Month: January 2025

Navigating the Regulatory Maze: Challenges and Opportunities for Self-Storage in Spain

Posted on by Serge Kaouane
Introduction

he self-storage industry in Spain has seen steady growth over the past decade, driven by urbanization, shrinking living spaces, and evolving consumer needs. However, this expansion has not been without challenges, particularly in navigating a regulatory framework that does not yet recognize self-storage as a distinct category.

Unlike in more mature markets such as the United Kingdom or the United States, where specific industry standards and regulations exist, self-storage in Spain often falls into legal gray areas, leading to licensing delays, inconsistent zoning interpretations, and costly compliance issues.

This article explores the regulatory gaps, the licensing hurdles, the role of industry standards like UNE EN 15696, and the need for a proactive approach to lobbying for dedicated self-storage regulations in Spain.

The Misclassification of Self-Storage as “Trasteros” and the Rise of Urban Self-Storage

One of the core regulatory issues facing self-storage in Spain originates from its misidentification as “trasteros” (residential storage rooms). In an effort to make the concept more accessible to the public, the industry adopted the term “alquiler de trasteros” (storage rental), which has unintentionally created confusion among municipal authorities.

Without a specific regulatory framework, municipalities classify self-storage under pre-existing categories. In most cases, they categorize it within existing industrial storage uses, subjecting it to regulations that do not reflect its operational characteristics. However, in many municipalities, it is also incorrectly associated with residential storage, applying inappropriate regulations that do not align with self-storage’s actual use and risk profile.

This issue has become more pronounced in recent years with the increasing trend of developing self-storage centers in urban environments, such as street-level locations or underground floors of residential buildings. While this model caters to urban consumers seeking convenience and accessibility, it has deepened the regulatory confusion. Municipal authorities often treat these developments as extensions of residential storage (see conclusions of the municipality of Sevilla here as an example), enforcing safety and construction standards that do not reflect the actual use and risk profile of self-storage facilities.

For example, in some municipalities:

  • Storage units must be built with masonry walls or extend to the ceiling.
  • Each unit is treated as a separate fire sector, requiring individual smoke detectors, fire-rated doors, and ventilation systems—a costly and often unnecessary measure.
  • Storage units are often designated as ancillary to residential properties within the building. As a result, their use is restricted to residents, prohibiting them from being marketed or leased to the general
The Regulatory Landscape: A Complex Framework

Spain lacks a dedicated legal framework for self-storage facilities, which means that these businesses are classified under existing real estate and industrial regulations, often without consideration for their unique operational model. Municipalities interpret self-storage facilities in different ways:

  • Some classify them as industrial spaces, leading to strict zoning restrictions that push facilities to city outskirts rather than recognizing self-storage as a distinct category separate from industrial activity.
  • Others mistakenly equate them with “trasteros” (residential storage rooms) found in apartment buildings, imposing fire safety and construction standards that are incompatible with self-storage operations.

This inconsistent classification results in unnecessary restrictions on urban locations, which are often the areas with the highest demand for self-storage services. These requirements fail to consider the operational differences between self-storage and residential ‘trasteros’, where fire risk and usage patterns are entirely different.

The Impact of the Lack of Regulation: Operational and Financial Risks

Despite continued industry growth, the absence of a clear regulatory framework creates multiple challenges:

  • Legal Uncertainty: Each municipality applies different interpretations, making project approvals dependent on subjective criteria set by local urban planners. This lack of predictability discourages investment and hinders long-term strategic planning for self-storage operators.
  • Unnecessary Construction Costs: Applying residential storage room standards results in excessive safety and infrastructure requirements that drive up construction costs disproportionately. This can make projects financially unviable, especially in urban areas where land prices are already high.
  • Risk of Licensing Delays: Even seemingly viable projects can face unexpected administrative roadblocks due to unclear regulations, causing costly delays that affect return on investment.
  • Financing Challenges: Investors and financial institutions may be reluctant to fund self-storage projects due to the lack of legal clarity and unpredictable approval processes, limiting the sector’s ability to expand at scale.
  • Location Restrictions: Unclear zoning rules can hinder the establishment of new facilities in high-demand urban areas, forcing developers to seek locations on city outskirts where demand may be weaker.
  • Operational Inefficiencies: The lack of standardized regulations creates inconsistencies in how self-storage facilities operate across different municipalities, complicating expansion efforts and increasing compliance burdens for operators.
  • Customer Access Limitations: In some cases, regulatory misclassification leads to restrictions on who can use the facilities

While these obstacles do not prevent the sector from expanding, they introduce inefficiencies, raise costs, and complicate development. A well-defined regulatory framework would streamline processes, provide legal certainty, and foster a more sustainable growth trajectory for the industry.

