In a year where commercial property headlines are dominated by hybrid offices, life sciences hubs, and logistics mega-centres, one high-performing asset class continues to fly under the radar: self-storage. Quietly, it has emerged as one of the most resilient and scalable income-generating models in the UK property landscape. Yet many developers still underestimate its potential as the commercial asset class of 2025.
In this article, we explore why self-storage is the most overlooked commercial asset class in 2025, and why forward-thinking property developers are now building it into their portfolios.
Why Self-Storage is Booming in 2025
The UK self-storage market is now worth over £1.2 billion and continues to grow steadily year on year. With more than 64 million sq ft of space and consistent rental rate increases, the sector is no longer niche — it is maturing fast.
What is driving this growth? A perfect storm of social and economic trends:
- Higher residential churn due to affordability pressures and relocation
• Downsizing by ageing populations and remote workers
• E-commerce operators and tradespeople needing flexible warehousing
• Urban density and housing undersupply driving space constraints
• The rise of modular, fast-to-deploy storage formats
Why Developers Often Overlook Self-Storage
Despite its strong fundamentals, many property developers overlook self-storage for one simple reason: it does not look exciting. Compared to retail or residential developments, a row of storage units may seem uninspiring. But that perception hides a powerful reality — high yield, low overhead, and minimal management complexity.
Other common reasons developers miss this opportunity include:
- Lack of in-house operational experience
• Misconceptions about planning and permissions
• Underestimating demand in semi-urban or suburban areas
• Focus on ‘hero’ projects instead of cash-flowing assets
How Self-Storage Compares to Other Commercial Assets
When compared to offices, retail parks, or hospitality venues, self-storage stands out in several areas:
- Lower capex requirements — modular builds reduce upfront costs
• Faster time to revenue — sites can be operational in months
• Resilient in downturns — stable demand from SMEs and individuals
• Strong cash flow profile — consistent occupancy, automated payments
• Scalable — facilities can be phased in based on demand
Ideal Sites for Self-Storage Development
Self-storage is especially well suited to sites that may be considered awkward or non-core. This includes:
- Redundant retail or warehouse units
• Brownfield or contaminated land awaiting planning
• Over-sized yards or laydown areas
• Edge-of-town plots with good road access
• Long-term hold assets generating minimal return
By deploying modular self-storage, developers can activate income on underperforming assets while preserving optionality for future use.
A Turnkey Approach to Storage Success
For developers who lack the time or expertise to run a storage business, there is an answer. Partnering with a specialist operator like Wigwam Storage Management enables you to retain asset ownership while outsourcing all operational responsibilities — from branding and marketing to security, leasing, and customer service.
This model offers passive income with professional oversight, enabling you to turn dead land into a live, revenue-generating business within months — not years.
Final Thoughts: Do Not Overlook the Obvious
In 2025, smart developers are revisiting overlooked use classes with fresh eyes. Self-storage may lack glamour, but it delivers where it matters most: dependable income, scalability, and risk-adjusted returns. As the commercial property market evolves, this quiet performer is becoming a go-to solution for those seeking capital-efficient growth.
If you are holding underused commercial land or looking for ways to diversify your development strategy, self-storage deserves a closer look.
📞 Speak to Nick Grant at Wigwam Storage Management to explore how your site could support a profitable storage operation.
📧 Email: [email protected]
