Self Storage Industry Expanding its Reach

Posted on Dec 27 2012 - 8:37pm by Winnie Hsiu

The self storage industry is an industry that has become one of the more reliable investments in the United States in recent years; something that has been encouraged by growth and stability within the industry. While it has primarily been a U.S.-based interest, in some parts of the world it is starting to really catch on and expand.

Roughly five of every six self storage facilities in the world are in the United States. The other parts of the world are still learning about the industry, and in many of them it is growing. 

Take the Asia-Pacific region for example. According to facilities in the area revenue has increased in the last year along with a rise in demand. A Lock and Store self storage facility in Bedock (east Singapore) says that it is operating at 95 percent capacity. 

To meet the increase in demand the facility says that it will be adding an additional 50,000 square feet early next year.

“This is one of the busiest Christmas I’ve ever seen over the last four to five years. Surprisingly, you heard the economy being in trouble, but looking at this month, there is 20 per cent up on last month,” said Michael Hagbeck of Extra Space Self Storage.

Singapore Post sees where the industry is headed in the region and is expanding its holdings. On Monday the company reported that it had acquired the Lock+Store self storage facilities in Tanjong Pagar and Chai Chee.

“Self-storage business is an attractive usage option for the industrial-zoned space of our properties. This acquisition is strategic, paving the way for SingPost to extract greater value from our existing properties,” said Mr. Ng Hin Lee, Group Chief Financial Officer.

Singapore Post, known simply as SingPost, is one of the leading providers in mail, logistics, and retail solutions in Singapore and the Asia Pacific Region. In recent years the company has been looking to diversify more while still maintaining a high level of service to its customers.

 “This acquisition is part of SingPost’s transformation initiatives, enabling us to further expand our self-storage

business S3, with an experienced and leading operator in this industry,” said Dr Wolfgang Baier, Group Chief Executive Officer of Singapore Post.

The new acquisitions cost Singapore Post $30.2 million (U.S.). The company first got into the self storage industry back in 2009 and offers self storage services through S3 (Self Storage Solutions,

Sources Used:

“SingPost to acquire self-storage business.” Post & Parcel; 27 December 2012.

“Demand for personal storage space increases at year-end.”; 24 December 2012.