Author: Serge Kaouane

The Art of the Squeeze: Self-Storage in a Tariff-Tangled World

Posted on by Serge Kaouane

When I started thinking about the implications of a renewed Trump presidency on the self-storage industry, tariffs had just been imposed—10% on imports from China, 25% on those from Canada, and similar measures affecting other trading partners. At the time, early executive orders signaled a shift toward protectionist economic policy, but the full impact remained to be seen.

Fast forward to April 2025, and the situation has intensified. Tariffs on Chinese imports have now surged to 145%, with Beijing responding in kind—raising tariffs on U.S. goods to 125%. Financial markets have reacted sharply, with trillions in value wiped out in recent weeks amid growing investor anxiety and the mounting unpredictability of policy coming out of Washington. The ripple effects are now being felt across global supply chains, construction markets, and investment flows.

The European Union has not been spared. In response to U.S. tariffs—including a 25% duty on steel and aluminum and a 20% tariff on a broad range of European goods—the EU approved retaliatory tariffs on $23 billion worth of U.S. products. These measures target items such as soybeans, motorcycles, and yachts, and are set to be implemented in stages throughout the year. While the EU has expressed a preference for negotiation, the escalating trade tensions have already begun to strain transatlantic economic relations.

For the self-storage sector, the implications are becoming clearer—but not necessarily simpler. While the industry has proven resilient in past downturns, this current period of economic turbulence, trade disruption, and monetary uncertainty presents a new kind of test. What began as a concern over rising construction costs or interest rates may now evolve into a broader reckoning with investor sentiment, capital availability, and long-term development strategies. The rest of this article explores how this shifting environment could reshape the trajectory of self-storage in both the U.S. and Europe—and what may lie ahead.

A Strong Market Meets Economic Uncertainty

The self-storage industry entered 2025 in relatively strong shape. In Europe, M&A activity surged in 2024, with transaction volumes reaching €875 million by the end of the year—triple the volume seen in 2023. An additional €546 million in pending deals suggests another record-breaking year is possible. Institutional investors have been particularly active, drawn by self-storage’s resilience amid high interest rates and an uncertain economic climate. In the US, despite economic headwinds, private equity and real estate investment trusts (REITs) continued to pursue acquisitions, albeit with more selective criteria.

However, with Trump’s policy shifts now in motion, the outlook for self-storage investment, development, and operations is evolving rapidly.

Capital Markets and Interest Rates: A New Dynamic for Investment

One of the biggest uncertainties facing the industry is how the Federal Reserve will respond to the administration’s trade policies. If tariffs push inflation higher, the Fed may be forced to maintain or even increase interest rates rather than pivot to rate cuts as some had anticipated. This would make financing for self-storage acquisitions and developments more expensive, potentially slowing down expansion plans. While liquidity remains available, the rising cost of capital is already forcing investors to reassess deal structures, with an increasing reliance on private debt, joint ventures, and sale-leasebacks.

In Europe, the effects of US policy may be more indirect but still significant. Many US-based funds have been active in the European self-storage sector, and a shift in capital allocation priorities—whether due to trade disputes, economic uncertainty, or higher US yields—could lead to a cooling of the recent M&A momentum. A survey by the American Chamber of Commerce to the European Union recently indicated that 90% of US firms operating in Europe expect transatlantic relations to deteriorate under the new administration, a factor that could further impact capital flows into European self-storage assets.

Development Costs and Supply Chain Disruptions

Tariffs on steel and aluminum imports are set to increase development costs for self-storage projects across all markets, as steel remains a core component of facility construction worldwide. Rising costs could impact both new builds and expansions, particularly for operators relying on prefabricated steel structures. Additionally, electronic components—essential for modern self-storage operations, including access control systems, kiosks, and AI-driven facility management—could also see price increases due to trade restrictions and supply chain disruptions. Beyond tariffs, broader geopolitical uncertainty—such as trade disputes between major economies, regional conflicts, and shifting diplomatic alliances—poses further risks to supply chain stability. Delays in material shipments, fluctuating costs, and restricted access to key technologies could complicate project timelines. Operators and developers who planned expansions under the assumption of stable material costs may now face budget overruns or project delays, requiring more flexible sourcing strategies and contingency planning.

M&A Activity: Will the Boom Continue?

With self-storage proving resilient through past economic cycles, many investors see it as a safe haven in uncertain times. However, rising costs and borrowing constraints could dampen the aggressive deal-making seen in the past two years. If capital remains expensive and operating costs rise, larger operators may shift focus from acquisitions to organic growth, maximizing yield from existing portfolios rather than aggressively expanding.

At the same time, the current climate could create new acquisition opportunities. If higher costs pressure smaller operators, consolidation could accelerate, with major players acquiring distressed assets at more attractive valuations. This could be particularly true in secondary US markets, where smaller operators with weaker balance sheets may struggle with financing challenges.

