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Industry continues to perform well through the pandemic
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While many other property-based industries have seen rents and occupancy hit by the impact of COVD-19, the self storage industry has seen growth in both revenue and occupancy. Based on Q3 results, the Self Storage Association UK reports that the industry has increased occupancy by 2.9 points year-on-year to 79.2%, while also increasing the return per square foot on storage space by over 1.5% to £23.46. Non-payment of storage fees has also remained basically stable year-on-year, with less than 1.5% of storage fees being overdue at 30 days.
The coming 12 months remains full of uncertainty, however all indications are that demand for self storage will continue to grow and the industry will remain in a strong position. Changes in the commercial real estate market as a result of the pandemic could provide more opportunity for development of new stores, which has not shown any signs of slowing. All the major operators have a strong pipeline of development which they remain committed to. |
New trainer and training modules for 2021
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The SSA UK has secured the talents of Julia Ovens to deliver new training modules online in 2021. Julia has over 17 years’ experience in self storage from Australia, and was previously the operations manager at Fort Knox Self Storage in Melbourne. She was also a popular speaker at the FEDESSA Conference in London in 2019. Julia has recently moved to the UK and has extensive knowledge of how to build and grow a winning team, and how to maximise the most out of the local market. She pioneered numerous community engagement initiatives and enlisted her team to participate in a wide range charitable activities/events, which resulted in Fort Knox Self Storage winning the 2018 Self Storage Association of Australasia (SSAA) Industry Award for Community Engagement. Julia will be launching a new training session in January on recruiting and retaining a winning self storage team and is working on further sessions around community engagement and workplace safety later in the year. |
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Are your buildings fully insured?
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We all have insurance in case our self storage buildings are destroyed or damaged, but are you covered for the full cost of replacing your buildings? When was the last time you looked at how much your building insurance will pay out if you make a claim? When did you last check the replacement value of your building, which could be very different to what it was when you built it, and is not the same as what you paid for the property? Your insurance should cover the costs of replacing your current buildings, including potentially clearing the site of debris from the old building. Especially with new environmental building laws being introduced, the costs of replacing your building could be higher than you think. You do not want to be caught with a difference between the insurance pay out and the actual cost of replacing the building. |
Last few places remaining on pricing training
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SSA UK CEO, Rennie Schafer and industry expert Dave Davies have combined their significant experience and knowledge to develop the Association's Pricing Strategy Online Training Session. The next session is 8 December and the last training session for the year. There are only a few places left so if you are interested in attending, book now before it sells out. Pricing is one of the most pressing issues for self storage operators, this interactive online training session will help you create pricing policies to maximise the revenue of your business. Covering everything from discount policies to dynamic pricing, you will learn how you should be setting your pricing based on your business, not your competitors. |
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Tell your story with a video
Online video content is becoming an increasingly powerful tool for your business. Processing over 3 billion searches a month, YouTube is a powerful search engine, second only to Google. Nothing helps your potential customers identify and relate to your business better than a good video. A video puts a face to a name and allows an audience to see the genuine nature of your business and people - people like buying from people. If they have confidence in you, that hugely increases their likelihood to store with you. Video is also one of the top, most shared pieces of content - social media posts are full of videos. It is estimated the average person watches around 90 minutes of video online every day. So, if you do not have video content on your website and YouTube yet, then get out your phone and start filming. It does not have to be Hollywood quality, but it does have to reflect the nature of your business, so have some fun with it.
Check out this video from Hawaii Self Storage for some inspiration (and a few laughs). Do you know anyone with Garajah-ritus?
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It's almost Annual Industry Survey time
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Each year, the SSA UK produce an Annual Industry Report which is released in May and seen as a highly regarded and reputable document within the industry. The strength and reputation of this report is entirely due to the data and support provided by SSA UK members. Last year’s report did not include any data covering the Coronavirus pandemic, although a commentary was written alongside the report. This year’s report will allow us to capture the true impact the pandemic has had on the industry so far. This is a reminder to all SSA UK members that we will begin collecting data in the new year. Please keep an eye on your emails in early January for details on how to send us your data. As in previous years, we will try to make the process as easy as possible so, for those who sent spreadsheets in last year, any data which is unlikely to have changed will be pre-populated in this year’s spreadsheet. Thank you to those who take the time each year to complete the survey and contribute to the Annual Industry Report. |
Have you updated your contact preferences?
