAGE HAS BEE

15、N DEBATED.SELF STORAGE IS A TERM INCREASINGLY BEING USED BY A VARIETY OF BUSINESSES OFFERING DIFFERENT FORMS OF STORAGE SOLUTIONS.Self storage in the UK is not a regulated industry,and there is little guidance from the government as to exactly what makes up a self storage facility.There is a Europea

16、n standard for self storage;however,this was drafted 15 years ago,before newer industries like mobile storage,trade counters,peer-to-peer storage,and valet storage emerged.The standard was primarily focused on differentiating self storage from removers and defining minimum levels of security and leg

17、al protection for customers.Without a clear definition of self storage,commentary on the size and performance of the industry in documents such as this is difficult.A self storage unit is a secure,static space,typically less than 500 square feet in size,that is to be used by a person or business for

18、 the storage of goods.Customers have exclusive and ready access to their space.Ready access means the ability to access the unit at will during normal office hours without intervention.It is not intended that the unit be used as a workspace,trade counter,or place where business activities other than

19、 storage or storage related activities take place.Storage related activities would include goods receiving,dispatching,and packing that involve the goods in storage.This unit would be rented under a self storage contract that was not part of or tied to an additional agreement such as a residential t

20、enancy,office space,workspace,or similar.To provide clarity for this document and future SSA UK publications,the association has defined a self storage unit as This definition would not include mobile storage,where portable units are delivered to customers and then returned on request,as this does n

21、ot meet the criteria of static space or ready access.Similarly,it would not cover peer to peer storage in most cases,as this also would not meet the criteria for ready access without intervention.It is understood that some businesses that do not meet this definition do have the term self storage in

22、their name or description;however,for the purpose of clarity,they are not defined as self storage in this report.Based on this definition,it is estimated that there are approximately 2,231 self storage stores in the UK,of which 739 are predominately external storage(typically converted shipping cont

23、ainers or similar).These stores are spread across 1,086 different brands,and while most of these brands are independently owned,there are a small number of operators with stores under multiple brands.There are around 55.5 million square feet of self storage in the UK.The average size of a self stora

24、ge facility is 24,877 square feet and this has been declining in recent years.This is due to more new stores opening in smaller regional markets and the emergence of remotely managed stores.We have seen a large increase in external storage facilities opening,but most of these are smallless than 50 c

25、ontainerswith many in rural locations or as secondary businesses in industrial estates.The increasing cost of construction for purpose built self storage does not appear to have significantly impacted development.There remains a strong pipeline for the development of new sites and the expansion of e

26、xisting buildings within the industry.Consolidation in the industry has continued as existing operators expand their portfolios through acquisitions.Institutional investors were more successful in their acquisitions in 2022,picking up a number of larger portfolios.SUPPLY55.5 MILLION SQ FTSTORES2231N

27、UMBER OF BRANDS1086STORAGE SPACE PER HEAD OF POPULATION0.82 SQ FTANNUAL TURNOVER990 MAVERAGE SIZE OF STORE24,877 SQ FTORGANISATIONNO.OF STORESTOTAL SPACEBIG YELLOW(INCLUDING ARMADILLO BRAND)1086.3MSAFESTORE1295.7MACCESS SELF STORAGE603.4MSHURGARD SELF STORAGE412.2MLOKNSTORE(INCLUDING MANAGED OR FRAN

28、CHISE STORES)402.0MSTORAGE KING(INCLUDING MANAGED OR FRANCHISE STORES)381.7MREADY STEADY STORE27815,000FLEXISS GROUP(SURESTORE AND SELF STORAGE COMPANY)17786,000 STORAGEMART18759,000LOCK STOCK SELF STORAGE LIMITED(CONTAINER STORAGE)27764,000SELF STORAGEANNUAL REPORT 2023P.14P.1504 04INDUSTRY HIGHLIG

29、HTS04INDUSTRY HIGHLIGHTSUK STORAGE COMPANYA national portfolio of 28 properties,comprising both purpose built stores and container sites.Currently under offer to an undisclosed purchaser.APRIL 2023EASISTOREA portfolio of four properties situated in Maidstone,Tunbridge Wells,Crawley and Edenbridge.Ac

30、quired by Nuveen for an undisclosed amount.Storage King acquired 10%and will operate the stores on their behalf.MARCH 2023STORE&SECUREA portfolio of three assets situated in Bournemouth,Poole and Basingstoke.Acquired by Cerberus for an undisclosed price.JULY 2022U STOREA portfolio comprising six exi

31、sting facilities,one development site and one development land plot.Acquired by Heitman for a reported 182 million.AUGUST 2022SURE STOREA portfolio of four properties situated in Ashton-under-Lyne,Burton-upon-Trent,Manchester and Wigan.Acquired by Legal&General for an undisclosed price under a manag

32、e back agreement.APRIL 2022CITY STOREA single property situated in Camden,London.Acquired by Shurgard for 6 million.MAY 2022McCARTHY STORAGE WORLDA portfolio of four properties situated in York,Harrogate,Huddersfield and Wakefield.Acquired by Storage King for 37.5 million.FEBRUARY 2022TITAN STORAGEH

33、IG Capital acquires a stake in Titan Self Storage for an undisclosed price.FEBRUARY 2022STORAGEBASEA portfolio of four properties situated in Banbury,Wednesbury,Frome and Amesbury.Acquired by Storage King for 59 million.MARCH 2022LOK N STOREA portfolio of four properties situated in Basingstoke,Card

34、iff,Horsham and Portsmouth.Acquired by Self Storage Trading LLP for 39 million under a manage back agreement.FEBRUARY 2022SELF STORAGEANNUAL REPORT 2023P.18P.1905 05UK ECONOMIC OVERVIEW05UK ECONOMIC OVERVIEWECONOMIC GROWTHThe element of economic uncertainty has increased over the course of the last

35、12 months,not least as a result of the mini-budget in September 2022,which had the impact of devaluing sterling to a low point of$1.07;driving up ten-year gilts to a peak of 4.5%;and increasing the cost of borrowing.The UK economy remains hamstrung by high inflation,which is impacting consumer spend

36、ing and driving down household savings to pre-pandemic levels.The Bank of England has now undertaken 11 consecutive rate hikes in its ambition to take inflation out of the system.While most economists continue to forecast inflation falling during the course of 2023,the most recent inflation data at

37、the time of writing saw CPIH increase by 9.2%in the 12 months to February 2023,with CPI back up to 10.4%.The impact of inflation has contributed to significant industrial action across the public sector.There were 220,000 working days lost as a result of disputes in January 2023,down from 822,000 in

38、 December 2022.Overall,during the course of 2022,the economy grew by 4%,with the final quarter seeing marginal growth of 0.1%(revised upwards from 0%),after a marginal fall of 0.1%in Q3.The final quarters slowing was driven by negative growth in education,transport and storage,and production.By the

39、end of 2022,the level of quarterly GDP was still 0.8%below its pre-pandemic level.Positive readings of PMI in February and March suggest short term growth in the economy,although there continue to be a number of headwinds.Most recently,economic uncertainty is centered around the potential for furthe

40、r distress in the banking sector,after the woes of Signature,SVB,Credit Suisse and First Republic.ANNUAL GDP10.0-10.0-15.05.0-5.00.02007200820102011201220132014201520162017201820192021202220202009SOURCE:ONSLABOUR MARKETRelative business resilience has underpinned a healthy labour market.In the three

41、 months to January 2023,the UK employment rate was 75.7%,with the unemployment rate at 3.7%.In the three months to February 2023,the estimated number of vacancies fell for the eighth consecutive period-to 1,124,000.This is evidence that while unemployment remains historically low,economic uncertaint

42、y is weighing on recruitment.With unemployment low and vacancies still at historically high levels,economic activity is high up on the political agenda.The Spring Budget introduced a number of measures intended to increase the working population with the expansion of free childcare hours and the cha

43、nges to universal credit most notable.Whilst we have seen an increase in redundancies,the redundancy rate the rate of redundancies as a ratio of employees-remains below the long-term norm.IN BRIEFInflationary pressures have driven up the cost of living,as a result firstly of supply chain pressures d

44、ue to disruption in the global economy from the pandemic,and latterly the conflict in Ukraine.At the time of writing,CPI stands at 9.2%.Furthermore,these inflationary pressures have driven a monetary response in the form of interest rate hikes,which have driven up the cost of borrowing,most notably

45、on mortgages.These have all had the impact of driving down the accumulation of household savings accumulated during the course of the pandemic quickly,but also put pressure on consumers discretionary spend.%SELF STORAGEANNUAL REPORT 2023P.22P.23REDUNDANCY RATENOV to JANMAY to JUL2008NOV to JANMAY to

46、 JUL2009NOV to JANMAY to JUL2010NOV to JANMAY to JUL2011NOV to JANMAY to JUL2012NOV to JANMAY to JUL2013NOV to JANMAY to JUL2014NOV to JANMAY to JUL2015NOV to JANMAY to JUL2016NOV to JANMAY to JUL2017NOV to JANMAY to JUL2018NOV to JANMAY to JUL2019NOV to JANMAY to JUL2020NOV to JANMAY to JUL2021NOV

47、to JANMAY to JUL2022NOV to JAN2023161412100806040200SOURCE:ONSLagging business investment likely to be tempered further by increased cost of borrowing and a business environment which is creating more business failures than at any point since the global financial crisis will continue to put upward p

48、ressure on unemployment levels.NUMBER OF COMPANY LIQUIDATIONS BY INDUSTRY 2022AGRICULTURE,FORESTRY AND FISHINGMANUFACTURINGELECTRICITY,GAS,STEAM AND AIR CONDITIONING SUPPLYMINING AND QUARRYINGWATER SUPPLY;SEWERAGE,WASTE MANAGEMENTAND REMEDIATION ACTIVITIESWHOLESALE AND RETAIL TRADE;REPAIR OFMOTOR VE

49、HICLES AND MOTORCYCLESTRANSPORTATION AND STORAGEACCOMMODATION AND FOOD SERVICE ACTIVITIESINFORMATION AND COMMUNICATIONFINANCIAL AND INSURANCE ACTIVITIESREAL ESTATE ACTIVITIESPROFESSIONAL,SCIENTIFIC AND TECHNICAL ACTIVITIESADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIESPUBLIC ADMINISTRATION AND DEFENCE