Looking beyond the US and Europe, shifts in capital market conditions could also influence the international expansion strategies of large self-storage operators. If US capital markets tighten, major REITs and investment funds may turn their attention to alternative growth regions, such as the Middle East or Eastern Europe, where supply-demand fundamentals remain favorable, and regulatory environments are more stable. European operators, too, may seek opportunities in less traditional markets as a hedge against potential transatlantic instability.

Consumer Behavior & Demand Trends

Beyond investment and development, Trump’s policies could also have a more direct impact on self-storage demand. Economic uncertainty often leads to increased demand for storage, as individuals downsize and businesses look for cost-effective space solutions. If tariffs and inflation put pressure on consumer spending, more people may seek temporary storage solutions while adjusting their living arrangements. Businesses, particularly those affected by supply chain disruptions, could also turn to self-storage as an alternative warehousing solution to manage fluctuating inventory needs.

Historically, self-storage has performed well in both economic booms and downturns. However, if household disposable incomes shrink due to inflation or job losses from federal workforce reductions, discretionary spending may be impacted. This raises the question of whether demand will shift more toward budget-conscious storage options, or if price sensitivity will lead to changes in consumer behavior across different self-storage market segments.

A Longer-Term Perspective: What Happens Post-Trump?

While investors must navigate the near-term effects of the current administration’s policies, there is also the question of what happens beyond this term. Trump’s economic policies—particularly on trade, taxation, and deregulation—could be reversed by a future administration, making long-term investment strategies more complex. Investors weighing expansion or acquisitions must consider not just the immediate policy landscape but also the likelihood of regulatory shifts in the next political cycle.

Looking Ahead: What to Expect in the Coming Months

While self-storage remains one of the most resilient real estate sectors, the second Trump administration introduces new variables that investors and operators must navigate. Higher interest rates, supply chain disruptions, and shifting capital flows could all reshape the landscape.

In the US, much will depend on whether inflation forces the Fed to maintain a restrictive monetary policy stance. If borrowing costs remain high, we could see a slowdown in new developments and a more selective approach to acquisitions. Meanwhile, in Europe, transatlantic tensions could impact investment flows, and developers will need to assess how tariffs and rising costs might influence project feasibility.

Ultimately, self-storage has historically adapted well to changing economic conditions, and despite the challenges, new opportunities will emerge. Whether through strategic acquisitions, alternative financing models, or operational efficiencies, industry leaders will need to remain agile to capitalize on the evolving market dynamics. The next few months will be critical in determining how Trump’s policies reshape the sector—and whether the recent boom can continue in a more uncertain global economy.

How Much Is My Self-Storage Business Worth? A Guide for Spanish Operators

Posted on by Serge Kaouane

Spain’s self-storage industry has entered a period of accelerated transformation. Since 2019, the number of facilities across the country has more than doubled, driven by a confluence of structural and behavioral shifts: rising urban density, changing lifestyles, the growth of ecommerce, and increased demand for flexible storage solutions. As a result, self-storage has evolved from a niche product into a recognized, high-margin, real estate-backed investment category.

As a consequence of this growth in demand and operational maturity, institutional investors began to take serious notice. In an environment where traditional asset classes like office and retail have struggled with structural vacancy and evolving tenant expectations, self-storage emerged as a highly attractive alternative. It offers strong fundamentals, recurring cash flow, and inflation-protected pricing — features that align well with the objectives of real estate funds, family offices, and private equity platforms. Larger operators are also consolidating market share via acquisitions of smaller, independent operators. These buyers aren’t just interested in new developments — they are seeking existing, cash-flowing assets that can be brought under centralized platforms.

This has left many independent owners wondering:

“What could my self-storage business actually be worth?”

The answer is not always obvious. Whether you own your property or operate on a leasehold basis (as many in Spain do), valuations depend on a range of factors — not just financial performance, but also lease quality, location, and the investor’s own underwriting strategy. This article offers a practical, data-supported framework to help Spanish operators understand what drives value in today’s self-storage market — and how to prepare, even if a sale isn’t on the horizon.

Understanding What Investors Are Valuing

To understand how both real estate and business operations are valued in a self-storage investment, we need to consider several common valuation methods used by investors. Each approach offers a different lens — and which one gets applied depends on who the buyer is and what kind of asset you’re selling.

EBITDA Multiples

In the Spanish self-storage market, this is one of the most commonly used valuation tools. Rather than focusing on the property, it looks at the business itself — how profitable it is, how scalable it might be, and what kind of earnings it generates. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a clean way to measure your core operating performance, excluding financing and accounting differences.

If your facility produces €300,000 in EBITDA and the buyer applies an 8x multiple, your business might be valued at €2.4 million. This method is especially popular for leasehold businesses, or for buyers looking to build a branded platform. For freehold sites or assets with strong cash flow and branding, the multiple can climb even higher. Typical ranges for leasehold-based businesses in Spain tend to fall between 5x and 10x, while freehold assets — particularly those that are mature and stabilized — can reach 12x to 20x.

