A leading self-storage business has gone up for sale on Christchurch’s CBD fringe as a new report and local property trends point to sustained growth in the storage industry.

Central Storage in Waltham contains 129 self-storage units in varying sizes available for short or long-term rental. Over 90 percent of available units are occupied, many of which have been tenanted for over 10 years.

Bayleys salesperson Jeremy Speight said the powered and alarmed units were popular with households for storing furniture, valuables, collector’s items and recreational equipment, as well as tradespeople for storing tools and equipment, and businesses for document storage. Some units had even been hired to bands looking for a place to practise.

“The business has now been put on the market as a freehold going concern after being owned and operated by its current family proprietors for over two decades.

“The sale comes as research from the Self Storage Association of Australasia (SSAA) shows storage revenue continued to rise in 2024, with industry growth stabilising after historic highs post-Covid,” Speight said.

According to the SSAA’s 2024 State of the Industry report, the industry is well positioned for stable, long-term growth. Operators are optimistic about future performance, with digital efficiencies set to further advance the sector.

It reports that nearly one in 10 adults now use some form of self-storage. Demand has been driven by changes in lifestyle, living spaces and severe weather events, as well as growing use by businesses due to online retail expansion and supply chain challenges.

Speight said a trend towards property downsizing and residential intensification in inner Christchurch was adding further to local demand for extra storage space.

“Some 93 percent of Central Storage’s available units are occupied by domestic and commercial tenants – above the 87 percent average occupancy reported by the SSAA. Yet the business is still ripe with opportunities to further grow revenue and cut costs,” he said.

The freehold land, buildings and business behind Central Storage, located at 18-20 Raycroft Street, Waltham, Christchurch, are being offered for sale through Speight, of Bayleys Canterbury.

Sale is by deadline private treaty closing on Thursday 17 April (unless sold prior).

The Raycroft Street property encompasses several buildings with a total floor area of some 2,968 square metres on approximately 6,460 square metres of freehold land. The site is zoned Industrial General under Christchurch’s district plan.

“This is a medium to large storage facility constructed in the 1990s with further additions in 2001. It contains 112 single units each spanning some 20.4 square metres, 16 double units of 40.8 square metres and one mid-sized unit of 30.6 square metres. Each unit is accessed via a tilt door.

“The operation is supported by a secure sealed yard with access control and cameras. Efficiency is enhanced by new self-storage management system software installed in 2023/24,” Speight said.

The offering required little management input and presented new owners with flexible options, he said.

“It could be purchased as a standalone investment, as an additional facility to expand an existing storage business, or by the owners of another type of business to diversify while potentially utilising their existing staff.”

Speight said new owners would enjoy the immediate benefit of a smooth cash flow with recurring revenue from multiple short and long-term tenants.

“There are significant possibilities new owners can explore to boost the existing revenue, such as further increasing occupancy, reviewing rental rates, or offering add-on services such as supplying packaging materials. There is also cost saving potential, for example for an existing self-storage operator buyer to spread their overheads across multiple sites.

“The Waltham location is ideal, with a mix of industrial, commercial and residential properties making the area attractive for both businesses and residents.

“Waltham is around two kilometres southeast of Christchurch city centre. With State Highway 76, part of the city’s ring road system, running through the suburb it is easily accessible enabling the business to cater to a wide catchment,” Speight said.

Detailed business financial information is available to potential buyers subject to signing a non-disclosure agreement.