50、;COMPULSORY SOCIAL SECURITYHUMAN HEALTH AND SOCIAL WORK ACTIVITIESARTS,ENTERTAINMENT AND RECREATIONOTHER SERVICE ACTIVITIESACTIVITIES OF HOUSEHOLDS AS EMPLOYERS;UNDIFFERENTIATED GOODS-AND SERVICES-PRODUCINGACTIVITIES OF HOUSEHOLDS FOR OWN USEACTIVITIES OF EXTRATERRITORIALORGANISATIONS AND BODIESALL

51、OTHERSEDUCATIONCONSTRUCTION500450350250150500100200300400SOURCE:ONS%SELF STORAGEANNUAL REPORT 2023P.24P.25INFLATION AND INTEREST RATESWhile most economists continue to forecast inflation falling globally during the course of 2023,the most recent inflation data in the UK at the time of writing highli

52、ghted its stickiness in the UK.The Consumer Prices Index including owner occupiers housing costs(CPIH)increased by 9.2%in the 12 months to February 2023,with the Consumer Price Inflation(CPI)back up to 10.4%.However,there is optimism to be had by looking internationally,with US inflation down from a

53、 peak of 9.1%-with goods price inflation up to a record 19%-last year to 6.0%in February.Office for Budget Responsibility forecasts produced in line with the Spring Budget suggest that inflation in the UK will be 2.9%by the end of 2023.The extension of the energy price cap for an extra three months

54、will do some good in protecting the consumer from additional cost of living pressures.With wholesale prices falling this year and the extension lasting until the summer,the hope will be that energy bills will fall back below the cap of c.2,100 per annum.This will give the retailer some much-needed b

55、reathing room,although expected bills will be in excess of the previous cap of 1,300 per annum.Any benefits from the energy cap are more than offset by other inflationary elements and increased mortgage interest repayments as a result of higher interest rates.The Bank of England has now undertaken 1

56、1 consecutive base rate hikes since December 2021,when the base rate stood at 0.1%,as monetary policy has been directed towards taking inflation out of the system.The base rate currently stands at 4.25%.SOURCE:BANK OF ENGLANDUK BASE RATE4.503.502.501.500.500.00MAR2020MAR2022MAR2023JUL2020JUL2022NOV2

57、020MAR2021JUL2021NOV2021NOV20224.003.002.001.00HOUSING MARKETAfter a buoyant number of years,housing market activity in the UK has slowed,as rising interest rates,high inflation,and a weaker economy have impacted buyers confidence.In February 2023,buyer demand remained 8%above pre-pandemic levels,de

58、spite being 51%lower than last year.Mortgage approvals have slowed,with Bank of England data showing that 40%fewer were approved in January 2023 than the pre-pandemic average.Sales are starting to slow,with a monthly fall of 27%in January 2023,although sales are still only 3%lower than the pre-pande

59、mic average.In February 2023,house prices experienced their first annual decline since June 2020,with Nationwide showing a 1.1%annual fall,although consensus expectations suggest that 2023 will see continued falls in house prices.As of February,Nationwide house prices were 6%below the August 2022 pe

60、ak.%ANNUAL REPORT 2023P.27SELF STORAGEP.26COST OF LIVINGCOST OF FOODHOUSEHOLD SECURITYFood prices in the UK are increasing at their fastest rate since 1977,with food and non-alcoholic consumer inflation at 16.8%in January 2023.This is as a result of increased production costs,with production inflati

61、on of food,drinks and tobacco increasing to 19.8%,suggesting that there are elements where manufacturers have not passed on the entire cost.This raises the potential for further increases.Imported food materials increased by 25.7%during the same period.The largest contributor to the increase in food

62、 inflation was vegetables,which rose by 18%in February.Furthermore,there have been shortages of produce in supermarkets as a result of bad weather and the impact of increased electricity prices.The impact on lifestyles as a result of the pandemic allowed consumers to save their income,in a way never

63、 seen previously.While there has been relative robustness compared to pre-pandemic levels,this has now been run down considerably.36%of adults making mortgage payments say that these outgoings have increased in the last six months.This has resulted in 34%of adults finding it difficult to afford thei

64、r rent or mortgage.HOUSEHOLD SAVINGS RATIO30.025.020.015.010.05.00.01963Q11973Q11983Q11993Q12003Q12013Q12020Q3SOURCE:ONSADULTS FINDING IT DIFFICULT TOAFFORD RENT OR MORTGAGE PAYMENTS6050403020100VERY ORSOMEWHATEASYVERY ORSOMEWHATDIFFICULTSOURCE:ONS%SELF STORAGEANNUAL REPORT 2023P.28P.29COST OF LIVIN

65、GUTILITIESCOST OF LIVING IMPACT ON SELF STORAGEIn the year to February 2023,electricity prices had increased by 66.7%,while gas prices had increased by 129.4%in the same time period.As a result,54%of adults are using less fuel in their homes,while 49%find it difficult to afford it.20%of people repor

66、ted being occasionally,hardly ever or never able to keep comfortably warm in their home.The increased cost of debt and increasing inflation are impacting real estate investment and development across all sectors.In our operator survey,it was made clear that this is likely to potentially hamper futur

67、e self-storage development with 22%citing that as a factor.SOURCE:ONSIS THE INCREASING COST OF DEBTAND INFLATION IMPACTING THE FUTUREDEVELOPMENT OF YOUR BUSINESS?0102030405060708090YES-WE HAVEREDUCED OURPLANS TOINVEST INNEW SITESNO-WE ARECONTINUINGAS PLANNED22%78%IM MOVING AND I AM BETWEENPROPERTIES

68、 AT THE MOMENTIM MOVING AND DONT HAVEENOUGH SPACE IN THE NEW HOMEI NEED TO STORE MY BELONGINGSDURING THE UNIVERSITY HOLIDAYSI NEED TO CREATE MORE SPACEAT WORKI HAVE RECENTLY HAD AN IMPORTANTLIFE EVENT(e.g.birth of a child,marriage,death/inheritance,separation/divorce etc.)TO CREATE MORE SPACE TO WOR

69、KFROM HOMEMY HOME IS BEING/WILL BERE-DECORATED AND I NEED TOSTORE MY BELONGINGS WHILSTITS BEING CARRIED OUTFOR BUSINESS REASONS(e.g.tostore my business stock or equipment,use as distribution hub,etc.)17.9%20.3%30.3%6.1%8.9%11.6%12.1%17.7%14.8%10.8%I NEED TO CREATE MORE SPACEAT HOME(not including wor

70、kingfrom home reasons)OTHERA drag on growth is likely to be the result of potentially reduced demand.The inflationary pressures on consumers are likely to tighten discretionary spend,while the increased cost of mortgages will slow the housing market,and negatively impact liquidity.These are likely t

71、o create a drag on demand in the sector as a result of fewer trigger points for entry into the self storage market 35.7%of users cite moving house as a reason for taking self storage space,either as a result of being in between properties,or moving and not having enough space.Furthermore,economic un

72、certainty has negatively impacted the number of home renovations,with redecorations making up a further 20.3%.OF OPERATORS SEE THE INCREASED COST OF DEBT AND RISING INFLATION IMPACTING FUTURE SELF STORAGE DEVELOPMENTS.22%GAS AND ELECTRICITY INFLATIONJUN2013OCT2014FEB2016JUN2017OCT2018FEB2020JUN2021O

73、CT2022-40406080100120140-20200GASELECTRICITY%SELF STORAGEANNUAL REPORT 2023P.30P.31OUTLOOK FOR RENTALS RATES38.1%11.2%0.3%50.4%Remaining good value for money will be essential for operators looking to retain customer demand.60%of customers currently believe that self storage is good value for money,

74、with 40%split between it being poor value,or not having a strong opinion.While there are likely to be a number of headwinds for demand,operators remain optimistic about the outlook for rental growth.88.5%of operators see an opportunity to increase rental rates.According to our operator survey,50.4%a

75、re looking to increase rents in excess of inflation,with a further 38.1%looking for increases less than inflation.COST OF LIVINGSet against a backdrop of record rental levels in the self-storage market and a big drop in the number of incentives.Another issue is that for new and prospective customers

76、,there is very little understanding of potential rental rates.Across the UK,only 10%of respondents from the public survey accurately estimated within the rate range.By and large,this is an underestimation.52%of potential customers estimate lower than the actual cost,with just 12%overestimating.25%do

77、nt know.COST OF LIVING IMPACT ON SELF STORAGEHAS YOUR USAGE OR NEED FOR SELF STORAGE CHANGEDAS RESULT OF THE COST OF LIVING CRISIS?YES-WE HAVE USED THESTORAGE UNIT MORE OFTENYES-WE HAVE USEDTHE STORAGE UNIT LESSYES-WE HAVE INCREASEDTHE SIZE OF OUR STORAGE UNITYES-WE HAVE REDUCEDTHE SIZE OF OURSTORAG

78、E UNIT012345678YES-WETOOK THESTORAGEUNIT AS ARESULT OFTHE COST OFLIVING CRISIS1%1%2%5%7%House buyer demand has slowed,as rising interest rates,high inflation,and a weaker economy impact buyers confidence,which could lead to a lessening of demand for self storage.However,in the rental market,an imbal

79、ance between supply and demand has caused record rental growth forcing more tenants to move and often opting for smaller rental homes.For many,this will lead to greater demand for self storage.INCREASE LESS THAN INFLATIONINCREASE GREATER THAN INFLATIONDECREASENO CHANGESELF STORAGEANNUAL REPORT 2023P

80、.32P.3306 06OPERATOR SURVEY06OPERATOR SURVEYThe survey results from 2020 and 2021 were largely boosted by the pandemic and the positive impact it had on the industry.The 2022 results are more reflective of the challenges of operating in an inflationary environment.There are still many positive indic

81、ators,and the industry certainly continues to perform better than most others.However,the growth in occupancy,rates and profits has abated.Average occupancy across the country remained stable,and while there was an increase in revenue per square foot,it was not as significant an increase as 2021 and

82、 was less than inflation.Operators are cautious about the coming 12 months but are continuing to expand their portfolio,suggesting they believe any drop in profits will be short term.The lower churn in the industry since the pandemic will work in its favour,with fewer new customers required to maint

83、ain occupancy levels.The industry also has far less exposure to debt than in the last financial crisis,which will mean it is less impacted by the rising cost of debt.The industry is also coming off an exceptional period,and most mature stores remain close to optimal occupancy with solid rental rates