Cap Rate (Capitalization Rate)

Cap rates are the go-to method when a buyer is also acquiring the property itself. They express the relationship between your property’s net operating income (NOI) and its value:

Value = NOI / Cap Rate

Think of it this way: the cap rate is the return an investor expects to earn on the asset’s income. If your site generates €250,000 in NOI and the buyer applies a 6.25% cap rate, that implies a valuation of €4 million. The lower the cap rate, the higher the value — and the more confident the buyer is in your asset’s income stream. NOI here refers to rental income minus all operating costs, excluding financing and depreciation — essentially, your property’s real cash flow.

Cap rates are more common when the buyer is a real estate investor, and especially when the facility is stabilized and owned freehold. They’re influenced by location, market maturity, asset quality, and lease structure.

Discounted Cash Flow (DCF)

DCF is a more complex approach — but very useful for assets that are still ramping up, or have room to grow. Instead of focusing only on current income, DCF looks at future performance: what cash flows will the asset generate over the next 10–15 years, and what are those cash flows worth today?

This method is typically used by institutional buyers or developers who need to underwrite risk and potential. It’s more sensitive to assumptions (like how fast occupancy will rise, or what rents will look like in 5 years), but allows for detailed, scenario-based valuation. It’s ideal for facilities that are new, under expansion, or not yet stabilized.

Price per Net Lettable Area (€/m²)

This method is more of a shorthand — used early in conversations or for comparing broad market trends. It looks at the asset’s total rentable space and assigns a value per square metre. In Spain, freehold sites in core markets may trade for €1,500–2,200/m², while leasehold deals tend to range from €400–800/m², depending on lease quality and income.

It’s quick and easy — but it ignores things like profitability, lease terms, or ramp-up status. So while it’s helpful for rough benchmarking, serious buyers will always move on to a more income-based method.

With these tools in mind, let’s look at how ownership structure impacts valuation.

Leaseholds vs. Freeholds: What Investors Really See

In Spain, many self-storage businesses operate on leasehold terms — that is, the operator rents the space rather than owning it. This model has enabled fast growth in urban areas, where buying real estate outright is often cost-prohibitive. And while freehold assets are typically favored by institutional investors — who benefit from long-term control, capital appreciation, and refinancing options — well-structured leaseholds are still attractive under the right conditions.

Leaseholds play a critical role in the Spanish market. When structured correctly, they allow access to prime urban locations that would otherwise be too expensive to acquire, enable faster expansion across a city without tying up capital in real estate, and support high-margin operations, particularly in dense areas with strong pricing power. It’s worth noting that not all NOI is valued equally. A compact, high-performing site in central Madrid generating €150,000 in NOI may be more valuable than a larger site on the outskirts producing €250,000 — especially when long-term positioning and brand visibility are taken into account. But the key lies in the lease structure.

Institutional buyers have very specific requirements: they typically look for a minimum lease length of 15 years, with at least 10 years remaining at the time of sale; assignability, so the lease can be transferred to a new owner; predictable rent escalations and no major restrictions on operations or modifications; and ideally, an option to purchase the property in the future. If your site has only 4 or 5 years left on the lease and no renewal or purchase option, it will likely be non-investable for most professional buyers. The risk of eviction, rent hikes, or operating restrictions is simply too high, and it makes cash flow projections unreliable. These sites may be sellable to private buyers or operators, but not at institutional valuations.

How Lease Terms Affect Valuation — Even When Using EBITDA Multiples

While leasehold businesses are most commonly valued using EBITDA multiples in Spain, some investors still reference cap rates to benchmark risk — especially when comparing leasehold and freehold returns side by side.

The reasoning is simple: the shorter or weaker the lease, the greater the uncertainty about income continuity, rent terms, and operational control. That uncertainty leads investors to demand a higher return — whether expressed as a higher cap rate or a lower EBITDA multiple — which reduces the valuation.

So while cap rates may not be the primary method used for leasehold valuations, they can still be a helpful way to illustrate the impact of lease terms on perceived risk and pricing.

Example:

  • Freehold, Madrid, €200,000 NOI, 6.0% cap → €3.33 million
  • Leasehold, excellent terms, 10+ years remaining, option to buy, 8.0% cap → €2.5 million
  • Leasehold, weak lease, 5 years remaining, no purchase option, 9.5% cap → €2.1 million

These cap rates loosely translate to implied EBITDA multiples — with the strong leasehold falling somewhere around 8–10x, and the weaker lease closer to 6x or lower.

In short: lease quality has a direct and material impact on valuation — no matter which method is applied.

Know Your Value, Even If You’re Not Selling

Even if you have no intention of selling, understanding your business’s value helps you make smarter strategic decisions. Knowing how buyers evaluate your site — and what methods they’re likely to apply — gives you more control when negotiating, expanding, or optimizing your facility. It can guide you in:

Renegotiating your lease terms Planning site expansions or upgrades Benchmarking against future acquisition offers Preparing clean, investor-ready financials

Final Thoughts

Spain’s self-storage market is no longer an emerging niche — it’s a rapidly maturing investment class. Buyers are active, capital is available, and valuations are increasingly driven by professional standards. For smaller operators, this shift highlights the importance of understanding how their business is valued — not just to assess potential offers, but to confidently participate in a market that is increasingly shaped by larger, better-informed players.

