Post-pandemic surge in the self-storage market in Australia & New Zealand (ANZ) with increased storage fees, occupancy rates, and development activity.
Similar trends in the US, with demand cooling after a significant increase during and post-pandemic.
US Storage Market Overview
Growth Trends:
Significant increase in self-storage demand post-pandemic.
New facilities increased from 439/year (2010-2019) to 735/year (2020-2023).
Recent cooling of the market despite earlier growth.
Challenges:
245 projects abandoned in the previous year, indicating demand-supply risk.
Highlights need for understanding demand and supply dynamics.
Comparison: US vs ANZ Storage Market
Size and Maturity
US Market:
Largest globally, with 52,300 facilities.
Supply rate: 6.2 sq ft per capita.
Revenue: ~$40 billion.
ANZ Market:
3,300 facilities.
Supply rate: 2.5 sq ft per capita.
Revenue: ~$2 billion.
Disparity:
US market is 2.5 times larger per capita.
More mature and developed than ANZ market.
ANZ market is still emerging, with recent sharp increase in development.
Market Performance
Fee Rates:
ANZ: Average fee $383 AUD.
US: Average fee $258 AUD (33% lower).
Supply Influence:
Potential for more supply to lower fee rates in ANZ.
Importance of matching supply with demand.
Challenges and Considerations
Supply Dynamics:
Considered Supply: Meets market demand, increases awareness.
Unconsidered Supply: Can lead to oversupply and market issues.
Construction and Financing:
Rising costs, risky revenue projections can threaten project viability.
Market Analysis:
Understanding demand and supply critical for project success.
Importance of demographic insights for tailoring storage solutions.
Conclusion
Developers must understand demand and supply dynamics to avoid market saturation.
Comprehensive supply and demand studies are essential for healthy market longevity.
Assistance available from companies like Four Leaves for conducting such studies.
Contact: Four Leaves for more information on supply and demand studies.