Australia’s Self-Storage Industry Facing The Emergence Of The Sharing Economy

A report from m 3 property, an Aussie property consultancy and valuation firm, has some data that might interest any company running cheap storage in Narellan or anywhere else in the country. A research from the firm suggests that the country’s lucrative AU$1.1B self-storage industry might face some issue from the country’s recently emerged sharing economy.

Major demographic trends across Australia has been good for the self-storage industry, which has been experiencing consistent growth. This particular sector, as it grew, has been more and more corporatized, which started with the successful launch and operation of National Storage REIT, the first self-storage company in the land down under. Following their success, other large players in the self-storage industry came popping out.

Additionally, Aussies have also looked for cheap storage in Narellan and everywhere in the country via online retailers. However, the paper from m3property suggests that the peer-to-peer market, which has been rising in popularity across the country, might step up to the plate and act as competition for the self-storage industry.

One such company handling the sharing economy, is Spacer, which was established back in 2015. This company lets Aussies rent their unused space in any of their properties, which has gained popularity across the country thanks to the lower costs associated with the sharing economy. Spacer operates in Brisbane, Gold Coast, and other major cities in Australia, and, according to m3property, have been growing considerably since the company was founded.

m3property also noted that mobile storage has also been gaining popularity across the country. Mobile storage is a service wherein a company provides a storage box for them to put their things in, which the company will then pick up and stored, and, thanks to its growing popularity, might step up to be a problem for traditional self-storage, though it does have high costs to contend with.

Managing Director Sam Kennard, of Kennards Self Storage, says that while there have been some concerns with oversupply, the sector still didn’t really reach that many customers, with Kennard saying that around 3/4ths of Australia not having used self-storage.

The report says that transaction activity in the market have caused yields on self-storage centres to drop.