The AENOR Standard (UNE EN 15696): A Reference, But Not a Solution

While Spain lacks a national regulation specifically for self-storage, there is a European reference standard: UNE EN 15696, developed by AENOR (Asociación Española de Normalización). However, this standard serves primarily as a set of best practices rather than a binding regulatory framework. It focuses on operational guidelines—covering aspects such as security, access control, and customer contracts—rather than defining zoning, construction, or safety compliance standards that are critical to the industry’s legal recognition.

Furthermore, UNE EN 15696 is not mandatory in Spain, as no national legislation has formally adopted it. This means that local governments are not required to follow its recommendations, allowing municipalities to continue enforcing their own interpretations, which vary widely. The result is an uncertain and inconsistent regulatory environment, where requirements can change significantly depending on location.

Although UNE EN 15696 provides a useful reference point, it is insufficient as a regulatory framework. Spain needs a dedicated legal classification for self-storage that incorporates clear zoning definitions, licensing processes, and fire safety standards while ensuring legal certainty for operators and investors.

The Need for a Regulatory Framework: Learning from International Markets

Other markets have developed clear self-storage regulations, providing valuable lessons for Spain:

  • United Kingdom: Self-storage is classified under Class B8 (Storage and Distribution) in the Town and Country Planning (Use Classes) Order 1987, providing a clear zoning framework. Some industrial and commercial properties can be converted into self-storage under permitted development rights, reducing regulatory barriers. This classification ensures predictable licensing processes and facilitates investment and expansion in the sector.
  • United States: The Self Storage Association (SSA) has successfully lobbied for self-storage to be recognized as a distinct real estate category in many states. This has led to clearer zoning regulations, streamlined fire safety requirements, and favorable legal treatment for operators and investors. Self-storage facilities benefit from well-established industry standards, making licensing and compliance more predictable.
  • France & Germany: While national regulations vary, both countries recognize self-storage as a distinct commercial activity, ensuring it is not misclassified as residential storage. In France, self-storage falls under a commercial real estate classification, simplifying zoning approvals. In Germany, operators must comply with strict building codes, but the sector benefits from established fire safety and operational guidelines that prevent unnecessary confusion.
The Role of Industry Advocacy: A Call to Action

Organizations like the Asociación Española de Self Storage (AESS) are actively working to educate municipalities on the distinctions between self-storage and residential trasteros, propose regulatory frameworks inspired by international best practices, and collaborate with urban planners to establish zoning guidelines specifically tailored to the self-storage sector.

However, a structured advocacy strategy is essential to ensure that self-storage is formally recognized as a distinct category in urban planning and building codes. A potential path forward includes forming a dedicated industry coalition to represent self-storage interests, engaging legal and urban planning experts to draft a proposed regulatory framework, and organizing targeted meetings with municipal and national policymakers to present data-driven arguments on the economic and urban benefits of self-storage.

Additionally, industry stakeholders should work to raise public awareness through media campaigns and industry conferences, emphasizing the role of self-storage in supporting urban density, small businesses, and residential convenience. This requires coordinated efforts from industry stakeholders to engage with policymakers, provide data-backed arguments demonstrating the economic benefits of self-storage, and work towards the development of a national regulatory framework.

A well-structured advocacy campaign could help align Spain’s approach with international best practices, fostering greater clarity, reducing bureaucratic hurdles, and creating a stable environment for future investment and expansion in the sector.

Conclusion

The growth of self-storage in Spain is at a critical juncture. Without clear and dedicated regulations, the industry will continue to face unnecessary bureaucratic barriers, increased costs, and investment uncertainty. The key to unlocking the sector’s full potential lies in establishing self-storage as a distinct real estate category, ensuring standardized licensing processes across municipalities, and adopting internationally recognized best practices such as UNE EN 15696.

Collaboration between industry stakeholders, policymakers, and urban planners is crucial to developing a comprehensive regulatory framework that balances operational feasibility with safety and compliance. Advocacy efforts should focus on demonstrating the economic and social benefits of self-storage, positioning it as an essential urban service that supports businesses, individuals, and overall city infrastructure.

