A British storage company is making a killing because the economy is on fire and everyone is running out of space
The group said it was mainly due to people needing to store their personal or business related items elsewhere because London, and other city properties, are really "constrained." That constraint occurred, the company said, because local economies have grown so fast since 2009 that everyone has run out of space.
The Big Yellow Group said in a statement (emphasis ours):
Self storage demand from businesses and individuals at any given store is linked in part to local economic activity, consumer and business confidence, all of which are inter-related. Fluctuations in housing activity whether in the rented or owner occupied sector are also a factor and in our view influence the top slice of demand over and above a core occupancy. This has been demonstrated by the resilience of our like-for-like stores since September 2007 despite a collapse in housing activity and GDP over the period 2007 to 2009.
Local GDP and hence business and housing activity are greatest in the larger urban conurbations and in particular London and the South East. Furthermore, people and businesses are space constrained in these more expensive areas. Barriers to entry in terms of competition for land and difficulty around obtaining planning are also highest in more urbanised locations.