Subscribe to Our Weekly Newsletter
ISS is the most comprehensive source for self-storage news, feature stories, videos and more.
Self-Storage in the Nordic Marketplace: Insight From Norway-Based FlexistoreSelf-Storage in the Nordic Marketplace: Insight From Norway-Based Flexistore
Like other burgeoning self-storage markets, the Nordic region has had its ups and downs but is finding stable footing. Learn about the local industry and its dynamics from Norway-based Flexistore, one of the country’s largest facility operators.
+1
4 Min Read
The self-storage industry in the Nordic region, particularly Norway, is experiencing robust growth due to several factors. Urbanization and the increasing prevalence of smaller living spaces are driving the need for storage solutions. The market is also becoming more competitive, with new entrants and existing players expanding their footprints, fostering innovation and pushing companies to enhance their services.
Along with all of this growth, the Nordic self-storage market has also experienced challenges and changes, particularly over the past two years. Let’s look at the most notable.
An Expanding Customer Base
As the industry expands, Nordic self-storage operators cater to a diverse range of customers. Tenants generally fall into four main groups:
People who are relocating find self-storage convenient and efficient for storing their belongings during the transition.
Individuals and families needing extra space for personal items appreciate secure and accessible storage services.
Small businesses benefit from efficient storage solutions for inventory and equipment. They also value the digital key-sharing function offered by some operators, which allows them to expand and control unit access.
E-commerce companies, driven by the growth of online shopping, rely on storage to manage their stock efficiently.
The challenge has been educating potential customers about the benefits and availability of self-storage. Because this outreach is critical, our company actively engages in marketing and informational campaigns.
Economic fluctuations can also impact customer spending and demand for self-storage. However, an adaptable business model helps mitigate these risks.
Technology Integration
Technological advancements are reshaping the Nordic self-storage industry today, improving operational efficiency and the customer experience. Digital tools and automation are becoming standard, allowing companies to offer more streamlined and user-friendly services.
At Flexistore, we’ve enhanced our digital offerings. In fact, a fully digital solution is at the heart of our success. It not only minimizes back-office requirements, it enhances customer convenience. Tenants can entirely manage their storage needs through a user-friendly mobile app that offers an easy sign-up process, digital locks and temperature sensors. This approach not only simplifies the user experience, it ensures robust security and accessibility.
This focus on technology also allows us to circumvent a common challenge here in the Nordic region, which is securing skilled employees. Like us, some operators are leveraging a digital-first approach to minimize staff needs.
New Development
Financing for new self-storage development can be difficult to secure in the Nordic region. Finding suitable land for new construction is another persistent problem, which leads many local operators to seek existing structures that are suitable conversion projects.
As a company, Flexistore is experiencing rapid growth, adding approximately 15 new sites per year. Our development strategy encompasses ground-up construction and conversions of existing properties.
We collaborate with commercial-property owners to convert part of their multi-tenanted spaces into self-storage, making use of underutilized parking areas, third-grade offices and old retail spaces. These conversions generally range from 8,600 to 21,527 square feet. By partnering with landlords to share costs, we can often utilize spaces of less than 10,700 square feet to create multiple smaller facilities in proximity to customers. This approach allows us to expand our reach and meet growing demand.
Industry Outlook
The future of self-storage in the Nordic region looks promising. It’ll be driven by a continued increase in demand, further integration of advanced technologies, and potential for more strategic partnerships and consolidations.
At Flexistore, we plan to expand into new markets, remaining focused on high operational efficiency, customer satisfaction and a commitment to sustainability. As the marketplace evolves, we’ll be well-positioned to lead the way and set new industry standards.
Camilla Danielsen is group business developer for Flexistore, which operates 28 facilities in Norway and six in South Africa. As a founding member, she possesses extensive knowledge of the self-storage market in the Nordic countries. To contact her, email [email protected].
Marlene Svingen is a sales coordinator with Flexistore. As a Norwegian based in South Africa, she’s well-versed in the similarities and differences between the two markets. Her primary focus is on optimizing the website and developing new strategies to help the company reach its sales targets. To contact her, email [email protected].
Geir Tellefsen is the CEO and founder of Flexistore. An accomplished entrepreneur, he’s founded several businesses over the years. In 2018, he launched the first self-storage company to offer digital keys. Geir's goal is to continue expanding into new markets, ensuring that Flexistore is accessible to everyone. To contact him, email [email protected].
About the Authors
You May Also Like
