Savills predicts Self Storage deal flow set for a strong rebound in 2026
UK and European Self Storage markets are positioned for further expansion, with operators increasingly focused on scale, integration of technology and data-led expansion strategies, according to the latest research from international real estate advisor Savills.
The firm notes that transactional activity across the UK and Europe remained subdued in the second half of 2025, due to several large processes that failed to complete. Looking ahead, Savills anticipates that investment activity to focus on urban locations, in cities where supply remains constrained and demand fundamentals are strongest. The advisor expects transaction volumes to recover as previously delayed processes return to the market, alongside newly launched opportunities.
In locations where there are limited acquisition opportunities, well capitalised operators have increasingly chosen to build where they cannot buy, reflecting both pricing discipline in the investment market and confidence in long term structural demand. Groups including StoreEx, Compound and Rafter Group are delivering new, modern assets designed to compete with legacy stock across key UK and European cities. Savills expects this trend to continue, as well capitalised platforms prioritise location, quality and operational efficiency.
Tom Atherton, strategy & market intelligence manager at Savills, states, “Attractive opportunities continue to be seen across UK and European Self Storage markets, especially within urban centres. Operational efficiency is expected to remain a key focus in 2026, with continued adoption of technology-led operating models, including store clustering, as operators seek to drive efficiency, reduce headcount and mitigate cost pressure. These dynamics, alongside the benefits of scale, are expected to support further improvement in operating margins.”
Adi Gokal, director, Savills Capital Advisors – Debt Advisory, says, “There has been continued interest from a wide range of lenders in the Self Storage sector, with increased allocations for both smaller ticket deals and larger portfolio transactions alike. Liquidity in the credit markets remains very strong and we expect to see debt terms continue to tighten over the course of 2026, particularly for businesses who are achieving operational efficiencies and technology integration within their platforms.”
Ollie Saunders, head of Self Storage at Savills, adds, “As market conditions stabilise and capital becomes more deployable, we expect a recovery in Self Storage investment activity in 2026. Platforms are more creative in how they scale, whether through using data to target development in underserved locations, management contracts, or technology, and this flexibility will be key to unlocking growth across the UK and European markets.”