Industry Snapshot 2021
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Industry Snapshot 2021

Resilience and record growth:
The SSAA Industry Snapshot 2021 explores the strong performance of the self storage sector.

Explore below

Market Metrics

A strong uplift in operating performance delivers improved metrics across the industry.
Despite the challenges presented by the pandemic over the past 18 months, market metrics continue to strengthen highlighting the resilience of the sector.
2020:
Positive change 5%
88%
Occupancy (by area)
2020:
Positive change 2%
$304
Weighted Avg. Storage Fee Rate ($/spm)
1,570
Storage facilities in Australia
490
Storage facilities in New Zealand
2.11
Supply Rate (sq ft per capita)
$1.5b
Annual industry turnover

Industry Gauge

A record year for revenue performance, heavily influenced by an increase in disruption and discretionary spend.
Select drop down to explore other options
A gauge labelled 'weak' to 'strong'

Overview

The Storage Industry Gauge measures the strength of the self storage market at a point in time.
The gauge monitors the performance of self storage across East Coast Australian cities, linking changes in revenue performance to various demand drivers. The condition of the economy and strength of demand drivers creates a self storage market score.
Download the full report to explore the 2022 outlook and learn more about the Industry Gauge.
A gauge labelled 'weak' to 'strong'

Population Growth

Population growth drives storage demand and this indicator has slowed due to the impacts of the pandemic. It is anticipated these impacts will be confined to the short term.
The population growth demand driver adopts the actual population growth rate.
A gauge labelled 'weak' to 'strong'

Disruption

Storage demand is driven by change of life events, and this new demand driver captures disruption in all its forms. The disruption demand driver measures major events which impact day-to-day life, examples of which include natural disasters, economic crisis and black swan events (including a pandemic).
The disruption demand driver adopts a score based on the level of disruption, calculated using a range of inputs.
A gauge labelled 'weak' to 'strong'

Discretionary Inflation

A significant increase in discretionary inflation has contributed to demand for storage.
Previously measured as average household income, the discretionary inflation demand driver now adopts the change in discretionary spend index.
A gauge labelled 'weak' to 'strong'

Residential Sales

An increasingly hot property market and soaring housing turnover volumes has driven increased demand for storage.
The residential sales demand driver adopts the annual change in housing turnover/sales.
A gauge labelled 'weak' to 'strong'

New Apartments

New apartment completions slowed across the year, though strong uplifts in other drivers has minimised this impact.
The new apartments demand driver adopts the annual change in apartment completions.
A gauge labelled 'weak' to 'strong'

New Storage Supply

The new supply scheduled for 2021 was constrained due to the impacts of the pandemic which has contributed to the strong result. New supply is expected to increase significantly in 2022 which is forecast to impact 2022 scores.
The self storage supply demand driver adopts the annual new supply rate as a percentage of existing stock.

Market Activity

Industry consolidation continues with 42 assets transacted across 2020/H1 21
New entrants and a growing desire to gain market share via portfolio acquisitions is expected to further accelerate market activity.
$1.3B
Quantum value of acquisitions

Valuation Trends

Overall performance has strengthened valuations with continued capitalisation rate compression.
Over the past 18 months, cap rates have sharpened by 75 to 100 basis points. High quality portfolios are attracting significant premiums.

New supply

An unprecedented level of supply is forecast across all major metropolitan markets.

The rate of new supply is significantly higher than historical levels, with more than 55 facilities set for completion in 2022 alone.

The pandemic has pushed development activity originally planned for 2021 into 2022, particularly in east coast markets.

A high proportion of new supply will be developed by established players, though the sector continues to attract new entrants.

The chart below is a forecast for 2020 supply

The rate of new supply is significantly higher than historical levels, with more than 55 facilities set for completion in 2022 alone.

The pandemic has pushed development activity originally planned for 2021 into 2022, particularly in east coast markets.

A high proportion of new supply will be developed by established players, though the sector continues to attract new entrants.

Explore the key themes driving growth and innovation across the sector
Industry Insights
Operators are embracing automation to improve operating efficiency and enhance customer experience.
A more proactive approach to revenue management is improving performance.
Rising demand presents opportunities across residential and commercial segments.
Industry Snapshot Snapshot 2021
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