The self-storage boom is set to continue in 2024
Andy O’Dell, CEO at Kuboid
Kuboid specialises in the design, manufacture, and construction of modern self storage facilities in the UK and across Europe. From general consultancy, planning, design, construction, and aftercare we deliver storage solutions that maximises space, capacity and in turn our customers profit.
For 18 years, we have earned a reputation as a dedicated, forward-thinking team who are passionate about self storage. We have proudly been trusted to transform hundreds of spaces, and have partnered with the biggest brands in the industry including self storage pioneers, Shurgard Self Storage and Space Station Self Storage.
As the CEO of Kuboid, I have personally witnessed the remarkable growth that the self storage industry has undergone. It has proven to constantly adapt to the way we live, and its greatest strength lies in the diversity of reasons that people have for using self storage.
Despite several economic challenges, such as the COVID-19 pandemic, the Russia-Ukraine war, and the cost of living crisis, many expected it to be a difficult time for our industry.
However, the UK self storage industry proved to be incredibly resilient. In 2023 it was reported that the industry would achieve a record-breaking turnover of over £1 billion.
The sector has evolved since I began my journey at Kuboid over a decade ago. Our customer base was predominantly small, independent businesses, just coming into the marketplace. Typically, farmers who had unused barns looking to utilise the space, or business owners with an empty warehouse looking to increase business revenue. However, as the UK public awareness and investor interest increased, I began to notice a shift in the type of customers we were dealing with.
In 2023, we witnessed significant transactions and acquisitions which indicated a shift in the investor profile. Nuveen Real Estate, one of the largest investment managers in the world, acquired our customer, Easistore, on behalf of its European Value Add strategy. Legal and General, Heitman, and Pithos Capital were also among the many involved in key transactions.
While economic headwinds and a raft of market uncertainties slowed wider real estate investment volumes, these strategic transactions propelled the industry’s growth. It signalled to the broader investment community that self storage possesses unique qualities, making it an attractive and often overlooked asset class.
In 2024, the UK Self Storage sector is expected to remain one of the most sought-after Operational Real Estate asset classes. The sector continues to be a strong investment opportunity for major investors, and operators are dedicated to expanding their businesses through either organic or inorganic growth. Experts predict that this year, there will be several significant deals announced, both in regional markets as well as the core London market.
As the sector continues to evolve and gain recognition, the range of individuals and businesses investing in self storage is likely to expand even further.
Andy O’Dell, CEO at Kuboid joined the business in 2013. He has since built successful and long-lasting relationships with the biggest brands in the industry and is a well recognised and respected individual.
