Opportunity available for operators and investors in buoyant European self-storage market

Investment volumes into the European self-storage sector are set to reach record levels in 2023, according to CBRE and Federation of European Self Storage Associations (FEDESSA).

A large pool of investors are competing for a limited number of opportunities and, as a result, investment volumes are expected to reach €1.12 billion ($1.2 billion) in 2023, surpassing the record level achieved in 2022 of €740 million ($790 million).

“We’re seeing investors allocating capital to sectors which offer attractive cash flows through strong revenue growth and cost-efficient operating models,” said Callum Paddock, director in CBRE’s operational real estate team. “Whilst the sector is not immune to the ongoing wider market challenges, self-storage assets offer appealing, long-term fundamentals and, as a result, investor appetite is robust.”

According to the research, operator sentiment also remains positive, largely supported by the sector’s structural demand