According to the Bloomberg Riskless Return Ranking, self storage investment was the best performing real estate investment in the US over the past decade.

The Bloomberg rankings showed that the sector ‘produced the best risk-adjusted return among 10 U.S. real estate investment trust indexes in the past decade’, with the ‘highest total return and the third-lowest volatility, for a risk-adjusted gain of 10.6%.’

The company has stated that there has been a rise in demand from renters due to modern day lifestyle changes such as marriages, divorces, moving house and job changes. Easily accessible storage units have enabled people to store their much-loved possessions, rather than sell or throw them away.

UK Self Storage Market
Echoing the success of the American market, self storage investment in the UK is also experiencing an upward trend.
One leading UK storage business has stated that online marketing has helped boost enquiries with 80% of all its customers visiting websites before making an enquiry. A growing promotional online presence and increased advertising has boosted awareness of storage facilities, which has led to a rise in demand from consumers and businesses in the UK.

Low cost rentals and flexible tenancies have attracted businesses in need of storage space, with many larger units used as warehouses to reduce overheads

The self storage sector continues to be an increasingly popular option for those looking to invest in a low risk venture.  Demand continues to rise, even in these economically uncertain times, fuelled by multi-site operators and various reasons at consumer level:

• Downsizing
• Divorce or separation
• Retirement
• Moving home

With the population continuing to increase there is no indication that demand for self storage is going to drop off any time soon.  As such it makes an attractive investment opportunity, delivering excellent returns.  If you are looking to venture into the self storage business, then here are a few factors to consider that should help you create the perfect site.

Parking space

Most items that people wish to place in self storage will be on the large side.  Therefore be sure that any sites you consider have plenty of parking spaces.  This will facilitate a much easier loading and unloading process.

Clean and dry

Gone are the days when self storage providers are able to get away with providing wet leaky rooms and units.  Your customers are likely to be storing valuable business items, or personal belongings that hold great personal sentiment.  In order to compete in the modern world of self storage it is essential to offer clean and dry units – otherwise potential customers will look elsewhere.

Security

Security is another key concern for customers and you must have 24 hour CCTV installed.  Advertise the fact that you have CCTV to alleviate fears.  If the storage facility is large enough to fund a member of staff; it is a good idea to have a manned reception desk.

Flexibility

Offering flexibility is a good way to attract business. Avoid tying customers in to long term contracts and also allow them to change the size of the space that they have rented at short notice.

Packing materials

Some customers will carefully package their belongings before transport it to your storage facility.  However, others may not even consider protective covering until they arrive on site.  By offering suitable packaging materials you can help provide a better service and also increase your revenue.  Items to stock should include:

• Boxes of various sizes
• Bubble wrap
• Shrink wrap
• Dustsheets
• Moisture absorbers
• Void fill
• Tissue paper (acid free)
• Sealing tape (standard and marked fragile)
• Gripper gloves

In addition it is handy to have sack wheels and other mechanical moving devices on site that can be used to wheel heavier items into position.

Introductory offers

In order to secure initial business you should offer various introductory offers as part of your advertising campaign.  This could include the first month free, discounts for students or referral reductions for existing customers.

Article provided by Safestore self storage.

Will this effect UK Storage Investment?

Currently, UK self storage units are exempt from sales tax as they are classified as a license to occupy land – similar to renting commercial property.

Under the new proposals, which will come into effect from October 2012 following the outcome of a consultation between HM Revenue & Customs and industry bodies, self storage companies will have to pay VAT.

According to The Telegraph, the industry will actively engage in discussions with the Government in a bid to prevent the changes from being passed.

To overcome this unexpected cost, a number of top self storage companies have stated that they will have to pass on the VAT cost to their customers.

Across the industry 50% of total letting space is used by business customers, which will ultimately limit the impact of the changes as these businesses will be able to reclaim VAT.

Over the past few years the performance of the UK self storage industry has skyrocketed, with many companies reporting record occupancy levels and increasing length of tenancies.

It is thought that the recession has helped boost the market as many homeowners have had to downsize to accommodate shrinking budgets, and a number of businesses have sought out more cost effective storage solutions.

