Market Trends of Europe Self-storage Industry
Business Storage Expected to Gain Market Popularity
- Although self-storage was initially aimed at personal usage, businesses are beginning to realize the importance of private storage facilities. For smaller businesses, to solve the management of space problems, renting a self-storage unit could be an affordable, temporary, or long-term solution.
- Most of the customers in self-storage businesses are startups; they offer a flexible solution for office space, distributing, warehousing, and holding goods without taking long leases. Self-storage facilities are becoming more and more helpful to business clients by providing meeting rooms, wireless Internet access, and freight forwarding services.
- In addition, 40 % of Europe's total CO2 emissions are attributable to the built environment. To reduce their impact and offer net zero carbon, investors and developers are looking at ways to retrofit existing buildings and build new ones. Solar panels are present in only 3% of Europe's self-storage facilities, and an increasing number of real estate investors have started to focus on the sustainability of buildings.
- Furthermore, as small companies look to alternative warehouse locations, commercial leases could increase, which now make up about one-fifth of the tenant base. The smaller space options, more affordable costs, and shorter lease terms often favorably align with smaller companies. Given the increase in warehouse rent over the past five years, which averaged more than 6 % per year, many companies are considering moving their needs to self-storage facilities.
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Germany Expected to Register Significant Growth
- Germany's penetration of the Self Storage market is lower than in the United Kingdom or France, but demand from industry customers has been growing. In a country with limited market penetration, new entrants are entering the market to gain an advantage.
- In addition, as more and more people know that these services are available to them personally and for commercial purposes, the region's market is growing. Existing self-storage facilities and the opening of new ones for storing small and large private and commercial goods are also supported by the increasing number of market vendors in the area.
- Due to the strained housing demand caused by the excess demand and the uneven range of rents, the popularity of these storage facilities is increasing in central cities in Germany with a higher population. This type of factor in the region is projected to increase demand for self-storage during the forecast period.
- Germany offers several opportunities for growth because the large cities are characterized by strong population density, which makes it attractive to build self-storage sites due to lack of space. In addition, the main driver behind the German market growth for self-storage is rising urbanization and shrinking living space. Growing urbanization raises the demand for space, causing property prices per square meter to rise. Consequently, growth in the market is being driven by these factors.
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