This site is part of the Global Exhibitions Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.


Operators Weigh in on Australia/New Zealand Self-Storage, Market Stagnant but Steady

Continued from page 1

Insights From National Storage

National Storage, another large Australian self-storage operator, has made similar observations: The market has been flat, but there's been an increase in net area occupied across the company's portfolio. In an effort to be different, the operator has developed a strategic alliance with a national removals firm, co-branding marketing material, trucks and building facades. Both companies' call centers have implemented warm call transfers, and “get a quote” Web pages authorize e-mail exchange of key customer information.

National Storage is spending much more time in the online space, driving traffic to its website as well as its online reservations and move-in module. The company is also using social media to increase brand awareness. There's a greater focus on search-engine marketing and optimization.

Company sales have been significantly impacted by staff turnover. In response, National implemented a dedicated a call center to handle sales inquiries for the company's 58 stores. This was a significant achievement and an industry first in Australia. The center allows National to concentrate its sales-training efforts in one place rather than across multiple facilities nationwide. Enabling the company to stabilize and better control its conversion rate during times of economic difficulty, the center has been very successful.

Insights From Other Market Players

Other self-storage groups around the country report very similar information to the major operators. Ian Oliver of Capital Self Storage in Canberra said his company continues to focus its online strategy. The Internet is a growing area of business, with a large number of Web-savvy customers renting spaces via online move-in technologies.

The advantage of online move-ins is they are completed at normal prices, contributing to a profit increase at a time when occupancy growth has been subdued. Several operators are now focusing on revenue management as a key tool to increase income from existing customers rather than driving higher rates at a time when pricing pressure is sensitive for new business.

Self-storage operators are watching expenses very closely and choosing their purchases carefully. This has affected many long-time industry vendors, causing a notable reduction in suppliers and increased withdrawal from the market.

The Self Storage Association of Australasia continues to grow but at a much slower rate due to the lack of new entrants to the industry. The association board is working on strategies to enhance member services such as a new marketing manual and an update to its procedures manual. It also reports observing more industry delinquencies, which could indicate customers are having trouble paying their storage bills.

Industry awareness continues to be an issue in Australia, with little coordination or effort among operators to improve the situation. Self-storage is still a mystery to many consumers, and this remains a challenge operators must address.

The gap between larger operators and the rates they command and the middle-tier, lower-order sites is growing. This is largely due to the online marketing efforts made by the larger players. Small players are finding it difficult to compete with larger operators online, and this is being reflected in rates, with a disparity of as much as 40 percent between the largest and smallest operators within the same market.

The outlook for 2013 is very much the same but with more industry consolidation, which is resulting in increased occupancy due to a lack of new construction. It will only be a matter of time before finance is easier and economic pressures spur operators back into expansion mode.

Dallas Dogger is the CEO of Brisbane, Australia-based Centreforce IT Pty. Ltd., an installer of self-storage access-control, CCTV and door-alarm systems throughout Australasia. For more information, visit

« Previous12Next »
comments powered by Disqus