Subscribe to Our Weekly Newsletter
ISS is the most comprehensive source for self-storage news, feature stories, videos and more.
Self-storage operators in the United Kingdom have enjoyed a pickup in storage occupancy and rental rates in recent months.
October 4, 2010
1 Min Read
Self-storage operators in the United Kingdom have enjoyed a pickup in storage occupancy and rental rates in recent months.
Safestore Holdings Plc, Big Yellow Group Plc and LoknStore Group Plc are faring better than other commercial real estate in the country. The two biggest U.K. self-storage chains, Safestore and Big Yellow, only need 40 percent occupancy to break even, making all additional rentals profit.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley agree Safestore and Big Yellow shares may outperform other commercial real estate plagued by stagnant rents and property values.
A typical U.K. self-storage facility is multi-story located near a main road. Units vary in size, and two-thirds of tenants are private individuals. Other notables:
Average rental rates dropped 2.8 percent in 2009.
Occupancy at 32 Big Yellow storage dropped to 69 percent at the end of March
Occupancy at Safestore rose by 3 points to 59 percent in the three months through July, and average rents climbed 3.5 percent from a year earlier.
Safestore, Big Yellow and LoknStore have declined an average 8.3 percent in the past 12 months.
Sources:
Bloomerberg.com: Self-Storage May See European Property's Biggest Profit Growth
You May Also Like
Self-Storage TV
Apr 17 - May 17, 2024
Apr 17 - May 17, 2024
NEW PODCAST! In this latest episode of “Sounds of Storage,” we talk with StoragePug's Tommy Nguyen about grassroots marketing, including what it entails for self-storage operators, why it’s making a “comeback,” and how to do it effectively.
LISTEN NOW