84、,so there is the ability to absorb some compression in pricing or loss of occupancy.As with most industries,the increasing costs to the business will have the biggest impact.Business rates have risen by around 25%for most operators;energy,staff,and almost every other business cost have also risen.Wi

85、ll operators be able to continue to increase rental revenue to cover these costs?With occupancy so high,the best opportunity for growth in revenue is increasing rates,adding more space,or increasing ancillary income.RENTAL RATESRental rates continued to increase in 2022,rising 4%to 27.19.However,con

86、sidering that inflation in the UK grew from 5%in January 2022 to a peak of 9.6%in October,this increase was less than inflation.The industry as a whole has increased rates quite significantly since 2019,up 18%,so there is room for some relative compression of rates vs inflation.It should also be con

87、sidered that there can be a lag in the results when considering rates on an annual basis.If the store increased rates by 10%in July,then the full effects of this will not be shown.It will be interesting to see how the ongoing inflationary pressures in 2023 impact rental rates and if operators have b

88、een increasing prices closer to inflationary levels later in 2023.AVERAGE NET RENTAL RETURNS(PER SQ FT)201320122011201020142015201620172018201920202021202212141618202224262821.9721.0619.9619.6121.0022.1522.6823.0823.1123.0823.9426.1627.19All rental data is excluding VAT.SELF STORAGEANNUAL REPORT 202

89、3P.36P.37NET AVERAGE BILLED RENT BY REGION(/SF P.A.)45403530251520105039.2628.0721.9519.6219.1629.9920.8724.4122.5327.1920222021202020192018LONDONEAST OFENGLANDSOUTHEASTYORKSHIRE&THEHUMBERSOUTHWESTWESTMIDLANDS&wALESEASTMIDLANDSSCOTLANDNORTHUKAVERAGERental returns in the regions need to be considered

90、 with the other economic conditions.While returns are highest in London,so is the cost of living,land costs,and construction.This chart shows rental returns for mature stores against the household disposable income for the region.Once again,Yorkshire and London stand out for having a greater gap bet

91、ween their rental returns and disposable income.The East Midlands have the lowest returns compared to disposable income.CHANGE IN INCENTIVES PROVIDED OVER THE PAST YEAR201720182019202020212022DECREASEDINCREASEDSTAYED BROADLY THE SAME01020304050607080901008%9%9%2%2%3%5%90%76%85%18%74%56%13%78%42%13%1

92、9%RENTAL RETURNS FOR MATURE STORES VS DIPSOSABLE INCOMELONDONSOUTHEASTSOUTHWESTWESTMIDLANDS&WALESEASTMID-LANDSEAST OFENGLANDNORTH SCOTLANDYORK-SHIRE&THEHUMBERUK35,00030,00030252015100525,00020,00010,00015,0005,0000HOUSEHOLD DISPOSABLE INCOME PER CAPITA AVERAGE RENTAL RATE(MATURE STORES)SOURCE:OXFORD

93、 ECONOMICSAnother sign that operators are being somewhat more conservative with pricing is the change in incentives offered to customers.Many customers new to the industry believe the price will be lower than what it is,as demonstrated in the public survey data later in this report.This means the up

94、front discounts operators often offer can entice customers to use self storage for the first time.Once they have experienced the service,almost all self storage customers end up staying for a longer period than they initially booked it for,returning to normal pricing,which gives operators the opport

95、unity to recover the upfront discounts.In 2021,operators decreased their level of discounts,showing confidence in the market.In 2022,they returned to the normal pattern of keeping discounts the same.However,this means keeping the same as the reduced levels in 2021 for many operators,so this is still

96、 a positive sign,and only 9%of respondents indicated they increased discounts.When considering this data on a regional basis,the South West was the only region not to increase its rental returns.The East of England had the highest increase,23%,followed by Scotland with a 15%increase.London and Yorks

97、hire are the only regions to have consistently increased their rental returns over the last 5 years.%ANNUAL REPORT 2023P.39SELF STORAGEP.38OCCUPANCYOccupancy across the UK stayed stable at 83.3%.Optimal occupancy for a self storage facility is usually between 85%and 90%,as the store should always ha

98、ve product to sell.Often,stores that are close to 100%occupancy could be more profitable by increasing prices for all customers and decreasing occupancy slightly.Considering this data includes stores that have recently opened or expanded and are in the fill-up stage,it is to be expected that overall

99、 occupancy levels would be below 85%.There was a significant increase in occupancy during the pandemic,and this has not been lost,despite an estimated 5%growth in supply for the industry in 2022.OCCUPANCY RATE ON CLA2013201220112014201520162017201820192020202120226065707580859062.7%67.0%68.7%70.2%73

100、.1%73.9%76.1%77.2%76.2%82.3%83.3%83.3%When considering mature stores,which are stores that have had no expansion in the last 2 years,the occupancy levels have dropped,down from 86%in 2021 across the UK.The biggest drop was in Scotland,which also had one of the highest increases in rental rates,so th

101、is could be a result of operators pushing pricing in this market.London continues to grow occupancy in mature stores,but this is a more mature market with new development sites hard to find.There is less growth in the London market as a percentage of available space than in markets in the North.With

102、 the exception of Scotland and the East Midlands,all markets are still at higher occupancy levels than pre-pandemic levels.When considering both rental returns and occupancy combined,you can see that the industry has become more profitable while occupancy has remained stable and rental returns have

103、increased.2019 was the only year in the last decade where the industry became less profitable,and profitability has increased by 68%since 2013.OCCUPANCY BY REGION ON CLA(MATURE FACILLITIES)87.9%82.8%83.5%85.3%77.0%79.9%84.4%76.5%80.8%83.7%90808575706520222021202020192018LONDONSOUTHEASTSOUTHWESTWESTM

104、IDLANDS&WALESEASTMID-LANDSEAST OFENGLANDNORTHSCOTLANDYORK-SHIRE&THEHUMBERUKPROFITABILITY OF THE INDUSTRY2013201420152016201720182019202020212022908070605040302010019.6121.0022.1522.6823.0823.9423.1123.0826.1627.19RETURNS PER SQ FTOCCUPANCY%PROFITABILITY%SELF STORAGEANNUAL REPORT 2023P.40P.41LONDON88

105、%39.26SOUTH EAST83%28.07SOUTH WEST84%21.95WEST MIDLANDS&WALES85%19.62EAST MIDLANDS77%19.16NORTH84%20.87SCOTLAND76%24.41YORKSHIRE&THE HUMBER81%22.53EAST OF ENGLAND80%29.99OCCUPANCY OF MATURE STORERETURN PER SQ FTUNITED KINGDOM84%27.19SELF STORAGEANNUAL REPORT 2023P.42P.43CHURNAn important metric for

106、self storage operators is the churn rate.This measures how many customers move in and out of the store,which relates to how many new customers the store needs each year to maintain occupancy.If the churn is 100%,then that means on average every unit has been vacated that year and will need a new cus

107、tomer to replace it.For a 400-unit store,thats 400 new customers each year just to maintain occupancy.Churn fell below 100%for the first time during the pandemic,and while it has risen slightly,it is still well below pre-pandemic levels.OTHER OPERATING METRICSMany self storage businesses use EBITDA(

108、earnings before interest,taxes,depreciation,and amortisation)to measure the profitability and growth of their business.This metric measures the profit made by the business and is somewhat a proxy for cash flow.It removes many items business owners have discretion over,such as debt financing,capital

109、structure,and depreciation,to give a simpler analysis of profit from the business.EBITDA will clearly vary depending on the size of the business.This data further supports the success of the industry in the past 12 months.Self storage customers generally fall into two clear groups:short-term and lon

110、g-term.Most new personal use customers come to self storage for a short-term need,possibly a life-changing moment like a death in the family or an addition to the family.Many use self storage for this short term period,usually 39 months,and then move out.Others see the benefits of self storage and k

111、eep their unit for the long term,which is often many years.Commercial customers also tend to be long-term.The more long-term customers a store has,the fewer new customers they need.However,the store needs a good pricing policy to ensure long term customers get regular price rises and do not end up p

112、aying significantly less than new customers.CHURN RATE20152016201720182019202020212022020406080100120140131%128%124%120%118%97%76%81%AVERAGE EBITDA(EARNINGS BEFORE INTEREST,TAX,DEPRECIATION AND AMORTISATION)EBITDA52,000,00053,000,00054,000,00055,000,00056,000,00053,644,09855,391,96220212022It should

113、 be noted that not all operators have provided this data to the survey.Also,self storage businesses during the initial fill up stage will usually have a lower and maybe even negative EBITDA result.EBITDA has increased,albeit by 3%,which is to be expected given the increased profitability of the indu

114、stry.%ANNUAL REPORT 2023P.45SELF STORAGEP.44AVERAGE EBITDAAVERAGE EBITDA(EARNINGS BEFORE INTEREST,TAX,DEPRECIATION AND AMORTISATION)AMONG COMPANIES WITH AN EBITDA OF BELOW 1M 050,000100,000150,000200,000250,000300,000350,000400,000202020212022276,345339,437328,20731%STAFF COST12%OTHER EXPENSES4%INSU

115、RANCE19%RATES&TAXES10%MANAGING COSTS7%ONLINE MARKETING5%UTILITIES2%MERCHANDISE8%REPAIR&MAINTENANCE2%OTHER MARKETINGOperating cost data can vary materially,with operators taking differing approaches to the allocation of certain cost lines.Consequently,a certain amount of judgment is required when ana

116、lysing operating costs.Staff costs,rates and taxes remain the largest expenses,totaling 50%of all costs.The long-term trends for this data are relatively stable.The biggest movement this year was a 2%point drop in management fees.The ongoing inflationary pressures and changes to business rates and o

117、ther taxes may impact this in 2023.Most self storage businesses in the UK saw a circa 25%increase in business rates as of April 2023.For smaller businesses there has been a drop in EBITDA.When smaller businesses add space or open stores this has a more significant impact on their EBITDA as they have

118、 less earnings to spread this over.This means their results can be more volatile.The 2022 results are still significantly higher than 2020.SOURCE OF OPERATING COSTSANNUAL REPORT 2023P.47SELF STORAGEP.46Self storage stores themselves do not employ many people,with even the largest stores having on av

