Small Businesses Fall Back on Self Storage During Recession

If doom mongers are correct, the UK may be facingcompany is confident its growth will be sustained.
a double dip recession. For small businesses it remainsEqually, a company may want to downsize from its
a nervous time. Self storage provides a flexible andexisting office but needs somewhere to temporarily
cost-effective solution for businesses scaling up orstore its goods.
down.In contrast, rented office space often comes with
The self storage concept entered the UK from theconsiderable lease obligations. Similarly, freehold
US in the early nineties and is usually thought of as aproperty can tie up valuable capital at a time when
service for domestic users: families between homes,finance is difficult to come by.
as a store for the domestic overflow, or forAlan Wilson, a photographer from the north of
students on summer vacations. But more and moreEngland, has rented a storage unit for three years. "I
small businesses are beginning to appreciate howdo a lot of product photography and I needed a
useful self storage can be to them.place to store my props," he says. "There was not
There was a 10 per cent increase in the number ofenough room in our garage at home and I was also
business tenants taking out space in self storageworried it wasn't dry enough, or secure enough. I've
units in the UK in 2009, according to the UK's Selfgot a small 6ft by 12ft storage unit five minutes
Storage Association. Businesses now take almost 35from where I live. It's ideal. I can pick up anything I
per cent of all storage space in the UK.need on my way to a job. Sometimes I rent a unit
One leading self storage provider puts this down toan additional unit for a month and use it as my studio
the flexibility of the self storage offering. A businessfor indoor commissions."
can scale up or down its space requirements withIt appears that businesses using self storage rarely
just a month's notice. A room in a storage unit theleave. One UK self storage operator says: "When a
size of a small child's bedroom can cost as little asself storage centre opens, 60 to 70 per cent of our
£60 per month. Often storage units will have 24customers are domestic and 30 per cent business
hours access and a porter that can accept deliveriesusers. After four years we find that 60 per cent of
on businesses' behalf. Some storage warehouses,our tenants will be businesses and 40 per cent
typically those in old industrial buildings, even havedomestic."
office space to rent.Proof is in the pudding. As Wilson says: "As I am
If a business needs more space to facilitate growth,freelance, my business flow can be unpredictable.
self storage may be the stop gap needed until theThe flexibility of self storage suits me perfectly.