Boom in self-storage trade as homes get smaller

		Friday, Dec 09, 2011 my paper
By Josephine Price THERE is a growing demand for storage space among Singaporeans, who cite smaller homes and costly retail spaces as reasons for turning to self-storage facilities. For instance, entrepreneur Nurhana Jamaludin, 44, uses a self-storage facility to house vintage furniture for her online business, called Mad About Vintage. She started using such facilities - which are typically housed in warehouse buildings - three months ago for her personal belongings but now she uses it as a showroom for her business as well.  "It is simply more convenient. It is less expensive and I am not locked into a contract as I would be with retail space," said Ms Nurhana. Providers of such self-storage facilities are also jumping at the demand, with space being a commodity here. "We see a growing demand for self-storage in Singapore with a population that is increasingly sophisticated and well-paid, living in homes that are limited in space," said Mr Michael Hagbeck, chief executive of Extra Space, a self-storage provider. The newest kid on the block, Store Friendly, opens its first Singapore branch today, with aims to have a storage facility within 1km of every home here. The self-storage provider is based in Hong Kong. Mr Jes Johansen, 42, general manager of the Store Friendly facility here, sees strong potential in the self-storage market. "My estimate is that the industry will be five times bigger than it is today in a decade, and it could double over the next two to three years," he said. Rates at the 12,500 sq ft facility in Bukit Batok Street 22 start at $88 per month for an 8 sq ft storage space, up to $508 a month for a 150 sq ft space. He hinted that their subsequent fully air-conditioned storage facilities will be situated in the north and central parts of Singapore. Expansion plans are also on the horizon for other self-storage providers. StorHub self-storage, which has six outlets in Singapore, including ones in Toa Payoh and Changi, has plans for a seventh outlet in Admiralty. It is expected to be operational by the first quarter of next year. StorHub has storage units with sizes ranging from 7 to 100 sq ft, with rental rates starting from $55 a month. Ms Helen Ng, chief executive of Lock+Store self-storage, which has facilities in Tanjong Pagar, Bedok and Chai Chee, said: "We are always on the lookout for strategic store locations and good opportunities." With business booming at 80 per cent occupancy on average, Lock+Store recently expanded its Tanjong Pagar facility by 38,000 sq ft after experiencing a 5 per cent increase in demand over the last six months. Lock+Store's rates range from $45 for the smallest 10 sq ft unit to $540 for a 200 sq ft one. These facilities aid the expansion of small enterprises here by cutting the costs of renting or buying office or retail spaces for commercial use. For example, entrepreneur Raj Sandhu, 45, stores equipment for his business at a Tanjong Pagar facility. His equipment ranges from tennis balls to props to build pushcarts with, for his corporate team-building business, called Action Team. "It is just so convenient, I think it will catch on more with time," he added.