119、erage only three full-time staff.However,while not direct employers,self storage stores are strong supporters of local small businesses.Many are viewed as business incubators,assisting local businesses transition from family-based,home-based operations to larger-scale operators themselves employing

120、more staff.This data is largely the same as 2021.The current labour market makes it more difficult to hire new staff so many operators are looking at incentive packages and other benefits to retain existing staff.Automation is also being adopted by self storage operators,particularly in new stores,w

121、hich could see a reduction in staff over time.FULL TIMEPART TIMEAVERAGE NUMBER OF STAFF FOR DIFFERENT FACILITY SIZESAVERAGE NUMBER OF STAFFNUMBER OF UNITS IN FACILITYLESS THAN 200BETWEEN 200&500MORE THAN 5000.00.51.01.52.02.53.03.51.42.92.51.72.91.3Caution must be taken when considering the source o

122、f enquiry data,as this can depend on the methods the store uses to track the data.A person may contact the store through their website,but they looked them up because they were aware of the store from signage or local advertising.There is no doubt,however,that online methods are the main source of c

123、ontact for customers and are growing,up from 75%last year.It is likely that a portion of the unknown or other is from online sources that have not been measured.Directories have fallen to just over 1%as they become less relevant to customers in an online world.Social media remains low.The industry g

124、enerally does not have a strong presence in social media,and it is likely that people who research using social media are measured as internet based sources as that is how they eventually contact the store.Conversion data varies considerably from store to store as shown by the quartile bars in this

125、graph.This is partly due to the way in which stores handle customer enquiries,but it is also influenced by the way in which they record their data.Recording all incoming enquiries to their correct source requires robust management systems.Online and walk in conversions both dropped this year.This is

126、 indicative of customers shopping around more than previously.Possibly a result of the inflationary pressures,people are looking to find the best price and will potentially travel further to do so.Conversions online will always be lower as customers usually contact more stores online than they would

127、 in person.Many also find it more difficult to close a sale online without real time interaction between people.7%REFERRAL2%SOCIAL MEDIA78%WEBSITE8%SIGNAGE1%DIRECTORIES4%NOT KNOWN/OTHERESTIMATED CONVERSION RATE010203040506070809023.67%Q1 20%Q3 25%Q3 82%Q3 86%Q1 50%Q1 70%61.22%70.86%EMAILTELEPHONEWAL

128、K-INSOURCE OF ENQUIRIES%SELF STORAGEANNUAL REPORT 2023P.48P.49The number of companies that display prices on their websites continues to increase.There are differences in how companies display their prices.Some have them open for anyone to view,while others require you to enter some personal contact

129、 information before displaying the price or to request a quote online before a specific price is displayed.It is primarily smaller stores that do not display their prices online and more container based stores.This could be because they have less sophisticated websites that cannot be easily updated

130、as prices change.COMPANIES THAT DISPLAY PRICES ON THEIR WEBSITE201420152016201720182019202020212022010203040506070809010053%54%64%65%63%72%73%76%79%The number of stores that allow people to pay for their unit online also continues to increase,up from 71%in 2021.This gain appears to have come from pe

131、ople who previously allowed a reservation online without payment,as the number of stores offering no booking service has remained at 14%.There are a growing number of ways in which ID can be checked online,with people becoming more accustomed to using these when purchasing online.This would encourag

132、e more self storage businesses to complete the entire booking process online.More use of automation in stores and remotely managed stores will also likely increase this in the future.75%RESERVE AND PAY FOR A UNIT11%RESERVE A UNIT ONLY14%NOCAN CUSTOMERS RESERVE A UNIT THROUGH YOUR WEBSITE?%SELF STORA

133、GEANNUAL REPORT 2023P.50P.51STORE DATAData from the stores that completed the survey shows the average store size has fallen back towards the 2019 levels after two years of increase during COVID.In 2022,over 2.3 million square feet of space was added to the sample group.This is more than the three p

134、revious years combined.This is indicative of the growth of the industry since the restrictions of the pandemic have eased.LETTABLE SPACE2019202020212022CURRENT LETTABLE AREA(SQ FT)40,400 41,600 43,400 40,800 MAXIMUM LETTABLE AREA(SQ FT)42,500 44,100 45,500 43,600 We are seeing fewer megastores being

135、 built,and much of the growth in the industry is in secondary markets where smaller stores are common.It is to be expected that as the industry continues to grow,the average store size will decrease.This is compounded by the emergence of remotely managed stores,which are often much smaller than trad

136、itional self storage,with operators opening multiple smaller stores in a region.The sample group indicated that there was 1,694,000 square feet of space in their stores that was yet to be fitted out,indicating there is significant further supply if required.This is just from the survey data,the resu

137、lt across the industry as a whole would be much higher.This chart shows the spread of store sizes within the sample group.There has been an increase in smaller stores,while the number of stores with 65,000 sq ft and above has stayed relatively stable.45,00055,000 remains the most common size for a s

138、elf storage facility,accounting for 21%of the sample group stores.CURRENT LETTABLE AREA IN SIZE GROUP121086420UP TO5,00010,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,00075,00080,00085,00090,00090,000+Operators clearly have a preference for freehold or long leasehold(25+y

139、ears)properties where they can earn capital gains on the property as well as operating profits from the business.This chart shows that the trend is towards more leasehold properties.This could be due to the difficulty in finding freehold properties to develop for self storage.There is also a growing

140、 number of operators starting their businesses with leasehold properties that require less capital.This allows them to open stores quicker than saving the capital to purchase property.Often,once they have built capital with leasehold stores,they then look to acquire freehold.Container based storage

141、stores are also more likely to use leasehold property.Of the sample group,almost 60%of container stores were on leasehold land.%OF FREEHOLD STORES2010201120122013201420152016201720182019202020212022FREEHOLD/LONG LEASEHOLD8684828078767472LINEAR(FREEHOLD/LONG LEASEHOLD)Operators clearly have a prefere

142、nce for freehold or long leasehold(25+years)properties where they can earn capital gains on the property as well as operating profits from the business.This chart shows that the trend is towards more leasehold properties.This could be due to the difficulty in finding freehold properties to develop f

143、or self storage.There is also a growing number of operators starting their businesses with leasehold properties that require less capital.This allows them to open stores quicker than saving the capital to purchase property.Often,once they have built capital with leasehold stores,they then look to ac

144、quire freehold.Container based storage stores are also more likely to use leasehold property.Of the sample group,almost 60%of container stores were on leasehold land.%Needs to labelingSELF STORAGEANNUAL REPORT 2023P.52P.53Self storage businesses continue to offer associated services to their custome

145、rs,with office space and trade counters being the most common.These services are seen as complimentary to self storage customers,particularly commercial customers.This makes self storage a more attractive solution for businesses and allows them to conduct more of their business from the self storage

146、 store,which often results in them using the service for longer.Most of these services would also come at an additional cost,providing further revenue for the self storage business.Further illustrating the expansion of the industry,this year more operators opened three or more new stores than ever b

147、efore.There has clearly been a significant push for expansion by operators since the pandemic,despite the increasing costs of construction.It will be interesting to see if this abates as the current inflationary conditions put pressure on operators and potentially reduce the current escalation of pr

148、ofit margins.When directly asked if the current inflationary conditions would impact their future development,only 22%indicated they were reducing their investment in development.OTHER SERVICES PROVIDEDACHIVESTORAGEOFFICESPACEBULKSTORAGEMINI WAREHOUSE/WORKSPACETRADECOUNTERS0102030405019%28%18%28%5%N

149、ONEONETWOTHREEOVER THREENUMBER OF STORES OPENED PER OPERATOR1009080706050403020100201020112012201320142015201620172018201920202021202291%84%13%14%8%11%19%21%17%14%16%20%23%81%89%88%76%74%75%75%64%66%72%86%IS THE INCREASING COST OF DEBT AND INFLATION IMPACTINGTHE FUTURE DEVELOPMENT OF YOUR BUSINESS?Y

150、ES-WE HAVE REDUCEDOUR PLANS TO INVESTIN NEW SITESNO-WE ARECONTINUINGAS PLANNED22%78%FUTURE PROSPECTSOperators remain very positive about the future growth of the industry.From within the sample group,they plan on opening or acquiring 113 new stores.This is even more ambitious than in 2021,when they

151、predicted 82 stores in total for 2023,while the prediction for 2024 has remained the same.There were fewer existing stores traded in the UK in 2022 than in 2021,and so far in 2023 there have also been limited trades.The price paid by purchasers for stores has decreased,as has been seen in the proper

152、ty market generally,as the cost of debt increases.It could be that vendors are potentially waiting for an easing of the inflationary pressures before selling.However,there remains significant interest in the market from both institutional investors and existing operators.With a limited supply of sel

153、f storage businesses on the market,demand will be high for those that do come up for sale,which in itself could drive values back up.Particularly if the industry continues to perform better than many other property based assets.202366DEVELOP47ACQUIRED202451DEVELOP30ACQUIRED202560DEVELOP28ACQUIREDNUM

154、BER OF STORES EXPECTED TO BE DEVELOPED%SELF STORAGEANNUAL REPORT 2023P.54P.55While operators may not be shelving their expansion plans,they do have a more cautious outlook for profits.For the first time,some operators(9%)have indicated it will be a hard year,and another 24%expect a downturn.While th

155、e majority continues to expect some improvement,overall expectations are significantly lower than in previous years.While operators have shown the ability to increase rents,the increasing cost of operating a store will impact profitability.The industry is coming off a period of record occupancy,rent

156、al rates,and profits;expecting further improvement in the current economic conditions may be optimistic;however,even maintaining the current levels would be a good result and better than many other industries would expect.Less operators are considering implementing new technology into their stores.T

157、his could be because they have already upgraded over the past couple of years.Although it is more likely,businesses are looking to reduce costs by delaying unnecessary capital expenses that do not necessarily result in more direct income.OUTLOOK FOR PROFITS35%28%SLIGHT DOWNTURN24%4%9%100806040200201

158、120122013201420152016201720182019202020212022MUCH BETTE YEARSAME AS LAST YEARSOME IMPROVEMENTIT WILL BE A HARD YEARTHOSE CONSIDERING IMPLEMENTING NEW TECHNOLOGY IN THE NEXT 2 YEARSE.G.CUSTOMER APP,BLUETOOTH/QR ACCESS,AUTOMATION,ETC.YESNOMAYBE010203040506070809010020222021202167%80%68%32%20%45%2%0%0%

