Is self storage really that expensive?

To its detractors, there has always been one simple argument against the relentless rise of the self storage business. This is that it is too expensive; that it succeeds through essentially conning people out of their money by convincing them of the artificial need for more space and then selling it to them at a premium. Cheaper alternatives exist, the naysayers continue, the difference is merely that they aren’t advertised with the sheen of a Big Yellow ad campaign. Whatever truth there is in this, it is probably the case that the economic argument is the obstacle most likely to put potential customers off trying out self storage, as they are essentially being asked to fork out for something they won’t see much of and which is often not particularly specialised. Yet is self storage actually that expensive? A comparison with some other types of rented space exposes a few myths.

Not sky-high

A similar argument is often made about airport parking, which is seen as ruthlessly taking advantage of people’s inability to take their cars with them on planes by asking the earth to look after them in the meanwhile. For example, at Heathrow airport, four weeks of having their vehicle guarded by Purple Parking could set a customer back £133.94. This would seem like a lot if they’re only used to paying £2.50 for the day at Sainsbury’s, but in actual fact is not that much: when you consider that the average British parking space is apparently 124 sq ft, it works out at just £1.08 per square foot for a month. This isn’t a lot of money; storage is actually only slightly more expensive. and comes with a roof.

Amongst the three self storage firms that are listed on the Stock Exchange – Big Yellow, Selfstore and Lok’nStore – the average rental fee per sq ft is £2.08 a month. The obvious difference between this and a car park is that you should only take up one 124 sq ft space in the latter (as long as you’re good at parking) whilst the number of square feet a person occupies in a storage facility is often much greater. If the unit you rent is 100 sq ft, then you’re looking at £208 to begin with, which is then swollen by certain variable factors: the location, how full the individual site is, and additional charges such as van hire. It’s not unheard of for monthly rentals inside the M25 to top £360, although obviously this can be lowered through savvy price-saving techniques like going further afield to get a better rate.

Cheaper than being an artist

What this means is that the basic price per sq ft of storage these companies offer is actually often lower than many other types of rented space; the problem is simply that much larger spaces can be hired from self storage providers than is possible with most types of landlord. Parking a car in SW1, for example, is only marginally less expensive than what the self storage companies charge, as Westminster Council demand £1.29 per sq ft to give their residents the pleasure of doing so. Leaving a car outside incurs some of the most penalizing storage fees anyone is charged in Britain: for example, an extra parking space for your house in Bath can cost £30,000, a faintly ludicrous £241.94 per sq ft when you consider how little space it buys. The fact that a far greater proportion of the population than uses self storage is willing to part with an absurd sum for leaving their car somewhere  surely shows what a minor concern price tends to be.

Parking isn’t the only type of space rental which makes self storage seem like a good deal; people who complain about the cost of that should try being in the artistic world. An inevitable consequence of artistic people being attracted to cities is that the spaces they rent inflate in price as demand outstrips supply. This has led to artists’ studios in London costing 150% the price of self storage space per sq ft (often for a room not much bigger than a parking space). At the same time recording studios are nearly five and a half thousand pounds per calendar month (in case a band of wannabe rock stars felt like putting together the world’s longest debut album). These prices have supplied the force that’s behind a gradual change in self storage use, altering it from an inert atmosphere where possessions can be abandoned in safety to something increasingly used by creative types as a cheap, alternative workspace. The fact self storage is being used as a cheap alternative by some people must give the clearest indication that its cost implications have been misunderstood.

2 Responses to “Is self storage really that expensive?”

1. Poppy says:

   April 9, 2010 at 1:27 pm

   Isn’t it also the case that self storage is often needed in a situation which cannot be avoided such as moving house or redecorating and thus not having any room for one’s belongings. Furthermore self storage is increasingly used for such situations as a couple separating or getting divorced in which case the cost is less of a factor in whether they choose to use self storage or not.

2. Alexander says:

   December 19, 2010 at 3:08 pm

   I use storage in the winter to keep my car safe. Would highly recommend it.