Whether you’re considering a sale now or simply planning for the future, understanding what drives value — and how investors think — is essential.

With the right lease structure, operational performance, and occupancy profile, even a small facility can command strong interest and serious offers.

AI and the Future of Digital Marketing

Posted on by Serge Kaouane

A Quick Guide For Self-Storage Operators

The way people search for businesses is starting to change—and it’s not a subtle shift. AI tools like ChatGPT, Google Gemini, and DeepSeek are beginning to shape how customers ask for recommendations online. Instead of browsing a list of results or clicking on ads, users increasingly expect direct, curated suggestions. And when that happens, only a handful of businesses will be recommended.

For self-storage operators, this could change the rules of digital marketing. While Google Ads and SEO still matter today, there’s a clear need to prepare for a future in which your facility may need to earn a place in a single AI-generated answer, not just on a search results page.

This guide explains what’s happening, where we’re headed, and what you can start doing—this week—to make sure your business stays visible as AI-driven search becomes more mainstream. The goal isn’t only to gain the trust of AI tools—it’s also to train and educate them about your business, your services, and why you’re a relevant choice for the customers they’re helping.

What’s Changing

In a traditional search, a customer looking for storage in Valencia might type “self-storage Valencia” into Google. They’d see a mix of paid ads, a map with local listings, and some organic search results.

Now imagine someone asking an AI assistant: “Where’s the best self-storage facility near me?” Instead of showing a dozen options, the assistant gives one or two names. The AI isn’t just pulling from keywords—it’s weighing reviews, web presence, business relevance, and public signals.

This kind of search doesn’t reward whoever spends the most on ads. It rewards businesses that are credible, well-reviewed, and clearly described across the web.

Why You Can’t Just Pay for Placement (Yet)

As of now, you can’t buy visibility in ChatGPT or DeepSeek the way you can on Google. OpenAI, Google, and others are still figuring out how to introduce advertising into their AI models. That might change soon—but for now, inclusion is earned, not bought.

That’s exactly why this moment matters. The early days of AI search present a unique opportunity: to build the kind of online presence and reputation that makes your business one of the few chosen by the AI. Once paid placements become the norm, the competition will be steeper and more expensive.

Why This Matters for Self-Storage

To understand how AI might change discovery, it’s helpful to first consider how people currently find storage services in Spain. Right now, Google Search and Google Maps remain the most widely used tools. Most customers search directly for “trasteros en [city]” or similar terms, often comparing options based on map location, ratings, and opening hours.

However, platforms like Idealista, Fotocasa, Wallapop, and the newly launched Trasterone may play a much larger role in the near future. While Idealista and Fotocasa are focused on property listings and Wallapop on classifieds, Trasterone is specifically built to serve the self-storage industry. If these platforms start integrating AI features—or if AI models begin pulling data from them—your visibility may depend on whether and how you’re listed there.

Self-storage is a local, need-based service. Customers don’t spend weeks researching. They do a quick search, compare a few options, and make a decision.

AI tools aim to simplify that even further: instead of offering a list, they just tell the user what to do. If your facility isn’t the one being recommended, you may not even be considered.

And because these tools rely on more than just your website—they pull from reviews, listings, directory sites, and even blog content—your broader online footprint becomes just as important as your home page. Maintaining a blog on your own website can support this effort. A simple strategy: publish one short post per month answering a real customer question or explaining a key service (e.g., “How much storage space do I need?” or “Short-term vs long-term storage—what’s the difference?”). This builds trust and helps AI models understand the specific value your business offers.

Five Things You Can Do Now

1. Make Your Site Easier to Understand

AI systems need clear, structured information. If your website runs on WordPress, you can use plugins like Yoast or Rank Math to implement schema.org markup for local business data. If not, speak to your web developer about adding this directly to your site’s code.

Your website should clearly state:

  • What services you offer
  • Where you’re located
  • What unit sizes and pricing are available
  • What makes your facility stand out

Review your homepage and service pages to ensure clarity, accuracy, and structure. Keep the language simple, natural, and customer-focused—remember, it’s not only your potential customer reading it, but also the AI interpreting it.

2. Improve Your Online Reputation

AI recommendations are influenced heavily by customer reviews and public sentiment. Now’s the time to:

  • Ask your recent happy customers to leave a review—prioritizing Google Maps or Trustpilot depending on what’s most trusted by your audience. Use a direct link from your Google Business Profile to make it easy.
  • Set up polite follow-up emails after sign-up to request a review.
  • Claim and update your business information across relevant directories like Google Maps, Apple Maps, QDQ.com, and Páginas Amarillas. Make sure your hours, contact info, and service descriptions are consistent.

Respond monthly to reviews across all platforms. This consistent engagement shows AI that your business is active and customer-oriented.