159、PERCENTAGE OF THOSE MAKING SUSTAINABILITY IMPROVEMENTS IN 2022/23NOYES,CHANGINGOUR OPERATINGPRACTICES TOREDUCE ENERGYOR WASTEYES,BUILDINGA NEW STORE/EXPANDING ASTORE W/MORESUSTAINABLEENERGY/BUILDINGMETHODSYES,PHYSICALLYMODIFYING MYEXITING STORE W/MORE ENERGYSAVING ORENVIRONMENTALLYSUSTAINABLE CHANGE

160、SOTHER05101520253022%22%29%20%8%INCREASEGREATER THANINFLATIONINCREASELESS THANINFLATIONDECREASENOCHANGEEXISTING CUSTOMER ROOMRENTAL RATES SINCELAST YEAREMPTY CUSTOMER ROOMRENTAL RATES SINCELAST YEAR01020304050607050.4%16.3%0.3%1.6%18.2%11.2%38.1%63.9%OUTLOOK FOR RENTALS RATESWhen further investigati

161、ng the operators outlook,they remain more confident about maintaining and increasing rents for existing customers than for new ones.This could mean that discounting for new customers will increase.If the low churn rates can be maintained,then this is less of a concern for the industry.But if long te

162、rm customers also begin to move out,this will require more new customers at potentially lower room rates,which will impact profits.While there may be less interest in investing in technology,there remains a focus on making changes to the business that are more sustainable.Only 22%of respondents stat

163、ed that they were not planning on making sustainability improvements to their stores.Self storage businesses,are not large consumers of energy,especially when measured against the size of their physical footprint.However,with energy costs increasing,any savings in this area are important.Also,the co

164、nstruction 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 practises is a significant step forward for the industry.Institutional investors are beginning

165、 to demand this approach.%SELF STORAGEANNUAL REPORT 2023P.56P.5707 07PUBLIC SURVEY 07PUBLIC SURVEYPUBLIC SURVEY RESULTSThe results in this portion of the report are taken from a survey conducted using an online interview administered to members of the YouGov Plc UK panel of 800,000+individuals who h

166、ave agreed to take part in public surveys.The responding sample of 2,102 UK adults aged 18 or over is weighted to the profile definition to provide a representative reporting sample.The profile is derived from census data or,if unavailable,from industry accepted data.Fieldwork was undertaken between

167、 23rd-24th January 2023.This survey is completed to gauge the understanding and attitude towards self storage by members of the general public.Considering that such a small portion of the population uses self storage,it is important for the industry to understand how they can grow awareness,understa

168、nding and use of self storage.It has been completed each year since 2014 with a similar sample size based on the same demographic representation of the UK population.INDUSTRY AWARENESSFor the first time,awareness of self storage dropped compared to the previous year.This was largely a result of a dr

169、op in awareness in the London area and an increase in the“dont know”responses.This is most likely as a the result of an anomaly in the data set this year.The follow up questions asked do not support this drop in awareness with understanding of the product increasing.Stripping out the respondents ans

170、wering dont know,the results are more typical with a small increase in awareness.London has had the highest level of awareness for some time,even with the drop this year,over 53%of people showed positive awareness of the product.To qualify awareness and understanding of self storage,survey responden

171、ts were asked if they agreed with a series of related statements.The majority relate to core services that self storage provides.Examples include:AWARENESS2014201520162017201820192020202120222023010203040506070LOW AWARENESSGOOD AWARENESSLINEAR(GOOD AWARENESS)62%55%59%58%54%52%52%50%50%56%51%45%41%42

172、%46%48%48%49%44%38%PROVIDING A RANGE OF UNIT SIZES IS A KEY SELLING POINT FOR SELF STORAGE,YET ONLY THE CUSTOMER LOCKS THE UNIT AND KEEPS THE KEY/PASSCODE AND THEREFORE CONTROLLING WHO HAS ACCESS TO THEIR GOODS,YET ONLY 52%OF SURVEY RESPONDENT UNDERSTOOD THIS.OF SURVEY RESPONDENTS UNDERSTOOD THIS.35

173、%SELF STORAGEANNUAL REPORT 2023P.60P.61This illustrates the point that the general public continue to not fully understand the full benefits of self storage.This should be read in context with the fact that self storage is largely a needs based purchase,so if people dont need it they are less likely

174、 to understand it.However,the data suggests there are people that are going through life changing events or require more storage space that are not considering self storage as a solution as they fail to understand the product.UNDERSTANDINGSELF STORAGEOFFER A RANGEOF UNITSIZES TO SUITPEOPLES NEEDSELF

175、 STORAGECONTRACTSARE FLEXIBLEFROM 1 MONTHTO 12 MONTHSAND LONGERONLY I CANACCESS MYGOODS IN SELFSTORAGE,NOTTHE STORESTAFF202120222023010203040506055%50%52%37%32%37%35%32%35%0102030405060708090100I AMCURRENTLYUSING SELFSTORAGE2%I AMCONSIDERINGUSING SELFSTORAGE INTHE NEXT12 MONTHS7%DONTKNOW7%I AM NOTUS

176、ING/CONSIDERINGUSING SELF STORAGEIN THE NEXT 12 MONTHS84%THOSE ABLE TO NAME A SELF STORAGE FACILITIY IN THEIR AREACAN NAME 1 OR MORECANT NAME ANY0102030405060702023202220212020201943.1%45.7%43.7%45.3%46.5%56.9%44.3%56.3%54.7%53.5%PRICING36%of survey respondents think self storage is expensive,albeit

177、 in general they have never previously used self storage and are therefore unlikely to know the actual cost.With this being one of the barriers to new customers trying self storage,the industry is trying to address this with up front discounting to encourage people to try the product and overcome in

178、itial price resistance.While 42%of people may not have anything to put into self storage now,it is a needs driven service that people will look for when they need it.Given that less than 3%of the population is currently using self storage,the fact that more than 50%of the survey group do have items

179、to put into storage shows the potential growth of the market.SELF STORAGE OFFER A RANGE OFUNIT SIZES TO SUIT PEOPLES NEEDSSELF STORAGE CONTRACTS ARE FLEXIBLE FROM1 MONTH TO 12 MONTHS AND LONGERIVE SEEN SOME SELF STORAGE BUILDINGSBUT IM NOT ENTIRELY SURE WHAT THEYRE FORSELF STORAGE IS ONLY FORSTORING

180、 EXPENSIVE ITEMSSELF STORAGE BUILDINGS ARE LIKEA BIG WAREHOUSE INSIDEID IMAGINE THAT IT WOULD BE EXPENSIVETO STORE THINGS IN SELF STORAGEONLY I CAN ACCESS MY GOODS INSELF STORAGE,NOT THE STORE STAFFI DONT HAVE ANYTHING ID PUT INTO SELF STORAGESELF STORAGE BUILDINGS ARE VERY SECURESELF STORAGE BUILDI

181、NGS ALWAYS LOOK CLOSEDSELF STORAGE IS MOSTLY USED BY BUSINESSESDONT KNOWNONE OF THESE01020304050604%3%8%9%13%17%28%31%35%36%37%42%52%POTENTIAL USECurrently,only around 2%of the adult population use self storage.Whilst this is a small portion of the sample size and population,it has grown from just 1

182、.3%in 2018.This is further supported by the increasing amount of self storage space occupied each year.Potential demand continues to accumulate,with a significantly higher number of people considering using the service than actually using it 7%of our survey.In reality,there would not be enough space

183、 for all these people to use self storage even if they chose to.AWARENESS BASED ON CUSTOMER KNOWLEDGEWith over 2,000 self storage stores in the UK,there is a store in almost every significant town.Yet over 50%of survey respondents cannot name a single self storage store in their local area.This is l

184、ikely to be influenced by self storage being a needs based purchase,hence you dont look for it until you need it.Despite more stores being built,brand and product awareness has not improved significantly in the past 5 years.For providers,it appears as though population education needs to be escalate

185、d.%SELF STORAGEANNUAL REPORT 2023P.62P.63AWARENESS BASED ON NEEDAwareness of self storage is much higher in the population that have undergone renovations or moved house.This supports the needs-based awareness concept.CANT NAMEA STORECAN NAME1 OR MORECAN YOU NAME A STOREIN YOUR LOCAL AREA?NO HOUSE C

186、HANGEHOUSE CHANGE60%40%45%55%However,house moving is not the primary driver of use.30%of those that have used self storage have done so primarily as a result of needing to create more space not as a result of working from home.This is likely to underpin increased length of agreements,rather than sel

187、f storage taken on for short term moves.Redecoration and house moves make up 20.3%and 17.9%of the market respectively,while an additional 17.7%of demand is made up of those that have moved but no longer have the space required for all their possessions once again,another long term driver for self st

188、orage space.HOUSECHANGEINTENTION TO USE BASED ON HOUSE CHANGEI HAVE USED SELFSTORAGE IN THE LAST12 MONTHSI AM CONSIDERINGUSING SELFSTORAGE IN THENEXT 12 MONTHSI AM NOT USING/CONSIDERING USINGSELF STORAGE INTHE NEXT 12 MONTHSDONT KNOW/CANT RECALLNO HOUSECHANGE1.36%3.75%4.02%3.54%86.54%79.64%12.60%8.5

189、6%UNPROMPTED BRAND AWARENESSThe following chart shows how limited brand awareness there is within the public.Around 66%of survey respondents could not name a single self storage brand and a further 5%named brands that were in fact not self storage.Where there is brand awareness,this relates to just

190、40 different operators and represents just 0.40%share of the UK market.Respondents could name more than one brand,so these figures can add up to more than 100%,however only 91(4.3%)named more than one actual self storage brand and only 25(1.2%)people named three or more.66.0%66.0%22.8%22.8%9.7%9.7%4

191、.4%4.4%1.5%1.5%1.2%1.2%0.5%0.5%0.4%0.4%BIG YELLOWSTORAGE KINGDONT KNOWARMADILLOOTHERSAFESTORESHURGARDACCESSUNPROMPTED BRAND AWARENESSCANT NAMEA STORECAN NAME1 OR MORECAN YOU NAME A STOREIN YOUR LOCAL AREA?NO HOUSE CHANGEHOUSE CHANGE60%40%45%55%HOUSECHANGEINTENTION TO USE BASED ON HOUSE CHANGEI HAVE

