News from Inside Self Storage…..
Self-storage activity has been quiet in Australia, with occupancies in some cities stagnant, others in slight decline, and some micro-markets experiencing an increase in rentals. Local talk of the “two-speed economy” has some investors spooked, while there’s another view that a number of markets were overbuilt in the 2005-2006 boom times.
While the mining industry is selling commodities for record prices, mainly to China, retail businesses report slow if stagnant growth, and new residential housing starts—the precursor of the drive for self-storage—are at their lowest numbers in years. Local self-storage builders report little in the way of new construction, with some operators taking a consolidation approach to development, adding only new spaces needed in existing sites, and many reducing staff in the process.
Let’s see what 2012 has in store for self storage in Australia…