Self storage has quietly transformed from a fragmented, entrepreneurial niche into one of Europe’s fastest‑maturing alternative real estate asset classes. At a roundtable hosted by Martin’s Properties and CoStar News titled “Self-Storage: The Rise of a Resilient Asset Class”, investors, operators and advisors explored why institutional capital is now pouring into the sector, how the market is evolving and what lies ahead for pricing, development and technology.
The debate was chaired by CoStar News managing editor Paul Norman. The panellists were: Richard Bourne, CEO, Martin’s Properties; Graham Gunn, head of operations – self-storage, Martin’s Properties; Penny Bell, director – self storage capital markets, EMEA – JLL; John Cumpson, partner, CMS Law; James Lass, head of operational real estate, Swiss Life Asset Managers UK; Shalin Sankar, Head of Noke Smart Entry, Janus International Europe; Ollie Saunders, head of self-storage, operational capital markets, Savills; Jason Lowes, partner – planning, Rapleys; Simon Forrester, chief executive of the Self Storage Association UK
The discussion opened with a simple question: why now? What is driving the surge of institutional investment into self-storage? According to James Lass, head of operational real estate at Swiss Life, the answer lies in both portfolio dynamics and sector fundamentals. Traditional real estate allocations have shrunk, and investors are searching for diversification. “There’s only so many distribution units and blocks of residential that institutions can buy,” he noted. Self storage, by contrast, offers a rare combination of supply‑demand imbalance, rental growth, and defensive, resilient cash flows.
Richard Bourne, chief executive of Martin’s Properties, which today launched its own wholly funded Cactus Self Storage platform, as revealed by CoStar News, added that the sector is showing growth and structural demand, with an ability to scale quickly without significant capital resources, making it extremely attractive to capital investors. “While the shorter licences for self storage offer less security of revenue, they also offer the opportunity to capture revenue growth more quickly than a traditional five-year lease cycle, which is attractive in a growing market. This flexibility is valuable during inflationary periods, offsetting cost increases with revenue increases.”
John Cumpson, partner in the real estate team at CMS Law highlighted the sector’s “crocodile‑jaw” cash flow profile: revenue trends upwards while operating costs fall due to technology and scale efficiencies. The group did acknowledge a downside: in the rare cases where two competitors enter the same market, price wars can push revenues down. But given the UK’s constrained supply, this scenario remains limited.
Bourne added that self-storage demand is increasing due to a number of factors. As housing sizes, garages and in-home storage reduce, the need for additional personal storage requirements is increasing. More housing supply also drives demand for local businesses and these also require storage for equipment and goods. “We are also seeing the rise of smaller online retail businesses using self-storage. Well-designed self-storage schemes attract and retain customers by offering a variety of storage unit sizes and configurations to suit both business and personal customers.”
Penny Bell, JLL’s director – self storage capital markets, EMEA noted that the pandemic was a turning point. While many asset classes struggled, self storage “was very, very robust”, revealing itself as a “sleeping giant” to investors who had overlooked it. Annual investment volumes that once hovered around €100 million–€200 million have accelerated sharply. Europe now boasts eight platforms bigger than€1 billion, signalling that the sector has reached institutional scale. For context, Public Storage in the US has a market cap of around $50 billion, highlighting how much room Europe still has to grow.
Historically, Europe’s self-storage landscape was dominated by entrepreneurial owner‑operators, each building one store at a time. That made it difficult for institutional investors to deploy meaningful capital. Today, the picture is very different. Platforms have consolidated, operators have professionalised, technology has transformed operations and portfolios of 50–60 assets are now coming to market, something unimaginable even five years ago. Customers have also become more discerning and will pay more for quality and convenience – including pricing visibility and availability which are now available online, the group said. As Ollie Saunders, Savills’ head of self storage put it, “The industry has suddenly grown up.” This maturity is attracting global capital and the availability of debt has risen. A recent €480 million joint venture involving Canadian institutional money from QuadReal was cited as a milestone in “a deal that simply wouldn’t have been possible three years ago".
While 2025 saw muted transaction volumes, the consensus was that this reflected timing and pricing mismatches, not a lack of appetite. Deals took longer, underwriting became more granular and in many cases, buyers and sellers were only 5–10% apart on price, but not close enough. Several participants described last year as a “breather” rather than a downturn. With vendor expectations adjusting and new data‑rich platforms emerging, the group expects stronger liquidity in 2026 and beyond.
Looking back on his 25 years experience in the self-storage sector, Graham Gunn, Martin’s Properties head of operations – self-storage, noted that 20 years ago, the sector was dominated by smaller operators converting empty sheds. “Today, the offer is far more sophisticated. Operators are designing spaces that feel safe, modern, and accessible – sometimes even 'lifestyle‑oriented'. Customers increasingly expect clean, secure, well‑lit environments, flexible room sizes, 24/7 access, digital onboarding, and proximity to residential areas.”
The sector is also diversifying its formats. Urban micro‑stores under 5,000 square feet are emerging in dense neighbourhoods. “Drive‑up units are gaining traction. And at the other end of the spectrum, megastores exceeding 100,000 square feet – such as the 11‑storey facility in Brentford – are pushing the boundaries of design. Even container storage, once seen as the 'budget' option, has become more polished and tech‑enabled.”
Planning remains one of the sector’s biggest constraints. Jason Lowes, partner in Rapley’s town planning team noted that while self-storage is generally well‑received, challenges can persist. “Some local authorities can be nervous about highly visible, brightly branded buildings and parking expectations are sometimes unrealistic. Some councils misunderstand the low‑traffic nature of the use. Prime sites may also be allocated for other uses in local plans. That said, self storage’s economic and social benefits – supporting small businesses, enabling urban living, and providing low‑impact employment – are increasingly recognised.”
In terms of technology, it was clear that technology is already reshaping the sector. Shalin Sankar, Head of Noke Smart Entry at Janus Europe explained: “Unmanned or semi‑manned stores, dynamic yield management, automated customer onboarding, remote monitoring and data‑driven portfolio optimisation are all becoming standard.” As operators become more confident with tech, the sector is expected to see even greater efficiency, more aggressive pricing strategies and new store formats.
The roundtable painted a picture of a sector at a pivotal moment. Self-storage has proven its resilience through economic cycles, demonstrated strong rental growth and reached a scale that finally meets institutional requirements, alongside fast-changing consumer demographics and a greater focus on sustainability. With global capital entering the market, new formats emerging, and technology accelerating operational efficiency, the sector is poised for continued expansion and diversification. As Bourne said: “We’re on the next wave of evolution: self-storage is now an institutional‑grade asset class.”
Simon Forrester, CEO of the Self Storage Association UK, concluded: “What we’re seeing now is the result of two decades of steady professionalisation. Self-storage has moved from the margins to the mainstream, and institutional capital is recognising what our members have known for years: this is a resilient, operationally sophisticated sector with enormous headroom for growth. The next phase will be defined by better data, better design, and a deeper understanding of the modern customer. People are living more flexibly, moving more often and running more businesses from storage units. Self-storage has become part of the infrastructure that supports modern life. As operators innovate with technology and service, we expect demand to remain strong and increasingly diverse.”