Insider magazine (Insider) is published bi-monthly by the Self Storage Association of Australasia Limited (ABN 23 050 341 725). This publication may not be reproduced or transmitted in any form, in whole or in part, without the express, prior written permission of the publisher. While every care has been taken in the preparation and publication of Insider, none of the Insider’s publisher, editor nor any of the publisher’s employees, subcontractors or contributors give any warranty as to the completeness or accuracy of the publication’s content, nor do any of them assume any responsibility or liability for any loss, damage or expense which may result from, or arise in connection with, any inaccuracy or omission in the publication. The views or opinions expressed in Insider are not necessarily those of Insider’s publisher or editor. Furthermore, Insider has the right to accept or reject any editorial and advertising material. All letters addressed to Insider will be regarded as ‘for publication’ unless clearly marked ‘Not for Publication’. All submissions to Insider may be edited for reasons of space or clarity and opinions expressed in letters published in Insider are those of the author, not of Insider’s publisher or editor.
Makala Ffrench Castelli CEO SSAA
This edition we share the CEO’s Report from the SSAA FY24 Annual Report.
FY24 saw member engagement at an all-time high. The SSAA was delighted to host a record 375 members at M23, the self storage event of the year in the dynamic heart of Melbourne. Seeing many new faces embrace the collegiate spirit of self storage is a testament to the industry and made for a spectacular three days, culminating in celebrations for the SSAA Awards for Excellence.
M23 also saw the launch of the SSAA Industry Snapshot 2023, which charted the sector’s return to stabilised growth and highlighted important sector trends, including demand drivers and the role of technology and automation in self storage.
SSAA’s ongoing investment in research on behalf of members continues to promote self storage as a standalone asset class, with
“FY24 saw continued investment in technology to streamline member experiences and our internal operations. Highlights this year included additional StorerCheck automations, a new-look StorageFinder and further updates to the member portal.
aspects of State of the Industry 2024 also accounted for in FY24, ahead of the report’s release in November 2024.
On the advocacy agenda, SSAA continued its efforts addressing the challenging insurance landscape and exploring alternative solutions (continued page 6)
customer service and unparalleled expertise.
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for members, working to bring a customer protection product to the Australasian market.
The SSAA reinforced its commitment to supporting members with operational resources, undertaking a review of consumer and contract law requirements and delivering a new self storage agreement suite, updated CSA guidelines and associated learning modules.
FY24 saw continued investment in technology to streamline member experiences and our internal operations. Highlights this year included additional StorerCheck automations, a new-look StorageFinder and further updates to the member portal.
Despite ongoing industry consolidation, membership continues to grow. Across FY24 the SSAA welcomed 116 new members, grew its supplier membership base by 24% and enjoyed an overall renewal rate of 89%.
The SSAA team is proud to have delivered another significant program of work for members
“ The SSAA team is proud to have delivered another significant program of work for members this financial year.
this financial year. Many of the investments made in FY24 will continue to benefit members well into the future. Importantly, these achievements have all been delivered while continuing to strengthen the financial sustainability of your association.
These outcomes would not be possible without the support of industry. In FY24 we were delighted to welcome Janus International Australia as our Principal Partner. We thank our directors, all our partners and our dedicated SSAA team for their tireless efforts across the year. l
AIM QUICK BUILD CONTAINERS: when every bit of space counts
Aim Quick Build Containers are the most versatile, quality solution for self-storage, warehousing or extra storage anywhere.
The containers come flat packed and can be assembled anywhere. Unlike shipping containers, Aim Quick Build Containers can be delivered to the back of a site, to an underground warehouse or assembled in a tight location. They can be joined, stacked, dismantled and relocated to suit your space requirements and changing needs.
Made with hot-dipped galvanised steel, Aim Quick Build Containers promise long-lasting quality. They come standard with oriented strand board floors, crane lifting lugs and forklift skids for easy movement. They also come with a rain gutter system to prevent water pooling on the roof, and with a key locking system with a separate T-Bar for a security padlock.