Renewed interest in UK self storage as Storefirst reports 100% occupancy levels

The UK’s self storage business has thrived throughout the recession with Storefirst, a leading storage company, reporting rising occupancy levels and extended lease periods despite economic hardship.

According to a recent Moving Trends Survey, 73% of homeowners would rather renovate or extend their property rather than move.

With thousands of people downsizing, letting out spare rooms or converting loft spaces rather than moving, rising numbers of homeowners are looking for alternative locations for their personal belongings.

And the UK’s self storage business is thriving from this demand.

Despite only opening two years ago, Storefirst’s Blackpool facility is currently operating at 100% occupancy. On average, the company claims it takes around 18 months for each unit to reach full capacity.

As the average rental period reaches 40 weeks and occupancy levels hit new highs, the demand for self storage units is rising, In line with the company’s increasing marketing and advertising campaigns, Storefirst has revealed that is has seen a rise in tenant enquiries.

Storefirst, who offer their storage space at least 30% cheaper than their competitors, is rising in popularity and has recently been awarded the ‘Thinking outside the box’ award by industry leaders.

In total Storefirst operates 8 facilities in the UK, with plans to extend its plans to increase its market share.

Storage Units for Sale
Working with London-based investment company, Experience International, Storefirst is offering private investors the opportunity to enter the self storage business by offering storage units for sale to individual private investors.

These storage units for sale are only available through Experience International, investors can secure an 8% fixed income guarantee for the first 2 years, with a projected 10.27% NET Yield for years 3 and 4 rising to 12.53% in years 5 and 6.

With a structured exit strategy in place, now is a great time for investors to enter the UK self storage business, so contact Experience International on 0207 321 5858 or email enquiries@experience-international.co.uk to find out more about these storage units for sale.

Regardless of the current economic climate, the UK Self Storage industry has proven to be a durable business, with the average consumer storage period increasing from 22 to 37 weeks in the previous four years alone.

In an time of cutbacks and downsizing, various businesses and consumers are taking advantage of the flexible nature of a storage unit, attracted by low rents and the convenience of hassle-free rental agreements.

It is no secret that the economy has forced a number people to revaluate their finances, with a multitude of homeowners opting to convert their homes instead of moving. With spare rooms becoming offices and attics becoming bedroom, a lot of homeowners are short of storage space, which has created a demand for on-site storage facilities.

This combined with factors such a rise in UK divorce rates and a growing amount of people relocating, downsizing or moving into flats have created a rise in demand for storage space for personal and sentimental personal effects.

And it’s not just homeowners who are looking to downsize and cut costs. A number of low-level entrepreneurs and businesses are taking advantage of storage units, from self-contained gyms to music studios, from recycling centres to offices; an expanding amount of tenants are creatively using their units to uplift their businesses.

“We’re seeing a change in the proportion of business customers to private customers. This is part of the recessionary effect,” Rodney Walker, CEO of the Self Storage Association reveals. “If you are starting a business in today’s landscape it makes sense to use a facility that is flexible and cheap. For start-ups, self-storage has always been a potentially more cost-effective way of getting established.”

The flexible features of a storage unit enables the tenant to make a space not just to hoard personal effects, but to make a working space at a pinch of the cost of usual commercial property.

Normally only available to large size businesses, UK Self Storage investment have now been opened up as an opportunity for individual investors, by London-based firm, Experience International.

For those looking for a low-entry, hassle-free investment, investors can buy a StorePod – an individual storage unit situated in a self-storage facility – and enter into an agreement to sub-let the units to a well-established management company, who in turn sub-let the units under license to end users.

With guaranteed returns, investors receive double digit returns from a 6 year lease already in place. The lease is expected to average NET returns in excess of 10% for the first 6 year period guaranteed 8% NET yields for years 1 and 2).

And with a secure exit strategy in place and an optional buy-back scheme, investors can secure a steady income from the thriving self storage business.

For more information about UK Self Storage investment, please contact Experience International on 0207 321 5858 or email enquiries@experience-international.co.uk or click on the image below to access the exclusive investor report.

