Market Trends of Switzerland Self-Storage Industry
This section covers the major market trends shaping the Switzerland Self-Storage Market according to our research experts:
Increased Urbanization, Coupled with Smaller Living Spaces is Expected to Drive the Self-Storage Demand in the Coming Years
- According to Worldbank data, Switzerland has an average urban population of 74% in 2019. Urbanization and urban sprawl are key land-use processes in most of the world’s potential economies, including Switzerland, where urban and settlement areas increased by more than 20% between 1984 and 2019 (SFSO, Swiss Federal Statistical Office). Growing urban populations mean smaller and increasingly expensive living spaces in cities and the creation of more renters who move around more frequently.
- The development of smart cities is central to the United Nations’ Sustainable Development Goals (SDGs). Under SDG 11, the United Nations calls explicitly for additional urban investments through 2030 to make cities more inclusive, safe, resilient, and sustainable. These investments are expected to impact market growth over the forecast period positively.
- The average occupancy across European countries saw a 1% increase from 78% in 2018 to 79% in 2019. New facilities tend to have lesser occupancy rates as they typically take 3 to 5 years to reach maturity. Switzerland, for example, has a significant number of newer facilities, with the mean average age around five years.
- Optimal occupancy for a well-built self-storage facility located in a metropolitan area is usually considered between 85%-90%. This allows the vendors to continue to offer space to customers and increase the yield for the business.
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Business Self-storage Type Segment is Expected to Hold a Significant Share Throughout the Forecast Period
- As per the FEDESSA and JLL survey report, average occupied space by business customers in Europe has increased from 27% in 2018 to 32% in 2019. The marketers have seen a trend over the last couple of years that business customers took a higher percentage of floor area than consumers.
- The majority of self-storage business customers are start-ups; for them, it offers a flexible solution for office space, distribution, and storage of goods without requiring lengthy leases. The self-storage operators are now catering more for business customers by offering meeting rooms, free Wi-Fi, and courier services. The advantage for operators is that business customers stayed for more extended periods than domestic ones, giving them a stable income source.
- According to the report published by FEDESSA and JLL, in Switzerland, the business segment holds more than 70% self-storage space in 2019, whereas the European average stands at 68%.
- There is a wide range of different tenures within the self-storage business model, from owner-occupied freehold business to business contracts. There is a business preference towards freehold ownership in Europe, with approximately 77% of facilities on average owned by the operator. Whereas, in Switzerland, near to 30% of facilities owned by the operator.
