Long seen as a niche asset on the fringes of the United Kingdom’s commercial property market, self-storage was largely overlooked by institutional investors in favour of offices, retail and logistics. However, during the last five years it has undergone a remarkable transformation, emerging as one of the most resilient and best-performing sectors in UK real estate.
Attracted by its low capital expenditure requirements, steady income stream, and robust demand fundamentals, institutional capital, private equity and REITs are now increasingly active in the space. This shift reflects a broader realignment in investor sentiment, as capital moves away from certain structurally challenged sectors, such as secondary retail, and into operationally-light models driven by predictable, recurring income.
Evolution since the pandemic
The COVID-19 crisis marked an inflection point for the sector. Self-storage benefitted from the property boom driven by the â