By taking decisive action now, Spain can foster a transparent and predictable regulatory environment that not only enables sustainable industry growth but also enhances consumer access to high-quality storage solutions in urban centers. A well-structured approach will allow self-storage to flourish as an integral part of Spain’s evolving real estate landscape.

Europe’s Self-Storage Market: A Rising Star for Institutional Investors

Posted on by Serge Kaouane

In recent years, the European self-storage market has transitioned from a niche segment of the real estate industry into a key focus for institutional investors. With urbanization, limited housing space, and the growing appeal of flexible storage solutions driving demand, the sector has demonstrated impressive resilience and growth, even amid broader economic uncertainty. Today, Europe’s self-storage industry stands as a robust and attractive investment opportunity.

An Undersupplied Yet Growing Market

The European self-storage industry has historically lagged behind its counterpart in the United States, where per-capita storage penetration is nearly five times greater. In Europe, there is just 0.2 square meters of storage space per capita compared to 0.9 square meters in the U.S. (FEDESSA Annual Report, 2024). However, this gap has been narrowing as operators expand into key urban markets, driven by rising awareness and demand.

Regions with higher penetration, such as the UK and France, have seen steady growth through both acquisitions and organic development. For example, Shurgard’s acquisitions in London and Paris, coupled with Safestore’s continued expansion in Southeast England, have cemented these countries as self-storage hubs (Shurgard Corporate Report, 2024, Safestore Corporate Report, 2024). The UK remains the largest self-storage market in Europe, accounting for 34.6% of all facilities, with occupancy rates often exceeding 90% (FEDESSA Annual Report, 2024).

Emerging Markets with Untapped Potential

Despite growth in more mature markets, the European self-storage market remains far from saturation. Countries like Spain and Italy, where penetration rates are well below the European average, present significant opportunities for expansion. In Spain, the number of facilities has doubled over the last five years, driven by growing urbanization and changing lifestyles (CBRE Self-Storage Insights, 2024). Italy, which recently attracted joint ventures from global players like Nuveen and Safestore, is another market with untapped potential (Safestore News). Germany, despite its size, remains underpenetrated compared to its neighbors, making it a key target for institutional investors (FEDESSA Annual Report, 2024).

Urbanization Drives Demand

Across Europe, urbanization has been one of the biggest drivers of self-storage growth. Many urban residents face limited living space, with the average home size in the UK at just 76 square meters compared to 216 square meters in the U.S. (CBRE Self-Storage Insights, 2024). The shift towards remote working has only amplified this trend, as households increasingly require space for home offices, further reducing available storage at home. Cities like Paris, Barcelona, and Milan have seen particularly strong demand, with new developments rapidly filling capacity in these areas (FEDESSA Annual Report, 2024).

Businesses Fuel Growth

Businesses account for over 30% of self-storage customers in Europe, with e-commerce companies, tradespeople, and startups relying on these facilities for inventory and operational flexibility. The rise of online retail has been a major contributor, as small and medium-sized enterprises seek scalable, cost-effective alternatives to traditional warehouse space.

Institutional Investment on the Rise

Institutional investors have played a pivotal role in transforming the self-storage landscape in Europe. Over the last few years, several high-profile acquisitions have reshaped the sector. Shurgard has expanded its footprint across Germany, the UK, and France, while Nuveen has partnered with Safestore to enter the Italian market through the acquisition of Easybox. Hines, a global real estate investment firm, recently made its debut in European self-storage by acquiring a portfolio in England (Shurgard Corporate Report, 2024, Safestore News, Hines News).

This influx of capital has not only driven consolidation but also spurred innovation. Operators are adopting digital solutions such as automated access systems, online reservations, and data-driven management tools to improve efficiency and customer experience (FEDESSA Annual Report, 2024). Sustainability is also becoming a key focus, with many operators incorporating energy-efficient technologies and renewable energy systems.

A Promising Future

For institutional investors, private equity firms, and major real estate funds, the European self-storage sector offers a unique combination of stability, growth, and scalability, making it an increasingly attractive asset class. One of its key appeals is its non-discretionary nature, which ensures consistent demand even during economic downturns. Unlike other real estate sectors that are more closely tied to economic cycles, self-storage benefits from steady demand drivers such as urbanization, life transitions, and business needs, making it highly resilient in times of uncertainty.