UK Self Storage Exclusive

Income Generating Asset -  Double-Digit Returns Income – Paid Quarterly in Advance

Experience International is proud to offer the first affordable ‘Self Storage’ commercial property investment to be released into the UK.

Our ‘UK Self Storage Exclusive’ is a new self-storage concept with guaranteed income and provides a low level entry into what is fast becoming an investment revolution….the StorePod.

Guaranteed Returns
Investors receive guaranteed returns from a 6 year lease already in place upon completion. The lease is expected to average NET returns in excess of 10% for the initial 6 year period ( guaranteed 8% NET yields for years 1 and 2). T

Investment Highlights:

• No finder’s fee
• Low entry level investment packages from £11,250
• 6 years secured income
• Upward only rent reviews every 2 years
• 10.27% average annual NET income
• VAT exempt investment
• Returns paid quarterly in advance
• A managed, maintained and insured investment
• SIPP and SASS compliant
• Defined exit strategy

Click here or on the image below to access the exclusive UK self storage investor report

Why is self storage investment a growing market? All over the planet, people are looking for new investments to put their money to work. In years past, it was not as difficult to make lucrative investments in the stock market, but with financial markets being relatively unstable nowadays, a growing number of people are becoming cautious with investments which might not generate a good ROI.

If you are ready to invest, but you are looking for alternatives to the traditional markets then consider a self storage investment to make your money work for you.

Nowadays most cities, if not all of them require self storage options available. Self storage facilities have grown in popularity during the past 20 years. Nowadays self storage demand is quickly growing especially in the UK where demand is high and supply has still to catch up with that of the more established countries like North America.

When compared to more mature markets, the levels of self storage market penetration in the UK are low at just under 0.5 Sq/Ft per person. The US has in excess of 7.4 Sq/Ft per person and Australasia has 1.1 Sq/Ft per person.

Also despite such high levels of market penetration, the US market continues to grow at 10-15% a year (based on net lettable space). On this evidence it is clear that the UK market has much further to grow.

One of the great things about investing in self storage, apart from the low entry level and high yields, is the fact that there is not much owners are required to do once the initial investment has been made as the self storage facilities are generally operated by a specialist management company which require very few employees, also maintenance costs are very low.

Whether you are buying a whole facility, an individual StorePod, or you plan to build your own self store facility, you should be able to make a good ROI if you choose the right location in a highly populated area with excellent transport links, or maybe a location with high demand like near an airport or business centre for example, and if you can find a place with none or little self storage facilities in operation then you should be onto a winner.

One UK self storage investment opportunity is being marketed by Experience International providing a guaranteed yield of 10.27% Per year. Investors buy ‘individual storage units’ otherwise referred to as ‘StorePods’ and enter into an agreement to sub-let the units to a well-established management company who in turn sub-let the units under license, to end users.

Storage units are needed almost everywhere, and they can be very lucrative. There is the initial cash outlay as with most investment ventures, but once you have put your funds into such a business, you can just sit back and watch the money come back to you.

Self-Storage was first established in the UK in 1980’s, initially in the London area.  The industry continues to grow steadily in the UK and for the five years to 2009 has recorded growth rates of between 8% and 15% per annum.  Storage rental has continued to increase in both price and volume during this period. This has been fuelled by the growth of multi-site operators such as Safestore, Big Yellow, Access, Lok’n Store, Shurgard, Space Maker, Storage King and HSIL Property, as well as smaller businesses looking to enter the sector.

The UK’s Self Storage Companies have seen the highest growth and highest yielding returns within the commercial property sector over the last decade.

A review of the annual reports that the large Self-Storage PLC’s have made available to their investors show a fast growing industry with great confidence in the outlook for the future.

The industry continues to grow steadily and has historically exceeded all targeted projections and demand is increasing with both consumers and business increasingly turning to self storage.

Why lower risk
Demand fuelled by increasing number of consumers and businesses turning to self-storage

• Industry has historically exceeded all targeted projections
• Long-term occupants leading to better security of return
• Competition Limited
• Industry analysts confirm self storage as growth area
• Levels of market penetration in the UK are low at just under 0.5 Sq/Ft per person