Here at Blue Box Storage in Doncaster, demand for self storage space remained robust in 2019, and with the sector now placed to deal with the impact of the Pandemic.
Blue Box will Thrive during Pandemic
We have examined a range of data points and surveys on the growth for 2020, and the findings reveal that the sector may be more ‘resilient’ in comparison to other industries in dealing with the fallout of this pandemic.
These include demand from smaller retailers expanding their online presence and requiring space for additional stock, house sales picking up once the lockdown ends and more people engaging in home improvement projects and requiring additional storage.
The findings also revealed that although occupancy levels for the industry dipped marginally for the first time in eight years by 1 per cent to 76.2 per cent in 2019, this was largely due to significant growth in supply as many new stores are not at full occupancy yet.
Self Storage is well placed to adapt to changing conditions
Bryan Merrett, owner of Blue Box Storage in Doncaster, said: “While COVID-19 is creating challenges for the industry, and other industries around South Yorkshire and the United Kingdom, self storage is well placed to adapt to changing conditions of the pandemic.”
Stores Remain Open
Blue Box Stores have remained open during lockdown with customers continuing to pay their storage rental fees. Past economic downturns have shown that while the mix of customers may change, demand for self storage is maintained.
As we have witnessed in previous years, and particularly in these uncertain times, the underlying attributes and resilience of the sector are driving the investment market.
Appetite continues to emanate from a wide range of sources, including private equity, institutions and private wealth. Demand continues to outstrip supply, resulting in investors willing to pay premium prices for individual assets as well as portfolios