Additionally, self-storage boasts strong operational margins due to its low staffing requirements and scalable business model. Facilities are often designed to accommodate both current demand and future growth, with minimal additional investment. This combination of high efficiency and predictable cash flows is particularly attractive to private equity firms seeking stable, recurring revenue streams.

For major real estate funds, self-storage offers diversification and favorable risk-adjusted returns. The sector’s low penetration in Europe compared to the U.S. provides ample room for expansion, and the opportunity for portfolio aggregation allows institutional investors to consolidate fragmented markets, unlocking economies of scale. Furthermore, the scarcity of well-located land and zoning constraints create high barriers to entry, which protect existing operators and support long-term rental growth.

Rising institutional interest has also driven innovation within the sector, with many operators adopting advanced technologies such as automated access systems, remote monitoring, and dynamic pricing models. These advancements enhance operational efficiency and align well with the long-term value-creation strategies pursued by private equity and institutional funds. As sustainability becomes a core consideration for investors, self-storage’s ability to integrate eco-friendly practices, such as energy-efficient lighting and renewable energy systems, adds another layer of appeal.

With strong fundamentals, high demand, and significant growth potential in underpenetrated markets, the European self-storage industry is uniquely positioned to deliver exceptional returns for years to come. For institutional investors and private equity firms seeking a defensive yet high-growth asset class, self-storage stands out as a compelling investment opportunity.

The Evolution of Self-Storage in Spain

Posted on by Serge Kaouane

From Modest Beginnings to Rapid Expansion

Self-storage in Spain has evolved dramatically since its introduction in the early 2000s. Initially, it was a niche service, unfamiliar to most Spaniards and limited to a handful of facilities in Madrid and Barcelona. Unlike in countries such as the United States or the United Kingdom, where self-storage was already well established, Spain had to overcome cultural reservations and a general lack of awareness.

Over time, however, urbanization, shifting housing trends, and changing lifestyles began to drive demand. Spaniards increasingly saw self-storage as a practical solution for both personal and business needs—whether for moving, renovations, inventory storage, or simply managing space constraints in smaller homes. As a result, the sector grew steadily, first in major cities and later into suburban areas.

Yet, what has transpired in the past two years is unprecedented. Since 2022, Spain’s self-storage capacity has surged by 50%—a staggering leap for an industry that had been growing at a measured pace. According to a 2024 report from FEDESSA and CBRE, Spain’s total self-storage space expanded from 1.3 million square meters in 2022 to 1.9 million square meters today. This growth has firmly positioned Spain as the fourth-largest self-storage market in Europe, trailing only the United Kingdom, France, and Germany.

The Fragmented Nature of the Market

Despite its rapid growth, the Spanish self-storage market remains highly fragmented. According to JLL’s Spanish Self-Storage Market Report, as of 2022, around 70% of the total self-storage stock, including container storage, is owned by single-owner operators. Madrid and Barcelona dominate the market, collectively accounting for 60% of the total supply.

Many entrepreneurs entered the industry by leasing small spaces and converting them with minimal investment, resulting in a prevalence of basic, low-cost facilities. Some of these operators even run self-storage as a secondary income source while maintaining their primary employment, further contributing to market fragmentation. JLL’s report highlights that over 300 operators manage only one or two facilities, whereas only a handful control 30 locations or more.

This fragmentation has created a dual-tier market. On one side, institutional operators are expanding with purpose-built, modern facilities. On the other, smaller independent operators struggle with financial constraints, making it difficult to upgrade their properties or compete on service quality. Consequently, much of Spain’s self-storage stock remains substandard compared to more developed markets.

This dynamic presents both challenges and opportunities. Larger operators can set themselves apart by offering high-quality, well-managed facilities with advanced security, automation, and superior customer service. At the same time, the fragmented nature of the industry presents an opportunity for consolidation, as investors seek to acquire and integrate smaller operators to achieve economies of scale and enhance operational efficiency.

What’s Driving the Surge in Self-Storage Growth?

Several key factors have contributed to this rapid expansion, including urbanization, increased institutional investment, technological advancements, and evolving operational models. However, the growth is not without its challenges, and the future of the industry will depend on how operators navigate these constraints.

Urbanization and Changing Consumer Behavior

Spain’s major cities—especially Madrid and Barcelona—are among the densest in Europe, with rising property prices and shrinking living spaces. As home affordability becomes an increasing concern, many residents seek external storage solutions as an alternative to larger, costlier apartments.