192、USED SELFSTORAGE IN THE LAST12 MONTHSI AM CONSIDERINGUSING SELFSTORAGE IN THENEXT 12 MONTHSI AM NOT USING/CONSIDERING USINGSELF STORAGE INTHE NEXT 12 MONTHSDONT KNOW/CANT RECALLNO HOUSECHANGE1.36%3.75%4.02%3.54%86.54%79.64%12.60%8.56%SELF STORAGEANNUAL REPORT 2023P.64P.65DRIVERS OF RECOGNITIONSite r

193、ecognition remains the clear leader in terms of identification of stores and brands.Both major and independent brands continue to invest in high profile sites to display their brand to as many people as possible.Referrals from friends and family is the second highest source of recognition,above all

194、other advertising.Most operators spend the vast bulk of their marketing spend on online AdWords and the like.They typically use search terms such as“self storage near me”that target people already looking for self storage.Such campaigns do not promote the product to people that may have a need for s

195、elf storage,but are not currently considering self storage as an option for their needs.There is limited marketing in the UK that promotes self storage to the general public such as outdoor advertising or other mass marketing.SEARCH PATTERNSWhen survey respondents were asked how they would identify

196、or contact a store,unsurprisingly over 75%search using the internet.This is lower than some other industries such as hotels,which are 85%or higher.Local knowledge and referrals are the next highest options and social media continues to grow.Please note that respondents can and have chosen multiple o

197、ptions,hence the total is in excess of 100%.66%THE SELF STORAGE FACILITY IS DIRECTLY VISIBLE ON THE ROADFRIEND OR FAMILYOUTDOOR ADVERTISING(e.g.BILLBOARDS etc.)12%11%12%INTERNETOTHERDONT KNOW/CANT RECALL9%6%5%ADVERTISING IN A LOCAL PAPERYELLOW PAGES2%ADVERTISING ON RADIO3%1%DIRECT POSTMEANS OF FINDI

198、NG A STORE TO CONTACTINTERNETSEARCHYOU KNOWA STORENEARBYASK AFRIEND/FAMILYDONTKNOWPHONEDIRECTORYSOCIALMEDIALOCALPAPEROTHER202320220102030405060708073%76%26%30%22%10%19%10%7%7%13%11%6%5%1%1%SELF STORAGEANNUAL REPORT 2023P.66P.67When we asked how people prefer to contact a store on a gender basis,we s

199、aw that males are more likely to visit a store,whist females are more likely to email or call a store.This is valuable information for operators to consider when setting up their websites and online offerings.These patterns have been largely the same since the COVID pandemic,where the preference to

200、use online jumped considerably.ATTITUDE TO AUTOMATONA major change in the industry in recent years has been the industrys greater use of automation,through access control,security customer sign up,marketing,electronic locks and online move in processes.GENDER PREFERENCE FOR CONTRACTING A STORE?This

201、allows some operators to reduce or entirely remove staff from their stores without reducing the ability of the customer to access their unit.The adoption of fully unmanned sites is relatively low in the UK,compared to markets such as Sweden,but it is growing,particularly in smaller regional location

202、s.Since 2020,comfort with visiting unmanned stores has increased from 38%to 45%-although there is a nuance with levels of willingness.2023WILLINGNESS TO USE AN UNMANNED/AUTOMATED STOREVERYWILLINGFAIRLYWILLINGNOT VERYWILLINGNOT ATALLWILLINGDONTKNOWNET:COMFORT-ABLENET:NOTCOMFORT-ABLE2022010203040509%1

203、2%29%34%26%23%18%15%18%17%38%45%44%38%39%35%BY USING E-MAIL OR ANOTHER ONLINE METHOD TO DIRECTLY CONTACT SELF STORAGE CENTRE8%10%DONT KNOWMALEFEMALE28%24%CALLING SELF STORAGE CENTRE DIRECTLY ON THE PHONE22%27%BY VISITING THE SELF STORAGE CENTRE3%4%NONE OF THESE%SELF STORAGEANNUAL REPORT 2023P.68P.69

204、PRICE EXPECTATIONSDONTKNOWMORETHAN250201TO250151TO200101TO15051TO10010TO50LESS THAN100515253510203020232022202120202019UKLONDONSOUTHNORTHSCOTLANDINDICATIVE AVERAGE NET MONTHLY RENTAL RATE FOR A 90 SQ FT UNIT194273163131175IN RANGE10%7%11%17%11%OVER12%9%15%20%12%UNDER WITHOUT DONT KNOW52%58%50%38%50%

205、DONT KNOW25%26%24%26%27%PRICE EXPECTATIONSSurvey respondents that have not previously used self storage,believe it will be cheaper than it is.This could be one of the reasons why those considering using self storage find cheaper or free alternatives such as container storage or friend and family gar

206、ages.There has been an increase in the perceived price of self storage this year.With inflation sitting at 10%,this is to be expected and the perceived cost remains well below the actual cost.When considering the typical cost of self storage,the table below shows that across the UK only 10%of survey

207、 respondents have a correct understanding of the cost of a self storage unit and 77%thought it would be cheaper or did not know.Initial price shock is an issue the industry needs to deal with and is only partly mitigated by individual discount options such as 50%off the first 2 months.That said,ther

208、e has been improvement in this data in recent years.In 2019,less than 7%of people were in range and over 32%did not know.%SELF STORAGEANNUAL REPORT 2023P.70P.7108 08CUSTOMER SURVEY08CUSTOMER SURVEYCUSTOMER PROFILINGThe typical self storage customer base is slightly more male orientated and,including

209、 2022,this has been consistent for the last 7 years.The respondents are those whose name is on the contract.It is likely that this includes many relationships where both partners use the unit,however it is the male name on the contract and responded to this survey.THE DATA IN THIS SECTION IS TAKEN F

210、ROM RESULTS OF AN ONLINE SURVEY OF CUSTOMERS FROM SSA UK MEMBERS SELF STORAGE FACILITIES.A TOTAL OF 1,827 RESPONSES WERE RECEIVED FROM OVER 80 SELF STORAGE STORES LOCATED THROUGHOUT THE UK.THERE ARE NO INCENTIVES OFFERED TO COMPLETE THE SURVEY.When considering this data over time,it shows that the n

211、umber of people using storage over the age of 55 is increasing and less young people are using self storage.This could be a concern for the industry if millennials are less likely to use storage as they hit their 40s as the previous generation.Or it could just be that long term storage customers are

212、 getting older and staying longer,hence making up a greater portion of customers.When comparing the age of customers,compared with the national average,it is clear that self storage customers are more likely to be aged between 45 and 70.Of these,55 64 year olds are the most common age group represen

213、ting around twice the national average.This is likely the result of a combination of factors.Customers having amassed a larger amount of goods to date compared with the younger generation.Younger people are increasingly spending more time at home where storage is largely their parents problem.Self s

214、torage is to some extent a discretionary spend that many younger people would not consider important.Also,consider that often life changing events generate self storage customers.These can include moving house,death,divorce,entering a new relationship,having a new child and so on.These life events h

215、appen over time so middle age and older people are more likely to have experienced one or more of these reasons.AGE OF CUSTOMERS VS NATIONAL AVERAGE AGES20-24YEARS25-29YEARS30-34YEARS35-39YEARS40-44YEARS45-49YEARS50-54YEARS55-59YEARS60-64YEARS65-69YEARS70-74YEARS75-79YEARS80-84YEARS0246810121416181%

216、3%7%7%7%6%6%4%1%8%8%8%8%8%8%9%5%8%10%12%15%15%11%7%4%1%SURVEYNATIONALGENDERMALEFEMALEOTHER0.7%43.8%55.5%SELF STORAGEANNUAL REPORT 2023P.74P.75Further consideration could be that this data is taken at a fixed point in time and does not account for the possibility that younger people use their units f

217、or a shorter period of time,contributing to the churn of customers,but not as representative at a fixed point sample such as this.Comparing the age of customers with their length of stay.Customers under 45 are more likely to be short term,59%having their unit for less than 12 months compared to 39%o

218、f customers over 45.Self storage customers tend to have access to more disposable income,with 55%earning more than the national average wage.Higher wage earners tend to fall within the self storage catchment age group due to the fact they have had longer to accumulate a large number of goods.The tab

219、le below shows the third largest group have nil income,but these are customers that have retired.Of the survey respondents,25%were retired.AGE OF CUSTOMERS CHANGE OVER TIME15-19YRS20-24YRS25-29YRS30-34YRS35-39YRS40-44YRS45-49YRS50-54YRS55-59YRS60-64YRS65-69YRS70-74YRS75-79YRS80-84YRS85YRS&OVER024681

220、0121416182023202120192017Of the life changing events,divorce or couples separating are most likely to use self storage.Couples separating need to find somewhere else to live,often downsizing,with the need for somewhere to store their belongings during the transition and potentially for the long term

221、.MARITAL STATUSNEVERMARRIED/SINGLEWIDOWEDDIVORCEDORSEPARATEDMARRIED/CIVILPART-NERSHIPNATIONALSURVEY0102030405032%35%14%8%48%50%6%6%NIL1-199(1-10,399)200-299(10,400-15,599)300-399(15,600-20,799)400-599(20,800-31,199)600-799(31,200-41,599)800-999(41,600-51,999)1,000-1,249(52,000-64,999)1,250-1,499(65,

222、000-77,999)1,500-1,999(78,000-103,999)2,000-2,499(104,000-129,999)2,500-2,999(130,000-155,999)3,000-3,499(156,000-181,999)3,500-3,999(182,000-207,999)4,000-4,999(208,000-259,999)5,999 OR MORE(260,000 OR MORE)AVERAGE WEEKLY HOUSEHOLD INCOME OF SELF STORAGE CUSTOMERS024681012141610%5%7%8%14%12%9%8%8%2

223、%3%3%1%1%1%6%More self storage customers own their homes rather than rent and represent a larger group compared with the national average.This marries with previous data,where the 50 and over age group own their own home and therefore tend to have greater disposable income compared with the national

224、 average.HOUSE OWNERSHIPOWNED OUTRIGHTOWNED WITH A MORTGAGERENTED26%SURVEY28%SURVEY33%NATIONAL29%NATIONAL38%NATIONAL46%SURVEY%SELF STORAGEANNUAL REPORT 2023P.76P.77Of these,32%of customers have previously used self storage,either their current facility or another business.Repeat business is a large

