2024 Report From FEDESSA, CBRE Reveals Trends in the European Self-Storage Industry2024 Report From FEDESSA, CBRE Reveals Trends in the European Self-Storage Industry

October 9, 2024

3 Min Read

Analysts from the Federation of European Self Storage Associations (FEDESSA) and commercial real estate firm CBRE Group Inc. have released their annual report on the state of self-storage in Europe. In 2024, it shows that the industry continues to be resilient, despite financial pressures and rising business costs, according to a press release.

The European self-storage market currently spans 17.7 million square feet in gross area. The study states that operators are experiencing continued revenue growth and strong investor interest, while development flourishes, specifically in the Northwest.

“The self-storage industry continues to perform well, with strong levels of revenue against a backdrop of long-term market growth on both the demand and supply sides,” said Oliver Close, senior director of self-storage and operational real estate for CBRE. “Investors are recognizing the lucrative opportunities available; and with a robust development pipeline, we can expect to see an influx of new stores across the continent.”

The report includes data from a FEDESSA survey of more than 120 self-storage operators representing 1,800-plus facilities in 17 countries. It also contains information from a consumer survey conducted in select European countries to determine public perception of self-storage and gauge market awareness. It’s the 13th consecutive industry study FEDESSA has produced, and the third time the organization has partnered with CBRE.

The report doesn’t contain data from U.K. self-storage operators, however, responses to a separate survey conducted by the Self Storage Association of the United Kingdom were included where appropriate.

Key findings of the 2024 report include:

  • The leading four markets—the U.K., France, Germany and Spain—account for 68% of Europe’s total self-storage facilities.

  • Most operators reported a small drop in occupancy, but rental rates increased by 2% on average, and 5% or more in Germany, the Netherlands and Spain.

  • Transaction volume year-to-date reached €875 million, which is three times higher than the same period in 2023.

  • Average occupancy across Europe fell from 79.9% in 2023 to 78.7% in 2024.

  • The use of mobile apps has increased by 25% compared to last year.

  • Sustainable initiatives have increased compared to last year. The three most common are LED lighting, recyclable packaging and passive-infrared detection.

  • 69% of survey respondents plan to implement artificial intelligence in their business this year.

  • 72% of respondents anticipate higher occupancy and revenue in the next 12 months.

  • The volume of equity and debt entering the market resulted in a larger development pipeline than the previous year, with 262 projects in the planning stage or under construction.

“The findings of our survey show continued high demand for self-storage across Europe and increased rental returns in key markets,” said Rennie Schafer, CEO of FEDESSA. “In addition to new developments, we are seeing increased investment in existing stores in response to technological changes and sustainability improvements.”

A PDF version of this year’s report as well as those from previous years can be downloaded from the FEDESSA website.

CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, employs approximately 115,000 employees, excluding affiliates. It serves real estate investors, occupiers and owners worldwide. The company offers strategic advice and execution for appraisal and valuation; corporate services; development services; investment management; mortgage banking; property, facilities and project management; property sales and leasing; and research and consulting.

Founded in 2004, FEDESSA consists of 12 European self-storage associations that represent about 2,000 facilities. The organization hosts its annual conference each fall in a different European city.

Sources:
Federation of European Self Storage Associations, European Annual Industry Report 2024
CBRE, Demand for Self-Storage Remains High Across Europe, Presenting Lucrative Investment Opportunities

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