Asia Self-storage Update

Asia Self-storage Update

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  Self-storage Market Update:Growing as predicted Demand Analysis – bottom up approach CBRE RESEARCH This report was prepared by the CBRE APAC Research Team, which forms part of CBRE Research—a network of preeminent researchers who collaborate to provide real estate market research and econometric forecasting to real estate. © CBRE Ltd. 2016 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. The four “Ds” and business activity (UNITS SQ.FT) Self-storage supply statistics 3.1 1.5 1.6 2.6 Market Size (Rentable Sq.ft. Million) 459 45 53 341 Major Operators (#) 111 13 16 76 Facilities (#) 201420142014 201420142014 201520152015 201520152015 744K 26K 63K 591K 9K 24K 161K 60K 2.3M 907K Current Demand Analysis: CBRE conducted a bottom-up demand analysis^of the current demand for self-storage in 2015 using the fundamental drivers of the Death, Divorce, Dislocation, Density and business activity. Using this analysis, CBRE has concluded that the self-storage market is not saturated and growing as predicted. At the end of 2015, there was an approximate shortfall of 200,000 sq.ft. of self-storage space in Hong Kong. Singapore’s demand and supply dynamics are roughly in equilibrium but the demographic drivers are still favorable for self-storage demand in the long run. ^For more information on the demand analysis, please contact [email protected] Self-storage supply growth trend 1.2 1994-2004 2004-20141984-1994 (rentable sq. ft. per capita) 2.9 5.0 7.8 0.36 0.28 2014 Self-storage supply per capita (sf) 0.44 0.30 2015 Self-storage supply per capita (sf) The self-storage story Demand for Factories Self-Storage Demand Market not Saturated Investment Interest Assumptions of self-storage space needed per customer Penetration for Business Activity 5% 0.5% 25sq.ft. *Total Households minus other driver numbers as to not double-count the potential demand 2015 Current Demand(million sq.ft.) 3.3 1.6 Penetration Rate for the 4 Ds“ ”