The global self-storage industry is booming, and it’s not hard to see why. Walking through the corridors of Apple Storage in Toronto, it’s clear that these spaces are far more than just a place to stash old furniture. Behind one shutter, a candle business is packing orders for international shipment; behind another, an e-bike repair shop is busy helping the city’s delivery riders. There’s even a locker full of Bitcoin ATMs—banned in the UK but legal in Canada—where customers exchange digital currency for cash.
David Allan, co-owner of Apple Storage, explains that 70% of their facility is rented by businesses. “Pre-Covid, office rents were incredibly high, but storage was half the price. So, companies moved their file storage into self-storage and used their office space more productively,” he says. This shift is not unique to Toronto. Globally, businesses are seeking out self-storage as a more affordable and flexible option in the face of rising rents and shrinking office space.
In Canada alone, 16 new storage facilities opened last year, adding one million square feet of space. Rents have also increased by 12% from 2023, according to industry tracker StorTrack. Meanwhile, in the UK, the self-storage industry surpassed £1 billion in revenue for the first time last year, based on data from Cushman & Wakefield and the Self Storage Association. The pandemic has reshaped how businesses operate, and self-storage has emerged as a key solution in the new economy.
Self-storage is also flourishing in Asia, driven by a rising side-hustle culture. Helen Ng, CEO of the Self Storage Association Asia (SSAA), notes that in places like Singapore, many people use self-storage to keep stock for e-commerce businesses. Ng, who owns two facilities herself, says nearly half of her renters are involved in side businesses. “Urbanisation and rising rents mean it’s impractical for many to store everything at home. Self-storage offers a flexible, cost-effective solution,” she explains.
Entrepreneurs are increasingly recognising the investment potential of this sector. Dean Booty, from East Yorkshire, turned to self-storage after his restaurant business failed. Today, he operates nearly 100,000 square feet across five locations in the UK. His podcast, Hacking Self Storage, reaches 15,000 listeners a month, showing how much interest there is in the sector. “The money flowing into this industry is huge, and demand is still growing faster than supply. It’s an exciting time,” Booty says.
However, the industry’s rise has not been without criticism. Ben Twomey, CEO of housing advocacy group Generation Rent, argues that the self-storage boom is a symptom of deeper societal issues, particularly the housing crisis. “It’s an indictment of our housing situation when people have to rent extra space just to store their belongings,” Twomey says, adding that many families struggle with overcrowded homes.
Despite the criticisms, the self-storage industry remains an attractive and growing opportunity. As cities become denser and space more expensive, demand for affordable and flexible storage solutions is likely to continue rising. The industry is evolving beyond its traditional role and is now a vital part of the business landscape, providing opportunities for both growth and investment. For further insights, industry reports from Cushman & Wakefield and the Self Storage Association offer valuable analysis on this expanding market.
(Source: BBC)