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WWW.COLLIERS.COM/SINGAPORE | P. 1
SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011COLLIERS INTERNATIONAL | WHITE PAPER
Increasingly more people are turning to self-storage for space solutions on the back of space constraints and the rising cost of homes and office space in Singapore. The self-storage model, while at its early stage of development in Singapore, has evolved into a flexible, cost-effective and secure storage alternative for users.
With space constraints and the rising cost of homes and office space in Singapore,
increasingly more people are finding it challenging to manage the space they occupy and are
turning to self-storage for solutions in de-cluttering, organising and managing their treasured
paraphernalia like furniture, wine, equipment and documents.
Given the new but growing market for self-storage space in Singapore, this research paper
was undertaken in collaboration with Lock + Store Self Storage (Lock + Store)1 to provide the
public with a better understanding of the self-storage concept and its relevance as a space
solution in Singapore.
SEPTEMBER 2011
SELF-STORAGE: A SPACE SOLUTION
With space constraints and the rising cost of homes and office space in Singapore, increasingly more people are finding it challenging to manage the space they occupy and are turning to self-storage for solutions…
WWW.COLLIERS.COM/SINGAPORE | P. 2
SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
WHAT IS SELF-STORAGE?
Self-storage or self-service storage, is essentially a “Do-It-Yourself” storage concept where
users fully manage their leased self-storage space and stored items. It allows users to lease
storage space where they can keep goods and belongings in specialised facilities.
Users of self-storage facilities are given more choices and control by which they are able to
decide what, where, when, how and for how long they store their possessions compared to
conventional warehouses. This is possible because the lease terms of self-storage spaces
start at a minimum of two weeks and can be renewed monthly or annually whereas users of
conventional warehouses are typically required to lock in leases for two to three years.
The self-storage space is generally fully-enclosed and can vary in size according to the
specific needs of users. Based on Colliers International’s research, self-storage operators in
Singapore such as Big Orange, Extra Space, Lock + Store, Storhub, S3 and U-Store@SG
provide up to 80 different sizes of storage spaces ranging from lockers of about nine sq ft to
large storage units of up to 530 sq ft capable of holding huge business archives or the
complete contents of a house.
However, there is the flexibility for users to occupy much larger spaces, as some self-storage
facility operators may amalgamate units, most of which come with heights ranging between
2.4 metres and 2.8 metres, to suit users’ needs. Some operators such as Lock + Store also
offer double-deck storage units.
Most self-storage operators provide 24-hour access for all users/customers at their facilities
and most provide basic security services such as CCTV cameras, security guards and one of
the following personalised means of entry:
• Biometric fingerprint access
• Key card
• Digital pin number access
As operators are by and large not legally accountable for items stored in self-storage facilities,
users are typically expected to be responsible for the security and padlocking of their leased
storage units, in addition to the range of security features provided by the operator.
Besides the hardware, most self-storage operators also provide complementary services
such as advisory service to assist users in assessing the amount of space required. Another
example is the service provided by S3, a storage subdivision run by the Singapore Post, which
capitalised on their logistics strengths to provide selectable moving services to facilitate the
Self-storage or self-service storage, is essentially a “Do-It-Yourself” storage concept where users fully manage their leased self-storage space and stored items. It allows users to lease storage space where they can keep goods and belongings in specialised facilities.
Users of self-storage facilities are given more choices and control by which they are able to decide what, where, when, how and for how long they store their possessions compared to conventional warehouses.
WWW.COLLIERS.COM/SINGAPORE | P. 3
SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
movement of goods for the customer. Lock + Store also introduced an integrated three-in-one
office, storage and distribution service concept for its business users.
Meanwhile, other ancillary services made available by operators include pest control and
online self-storage operating systems, which offer real-time information on space availability
at different facilities.
Most self-storage providers also stock packing supplies like boxes, tapes, bubble wraps, cling
films, dehumidifiers, corrugated boards and padlocks that are readily available for sale to
customers.
WHAT CAN BE STORED IN A SELF-STORAGE FACILITY?
Generally, self-storage facilities can accommodate a wide range of items ranging from
personal and household items such as clothing, shoes, personal effects, books, children’s
items and furniture to business products and documents.
However, as the local self-storage industry develops and evolves over time, the suite of
services offered by operators has also been expanded to meet the changing needs of
customers and niche user groups.
For instance, some operators offer air-conditioned storage areas in their facilities, which are
kept at a constant temperature of between 23OC and 25OC. Users may choose to store
anything from precious collections of antiques and paintings, to equipment and musical
instruments.
