Background to self-storage

The modern storage industry began in the United States in the late 1960s as an alternative to the traditional home removal and shipping services. By offering a low rental cost per square foot and around the clock access to secure facilities, self-storage and managed storage quickly became popular with both residential and business customers.

The UK self-storage has experienced strong growth, particularly over the last decade. It is estimated that there are now over 2,200 self-storage sites in the UK, including container based facilities, with a capacity of around 55.5 million square feet.^*

Much of this growth is down to rising demand from both residential and business customers across the UK for cost effective storage. Increasing residential demand has been driven by the booming housing market, the rise of working from home and the popularity of home improvements and DIY – all of which encourage consumers to use self-storage on both short and long‑term bases. The rise in small businesses and online shopping has led to an increase in business customers using self-storage to house their stock.

Self-storage can provide a consistent income return through the fees paid by tenants and increasing demand over the last few years led to rates consistently increasing over recent years, reaching a UK average of over £27 per square foot per year in 2022.^*

* Source: ‘Self storage annual industry report 2023’, Self Storage Association.

Self-storage Facilities

Elm Trading owns 12 operational self-storage sites across the UK, with a further site in development, making us one of the UK’s top 20 self-storage investors.

The income of a storage facility is derived from the storage management fees charged to retail and business customers, together with additional income from the sale of storage supplies (such as packing boxes), insurance and the provision of additional services, for example home removals and van hire.

Professional storage companies, including Lok’nStore and Storage King, are appointed to provide operational and marketing services for each site.

Why self-storage is an attractive trading opportunity

• Tangible asset-backed trading business.
• Targets consistent income returns and can benefit from capital appreciation.
• Established secondary market helping to provide liquidity within the overall portfolio.
• Increasing demand for storage space from both private individuals and small businesses.