European self-storage sector sees strong demand despite challenges

A recent report by FEDESSA and CBRE highlights the continued strength and growth potential of the European self-storage industry. 

Self-storage

Despite economic and political uncertainties, the sector is demonstrating remarkable resilience, with 70% of operators expecting improvements in both occupancy and rental rates over the next year.
Rental rates have increased by 5.4%, now averaging €312.56 per m2 annually, though this was slightly offset by a minor dip in occupancy. Growth is being driven by strategic technological investments and changing customer needs. A significant 90% of operators are now using AI for tasks like pricing and customer analysis, indicating a strong focus on efficiency. The report also notes a reversal in usage patterns, with personal self-storage use on the rise again.
Operational models are evolving, with remotely managed stores gaining traction, particularly in Sweden, Austria, and Germany. This trend, supported by advancements in access control and automation, points towards increased efficiency and convenience.
Looking forward, operators recognize challenges such as increasing land costs and planning restrictions. Nevertheless, the industry remains progressive, with 89% of businesses planning investments in store or IT upgrades, especially in AI and security. Operators are also diversifying their income, with 90% earning revenue beyond traditional storage, through services like vehicle hire and retail.
Consumer behaviour is also changing; younger customers prefer digital interactions, leading to a doubling of online bookings and app usage year-over-year. CBRE projects up to €450 mln in transactions by the end of the year, with potential volumes exceeding €1 bn in 2026-2027, underscoring the sector's robust long-term growth prospects.
Oliver Close, senior director, Self-Storage, Operational Real Estate, said: The self-storage industry continues to demonstrate its inherent resilience, with operators navigating economic challenges effectively. The increased adoption of AI and focus on ancillary revenue streams highlight the sector's adaptability and its potential for sustained expansion. These attributes are driving ongoing interest in the sector from a broadening investment community.”
Rennie Schafer, CEO of FEDESSA, added: “The self-storage market offers attractive opportunities for both investors and operators. Despite the current macroeconomic environment, we see improvement in operational performance in the sector, driven by robust and growing consumer demand and a willingness among operators to innovate and adapt.”