Over the last decade, using commercial premises as storage space has been a growth industry. It is now commonplace to see numerous storage companies occupying industrial sites in towns and cities throughout the country.

This begs the question - Is it still a good idea? Could starting a storage business make you money?

We investigate how a storage business could survive and prosper in 2017.

Business Opportunity

Although there is plenty of competition in the sector, the fundamental need for storage is likely to increase in the coming years. Britain has a rapidly growing population and is experiencing a housing crisis, with 1 million extra homes needed by 2020. This will inevitably mean that people will have to live in smaller houses, and because of this, the demand for additional storage space is likely to increase further.

While the days of an entrepreneur building a portfolio of 12,000 garages and lock-ups may be over, there is still room in the market for new entrants, providing that costs are kept to a minimum from the outset.

Storage is one of the few industries that is recession-proof to some degree. Indeed, if people downsize their homes, it is likely extra storage space will be needed even more.

The Premises

As with any business, planning is everything. Knowing your costs before you actually operate is necessary for any start-up. This probably means that you should avoid having a new-build storage facility. While they may look nice and shiny, there are often long planning delays, objections, and build costs can spiral.

Leasing existing industrial premises makes predicting expenses much easier. You will know the rental costs and rates, and can factor these into your budget planning. In short, there are none of the surprises you may get with a new-build property.

If selected appropriately, older warehouses can be well-suited to the storage industry. Look for properties with good transport links and a secure, self-contained site to reassure potential customers.

Additional Costs

So you choose the premises, but what other expenses should you consider?

The first one is labour. Some existing companies rely on a small workforce and CCTV to ensure the security of the items in their care. Others employ a number of security guards instead.

Which model best suits your intended site?

Another major consideration is the type of secure storage you will offer. Purpose built cages and rooms may be a good option. Alternatively, using hundreds of shipping containers could be better suited to an older industrial site or warehouse.

Keeping the premises clean, tidy, and professional looking are essential to take advantage of additional revenue streams - many storage businesses are now making further profits by renting outsome of their storage areas and shipping containers to companies needing a low-cost office or workshop.

Pall Mall Estates has a range of warehouses and commercial property available across the UK. Our flexible lease agreements are perfect for trialling a business idea without being locked into along term contract. Get in touch with our experienced team to discuss your requirements.

— Pall Mall Estates have a wide range of low cost commercial properties across the UK.

Take a look at our available spaces here or get in touch with our experienced team here.

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