Some operators such as Extra Space and Lock + Store also offer wine-storage facilities to
cater to the special requirements of wine collectors and wine dealers where a controlled
internal environment is maintained, i.e. a constant temperature of 13OC and a humidity level of
between 65% and 75%. Complementary tasting rooms are also available alongside their
wine-storage cellars.
Nevertheless, while Singaporeans are increasingly becoming affluent and sophisticated,
storage behaviour still centres largely on storing personal and household items. Lock + Store
carried out a survey2 of its 303 existing self-storage users from its facilities in Chai Chee and
Tanjong Pagar from July - August 2011 (hereafter referred to as “Lock + Store’s user
survey”) and found that the majority of their customers stored clothing, shoes and other
household items (29%), personal effects (18%) and furniture (16%).
Arts, crafts and other hobby/interest-related items collected and stored by users currently
constitute 3% of items stored at their facilities.
Source: URA/ Colliers International Singapore Research
… self-storage facilities can accommodate a wide range of items ranging from personal and household items … to business products and documents.
… as the local self-storage industry develops and evolves over time, the suite of services offered by operators has also been expanded to meet the changing needs of customers and niche user groups.
WWW.COLLIERS.COM/SINGAPORE | P. 4
SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
Others9%
Children's Items2%
Arts/Crafts/Hobby3%
Wine3%
Books & CDs5%
Business Products7%
Archives/Documents/Files8%
Furniture16%
18%
Clothing, Shoes & OtherHousehold Items
29%
Breakdown of Items Stored
WHERE ARE THESE SELF-STORAGE FACILITIES LOCATED?
The concept of self-storage was first introduced in Singapore in 2003. Today, there are about
eight self-storage operators with over 20 self-storage facilities offering more than 1.3 million
sq ft of net leasable space in Singapore as listed in Table 1.
The majority of existing self-storage facilities are located in the Eastern Region while others
can be found in the Northern and Western Regions of Singapore (please see Map 1).
To provide greater convenience and accessibility for the different groups of users, self-storage
facilities are often set up near densely populated residential areas or commercialised areas as
well as close to Mass Rapid Transit (MRT) stations and major expressways.
Today, there are about eight self-storage operators with over 20 self-storage facilities offering more than 1.3 million sq ft of net leasable space in Singapore…
Source: Lock + Store/Colliers International Singapore Research
To provide greater convenience and accessibility for the different groups of users, self-storage facilities are often set up near densely populated residential areas or commercialised areas as well as close to MRT stations and major expressways.
WWW.COLLIERS.COM/SINGAPORE | P. 5
SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
TABLE 1 : LIST OF SELECTED SELF-STORAGE SPACE IN SINGAPORE
No. Building Name Operator Location Range of Sizes of Space (sq ft) Term of Lease
1 Standard Form Building Big Orange 37 Tampines Street 92 20 - 200 Minimum 1 month
2 Victory Building Big Orange 111 Defu Lane 10 20 - 200 Minimum 1 month
3 5 Bukit Batok Street 22 Big Orange 5 Bukit Batok Street 22 20 - 200 Minimum 1 month
4 14 Woodlands Loop Big Orange 14 Woodlands Loop 20 - 200 Minimum 1 month
5 Markono Districentre EBC Storage 50 Tagore Lane 11 - 135 Minimum 1 month
6 CMH Industrial Building Extra Space 9 Sin Ming Industrial Estate Sector B 14 - 300 Minimum 14 days
7 Extra Space Boon Keng Extra Space 301 Boon Keng Road 14 - 300 Minimum 14 days
8 Extra Space Eunos Extra Space 7 Kaki Bukit Road 2 14 - 300 Minimum 14 days
9 IMM Building Extra Space 2 Jurong East Street 21 14 - 300 Minimum 14 days
10 1 Clementi Loop Extra Space No. 1 Clementi Loop 14 - 300 Minimum 14 days
11 EPL Building EPL-Self Store 1100 Lower Delta Road 15 - 200 Minimum 1 monthMaximum 3 months
12 Lock+Store Chai Chee Lock+Store 502 Chai Chee Lane 16 - 300 Minimum 1 month
13 Tanjong Pagar Distripark Lock+Store 37 Keppel Road 11 - 200 Minimum 1 month
14 Hersing Hub Storhub 743 Lorong 5 Toa Payoh 12 - 530 Minimum 1 month
15 Storhub Changi 1 Storhub 25A Changi South Street 1 12 - 530 Minimum 1 month
21
20
19
18 14
5
4
39
10
11
13
7
17
8
2
12
116 15
6
Map 1
Continued to next page
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
Frequency of Visits
As necessary
1%Daily
5%
Weekly
16%
Fortnightly
16%
Monthly
33%
Bi-monthly
15%
Quarterly
9%
Six-Monthly
1%
Yearly
4%
Source: Lock + Store/Colliers International Singapore Research
After all, based on Lock + Store’s user survey, more than 30% of their customers viewed
location and ease of access as very important considerations in selecting their choice of self-
storage facilities. This is understandable and expected, as close to 70% of their customers
who responded to the survey visit their self-storage facilities more than once a month. In fact,
5% of the respondents visit their storage facilities on a daily basis.