225、part of the industry.This further reinforces the concept that once people experience self storage they better understand and see value in it and are likely to continue using it when the need arises.PERCENTAGE OF THOSE WHO HAVE USED SELF STORAGE BEFOREUSED THIS ANDANOTHER PROVIDERUSED THIS PROVIDEBEF

226、OREUSED ANOTHERPROVIDE BEFOREUSED EITHER THIS ORANOTHER PROVIDERBEFORE051015202530358.8%8.5%23.7%32.2%05101520253035NO ROOMFORITEMS ATRESIDENCE30%26%12%11%8%8%2%1%IM MOVING&I AM BETWEENPROPERTIESAT THE MOMENTI NEED TOCREATEMORESPACEAT HOMEMY HOME IS BEING DECORATED ORRENOVATED AND I NEED TO STORE MY

227、BELONGINGS WHILE THIS IS BEINGCARRIED OUTIM MOVING AND DONTHAVE ENOUGH SPACE INTHE NEW HOMEI NEED TODECLUTTER MYHOME TO SELL ITI AMDOWNSIZINGMY HOMEAND NEEDTHE ADDEDROOMI HAVE RECENTLY HAD AN IMPORTANTLIFE EVENT(e.g.birth of child,marriage,death,inheritance,seperation,divorce,etc.)REASONS FOR USING

228、STORAGEPeople use self storage for a range of different reasons,which is one of the strengths of the industry.It is not reliant on one single activity or event.As we know,many use self storage during life changing moments,such as a death in the family or divorce,which continue to occur regardless of

229、 the economic or political conditions.The residential market contributes the largest number of customers,totaling 36%.That said,decluttering was down from 4%last year to 2%,which could be indicative of the recent slowdown in the housing market owing to the cost of capital and inflationary pressure o

230、n disposable income.%SELF STORAGEANNUAL REPORT 2023P.78P.79When examining key life events that attract customers to self storage,a death in the family remains the single largest reason,with more than twice as many people than the next highest,which is ending a relationship.OTHERCHANGE INEMPLOYMENTIN

231、TERNATIONALMOVEKIDS RETURNINGHOMEDEATH INTHE FAMILYENDING ARELATIONSHIPENTERING ANEW RELATIONSHIPBIRTH OFA CHILDEXTENDEDHOLIDAY0510152025303530.25%8.64%9.88%29.63%12.96%3.70%3.09%1.85%KEY LIFE EVENTS LEADING TO THE USE OF SELF STORAGEOwing to interest rate increases and inflationary pressure,custome

232、rs now have a lower level of disposable income.As a result,17%of survey respondents said their need to use self storage has changed.That said,58%of these people have said that for these reasons,it has been good news for business.These customers are using their unit more frequently,taking more space

233、and also attracting new business as a direct result of the economy.This demonstrates that change can drive demand and is a product that can help people during a time of need.Retail custom continues to be the most common business to use self storage.However,this number has been steadily decreasing si

234、nce peaking at 23%during the Pandemic.Professional services have been steadily increasing over the past 3 years.Interestingly,not for profit and charity use has dropped from 11%in 2021 to 6%this year.Often,operators give free or heavily discounted units to charities.It could be that as stores have h

235、igher occupancy with less units available this has become less prevalent and businesses are supporting local charities in other ways.NUMBER OF EMPLOYEES61%21%7%5%7%1-34-1011-2021-5050 ABOVEECOMMERCERETAILOTHERPROFESSIONAL SERVICESMEDIA AND ENTERTAINMENTNOT FOR PROFIT/CHARITYCONSTRUCTION&BUILDINGWHOL

236、ESALEHEALTHCAREMANUFACTURINGEDUCATIONINFORMATION TECHNOLOGYTRANSPORTAUTOMOTIVETELECOMMUNICATIONSTRAVELPERSONAL SERVICESBANKING AND FINANCIAL SERVICESGOVERNMENTUTILITY COMPANY(water,gas,electricity,etc.)051015203%19%15%16%6%6%6%8%5%3%3%3%2%1%1%0%1%THOSE WHOS USAGE OR NEED FOR SELF STORAGE HAS CHANGED

237、 AS RESULT OF THE COST OF LIVING CRISISYES-WE HAVEUSED THE SELFSTORAGE UNITMORE OFTENYES-WE HAVEUSED THE SELFSTORAGE UNITLESSYES-WE HAVEINCREASED THESIZE OF OURSTORAGE UNITYES-WE HAVEREDUCED THESIZE OF OURSTORAGE UNITYES-WE TOOK THESTORAGE UNIT AS ARESULT OF THE COSTOF LIVING CRISIS0123456787%5%2%1%

238、1%BUSINESS USEThe majority of business customers are small businesses,with 83%considered micro businesses with less than 10 employees.This compares with the UK national average of 95%that make up all businesses in the UK.In contrast,just over 1%of all businesses in the UK have over 50 employees,comp

239、ared with 7%of our survey.This illustrates the industrys ability to cater for a wide range of business custom.%SELF STORAGEANNUAL REPORT 2023P.80P.81While self storage stores may not directly employ high numbers of staff,they support local businesses that could not operate without their self storage

240、 units.To this extent,they operate as a kind of local business incubator.20%of all businesses using self storage operate completely from their unit.One of the most challenging times for small businesses is the first stage of growth from a home business;self storage offers a flexible and cost effecti

241、ve solution to assist with this.PERCENTAGE OF THOSE WHO OPERATE THEIR BUSINESS FULLY FROM A SELF STORAGE UNITTHE BULK OF THE BUSINESS ISRUN FROM THE STORAGE UNITWE HAVE ANOTHER OFFICE ORSTORAGE CENTRE WHERE WEPREDOMINATELY RUN THEBUSINESS FROM20%80%YESNONUMBER AND SIZE OF UNITS RENTEDMost customers(

242、89%)only rent one unit,and only 2%rent three or more.This is primarily because most self storage businesses offer a range of unit sizes to suit customers needs,so usually only one is required.When considering business vs.domestic use,we see that business users are more likely to use multiple units.T

243、his is likely due to the fact that they generally need larger spaces,which may not be able to be accommodated in a single unit.They are also more likely to need additional space as their business grows,which could result in the addition of more units rather than relocating to a bigger space.The most

244、 popular units range in size between 11-50 sq ft,making up 35%of all respondents.When considering business and domestic customers,it is clear that business customers are more likely to take larger units.NUMBER OF UNITS USED,BUSINESS VS.DOMESTIC123OR MORE0102030405060708090100BUSINESSDOMESTIC93%73%18

245、%10%1%6%SIZE OF UNIT DOMESTIC VS.BUSINESS0-10SQ FT11-50SQ FT51-100SQ FT101-200SQ FT201-500SQ FT501-1000SQ FTMORE THAN1001 SQ FTBUSINESSDOMESTIC051015202530354045508%37%31%24%25%12%4%3%13%13%13%7%7%1%0%7%DONTKNOW%SELF STORAGEANNUAL REPORT 2023P.82P.83LENGTH OF STAYA total of 65%of customers have occu

246、pied their unit for around two years,and 43%for one year or less.This chart shows that businesses are more likely to have used their unit longer than domestic customers.Business customers tend to be looking for long term solutions.The chart also indicates the length of stay at this point in time.Cus

247、tomers that only moved in recently will show as having a short stay,but may end up staying for a long period.Consequently,this data appears skewed towards a shorter length of use.DOMESTIC VS BUSINESS OCCUPANCY LENGTH 3 M4-6 M7-12 M1-2 YRS3-4 YRS5-6 YRS7-8 YRS9-10 YRS10+YRSDONTKNOWBUSINESSDOMESTIC051

248、01520253019%9%7%13%16%10%21%23%8%9%6%4%4%7%3%1%1%1%24%15%LENGTH OF STAY 3 M4-6 M7-12 M1-2 YRS3-4 YRS5-6 YRS7-8 YRS9-10 YRS10+YRSDONTKNOWTHOSE THAT EXPECT TO MOVE OUT IN NEXT 6 MONTHSALL4035302520155100Further analysis on length of stay shows that older people are more likely to be long term customer

249、s.When segmenting the data into over and under 45 year olds,59%of younger people have had their unit for less than 12 months while only 39%of older people have.Younger people are using storage more for their short term needs,but they may also be coming back to re-use at a later time.With 32%of custo

250、mers having used self storage before and less bias to younger people,it seems younger people are more likely to reuse self storage for short periods while older people will keep their unit for a longer period.The following chart further demonstrates this split between short and long term customers.A

251、round 11%plan on moving out in one to two years time,23%in two years or more and,the largest group,within 3 months.Interestingly,when this is overlaid with perception of value,there is a large number of customers that perceive self storage as poor value yet have no plans to move raising the possibil

252、ity that there becomes a tipping point in the future.There is a mostly equal representation across all expectations to move out as this line largely follows the chart below.You would expect people who see storage as poor value,to move out sooner.This demonstrates that,for many,self storage is not si

253、mply a discretionary spend,but necessary despite their thinking on value for money.0-3MONTHS4-6MONTHS7-12MONTHS13-18MONTHS19-24MONTHSMORE THAN24 MONTHSDONTKNOW05101520253035404517%14%15%5%6%22%20%21%14%13%15%7%5%5%6%20%20%21%42%5%7%THOSE THATTHINK ITS BAD VALUEBUSINESSDOMESTICDURATION OF EXPECTED US

254、E OF SELF STORAGE UNIT(FROM NOW)TIME IN UNIT BY AGE GROUP3 MONTHSOR LESS3-6MONTHS7 MOs-UPTO 1 YR1-2YEARS3-4YEARS5-6YEARS7-8YEARS9-10YEARSMORE THAN10 YEARSAGE OVER 45AGE 45 OR UNDER21%16%20%10%18%13%22%21%12%19%4%1%1%0%2%4%9%6%When considering our data based on peoples expectation to move out,the dif

255、ferential between short and long term customers becomes clear.A total of 56%of the people planning to move out within 6 months of occupancy have only had their unit for six months or less.Their need for short term storage has been fulfilled.The counter balance are the longer term customers.%SELF STO

256、RAGEANNUAL REPORT 2023P.84P.85DISTANCE TO UNIT AND USEAround 62%of customers travel less than 15 minutes to access their storage unit,with self storage largely being sold on convenience and ease of access-“a room away from home”.It is not surprising that customers prefer a self storage unit that is