In addition to residential demand, businesses have also fueled the expansion. SMEs and e-commerce operations rely on self-storage for flexible inventory solutions rather than committing to long-term warehouse leases. With both households and businesses driving demand, the market has experienced steady growth for years. However, the real game-changer has been the influx of investment into the sector.

A Surge in Institutional Investment

One of the key drivers of self-storage growth in Spain has been the rising interest from real estate funds, private equity firms, and institutional investors. While not yet classified as a core real estate asset class, self-storage has gained traction due to its stable and predictable income streams and resilience to economic fluctuations. Investors are increasingly drawn to alternative asset classes as traditional sectors like office, retail, and residential face mounting challenges.

Additionally, self-storage is seen as a strong hedge against inflation, as operators can adjust rental rates frequently to keep pace with rising costs, unlike sectors with long-term fixed leases. Rising interest rates have also played a role, making debt financing more expensive and limiting opportunities for highly leveraged real estate investments. Self-storage, with its relatively lower capital expenditure requirements and stable cash flow, remains an attractive option for investors seeking resilient, income-generating assets in a higher interest rate environment.

As institutional capital continues to flow into the industry, self-storage operators are scaling their portfolios at an accelerated pace. Backed by increasing financial resources, established operators are implementing aggressive expansion strategies, acquiring smaller facilities, upgrading sites, and rapidly opening new locations. This expansion is occurring in both city-center and suburban markets, ensuring accessibility for a broad customer base while intensifying competition among players in the sector.

However, the Predictable Growth of Self-Storage in Spain Isn’t Without Its Challenges

Despite the influx of capital and rising demand, one of the greatest challenges facing self-storage operators in Spain is the scarcity of suitable properties.

Zoning Issues and Regulatory Uncertainty

In the absence of specific regulations for self-storage, municipalities tend to classify these facilities under the closest existing category: industrial storage. As a result, converting retail spaces, office buildings, or mixed-use properties into self-storage centers is legally complex and often risky. Operators frequently face lengthy approval processes and zoning conflicts, making development unpredictable and slowing expansion.

Intense Competition for Industrial Properties

Because of these regulatory hurdles, self-storage operators all target the same type of properties—those already zoned for industrial primary use. However, these properties are typically located in industrial estates, meaning that operators end up clustered in the same sub-markets, often competing for the same real estate.

The Future: Market Consolidation, New-Build Facilities, and Expansion into Secondary Cities

As the challenges of property acquisition and competition in Madrid and Barcelona intensify, operators are likely to shift toward new-build facilities and secondary markets. At the same time, consolidation within the industry appears increasingly likely as institutional investors seek to aggregate smaller operations into more efficient, scalable portfolios.

Market Consolidation

Given the fragmented nature of the industry, the next phase of self-storage growth in Spain is likely to involve significant consolidation. Larger, well-capitalized operators will continue acquiring smaller, independent facilities, bringing them under unified brands and upgrading them to higher-quality standards. This will lead to more professionalized management and better service offerings, improving overall industry perception and consumer experience.

New-Build Self-Storage Centers

To escape the constraints of property conversions and industrial estate clustering, operators are beginning to explore developing purpose-built self-storage facilities. This shift allows for:

  • Greater flexibility in location selection (outside industrial parks and closer to customers).
  • Modern, high-quality facilities that differentiate from older converted sites.
  • Less direct competition compared to over-concentrated urban markets.

Expansion into Secondary Cities

Spain has a large number of urban centers with populations exceeding 250,000 residents, yet most of these markets remain underserved in terms of self-storage supply. As operators face challenges in Madrid and Barcelona, they will naturally look to other high-density, high-demand cities such as Seville, Málaga, Valencia, Zaragoza, and Bilbao.

Final Thoughts: A Sector in Transition

Spain’s self-storage industry has evolved from a slow-growing niche market into a booming asset class, attracting increasing investor interest. However, while demand remains strong, the sector is now facing growing pains as it matures.

With smart investment, regulatory adaptation, and geographic diversification, Spain’s self-storage sector is well-positioned for continued expansion—albeit with new strategic challenges on the horizon. Market consolidation will likely reshape the industry, providing opportunities for professionalization, efficiency gains, and improved customer offerings.