| Did you know you can control what emails you receive from the SSA UK through your profile on the website? You can subscribe to mailing lists to suit your needs. Whether it's training, security bulletins, European events, eNews or webinars, you select the mailing lists and topics of interest that suit you. Log into www.ssauk.com as a member and click on edit profile under the members menu in the top right hand corner. |
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Industry News
Self Storage feature in property week
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The self storage featured in Property Week this week with a piece on the resilience of the industry throughout the COVID-19 pandemic. The article quoted SSA UK data sourced from operators during Q3 which showed the industry increased occupancy and returns and is operating above pre pandemic levels. There was also data from the Safestore and Big Yellow public releases. The article was a rare positive piece given the difficulties the pandemic has caused in commercial property generally, especially in retail and hospitality. You can read the article here but it does require your property week login. All SSA UK members receive access to property week as part of membership. One copy is sent to the head office of each full member. If you are not receiving your copy please contact the SSA UK office. |
Moorfield Group and Stor-Age form £100 million UK self storage joint venture
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Moorfield Group, a UK-focused real estate fund manager, has entered into a joint venture with Stor-Age, a South African Self Storage Real Estate Investment Trust (REIT) and owner of leading UK self storage business Storage King. The joint venture aims to build an initial £50-£100 million portfolio of modern, tech-enabled high-profile self storage assets in the UK. Moorfield will be the majority investor, on behalf of its Moorfield Real Estate Fund IV. The joint venture aims to develop self storage assets with a focus on London and the South East. The portfolio will benefit from being operated under the Storage King brand, which currently trades from a platform of 28 stores, providing over one million sqft of high-quality storage space across the UK. The joint venture is in advanced discussions on a number of acquisitions, leveraging Storage King’s established relationships and industry experience to secure off-market opportunities. The pipeline comprises a mix of subject-to-planning development sites, turn-key developments and existing investment assets. |
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SureStore opens new Wigan site
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Currently operating eight sites across the North West and the Midlands, SureStore plans to open a further ten sites by the end of 2021. A brand new, purpose-built facility in Wigan is the latest addition to the portfolio. Located on Brown Street in the town centre, the £4m site spans 40,000 sqft, stands five-stories high and has 400 individual storage units available. The new facility boasts a solar panel roof, electric car charging points and advanced security systems; all standard features at a SureStore site. The next two store openings for SureStore are due to complete in Spring 2021, with a new site in Old Trafford, Manchester and one in Ashton-Under-Lyne. Described by co-founders, Mike Wilson and Andy Wood, the Old Trafford site will be an ‘anchor’ facility for the storage group and is set to be the largest facility of its kind to date. |
Plans for Durham storage facility refused over fears for wildlife
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Earlier this year, plans were lodged with Durham County Council for land north of the old brickworks at Leasingthorne Industrial Estate. The new plans aimed to provide a self storage facility for 16 containers, alongside a new 2.1 metre high chain link fence. The proposals were expected to create four part-time and four full-time jobs with no "adverse impact to trees" or excavation works planned. Following consultation, the council's planning department refused the plan on Monday, as it clashed with several policies in the recently adopted County Durham Plan. This included building the storage facility in an "unsustainable countryside location, without sufficient justification." Planners said the development would have an "adverse impact" on the character and appearance of the surrounding area, on the rural character of the countryside and on the "enjoyment and routing" of a public right of way. A decision report noted the development is "not well connected to the principal highway network" and does not "provide or support sustainable modes of transport, or demonstrate that a suitable and safe access could be achievable for all users." The report added that the development would likely increase the risk of flooding and pollution of the environment and that "insufficient information" was provided around ecology and the public right of way. "Although it is stated that the proposed storage containers will not require any foundations, the ongoing disturbance and shading caused by the units and proposed site use, will undoubtedly result in a loss of habitat and associated impacts on existing priority habitats and species which have been noted to be present on site." |
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Storage King site in Chester receives planning permission
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FRESH plans to demolish a car wash facility in Chester and replace it with a self storage unit have been given the go-ahead. The proposal put forward by Storage King for the vacant site off Hartford Way, near both the Tesco and Aldi stores, was approved by Cheshire West and Chester Council. The new self storage unit, which will create three jobs, includes a reception, unloading bay and parking areas. Storage King already have a building adjacent to the site, formerly occupied by Excellent Hand Car Wash and Valeting Centre, which is separated by access to the sewage works. |
New Supplier Member – Kinnovis
KINNOVIS is a complete software and hardware solution provider for fully digitised self storage, co-working & office spaces as well as co-living and residential housing. They provide their clients with the complete customer journey: from easy and convenient online bookings, immediate direct access and management (i.e. sharing the customers digital key!) of the space via a smartphone and many, many more features. KINNOVIS Management Software provides essential CRM, E-commerce, ERP and other core functionalities, so staff can focus on the important tasks. Fully integrable. Fully customizable.
KINNOVIS history in a nutshell: For over 30 years, we have been renting out over 10,000 m² of space in the south of Vienna for both storage and office use. In 2019, we opened our crown jewel, the K21, one of the most modern office buildings in all of Austria and most certainly the most modern self storage facility! Digitising and offering a totally new customer experience was our top priority when opening the first location of STORE ROOM - Smart Self Storage. By doing so, we have developed our very own software, which fully connects the physical to the digital world, easing the process of booking and accessing the unit, as well as reducing workload for the managers. With this goal continuously in mind, we founded KINNOVIS with an intention to create the future of digital and automatised real estate properties. Curious to see more? We would love to take you on a tour of our store in Vienna, but as that is a bit difficult at the moment, have a look at the video below instead.
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SSA UK office hours over the festive period
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SSA UK staff will be taking a break over the festive period with the “virtual” office closing on 23 December and re-opening on 4 January. For urgent enquiries during this period, please call 01270 698500. We wish all our members and their families a safe and happy festive period during these difficult times. I am sure we all hope 2021 will bring the end of the pandemic impact and happier times for all. |
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