Fedessa European Self StorageAnnual survey 2016

In a low growth environment with record low interest rates, investors searching for long term income opportunities are increasingly looking beyond mainstream commercial markets and traditional real estate investment, into alternative asset classes such as self storage.

Now with over 2,700 facilities across Europe providing 7.8 million square metres of space, the latest JLL survey looks at the changing dynamics across Europe and provides valuable insights into the sector for investors, funders and operators to help them understand both the opportunities and risks in their investment decisions.

The self storage industry is a growing and dynamic market. Urbanisation, a key factor driving demand, social mobility and the proliferation of small to mid-sized enterprises is putting increasing pressure on space in urban environments, and pushing up property prices. In this environment the self storage sector has significant scope to evolve as the fundamental drivers of demand continue to be positive.

Fedessa European Self Storage: Annual survey 20162

• Across Europe, the real estate investment market is increasingly crowded, encouraging investors into alternatives, such as self storage.

• Urbanisation, population growth and rising house prices contribute to increasing demand for self storage over the long term.

• Operators are developing new stores to meet strong customer demand with portfolios growing in size by 8.7% per annum.

• Over the last 12 months there have been over €500m of transactions – an increase of 25% on the previous 12 months.

Key Highlights

3

About the Survey

Real estate investment market – the hunt for alternatives

Amid reasonably robust European economic growth, the past 12 months have continued to see significant capital flows into European Commercial Real Estate. However, within such a crowded market, investors are increasingly finding it challenging to allocate capital to traditional real estate sectors. In this competitive environment selectivity is important, encouraging investors to seek alternatives outside the traditional real estate sectors such as student housing, healthcare and self storage. These alternative investments now represent at least 15% of overall investment, and in the first half of 2016 made up 23% of the total UK real estate market.

The impact of urbanisation on self storage demand

The level of urbanisation of a country is an important driver for self storage as the pressure on space, both residential and commercial, fuels demand. In Europe, 16 million* people are forecast to move to cities in the next 10 years.

An active market with room to grow – where selection is important

There continues to be an active market for self storage real estate with different levels of maturity across Europe. The United Kingdom, Sweden and the Netherlands are the most established markets, with developing markets in Spain and Germany and emerging markets in Italy and Poland.

The European Self Storage market can offer robust and predictable income with a good risk adjusted return from established assets, or the opportunity for development returns from modern facilities as portfolios grow.

*Source: United Nations

Fedessa European Self Storage: Annual survey 2016

Findings and trends in 2016 annual survey

This is the fifth consecutive annual survey carried out by the Federation of European Self Storage Associations (FEDESSA) and the second produced by JLL. The survey results are a snapshot of the industry as at 31 March 2016. JLL and FEDESSA have received responses from operators in 16 countries who operate just under 700 stores which make up a quarter of the total market.

To read the full report, please go to: www.jll.co.uk/selfstorage

and click on the button titled ‘European Self Storage Annual Survey 2016’.

© 2017 Jones Lang LaSalle IP, Inc. All rights reserved.All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

ContactOllie Saunders Lead Director +44 (0)207 087 5843 ollie.saunders@eu.jll.com @olliesaunders1

See the world differentlycapitalmarkets.jll.com

About JLL Capital MarketsJLL Capital Markets is an independent leader in commercial real estate investment advice. Over 1,300 professionals work with clients of all types, to go beyond the property transaction, and to shape the services they need to gain in their investments.

In our experience, having a different perspective reveals new opportunities. JLL combines financial expertise with access to global capital, and deep property insight to give our clients the confidence to see the world differently.

17/02/17