For more information or a quote, call Aim Hire on 03 9720 4455 email jdillon@aimhire.com.au or visit www.aimsitesolutions.com.au
Aim Quick Build Containers come in a range of sizes including 1x2m; 2x2m; 2x3m and 2x4m.
Visit our website to download the exact dimensions.
See you at the SSAA Convention 2024
This year’s convention in sparkling Surfers Paradise promises to be the self storage event of the year!
Engaging workshops, enlightening keynotes and exciting network events all set against the backdrop of the Gold Coast’s iconic beaches.
Whether you’re a seasoned industry member or a newcomer looking to make connections, there’s something for everyone!
We explore the latest trends shaping our unique sector across Australasia, with opportunities to network high on this years’ sunny agenda.
Suits most roller-door and swing door profiles. Roller-door version shown.
The ProEdge Smart Latch simplifies door security for both operators and tenants with its next-generation Bluetooth technology that provides keyless access, automated rental possibilities, and overlocking functionality. This one latch is all that is needed to accommodate left or right latch mounting and is designed for both flat and corrugated doors. Tenants just need to swipe left on the app to unlock the latch.
BLUETOOTH CONNECTIVITY
Tenant access controlled through a next generation Bluetooth connection via the StorID mobile app.
TAMPER RESISTANT BREAKAWAY TAB
A breakaway tab, with onboard accelerometer, mitigates forced entry efforts and notifies both tenant and owner in real-time.
RRP per latch* Under
STORLOGIX CLOUD INTEGRATION
StorLogix Cloud connectivity through a robust mesh network provides operators with information on tenant access and overlocking capabilities.
BATTERY PERFORMANCE
A single lithium manganese dioxide battery performs up to three years. A “wake” function extends the battery life so the unit is not always “listening.”
THE CONSTANT QUESTION OF SUPPLY
To predict future trends, it’s often necessary to first look back. This time last year, we spoke about the self storage sector shining brightly amongst the broader Australian property market, even under strained economic conditions. Now, 12 months later, there is no sign of the light dimming in the sector, though many remain cautious about the longevity of the spotlight. Namely, the primary concern is whether there is too much interest in the self storage industry and whether supply will soon be a concern.
Short answer? No. However, the ‘why’ should be considered in two ways: primarily the domestic landscape and a comparative look at other global self storage markets.
Domestic landscape
No one is a stranger to the concept of supply and demand, so to quantify supply, we must consider demand. In CBRE’s opinion, gone are the days of the ‘4 D’s of Self Storage Demand being Death, Divorce, Dislocation and Downsizing’. While these are key drivers of the demand sector, they are simply not enough to quantify all the demand alone. CBRE considers that there are at least 12 primary drivers, some specifically for the Australian market being population growth, overseas migration, e-commerce, education, employment opportunities, natural disasters, and urbanisation. In essence, the self storage sector is considered a needs-based asset class, meaning demand is driven by everyday life events that can impact all of us at any time, underpinning the sector’s demand.
Australia has over 2,250 self storage facilities with an estimated total Net Storage Area (NSA) of 5,460,000 sqm. NSA is defined as the total area of the storage units in a facility only, excluding all common areas, hallways, offices, and amenities. Based on the ABS data, the total population of Australia is 27,122,411, which reflects an existing supply level of 0.20 sqm of self storage space per capita as at March 2024.
To look at this more deeply, the CBRE Alternative Assets team have analysed all development approvals obtained for self storage facilities throughout Australia and conclude there is circa 775,000 sqm of NSA proposed to be developed nationally across 182 projects. Should every single one of these projects be completed,
Dylan Adams. Emily Quick.
the supply rate would increase by 0.03 sqm, reflecting a ratio of 0.23 sqm of self storage space per capita at current population levels.
