Self-storage has seen a lot of success in the US and in the UK and is still growing as people turn to matching websites such as www.GoodStorageLeeds.co.uk to look for their preferred storage facilities amongst the many UK has to offer. However, expansion in the self-storage industry may become evident in Asia in the years to come as the CBRE Group strong factors have driven a high demand for storage space in the region particularly in highly urbanized cities such as Tokyo, Hongkong, and Singapore.
The factors that have lead to the high demand in the self-storage industry, according to Darren Benson, Executive Director of Industrial and Logistics of CBRE Asia, are tighter living areas due to urbanization, disruptive life events, and the development of the office market.
However, only an aggregate of 5.7 million square feet of storage space are allotted for Tokyo, Hong Kong, and Singapore. It seems to be a meager number compared to the UK’s more than 40 million square feet of storage space. This apparently shows that the industry in the Asian region might not be able to reach the same level in the US or, at the very least, in the UK.
Despite that, it was also revealed that 7% of Asian investors have already invested in self-storage according to the 2015 APAC Investors Intentions Survey. Moreover, the same survey revealed that an additional 9% of investors would like to invest in the industry.
On top of that, Asia has been assessed to be able to grow in the industry when weighed against the key drivers of self-storage demand such as death and divorce.
Asia has one of the world’s largest ageing populations in Hong Kong and Tokyo. Due to that, it will be expected that the deaths of these ageing population will increase the demand for storage facilities, as they will be needed to store the belongings of those who passed away. In terms of divorce, an increase in the divorce rate in Hong Kong and in Singapore will create a demand for storage facilities as well.
Downsizing and dislocation also create a demand for self-storage in Asia as rapid growth in population downsizes household space especially in urban areas, and because rapid job and family changes in Asia tend to create a need for space to store belongings.