Our team recently attended the Self Storage Association convention on the Gold Coast, where they gained insights into the latest trends and challenges facing the self-storage industry. From innovative facility designs to new financing hurdles, here are five key takeaways that stood out:
1. Building Upward to Maximise Space and Returns
- Industry leaders are focusing on increasing Net Lettable Area (NLA) by building upwards. For instance, the new Mascot facility, which rises 12 levels, showcases the shift toward maximising usable space to boost revenue potential.
2. Fire Safety Requirements Set to Increase
- Fire safety has become a top priority, with state fire departments pushing for enhanced safety standards. Industry leaders anticipate that new facilities may soon be required to install water sprinklers and fire hoses. While these measures improve safety, they also add to construction costs and may impact project profitability.
3. Financing New Developments is a Growing Challenge
- Major banks are showing hesitancy toward funding new developments, preferring completed dwellings with high occupancy rates. This financing roadblock is prompting the industry to explore alternative funding methods to support new builds.
4. Positive Long-Term Outlook Despite Housing Constraints
- Industry leaders are optimistic about the medium to long-term growth potential of the sector, driven by decreasing house sizes and a shortage of housing supply. These factors are expected to support sustained demand for self-storage solutions.
5. Technology Enhances Facility Management and Customer Experience
- The role of tech in self-storage is expanding, streamlining operations and boosting customer satisfaction. Innovations such as automated access systems are reducing labour demands and enhancing the overall experience.
This convention underscored the dynamic nature of the self-storage industry and offered practical insights for adapting to its evolving landscape. By understanding and addressing these trends, we’re well-positioned to guide our clients in navigating this shifting market.
If you’re interested to know more about self-storage as an investment opportunity, please Contact Us here. Our specialist mortgage brokers will be pleased to assist you.