TABLE 1 : LIST OF SELECTED SELF-STORAGE SPACE IN SINGAPORE
No. Building Name Operator Location Range of Sizes of Space (sq ft) Term of Lease
16 Storhub Changi 2 Storhub 15 Changi South Street 1 12 - 530 Minimum 1 month
17 Storhub Kallang Storhub 160 Kallang Way 12 - 530 Minimum 1 month
18 Storhub Toa Payoh Storhub 615 Lorong 4 Toa Payoh 12 - 530 Minimum 1 month
19 23 Tampines Street 92 Storhub 23 Tampines Street 92 8 - 530 Minimum 1 month
20 Singapore Post Ayer Rajah Delivery Base
S3 Singpost 6 Ayer Rajah Crescent 9 - 406 Minimum 1 month
21 Singapore Godown Building U-Store@SG 25 Tagore Lane 10 - 390 Minimum 1 monthMaximum 1 year
Source: Colliers International Singapore Research
Continued from previous page
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
HOW MUCH DOES SELF-STORAGE COST?
The cost of using self-storage space typically depends on the brand name of the operator; the
features/specifications/offerings of the facilities such as security features; and ancillary
services like specialised packing service and moving services; as well as the location of the
facility.
A broad survey of major self-storage operators in Singapore by Colliers International revealed
that the cost for regular, non-air-conditioned self-storage units range from $40 per month for
a 9 sq ft locker to about $1,200 per month for a 390 sq ft unit.
On top of the base cost, other costs may include a one-time administrative fee and insurance
fees for storage contents in the event of fire, theft or water damage.
TABLE 2 : ESTIMATED COST OF USING SELF-STORAGE SPACE IN SINGAPORE
Range of Sizes of Units (sq ft) Estimated Range of Cost (S$ per month)
9 - 50 40 - 360
51 - 100 190 - 470
101 - 200 540 - 950
201 - 400 800 - 1,200
> 400 > 1,200
Source: Colliers International Singapore Research
WHO USES SELF-STORAGE SPACE?
Users of self-storage space encompass a cross-section of individuals and businesses.
Indeed, an analysis of Lock + Store’s user survey revealed that the bulk (about 68%) of their
existing self-storage space users who responded were individuals while 30% were business
owners in various industries. A small 2% were hobbyists. However, Lock + Store observed
that they are a growing group.
Customers of self-storage facilities use such space for varied reasons.
Rising affluence has led to higher purchases on clothing, shoes, household items and even
collectables such as artwork, limited edition toys and wines which generally require storage
space. The need for storage space is further compounded by the developing trend towards
smaller housing units and providing homes with bay windows, larger planter boxes, balconies
and air-con ledges which effectively reduce useable space within a home. These have
prompted some individuals to look for more affordable alternative storage space. Lock + Store
The cost of using self-storage space typically depends on the brand name of the operator; the features/specifications/offerings of the facilities… ancillary services… as well as the location of the facility.
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
… with shrinking apartment sizes, households are also increasingly looking to self-storage facilities to keep their treasured possessions
Breakdown of Users of Self Storage Space
Source: Lock + Store/Colliers International Singapore Research
has seen some 19% of its survey respondents using its self-storage facilities because they
are moving from a big house to a smaller unit and so they need a place to store their
belongings.
According to Lock + Store, with shrinking apartment sizes, households are also increasingly
looking to self-storage facilities to keep their treasured possessions. Not used to the
minimalist concept of “less is more”, Singaporeans continue to be fond of purchases and
keeping their prized acquisitions. Interestingly, Lock + Store have encountered a number of
men looking for storage space as their wives can no longer put up with their auto parts
collections at home.