3. Monitor How AI Mentions Your Business

Try it yourself. Ask ChatGPT, Gemini, or Bing Copilot: “What’s the best self-storage in [your city]?”

  • Does your name appear?
  • Does it return an answer at all?

Create a simple spreadsheet and track this monthly. Log which tools mention your business and what they say. Over time, this becomes your AI visibility dashboard.

4. Don’t Hide Your Prices

Many operators hesitate to publish pricing, either to avoid scaring off potential customers or because they worry about competition. But in an AI-driven search landscape, pricing transparency will be a key trust factor. If AI tools can’t understand what your service costs—or if another facility is more open about pricing—they’re more likely to recommend that business. Even listing a starting price or price range helps position you as more trustworthy and complete.

5. Don’t Abandon Google Ads—Yet

PPC campaigns still work, and they’re still necessary. But begin reallocating around 10% of your marketing budget toward AI-readiness. If you don’t have the expertise in-house, consider working with a specialist or agency to ensure that each area is handled professionally—especially when it comes to content creation, technical improvements, and online reputation management. These investments can yield a strong return by improving visibility and trust in both AI and traditional channels.

Focus your efforts on:

  • Hiring a content writer to improve your site’s tone and clarity—e.g., writing a blog post that answers “How much storage do I need?” or rewriting your homepage with more natural, customer-focused language
  • Implementing a reputation strategy: monitor and respond to reviews, optimize your Google Business profile and other listings, and consider external help to strengthen your online perception
  • Testing ad placements on Microsoft Bing, which already integrates AI features

The sooner you begin strengthening your digital presence, the better positioned you’ll be when AI platforms begin offering sponsored placements.

When Will This All Take Shape?

There’s no fixed timeline, but the direction is clear. Based on recent reports and statements from industry leaders:

  • 2024–2026: AI-powered answers begin influencing decisions. According to The Times, retail traffic from AI tools increased tenfold in the second half of 2024. PPC still dominates for most local services.
  • 2026–2028: Sponsored AI recommendations begin to appear. Competition increases.
  • 2028–2030: AI-driven search becomes the dominant or preferred method for local discovery. Businesses without a strong AI presence begin to lose visibility.

Sources: The Times (2024), The Verge, Wall Street Journal

Final Thoughts

You don’t need to guess where things are heading. The tools your customers use to search are changing. The way they discover businesses is changing. And the cost of visibility is about to shift dramatically.

But this isn’t about abandoning what works—it’s about adding what’s coming.

Start here:

  • Review and simplify your website content
  • Identify areas where expert help—content, technical SEO, or reviews—could save you time and improve results,
  • Add structured data (schema markup),
  • Ask for fresh customer reviews this month,
  • Check how AI tools describe your business,
  • Allocate around 10% of your marketing budget to future-focused visibility efforts

Operators who act early won’t just adapt to AI search—they’ll lead it.

Curious how your business appears in AI today? Try asking ChatGPT: “What’s the best self-storage facility in [your city]?”

Self-Storage Marketing in the Digital Age

Posted on by Serge Kaouane

Embracing AI, SEO, and Emerging Trends

In the dynamic landscape of the self-storage industry, marketing strategies are continually evolving to meet changing consumer behaviors and technological advancements. This evolution has seen a shift from traditional advertising channels to digital platforms, and now, the integration of artificial intelligence (AI) is poised to redefine how facilities attract and retain customers.

The Decline of Traditional Marketing Channels

For decades, self-storage operators relied on traditional marketing methods such as print advertisements, direct mail campaigns, and directory listings to attract customers. These channels were effective when consumers relied on physical resources to discover local businesses, but with the widespread adoption of the internet, their relevance has dwindled.

Print advertisements in newspapers and magazines have lost much of their audience to online publications and digital news consumption. The cost of radio and TV commercials remains high compared to the precision of digital targeting. Even Yellow Pages and printed business directories, once the go-to source for self-storage searches, have become virtually obsolete, with most people now searching for services online.

However, not all traditional methods have lost their value. Billboards remain effective in high-traffic areas, offering continuous brand exposure. Sponsoring community events and charities fosters goodwill and trust, positioning a facility as a familiar and reliable presence in the neighborhood. Direct mail, though significantly reduced in use, can still be effective when targeted carefully, such as sending promotions to newly relocated residents.

The Digital Transformation of Self-Storage Marketing

Digital marketing is now the dominant force in self-storage promotion. As consumer habits shift, online search and digital engagement have become the primary means of discovering and selecting a self-storage facility.

According to the CBRE and FEDESSA 2024 industry report, the percentage of initial enquiries received through company websites has increased from 64% in 2023 to 67% this year, underscoring the critical importance of a strong digital presence. Google remains the leading search engine, and facilities that invest in search engine optimization (SEO) and pay-per-click (PPC) advertising enjoy higher visibility when potential customers look for storage solutions. Having a well-optimized Google My Business profile ensures a facility appears in local search results and on Google Maps, further increasing its chances of attracting renters. Equally important is leveraging Google Maps effectively to ensure that facilities get ranked properly and listed at the top, which requires maintaining accurate information, collecting positive reviews, and optimizing for local search algorithms.

