Self storage was an alien concept in Australia 40 years ago, but since its introduction in Australia in the 1970’s the self-storage industry has continued to develop and from the early 90’s onwards has continued to grow rapidly. The market is made up of larger and smaller operators and the growth of the sector has seen diversified options including climate controlled self-storage and mobile self-storage options.
Investment in the sector remains more of a challenge than the USA, where modern self-storage as it is known was pioneered but despite a slowdown in new constructions of storage facilities due to financing and land purchase costs, many existing facilities in busy locations are benefiting from higher occupancy rates, and in many cases, longer leases.
Why has the self-storage sector continued to grow?
The sector has remained stable thanks to a diverse customer base which is something that we can attest to here at All Size Sheds. Through our self-storage facility here in Currumbin we see all demographics of society.
From young students, families who move interstate or internationally for work, renovators, retirees who are downsizing and business owners looking for a makeshift warehouse for business storage.
This diverse mix of tenants means that the industry doesn’t depend on just one to survive, and the flexibility of short and long leases mean that no matter the situation, people in all kinds of circumstances often find they need a place to keep items that they are not willing to part with, but for whatever reason, cannot take them with them.
Social factors which have facilitated the popularity of self storage:
• Housing density has continued to increase in capital cities, meaning smaller floor plans in homes and apartments and less space for extra furniture and items.
• Growth of baby boomer population who have accumulated more than their parents over their lifetime.
• Increases in the renting population who are more mobile, and likely to move more frequently including interstate and overseas.
• Other social factors including increases in people downsizing, divorce and children staying at home longer means that a solution of extra space is often needed.
While the challenges for the self-storage industry include the limited construction of new facilities as well as an increasing number of competitors, facilities that have secured good sites in key areas are enjoying high tenancy occupancy.
With these factors and options like Mobile self-storage where we can deliver lock up onsite storage to your home or business, it’s easy to see why the convenience and affordability of extra storage continues to be taken up by people needing extra space.
All Size Sheds are one of the Gold Coast’s leading independent storage facilities. For great rates of self-storage for all purposes, contact us today on (07) 5534 7181