An increasing number of individuals are also using self-storage space as a temporary storage
solution during office or home renovations or relocations while expatriates/transient workers
are turning to self-storage space as a cost effective means of temporarily depositing their
belongings while they are away for assignments. Lock + Store has 9% of its users who
responded citing “I’m an expatriate and the place I rent is too small to store all my
belongings”, 5% who said that “there is not enough space at home” and 3% who stated “for
renovation purposes”, as reasons for using a self-storage facility.
Business (Multi-National Corporations)
4%
Business(Small and Medium Enterprises)
18%
Business(New Start-up)
6%
Business (Others)
2%
Individuals
68%
Hobbyist
2%
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
From the business/corporate perspective, rising occupancy costs of business space has led to
them increasingly turning to self-storage space to optimise operational efficiency as such
spaces allow them to archive documents and store inventories in more cost-effective facilities
while not being tied down to long and cumbersome leases.
Stock-heavy business owners who need the flexibility to downgrade/upsize their space
requirements, depending on their business needs are also turning to self-storage to
warehouse their products/inventories.
Moreover, new start-ups/entrepreneurs are using self-storage space as a warehousing option
for their inventories as a means of lowering initial overhead costs.
Lock + Store’s user survey revealed that a large proportion (about 27%) of their users have
turned to self-storage space as renting a shop/warehouse space/office to store their products
is too costly, while some 10% indicated that they have a home-office/internet-office and
needed just a small space to store their products.
0% 5% 10%1 5% 20%2 5% 30%3 5%
f
e
d
b
c
a
g
Notes:
c. Moving from a big house to a smaller unit so I need a place to store my belongingsd. I’m an expatriate and the place I rent is too small to store all my belongingse. I travel a lot for work sometimes on short or long-term intervals. It makes more sense to store my belongings at Lock+Store rather than to extend my rental periodf. A new addition to the family means we need to clear room for babyg. Other reasons
Reasons for Using Self Storage
0% 5% 10% 15% 20% 25% 30% 35%
Notes:a. Renting a shop/warehouse space/office to store my products is too costlyb. I’ve a home-office/internet-office. I just need a small space to store my productsc. Moving from a big house to a smaller unit so I need a place to store my belongingsd. I’m an expatriate and the place I rent is too small to store all my belongingse. I travel a lot for work sometimes on short or long-term intervals. It makes more sense to store my belongings at Lock + Store rather than to extend my rental periodf. A new addition to the family means we need to clear room for babyg. Other reasons
Source: Lock + Store/Colliers International Singapore Research
… rising occupancy costs of business space has led to them increasingly turning to self-storage space to optimise operational efficiency… while not being tied down to long and cumbersome leases.
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
... the cost/price and location of self-storage facilities seem to be ranked highly among those who are looking for space.
... Lock + Store’s user survey showed that the attributes of self-storage facilities that garnered the highest percentage of respondents rating them as “Very Important” are “Price” (45%) and “Location of Facilities” (37%).
WHAT ARE USERS’ KEY CONSIDERATIONS IN SELECTING A SELF-STORAGE FACILITY?
While users are expected to have different selection criteria, the cost/price and location of
self-storage facilities seem to be ranked highly among those who are looking for space.
Similar to other types of properties, these are also important considerations of space
occupants.
Indeed, Lock + Store’s user survey showed that the attributes of self-storage facilities that
garnered the highest percentage of respondents rating them as “Very Important” are “Price”
(45%) and “Location of Facilities” (37%).
Users also value attributes such as “Security”, “Ease of Access”, “Flexible Storage Terms”
and “Customer Service” highly. These garnered the next highest percentage of “Very
Important” votes ranging from 27% to 36%.
Conversely, respondents consider the “Availability of Accessories” (e.g. boxes, shelving, etc.),
“Referred Partners” (e.g. moving and insurance companies) and “Confidentiality” as having
lower levels of importance.
Importance of Attributes
Source: Lock + Store/Colliers International Singapore Research
0% 10%2 0% 30%4 0% 50%6 0% 70%8 0% 90%1 00%
Availablity of Accessories
Referred Partners
Customer Service
Flexible Storage Terms
Ease of Access
Security
Location of Facility
Price
Least Important Slightly Important Average Moderately Important Very Important
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
WHAT ARE THE GROWTH PROSPECTS FOR THE SELF-STORAGE INDUSTRY?
Land scarcity in Singapore, coupled with a growing population and vibrant business
environment will continue to drive demand for self-storage space.