References:

FEDESSA & CBRE (2024) – European Self Storage Annual Survey

JLL (2023) – Spanish Self Storage Market Report

Cinco Días (2024) – “El mercado de trasteros aumenta su capacidad un 50% en España en solo dos años.”

El País (2024) – “El bum de los trasteros: ¿solución o parche a la falta de espacio en casa?”

The Evolution and Future of the European Self-Storage Industry

Posted on by Serge Kaouane
Origins and Early Development

The self-storage industry in Europe traces its roots back to the 1980s, significantly lagging behind its U.S. counterpart, which began in the 1960s. Early adoption was slow, with the first facilities emerging in the United Kingdom and Scandinavia. Unlike in the U.S., where suburban sprawl and ample land facilitated rapid growth, Europe’s densely populated cities, limited urban space, and stricter zoning regulations hindered development.

Throughout the 1990s, pioneers in the UK and France began to establish self-storage facilities, targeting urban centers where space constraints and rising housing costs created demand for external storage solutions. Early operators relied on converting existing buildings, such as warehouses and industrial facilities, due to high real estate costs.

Rapid Expansion: 2000s to 2020s

The turn of the millennium marked a period of steady growth as awareness and acceptance of self-storage increased. By the 2000s, larger players such as Safestore, Shurgard, and Big Yellow entered the market, bringing professionalization and scale to the industry.

Key milestones during this period include:

  1. Geographic Expansion: The industry spread from the UK to continental Europe, particularly to France, Spain, and Germany.
  2. Institutional Investment: The entry of private equity and institutional investors provided the capital necessary for expansion and innovation.
  3. Consumer Behavior: Increasing urbanization, smaller living spaces, and a shift toward renting over homeownership fueled demand for self-storage.

The 2010s saw the industry evolve into a mainstream asset class. Industry associations like the Federation of European Self Storage Associations (FEDESSA) provided benchmarks, while growing investor interest culminated in record-breaking deals, such as the acquisition of Shurgard by Public Storage in 2018.

Current Landscape

Today, Europe boasts over 9,500 facilities with 16.5 million square meters of self-storage space. The UK remains the largest market, but countries like Spain and Germany are witnessing accelerated growth. Despite this progress, the European self-storage market remains underpenetrated compared to the U.S.:

  • Europe averages 0.2 square meters of storage space per capita, compared to 0.8 square meters in the U.S.
  • Many regions, including Eastern Europe, remain largely untapped, presenting significant opportunities for expansion.
Predictions for the Future

The European self-storage industry is poised for continued growth, driven by several factors:

  1. Urbanization and Housing Trends
    As European cities become denser and housing costs rise, the demand for external storage will increase. Cities like Berlin, Madrid, and Warsaw are expected to emerge as key growth hubs.
  2. Technology Integration
    Automation, contactless rentals, and remote management systems will become industry standards, improving efficiency and customer experience. Investors are already favoring technology-forward operators.
  3. Institutionalization and Consolidation
    With growing institutional interest, mergers and acquisitions will likely consolidate the industry, leading to the dominance of a few large players. Smaller, regional operators may face challenges unless they differentiate through niche offerings.
  4. Sustainability
    Environmental concerns will shape future development. Operators are increasingly adopting sustainable practices, such as energy-efficient facilities and adaptive reuse of existing buildings.
  5. Emerging Markets
    Countries in Eastern and Southern Europe, where self-storage remains a novel concept, offer immense potential. As disposable incomes rise and consumer habits shift, these regions are expected to mirror the growth trajectories seen in Western Europe over the past two decades.
Conclusion

The European self-storage industry, from its modest beginnings in the 1980s, has matured into a dynamic, high-growth sector with significant untapped potential. Its future will be shaped by urbanization, technological advancements, and the need for efficient, sustainable solutions. For investors, the combination of stable cash flows and robust growth prospects positions the industry as an attractive asset class in the coming decade.

By placing the industry’s development within this historical context, we gain a clearer vision of its trajectory and the exciting opportunities that lie ahead.

Emerging Trends in Spain’s Self-Storage Boom

Posted on by Serge Kaouane

Spain’s self-storage market, now the fourth largest in Europe by number of facilities, is at a pivotal moment. The longstanding preference for sprawling complexes on the city outskirts is colliding with a burgeoning trend toward smaller sites in busy urban neighborhoods. The result is a dynamic debate about which approach—city-center or suburban—offers the best return on investment, the greatest convenience for customers, and the most room to grow. Below, we take a comprehensive look at both strategies, explore the benefits of a hybrid model, and discuss the forces shaping the country’s self-storage industry.