Social media and content marketing have also emerged as essential tools for engaging customers. Platforms like Facebook, Instagram, and YouTube allow operators to showcase their facilities, provide moving tips, and share customer testimonials. Influencer marketing is an increasingly popular strategy, with studies showing that 82% of consumers trust recommendations from influencers and personal connections over traditional advertisements. Partnering with local influencers, real estate agents, and moving companies can provide authentic, trusted endorsements to potential renters.

The Role of Artificial Intelligence in Self-Storage Marketing

The integration of artificial intelligence is beginning to reshape marketing in self-storage, with AI-driven tools offering new ways to enhance customer engagement, optimize pricing, and refine advertising strategies. But beyond these immediate applications, the broader question looms—could AI-driven search engines like ChatGPT eventually replace Google as the primary way customers find self-storage facilities?

Today, when someone needs a storage unit, they typically type a query into Google, such as “self-storage near me” or “climate-controlled storage in Madrid.” The search engine then returns a list of paid advertisements, organic results, and map listings. However, AI-driven search models like ChatGPT and other conversational AI assistants may soon disrupt this process by providing direct, conversational responses without requiring users to browse multiple links.

For example, instead of sifting through Google search results, a customer could ask ChatGPT:

  • “What are the best-rated self-storage facilities near me with 24/7 access?”
  • “Who offers the lowest price on a 10m2 unit near me?”
  • “Which self-storage operators provide climate-controlled options and moving truck rentals?”

ChatGPT and similar AI models can aggregate real-time data, pull insights from reviews, and cross-check various databases to provide a direct answer, eliminating the need for a customer to visit multiple websites to compare options. This could make AI-powered search a more efficient tool for consumers, potentially reducing Google’s dominance in local business searches.

For self-storage operators, this shift presents both challenges and opportunities. To ensure that AI-driven tools recommend their facilities over competitors, businesses must optimize their online presence for AI compatibility. This includes:

  • Maintaining up-to-date and structured data: AI models pull data from various online sources, including Google My Business, customer reviews, and directory listings. Ensuring all business information is accurate, consistent, and well-documented increases the likelihood of being recommended.
  • Encouraging detailed customer reviews: AI relies on customer feedback to assess reputation and service quality. Operators should actively seek reviews, particularly those that highlight unique features such as security, accessibility, and pricing.
  • Utilizing conversational SEO: Unlike traditional keyword-based search optimization, AI-driven search tools prioritize natural language queries. Websites should incorporate FAQ sections and blog content that mirror how people ask questions in everyday conversations.
  • Leveraging AI-powered chatbots: Implementing AI chatbots on facility websites can provide instant customer support, answer inquiries, and guide potential renters through the booking process, increasing engagement and conversion rates.

Preparing for an AI-Driven Future

As AI technology advances, businesses that proactively adapt to these changes will have a significant advantage. Rather than waiting for AI-driven search to fully replace Google, self-storage operators should begin integrating AI into their marketing strategies now. This means refining digital touchpoints, leveraging structured data, and ensuring that AI-driven assistants can access and interpret their business information accurately.

The self-storage industry is at a pivotal moment. Traditional marketing is becoming obsolete, digital marketing has taken center stage, and AI-driven search is on the horizon. By staying ahead of these trends, operators can ensure that they remain competitive in an increasingly AI-driven world.

Revenue Management in Self-Storage: Strategies for Sustainable Pricing

Posted on by Serge Kaouane

Revenue management has transformed industries like aviation, hospitality, and car rentals by enabling businesses to dynamically adjust pricing based on real-time demand and supply conditions. Airlines use sophisticated algorithms to predict booking trends, allowing them to maximize revenue by charging higher prices for high-demand flights and offering discounts to fill empty seats. Hotels modify room rates depending on occupancy levels, competitive pricing, and booking windows, while car rental companies adjust prices based on seasonality, location demand, and vehicle availability. By optimizing pricing strategies, these industries reduce revenue leakage and make more efficient use of available inventory. Can revenue management principles be effectively adapted to the self-storage industry, or do its unique characteristics require a different approach?

At first glance, self-storage seems to fit the revenue management model—it consists of perishable inventory, where every vacant unit represents lost revenue that can never be recovered. However, self-storage is different in fundamental ways: customer demand is need-driven, price sensitivity is high, and once a unit is rented, customer interaction is minimal. These differences mean that while elements of revenue management can be applied, self-storage requires a modified approach that balances revenue optimization with customer retention and market competitiveness.

Understanding Revenue Management and Its Core Principles

Revenue management is the practice of dynamically adjusting prices based on demand, supply, and customer behavior to maximize income. It relies on key strategies such as:

  • Demand Forecasting: Predicting how demand will fluctuate based on historical data and market trends.
  • Segmentation: Differentiating customers based on willingness to pay and usage behavior.
  • Price Elasticity: Understanding how sensitive customers are to price changes.
  • Inventory Control: Optimizing pricing based on real-time availability.