257、closer to where they live or work.Where customers travel further to their unit,it is likely they use their unit infrequently.Such customers could be travelling or temporarily living outside the UK.Whilst self storage customers prefer being close to their storage unit,they also access their storage u

258、nit infrequently.Only 23%of customers access their unit more than once per month.When you consider purely domestic customers,this reduces to 13%.11%18%24%34%13%7%3%28%24%14%10%5%8%LESS THAN 5 MINUTES6-10 MINUTES11-15 MINUTES16-20 MINUTES21-30 MINUTES46 MINUTES OR MORE31-45 MINUTESSTORAGE UNIT VISITS

259、FEWER THAN 3 TIMES PER YEARABOUT ONCE A MONTHABOUT ONCE A WEEKMORE THAN ONCE A WEEKONCE OR MORE A DAY3-6 TIMES PER YEARANNUAL REPORT 2023P.87SELF STORAGEP.86CUSTOMER SATISFACTIONThe majority of survey respondents view self storage as good value for money.However,the number of respondents that consid

260、ered it poor value jumped during the pandemic and has remained at 19%this year.This was a period when operators were increasing prices due to low product availability and high demand.It will be interesting to see how value is perceived as the cost of living and inflationary pressures impact househol

261、ds and disposable income in 2023.Customer satisfaction is higher than value for money,with 59%of customers very satisfied with their store.This is much higher than many other customer facing industries,especially when customers have limited options given the restriction of locations.When examining t

262、his over time,there was again a small increase in dissatisfaction last year and this did not correct itself this year.TOTAL SATISFIEDTOTAL DISSATISFIEDINDIFFERENT010203040506070809010092%6%4%6%5%7%7%2%2%3%3%4%4%94%92%93%89%89%2023CUSTOMER SATISFACTION20222021202020192018YESNODONT KNOW010203040506070

263、66%68%66%66%61%60%17%20%18%20%21%21%17%12%16%14%19%19%2023THOSE THAT CONSIDER SELF STORAGEGOOD VALUE FOR MONEY20222021202020192018%ANNUAL REPORT 2023P.89SELF STORAGEP.88ADDITIONAL SERVICESWaste disposal remains the most sought-after additional service customers would like to see their store offer.So

264、me stores do offer this service,but it does increase OPEX and can lead to untidy areas on site.When comparing this data historically,the largest increase was in phone apps for managing your account and accessing your unit,up from 6%last year to 8%.The biggest drop was better lighting,down from 11%to

265、 9%.Many operators have been upgrading their lighting to brighter,energy efficient lighting which could account for this change.This was a prompted question with respondents choosing items from the restricted list provided.ADDITIONAL SERVICES CUSTOMERS WOULD LIKE TO SEEOFFICE SPACEWASTE DISPOSALEXTE

266、NDED/DIFFERENT OPENING TIMESSHELVINGMORE LIGHTINGELECTRICITY/POWERPHONE APP FOR MANAGING YOURACCOUNT AND ACCESSING YOUR UNITWI-FIRECEIVING PARCELS ON YOUR BEHALFHEATINGLOGISTICS AND TRANSPORTATIONONSITE HELP FROM STAFFMORE LIFTSBLUETOOTH ACCESSFULLY AUTOMATED STOREINSURANCE036912153%14%10%10%9%6%7%8

267、%6%7%5%5%3%2%2%2%When asked if customers used boxes or packing materials,57%of customers stated they did.However,just over a third of these bought from their store and only 12%bought all of them from their store.There has been limited change in this statistic over the past 6 years and remains an opp

268、ortunity for the industry.In markets such as the US and Australia,stores tend to be more pro-active in selling packaging materials to both customers and also non-storage customers.PURCHASE PATTERNSOnly 40%of customers contacted the store they finally chose and were already aware of its presence or h

269、ad been referred by a third party.They could have researched multiple stores online,but then stored their items with the first one they contacted.We are now seeing customers contact more than one store,which is likely a result of online search engines and their usability.This question included four

270、options.These being contact either by email,phone,in person or other electronic means.DID YOU BUY BOXES OR PACKAGING MATERIALS?43%NO,I DID NOT NEED ANY BOXES OR PACKAGING MATERIALS13%NO,I GOT MY BOXES FROM A FREE SOURCE,FAMILY OR FRIEND7%YES,I BOUGHT ALL THE BOXES AND PACKAGING MATERIALS I NEEDED FR

271、OM THE SELF STORAGE BUSINESS22%NO,I BOUGHT MY BOXES AND PACKAGING MATERIALS FROM SOMEWHERE ELSE14%YES,I BOUGHT SOME OF THE BOXES AND PACKAGING MATERIALS I NEEDED FROM THE SELF STORAGE BUSINESSJUST THIS ONE5 OR MORE234HOW MANY SELF STORAGE FACILITIES DID YOU CONTACT05101520253035404550202320222021202

272、02019201844%45%43%43%41%40%32%31%33%34%34%35%18%19%18%17%18%18%4%3%4%3%5%2%1%2%3%3%3%5%SELF STORAGEANNUAL REPORT 2023P.90P.91A non-cost alternative remains the largest competitor to the industry as a whole.So called disruptors to the industry of paying someone else to store your goods or having unit

273、s delivered to you continue to have minimal impact on the industry with few customers considering them as a viable option compared with self storage.OTHER OPTIONS CONSIDERED?55%ANOTHER SELF STORAGE PROVIDER12%RENTING A GARAGE IN THE AREA4%PAYING TO STORE YOUR GOODS IN SOMEONE ELSE HOUSE OR PROPERTY1

274、6%A FREE ALTERNATIVE e.g.PARENTS GARAGE,FRIENDS HOUSE,etc.7%STORAGE WITH A REMOVALS COMPANY3%RENTING A WAREHOUSE IN THE AREA2%MOBILE SELF STORAGE WHERE A UNIT OR BOX IS DELIVERED TO YOUFor now,customers continue to prefer to contact a store in person when booking rather than using online means.The p

275、reference for or the ability to visit a store dropped during the pandemic and has increased in the following years but not to pre-pandemic levels.App usage remains low but continues to grow,while there remains little interest in social media.The preference to contact a store through phone or in pers

276、on,could be linked to a poor understanding of the product.Customers would prefer to speak to someone to ensure they have the right size and understand the process.This is interesting as remotely managed sites with limited staff are beginning to emerge,encouraging customers to complete the entire sig

277、n-up process online.WHEN MAKING AN ENQUIRY ABOUT RENTING A SELF STORAGE UNIT HOW WOULD YOU PREFER TO CONTACT A STORE?0.5%CONTACT THE STORAGE CENTRE USING SOCIAL MEDIA3.5%CONTACT THE STORAGE CENTRE USING ONLINE CHAT20.9%CONTACT THE STORAGE CENTRE THROUGH EMAIL37.3%CONTACT THE STORAGE CENTRE DIRECTLY

278、BY PHONE36.2%CONTACT THE STORAGE CENTRE DIRECTLY BY VISITING1.6%CONTACT THE SELF STORAGE FACILITY USING AN APPSELF STORAGEANNUAL REPORT 2023P.92P.9309 09CONTRIBUTORS09CONTRIBUTORS“THANK YOU TO ALL SSA UK MEMBERS WHO TOOK THE TIME TO COMPLETE THE MEMBER SURVEY AND SURVEY THEIR CUSTOMERS.WE COULD NOT

279、PRODUCE THIS REPORT WITHOUT THEIR ASSISTANCE.IT SHOULD BE NOTED THAT SOME SURVEY PARTICIPANTS CHOSE NOT TO BE INCLUDED IN THIS LIST.A&S SELF STORAGELOKN STOREAPEX SELF STORAGEMAGENTA SELF STORAGEADAM SELFSTOREMS SELF STORAGEARMADILLO SELF STORAGEMEGASTORAGEATTIC SELF STORAGE LIMITEDMYSTORE SELF STOR

280、AGEBARN STORENEWQUAY SELF STORAGEBIG YELLOW SELF STORAGEPREMIER SELF STOREBILLERICAY SELF STORAGEROBINSONS RELOCATIONBLUE SELF STORAGESELF STORAGE CENTRE OXFORDBWI STORAGESHEEPLANDS SELF STORAGECINCH SELF STORAGESHURGARD SELF-STORAGEBALL BROTHERS(CLACTON SELF STORAGE)SPACE STATION SELF STORAGETHE SP

281、ACE PROGRAMSPACEBANK DIY STORAGEEASY ACCESS SELF STORAGESQUAB STORAGEFLEXISSSTOCK N LOCK SELF STORAGEGO STORE SELF STORAGESTORAGE KINGHARRISON AND ROWLEYSTORAGE WORLDHILLS SELF STORAGESTORAGEMARTHOGLEAZE STORAGESTORE&GO DERRYINNER SPACE STATIONS SELF STORAGESUFFOLK SELF STORAGEKANGAROO SELF STORAGET

282、HE STORAGE TEAMKEEPSAFE STORAGE CENTRESURBAN LOCKERKENT SPACEVANGUARD SELF STORAGELOC-BOX SELF STORAGEYOUR SPACE SELF STORAGESELF STORAGEANNUAL REPORT 2023P.96P.97Head of Self Storage|Cushman&WakefieldT+44(0)7584 857 149EPHILIP MACAULEYHead of UK Research&Insight|Cushman&WakefieldT+44(0)7341 109 340

283、EHead of Business Intelligence UK&I|Cushman&WakefieldT+44(0)734 186 7583EDARYL PERRYILDA KREKURTISenior Business Intelligence Analyst|Cushman&WakefieldT+44(0)7775 543 299ECHRISTIE WARDCEO|Self Storage AssociationT+44(0)1270 698 500ERENNIE SCHAFEROperations Director|Self Storage AssociationT+44(0)127

284、0 623 150EHELEN BOURKEMembership Services Officer|Self Storage AssociationT+44(0)7539 969 841ERACHEL JAMESMembership Services Officer T+44(0)7547 672 541ESTEPHEN RAMAGECONTACTSANNUAL REPORT 2023P.99SELF STORAGEP.982023202320232023 SELF STORAGE ASSOCIATION UKAND CUSHMAN&WAKEFIELD.ALL RIGHTS RESERVED.