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Spotlight

Self-storage a solution for individuals and businesses

By Alejandro Enríquez | Wed, 01/20/2021 - 17:43

The space you need, for as long as you need it, with 24/7 access. That is the basis of self-storage solutions for both individuals and businesses looking for valuable extra space within large cities. According to Mordor Intelligence, the self-storage market is expected to reach a value of US$115.62 billion by 2025. This market is mostly driven by the increasing urbanization and the cost of living in big cities.

Picture an individual in a large city. Usually living in an apartment building, little space for Christmas decorations, extra furniture or you name it. Self-storage is the solution to have an additional option to save what they value. An extra closet that is closer to your home. Now picture a small e-commerce business. Last-mile deliveries could be a headache and can undermine customer satisfaction. Should the company use strategic self-storage locations, deliveries, and stock management problems can be easily solved.

In Mexico, U-Storage is the market leader of this segment with more than 11,500 customers, 74 percent of which are individuals or families, while 26 percent are businesses related to logistics, last-mile deliveries, e-commerce and shared-economy, among others. "We are democratizing storage spaces to make them accessible to any customer. Our added value comes from our strategic location within major cities, particularly Mexico City, close to high-demand and high-consumption areas for e-commerce platforms and individuals looking for additional storage space," says Diego Ysita, CEO of U-Storage.

Available spaces in U-Storage can go from 2 to 200m2 that can be leased through flexible monthly contracts. Users can book their storage space remotely, choosing as much space as they need and signing the contract at the chosen facility. Different companies have shared their experience with U-Storage with MBN and how self-storage has helped their operations.

There is still room to grow for the self-storage market, however. According to the Mexican Association of Self-Storage (AMDAAC), in 2019, the national self-storage industry counted almost 200 locations, and more than 25 percent of them located in the Mexico City metropolitan area. Mexico has only 260,000m2 of self-storage space available, while in the US there are 158.8 million m2. Comparing Mexico City area versus Houston, the former has only 0.01m2 of self-storage per capita while the latter has 0.78m2.

As the market continues to grow, U-Storage strengthens its strategies to consolidate its market leadership. The company is partnering with real estate developers, e-commerce players, logistics companies and other key stakeholders across Mexico's big cities. Pay close attention to what the company does next.

Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst