eKourier Jan 2021

FEATURE

STATE OF THE INDUSTRY 2020

S tudy commissioned by the Self Storage Association was formerly known as the Demand Study. A document designed to provide insight into self storage demand and consumer behaviour, last produced back in 2013. Previous editions were produced back 2006, 2008 and 2010, all providing valuable data for the industry during that time. The latest iteration has been renamed “State of the Industry” supporting previous publications. The latest edition continues to explore the current state of the Self Storage Industry across Australia and New Zealand. The latest report surveyed 150 members of the Self Storage Industry and just under 3,000 consumers, research was conducted by Urbis consulting services long time associate of the Storage Industry and EY Sweeney a leader in Consumer Research, with a strong history of delivering insights and perspectives across many industries.

due to the perceived high cost. This may reflect an incorrect price point or an inability to communicate value. THE MARKET Members indicated they had a positive outlook for the future, showing confidence in the durability and resilience of the storage product. For a long time self storage was consid- ered a fragmented industry. The trend now has been consolidation as top tier operators like National Storage pursue substantial acquisition programs. This demand has led to higher asset values particularly in the major cities. Along with acquisitions, new develop- ments have increased adding new storage supply to the market, placing downward pressure on storage rates and occupancy. Demand for storage is generally driven by disruption in people lives. We are

The report concentrates on four key areas: The Market The Industry The Consumer The Future Awareness of self storage among the population is higher at 92% in Australia and 88% in New Zealand. However only one in five people (20%) understand the self storage offering. The survey indicates that 8.5% of the total population of adults have used self storage. This is up from 5% in 2013. Take outs from the survey: customers who have used storage in the past five years indicate they would need storage again in the next five years, emphasising the importance of a good customer experience for future repeat business. One in two people who needed storage in the last five years chose not to store

13 Kennards Kourier Jan 2021