Rising Demand, Shrinking Space

One of the strongest drivers of this market is everyday life events. Moving homes, undergoing renovations, or welcoming new family members—these transitions require temporary (and sometimes longer-term) storage solutions. In cities like Madrid, Barcelona, and Valencia, where apartments tend to be on the smaller side, residents often have nowhere to stash extra items. Self-storage fills that gap, relieving the pressures of cramped living conditions.

In addition to these life events, population density plays a crucial role. Although Spain might appear sparsely populated from a broad perspective, one study suggests that only about 13% of the country’s total landmass is actively inhabited¹. This concentration of people in limited urban areas, coupled with the prevalence of multi-story buildings, underscores the challenge of finding sufficient space for belongings. Even anecdotal indicators—like Spain’s exceptionally high number of elevators—speak to the vertical nature of its housing².

City-Center Sites: High Convenience, High Returns
City Center Self-storage

As the urban population swells, so does interest in smaller storage facilities near the city center. Because these sites often occupy premium real estate, costs can range from around €800 up to €2,000 per square meter. However, they can usually charge higher rents—around €35 per square meter—justified by sheer convenience and quick accessibility.

Operators who specialize in these central locations benefit from faster deployment: renovating a single floor or basement is typically quicker than building a large warehouse from scratch. With immediate demand from city dwellers, occupancy can climb rapidly. Yet this model has its downsides. Acquiring multiple small properties, each with its own permit requirements, can become a logistical puzzle for investors with substantial funds to deploy. Moreover, the more sites an operator runs, the higher the operational complexity—requiring robust systems for remote monitoring, security, and customer service.

Suburban Sites: Scale, Stability, and Strong Cash Flow

On the other end of the spectrum are expansive suburban self-storage facilities. These typically occupy 3,000 to 5,000 square meters or more and are located in industrial or commercial zones outside city centers. Real estate in these zones tends to range between €500 and €1,000 per square meter—significantly less than prime urban land—and once stabilized, these large facilities can become strong cash generators. Although the average rent hovers around €23 per square meter for a typical 6 m² unit, higher occupancy and economies of scale help balance out the lower per-square-meter price.

Suburban sites often attract long-term users, including businesses needing ongoing inventory storage or families who prefer to store larger household items. The added benefit is that fewer—though bigger—facilities can be easier to manage, with consolidated staffing and security. However, the path to opening these large sites can be lengthy: permitting and construction take time, and the distance from urban areas can deter city dwellers unless they see significant cost savings.

Striking the Balance: Why a Hybrid Approach Works

For many operators and investors, the most promising path forward is a hybrid approach—combining both premium city-center locations and larger suburban warehouses. By blending these two models, operators can harness the strengths of each segment. Central sites deliver higher rent and immediate occupancy, while out-of-town facilities provide the scale, cost efficiency, and long-term steadiness that balance out market fluctuations.

A diversified portfolio also offers flexibility for future planning. Rather than committing to a single model for the long haul, a hybrid operator can adapt to market demands or emerging opportunities. Should the time come for a strategic shift—or even the possibility of an exit—holding both city-center and suburban facilities can attract multiple types of buyers, from niche urban operators to institutional investors looking for large-scale assets.

Looking Ahead: Trends Shaping Spain’s Self-Storage Future

Looking ahead, technology is set to play a pivotal role in refining and expanding self-storage options across Spain. More operators are experimenting with unmanned facility models, relying on advanced remote monitoring, digital check-in, and automated access to reduce overhead while offering round-the-clock convenience for customers. In parallel, a growing number of property owners are turning to third-party management services, enabling them to focus on acquisitions and portfolio expansion rather than day-to-day operations.

As these trends unfold, both city-center and suburban facilities will likely continue to grow in tandem, each serving distinct needs: urban sites cater to renters seeking fast, convenient access, while larger out-of-town sites appeal to businesses and families looking for scale and cost efficiency. Rather than competing outright, these models complement each other, reflecting Spain’s diverse marketplace and setting the stage for continued innovation and robust demand in the self-storage sector.

References
  1. University of Exeter (2019) Study on Spanish landmass and inhabited areas.
  2. The Guardian (2019) Report citing Spain’s elevator usage per capita.