Market Summary

UK and European Self Storage markets remain attractive, with operators increasingly focused on data-led strategies, scale, and technology. While transactional activity was subdued in H2 2025, investor appetite remains strong and improving financing conditions, easing interest rates, and the return of delayed processes are expected to support a recovery in deal flow through 2026, with Savills actively advising on a number of deals.

H2 2025 Roundup

Market and Operating Trends

A key takeaway from the Savills Self Storage Investor Conference, Delivering Returns in a Changing Market, held at our Margaret Street headquarters in November, was that all major European markets are positioned for expansion, although operator strategies are becoming increasingly data-led. Rigorous data diligence, granular micro-market analysis, and the identification of underserved catchment areas are increasingly critical to success.

Other dominant themes at the conference were the continued push towards scale and operational efficiencies, and the importance of technology. In 2025, operators increasingly focused on automation, the customer’s digital experience, and the use of data and AI to improve pricing, marketing, and operational decision-making.

With London now approaching materially higher post-development MLA levels, investors are becoming more selective, with greater emphasis on local supply–demand dynamics and catchment quality. This shift towards granular, data-driven site selection underpins the value-add of Savills proprietary Self Storage database and micro-market analysis framework, designed to identify imbalances and support informed investment decisions.

Capital Markets and Transactions

Despite significant capital seeking to deploy into the sector, transactional activity across the UK and European Self Storage markets remained subdued in H2 2025, constrained by a limited pool of vendors and several large processes that stalled. Pricing expectations, data limitations to support underwriting and a shortage of experienced operating teams, particularly outside the UK, continued to act as friction. In response, focus has increasingly shifted towards development, with operators such as STOREX, Compound and Rafter Group bringing new, modern assets to market to compete with legacy stock across key UK and European cities.

Investor appetite remains strong, as evidenced by the binding A$4 billion takeover of Australia’s National Storage REIT by a Brookfield- and GIC-led consortium. This transaction underlines ongoing global demand for scaled platforms, even as European activity is currently more constrained.

Well-capitalised operators have increasingly opted to build where they cannot buy, reflecting both pricing discipline in the investment market and confidence in long-term structural demand. Development pipelines are active, particularly among established platforms seeking to control location quality and optimise asset design.

Savills Team Update

The Savills Self Storage team continued to expand in H2 2025 with several key appointments, including Martin Szamfeber, who joined as a Director specialising in Self Storage valuations, alongside Max Graziani, Associate, and Mason Hunt, Senior Surveyor, strengthening our advisory and transactional capability across the platform under the leadership of Ollie Saunders, Head of Self Storage.

Deal Highlights

Listed Market

Investment in the listed Self Storage market remains subdued, with investor focus weighted towards near-term earnings per share rather than long-term asset value. This is reflected in listed Self Storage operators entering the year trading at an average discount of approximately 34% to Net Asset Value (NAV). In comparison, the broader FTSE EPRA/NAREIT Developed Europe index is trading at a c. 29% discount to NAV, highlighting weak sentiment across the listed real estate market more generally.

Following the October 2025 announcement that Big Yellow was in discussions regarding a potential take-private transaction, a range of buyers indicated interest in the listed platform. With shares trading materially below reported NAV, it highlighted investor interest in acquiring high-quality Self Storage assets at a discount and the extent of pricing dislocation within the listed market. Interest in listed platforms is likely to persist, supported by strong demand for Self Storage assets, though investors must account for the cost, complexity and time-intensive nature of take-private transactions.

In H2 2025, Big Yellow has prioritised rental growth over occupancy, demonstrating a willingness to be more assertive on pricing where demand is needs-based, alongside a continued focus on operational efficiency and cost control. Savills data on Existing Customer Rate Increases (ECRIs) supports this approach, with some operators achieving rental growth of over 10% per annum. Big Yellow’s half-year results for the period April 2025 to September 2025 reflect this strategy, with a modest decline in occupancy relative to FY25 offset by stronger rental growth.

Shurgard recorded improved occupancy in Q3 2025 compared with the first half of the year, albeit alongside weaker rental growth. UK rental growth was particularly subdued, at just 1.4% above the same period in 2024. Both occupancy and rental growth on a year-to-date basis in Q3 2025 remain below the 2024 whole-year levels.

Safestore delivered a marked improvement in H2 2025, with both occupancy and rental growth strengthening relative to H1 2025. Following a weaker first half, improved H2 trading materially lifted year-to-date results, with rental growth of 2.3% compared with 2024.

Self Storage Listed Operator Rental Growth & Occupancy

Outlook

• We expect the subdued transaction volumes seen in 2025 to rebound as previously delayed processes return to the market. A number of opportunities that were marketed in 2025 but not transacted are expected to re-emerge in 2026, alongside newly launched processes, supporting a recovery in deal flow, with Savills advising on several of these.

• The Iberian market is set for aggressive expansion, reflecting the region’s structurally underpenetrated Self Storage market. Activity is expected to focus in urban and city-centre locations, where supply remains constrained and demand fundamentals are strongest.

• Operators will continue to adopt technology-led operating models, including store clustering, as operators seek to drive efficiency, reduce headcount and mitigate cost pressures. Recent reporting from Shurgard highlights the rollout of a cluster store management model, whereby multiple proximate stores are overseen by a single manager and supported by remotely managed operations. This approach reduces on-site staffing requirements, lowers labour costs and improves operational efficiency, and is expected to remain a key area of focus in higher-cost labour markets such as the UK.

• Increased deployment of Core+ capital is expected, alongside borrower-friendly debt markets, creating a supportive financing backdrop. While operators remain impacted by higher interest rates, the outlook is improving. With UK interest rates forecast to ease further, including the potential for two 25 basis-point cuts over the course of the year as inflation continues to moderate, this should help unlock increased transactional activity.

• We anticipate an increased use of management contract structures, as platforms seek to scale rapidly while limiting balance sheet exposure. Savills is currently running several operator selection processes for real estate owners.

Links

• Sign up to our mailing list to receive our Self Storage Investment Report

FURTHER INFORMATION

Self Storage

Savills Operational Capital Markets