Industries that thrive on revenue management, such as airlines and hotels, rely on high transaction volumes, frequent customer interactions, and a strong sense of urgency in purchasing decisions. High transaction volumes generate large datasets, enabling sophisticated demand forecasting and dynamic pricing models. Frequent transactions allow businesses to adjust pricing in real time based on evolving patterns, ensuring maximum revenue optimization. Urgency in purchasing—such as last-minute flight bookings or hotel stays—creates an opportunity to implement surge pricing when demand spikes, as customers facing immediate needs are typically less price-sensitive and more willing to pay a premium.

In contrast, self-storage customers rent out of necessity rather than impulse, tend to keep their units for extended periods, and rarely make repeat transactions. This lack of continuous transactions and immediate purchasing urgency makes it difficult to apply traditional revenue management models, which depend on rapid price adjustments and frequent customer interactions to optimize pricing strategies.

The Limitations of Traditional Revenue Management in Self-Storage

Applying revenue management to self-storage without modification would result in continuous price fluctuations driven by limited and often unreliable data, leading to unpredictable and unstable pricing patterns. Unit rates would fluctuate frequently, with steep increases during high-demand periods, potentially threatening occupancy, while units with lower demand might see deep discounts that erode profitability. Existing tenants could face abrupt rent hikes, creating dissatisfaction and higher churn.

This model, which works well in high-transaction industries, does not account for self-storage’s long-term rental behavior, limited customer engagement, and strong price sensitivity. Unlike industries with frequent transactions and high urgency, self-storage operates on a need-based model where customers typically rent due to life events such as moving, downsizing, or business storage needs. Because this demand pattern is unpredictable and driven by life events rather than market trends, it does not respond consistently to dynamic pricing tactics, making traditional revenue management strategies outright inadapted to self-storage.

Unlike hotels and airlines, where frequent transactions and daily pricing adjustments allow for real-time revenue optimization, self-storage operates on a far slower cycle. Customers typically make a one-time rental decision and may keep their unit for months or years, leaving little room for continuous price recalibration. Additionally, self-storage pricing is highly competitive, and customers tend to choose facilities based on price and location rather than brand loyalty or added amenities. A sharp rent increase, even if justified by market trends, risks pushing tenants toward competitors, making aggressive pricing adjustments far less effective than in industries with greater pricing flexibility.

Another key challenge is the trade-off between short-term revenue gains and long-term tenant retention. While revenue management often prioritizes immediate profit maximization, aggressively increasing rents in self-storage can result in higher churn, prolonged vacancies, and ultimately reduced profitability. For revenue management to be effective in self-storage, it must be adapted into a pricing strategy tailored to the industry’s specific dynamics—one that considers occupancy trends, unit value differentiation, customer retention, and the varying price sensitivity of different customer segments rather than relying solely on automated price fluctuations.

Developing a Revenue-Driven Pricing Approach for Self-Storage

Because traditional revenue management does not fully align with self-storage, operators must adapt their pricing strategies to reflect the industry’s unique characteristics. This means balancing revenue optimization with long-term occupancy stability by considering factors such as unit demand, customer segmentation, and market conditions.

1. Pricing Based on Occupancy Trends

Rather than setting prices and leaving them unchanged for long periods, operators should adjust rates based on occupancy levels and market conditions. For example, if 85% of a facility’s 5m² units are occupied while only 50% of the 15m² units are in use, it makes sense to increase rates on the smaller units while potentially offering limited-time incentives on the larger ones.

However, this approach is only applicable when there is a sufficient number of units in a particular size category to generate meaningful data. If a facility has only three 3m² units and two are rented, the 67% occupancy rate may seem high, but the sample size is too small to justify a pricing increase. Pricing adjustments should be based on statistically significant data to avoid misleading trends.

A simple model could work as follows:

  • When occupancy of a specific unit type surpasses 80% in a sufficiently large inventory set, increase the rental rate by 5-10% for new tenants.
  • If occupancy falls below 60%, consider slight reductions or promotional offers to stimulate demand.

This approach ensures operators capitalize on demand while keeping pricing fair and data-driven.

2. Customer Segmentation and Value-Based Pricing

Self-storage units within the same facility can have vastly different perceived values. A 10m² unit on the ground floor, next to the main entrance, is significantly more convenient than a unit of the same size on the third floor at the end of a corridor. While both provide identical storage space, customers are often willing to pay more for accessibility and convenience. This tendency to perceive and assign value differently is not unique to self-storage. In real estate, for example, apartments on higher floors with better views command higher prices even if their square footage is the same as those on lower levels. Similarly, airline passengers pay extra for exit-row seats or business class, even though they’re all heading to the same destination. Recognizing these preferences allows self-storage operators to apply value-based pricing strategies that reflect what customers truly prioritize.

A well-structured pricing model could include:

  • Premium Location (Ground floor, near entrance, drive-up access): 15-20% higher than standard units.
  • Climate-Controlled Units: 10-15% premium.
  • Units with Extra Security Features (e.g., CCTV coverage, additional lighting): 5-10% increase.
  • Top-Floor or End-of-Corridor Units: Priced slightly lower to balance desirability.

