What a self storage business costs in Australia
Self storage is the purest property-backed business on the whitespace list: sheds full of annuity income, institutional buyers at one end and container yards at the other. Here are the Australian numbers, from the industry's own performance index.
The revenue side, measured
| City | Fee rate ($/sqm/yr) | Occupancy |
|---|---|---|
| Sydney | $445 | 84.0% |
| Melbourne | $389 | 80.3% |
| Perth | $377 | 81.9% |
| Brisbane | $363 | 83.9% |
| Adelaide | $306 | 85.8% |
Those are the industry index's storage fee rates and occupancy by area across roughly 280 facilities. Operating costs run around 40% of gross in published worked examples, and stabilised facilities trade at roughly 5 to 6.5% yields, with a record metro Sydney asset printing below 5%. The consolidation wave, nearly $7 billion of transactions in a year, mostly portfolio deals, means single facilities are scarce and tightly priced.
Building one
Steel shell construction is quoted around $600 per square metre by suppliers, against the general warehouse benchmark of $800 to $1,500, with multi-storey running 1.5 to 2 times single-storey. A typical greenfield spec is a hectare of land carrying about 5,000 square metres of building at 40 to 45% site coverage. The corridor-to-lettable-area ratio is the feasibility lever: net lettable area is what earns, and design sets it.
The container-yard entry
The cheap door in: 20-foot containers at roughly $3,000 to $6,000 delivered, renting at $120 to $250 a month on leased industrial hardstand. A container earning $200 a month grosses about 48% a year on its own cost before land rent and vacancy, which is why the model works, and why council approval for the yard use is the real gating item, not the containers.
Financing storage
Facility purchases and developments are property lending at heart, with the operating income priced into the valuation; container yards are equipment plus a lease. Property-backed structures run roughly 6% to 9% p.a. as a working rule. Property-backed borrowers generally price around 6% to 9% p.a. and non-property-backed deals around 9% to 13%, with approvals commonly back in 24 to 48 hours. Start at property-backed finance or the property-backed guide.
Frequently asked questions
What does self storage rent for in Australia?
The industry index puts fee rates at $306 to $445 per square metre per year across the capitals, Sydney highest, with occupancy by area running 80 to 86%.
What yield does a self storage facility sell on?
Stabilised facilities trade around 5 to 6.5%, with a record metro Sydney asset below 5%. Portfolio consolidation has made single facilities scarce.
What does it cost to build self storage?
Steel shell suppliers quote around $600 per square metre against the $800 to $1,500 general warehouse benchmark; multi-storey runs 1.5 to 2 times single-storey. All-in development cost depends on land and approvals.
Is a container storage yard a cheaper way in?
Yes: 20-foot containers at roughly $3,000 to $6,000 each renting for $120 to $250 a month on leased hardstand. The council approval for the yard use is the real hurdle.
Sheds, yields and the cheap door in
Tell us the site or facility and we will come back with the structure, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.