This will be further supported by the growing fad of “Mickey Mouse” homes (i.e. residential
units that are less than 500 sq ft) which may also create new demand for self-storage space
as households look outside of their homes for additional storage space.
Additionally, Singaporeans are increasingly acquiring less conventional hobbies such as arts
and crafts collections, wine appreciation and mountain-biking that require added storage
space. This will contribute to the demand for self-storage space.
Moreover, capping occupancy costs of business space remains a relevant and important
consideration for businesses/companies to ensure cost-effective operations, particularly
during times of increasing rental costs. This will continue to create demand for self-storage
space.
In particular, Lock + Store foresees that more start-up firms and small and medium
enterprises (SMEs), especially those involved in online businesses are expected to use self-
storage facilities to keep operational costs low. This trend looks set to continue as the
Singapore government continues to create favourable conditions for entrepreneurship.
A survey of existing self-storage users at Lock + Store revealed that about 9% of them
indicated an intention to expand their storage space requirements in the next six to 12
Source: Lock + Store/Colliers International Singapore Research
Intention to Increase Usage of Storage Space in next 6 months
Intention to Increase Usage of Storage Space in next 12 months
Yes 9%
No 91%
Maybe 0% Yes 9%
No 89%
Maybe 2%
Land scarcity in Singapore, coupled with a growing population and vibrant business environment will continue to drive demand for self-storage space.
... Singaporeans are increasingly acquiring less conventional hobbies … that require added storage space. This will contribute to the demand for self-storage space.
… capping occupancy costs of business space remains a relevant and important consideration for businesses/companies to ensure cost-effective operations, particularly during times of increasing rental costs. This will continue to create demand for self-storage space.
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SELF-STORAGE: A SPACE SOLUTION | WHITE PAPER | SEPTEMBER 2011
COLLIERS INTERNATIONAL CONSULTANCY & VALUATION (SINGAPORE) PTE LTD1 Raffles Place#45-00 One Raffles PlaceSingapore 048616
TEL +65 6223 2323FAX +65 6222 4901
RCB NO 198105965E
This report and other research materials may be found on our website at www.colliers.com. Questions related to information herein should be directed to the Research Department at the number indicated above. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, express or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). © 2011. All rights reserved.
AUTHORS:
Michelle Tee Assistant Manager | Research & AdvisoryEMAIL [email protected]
Eliza LeeResearch Analyst | Research & AdvisoryEMAIL [email protected]
1 Lock + Store is a self-storage facility operator in Singapore. With a total of two self-storage facilities in the local market, its first self-storage premises was opened in Tanjong Pagar DistriPark in 2005.2 Lock + Store carried out a survey of its 303 existing self-storage users from its facilities in Chai Chee and Tanjong Pagar from July - August 2011. The aim of the survey was to uncover the profile, attitudes, practices and requirements of its users to draw a preliminary proxy of representation of self-storage users in Singapore.
months, which bodes well for the industry. The poll also showed that some of the self-storage
users who are SMEs are cautiously optimistic about their business performance in the year
ahead and this is expected to buoy demand for self-storage space.
Hence, the growth prospects for the self-storage industry are bright. In fact, confidence in the
market is evident from the steady entrance of new players into the self-storage scene, the
most recent being EPL-Self Store, with varying adaptations of the concept of self-storage.
Existing industry players are also trying to strengthen their foothold in the market. For
example, CapitaLand Limited, which has formed a joint venture with Hersing Corporation Ltd
to manage the “Storhub” brand of self-storage facilities in Singapore, has announced in 2010
its intention to “grow its new business in self-storage and double the Storhub portfolio of
properties in the coming year”. Lock + Store also expanded its facility at Tanjong Pagar by
another 38,000 sq ft in September 2011.
CONCLUSIONS
The advent of the self-storage space model has stemmed mainly from the needs of
individuals and businesses for storage facilities that provide them with greater flexibility and
control over the management of space and storage of items.
Although the local self-storage space model is still in its nascent stage of development with
barely a decade’s presence in Singapore, the model has evolved into a flexible, cost-effective
and secure storage alternative for users, where the offerings are beyond those of
conventional warehouse space.
The emergence of new and increased numbers of industry players makes it imperative for
self-storage operators to constantly adapt and develop innovative self-storage concepts to
cater to the evolving and specific needs of different customer groups and in turn grow the
market potential of the industry in Singapore.
Acknowledgement:Colliers International Singapore Research would like to thank Lock + Store for sharing their survey findings, facts and opinions on the self-storage market in Singapore.