Beyond unit characteristics, not all customers have the same price sensitivity or storage needs. Some customers prioritize affordability above all else, while others are willing to pay a premium for convenience, security, or flexibility. For example, businesses that use self-storage for inventory or document archiving may be less price-sensitive than a student looking for temporary summer storage. Similarly, customers seeking long-term storage solutions might accept gradual rent increases more readily than short-term renters who are highly cost-conscious.

Understanding these different customer segments allows operators to refine pricing strategies even further. By tailoring promotions, lease terms, and pricing structures to different customer needs, self-storage businesses can optimize revenue while maintaining strong occupancy.

By differentiating pricing within the facility and considering customer segmentation, operators can maximize revenue without requiring more customers or expanding storage space.

3. Managing Rent Increases for Existing Tenants

Long-term customers are often undercharged due to outdated pricing structures. Many operators hesitate to raise rents on existing tenants, fearing churn. However, when done correctly, gradual and well-communicated rent increases can significantly improve revenue without significantly affecting occupancy.

A structured approach can help:

  • Regular but Small Adjustments: Increasing rents annually by 3-5% minimizes sticker shock.
  • Transparent Communication: Informing tenants about rate increases ahead of time, emphasizing facility improvements and market conditions, can ease resistance.
  • Flexible Offers for Retention: Offering minor discounts for prepayments or extended lease agreements can keep loyal tenants engaged while still increasing revenue.

4. Retaining Customers: A Cost-Efficient but Challenging Strategy

Acquiring new customers is significantly more expensive than retaining existing ones, making customer retention a critical aspect of self-storage operations. Operators focus mainly on attracting new tenants through promotions while overlooking the importance of tenant retention.

To enhance customer retention, operators can:

  • Offer loyalty discounts for long-term tenants, such as a percentage discount on monthly rent for long-term leases, or a free rental period after a set number of months.
  • Provide flexible lease options, such as the ability to switch unit sizes without penalties, at anytime or additional perks like 24-hour access and services such as merchandise or mail reception, catering to customers with varying storage needs.
  • Improve customer experience with well-maintained, secure facilities.
  • Use AI-driven customer engagement tools to maintain relationships, such as automated reminders for lease renewals, personalized promotions based on tenant history, and chatbots for quick customer support.

Implementing these pricing strategies is essential for optimizing revenue and ensuring long-term occupancy stability, but self-storage operators must also recognize the inherent challenges. Since demand is largely driven by necessity, retaining customers can be difficult when their need for storage naturally comes to an end. Even with well-structured incentives and exceptional service, some tenants will inevitably move out once their circumstances change. This makes it crucial for operators to strike a balance—maximizing revenue while maintaining a competitive, customer-friendly pricing approach that encourages longer stays whenever possible.

The Role of Technology in Pricing Optimization

Property management software vendors have recognized the necessity of integrating an adapted revenue management strategy and are continuously enhancing their platforms to support dynamic, data-driven pricing models in self-storage. These advancements allow operators to make informed, real-time pricing decisions based on occupancy trends, market fluctuations, and customer behavior, ensuring a more precise and strategic approach to revenue optimization. Advanced property management systems now enable automated pricing adjustments that react dynamically to shifts in demand, occupancy, and competitive trends. By leveraging AI-powered tools, self-storage businesses can optimize revenue while reducing the risk of human error or emotional decision-making.

These systems analyze key factors such as:

  • Occupancy Rates – Automatically adjusting prices when certain unit types reach predefined thresholds.
  • Competitor Pricing – Monitoring local competitors’ rates in real-time to maintain competitive positioning.
  • Seasonal Demand – Identifying recurring fluctuations in demand and adjusting pricing accordingly.
  • Customer Behavior Analysis – Understanding rental patterns to forecast move-outs and renewal probabilities.

Platforms such as Kinnovis, Stora, Storganize, Yardi Breeze, storEDGE, Storable, and Prorize offer integrated revenue management tools that help self-storage operators refine pricing dynamically, ensuring competitiveness and profitability.

By using these advanced tools, self-storage operators can transition from static, intuition-based pricing to a more sophisticated, data-backed approach that maximizes revenue while maintaining customer satisfaction.

Conclusion: A Balanced Approach to Pricing in Self-Storage

A well-executed pricing strategy is not just about maximizing revenue—it is essential for preventing revenue leakage and ensuring continuous income growth, particularly for stabilized properties where opportunities to acquire new customers are limited. In self-storage, where traditional revenue management models are not always effective, operators must strike a balance between adapting pricing dynamically and maintaining occupancy stability. Leveraging data-driven pricing strategies, understanding customer segmentation, and utilizing technology can allow operators to refine their approach and capture additional value without sacrificing tenant retention. The challenge remains—how can self-storage businesses continue evolving their pricing models to stay competitive while fostering sustainable long-term growth?

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.