Report | Intelligent Investment
European Self Storage Industry Report 2023
October 25, 2023 8 Minute Read
The 12th annual Federation of European Self Storage Associations (FEDESSA) survey, co-produced by CBRE for a second year, assesses the European self storage market. In what has been a turbulent year for operators, businesses, and consumers alike, the industry has navigated multiple challenges in the macroeconomic and wider socioeconomic landscape.
Despite these challenges, self storage has demonstrated its resilience as a sector. Institutional investors continue to deploy capital into the sector, REITs are establishing their self storage ownership credentials, while the owner-operator model continues to be successful for many businesses.
The 12th Annual survey conducted by the Federation of European Self Storage Associations (FEDESSA), continues its co-production with CBRE for a second year.
Europe’s self storage market has 6,929 stores in operation, covering a total gross area of 13.9 million sq m. The leading four markets are the UK, France, Germany, and Spain, which account for 68% of Europe’s total number of stores. Year-to-date investment volumes have reached c. €342m, with a strong pipeline of M&A activity across Europe expected in the full year.
Demand remains strongest for larger businesses with an experienced management team and secured pipeline for future growth. There is also a growing interest in smaller aggregation “buy and build” plays with investors seeking to organically grow their own platforms from ground up.
Looking forward, while investor appetite remains robust, pricing is expected to remain flat with signs of weakening in some geographies. Much of this has been caused by the combination of slowing operational KPIs, particularly occupancy growth and tapered expectations for rental rates, as well as volatile private debt markets.