The United Kingdom’s Liverpool self-storage market has held steady through difficult economic times, showing slight increases in total rented space per tenant while decreasing slightly in revenue per square foot. A recent survey conducted in conjunction with the Self Storage Association of the United Kingdom indicated rental space has increased 0.44 square feet per person. Occupancy levels also are up this year across the region, while rents have held stable and tenants are renting for longer.
While new facilities have popped up during the last couple of years, the survey indicated established self-storage businesses are performing the best under current market conditions. In fact, occupancy increased from 68 percent to 70 percent last year for facilities that have been open for five years.
Increased competition, however, has spurred discounting among many operators, hurting the sector’s ability to capitalize on the increased rental activity. According to the source, the annual average rent per square foot has dipped to approximately $32.58, despite a 7.3 percent increase in rentals between 2006 and 2011.
Facilities enjoying long-term customer commitments credited keeping up with facility maintenance and offering site features like security and lighting.