It is important to note that the above analysis pertains to projects with Council approval only, although currently, other projects are mooted at various stages of the approval process. Considering the development pipeline of the main tier operators would increase the proposed supply of NSA to circa 1,000,000 sqm, reflecting a supply ratio of 0.24 sqm of storage space per capita at the current population levels.
However, approximately 35% of the approved projects have been sourced by potential new entrants or secondtier operators. Considering the economic conditions and rising construction costs, a significant number of these projects will probably not come to fruition.
It is important to note that the market appears to become somewhat saturated at a supply ratio at and above 0.50 sqm per capita. As such, while certain specific catchments are reaching or have already reached this supply ratio, Australia as a nation can absorb much more storage supply than what currently exists or is being proposed.
From a global landscape
The self storage market globally is dominated by the United States, which is home to over 52,000 of the world’s circa 60,000 self storage facilities, resulting in a high supply ratio of around 0.59 sqm per capita.
In contrast, other regions such as the United Kingdom and parts of Asia have comparable total facilities to Australia but exhibit much lower supply ratios. The UK maintains a supply ratio of approximately 0.01 sqm per capita. In comparison, Asian markets fall even lower at about 0.001 sqm per capita, reflecting stark differences in the availability of self storage to their population.
The Australian market is experiencing a unique dynamic where a growing population bolsters supply while demand for investment-grade stock remains high due to an influx of market participants. This combination has resulted in a notable shortage of A-grade properties in prime locations, which are often held tightly by existing owners, further exacerbating the scarcity of available stock. As a result, yields have remained stable, with some slight compression evident in specific markets despite the current economic climate.
The difficulty obtaining quality stock has seen many interested investors seek partnerships with established operators to grow their market presence. Australia typically demonstrates a more balanced offering with substantial opportunities than other global markets. Regarding global investor appetite, which is linked to demand, the CBRE Alternative Assets team have compared the Australian self storage market against other major markets globally over the last four years. The graph is provided above.
In analysing the graph, the conclusions are:
l Australia’s position: Despite the strong yield firming in the other markets, Australia’s yield of 83 basis points and its ranking as the softest globally could make it an attractive location for offshore institutional investors seeking higher returns. The relative softness in yields signifies the potential for growth in opportunities, especially as the market evolves.
l Market sophistication and technology adoption: Australia’s lag in sophistication and technology adoption is pivotal. As the market matures, it begins to leverage new technologies and innovative investment strategies, which may enhance returns and attract more institutional investment. Increased technology adoption can improve efficiency, transparency, and risk management in investment processes.
l Investment cycle: Australia can catch up to more mature markets as it progresses through its investment cycle. This could create an environment conducive to foreign investment as investors look for untapped potential and opportunities that may arise from a growing and evolving investment landscape. While yield firming is a primary trend globally, Australia’s softer yields and potential for sophistication and growth present challenges and opportunities. The evolving landscape may further attract investors looking for strategic entry points in an emerging market. l
Thanks to Dylan Adams and Emily Quick from CBRE for this article. www.cbre.com.au
We understand self storage and we’ve been working with SSAA members for two decades.
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SSAA 2024 ANNUAL REPORT
The full report is available on the SSAA Member Portal.
Membership
FY24 financial statements report:
Revenue $2,101,473 (FY23: $2,116,066)
Membership
Membership
Membership
The SSAA had 890 members at 30 June 2024 (FY22: 873) representing 1440 facilities (FY22: 1603) across Australasia.
The SSAA had 890 members at 30 June 2024 (FY22: 873) representing 1440 facilities (FY22: 1603) across Australasia.
The SSAA had 890 members at 30 June 2024 (FY22: 873) representing 1440 facilities (FY22: 1603) across Australasia.
The SSAA had 890 members at 30 June 2024 (FY22: 873) representing 1440 facilities (FY22: 1603) across Australasia.
This represents an increase in membership of 2% on FY23, despite ongoing industry consolidation.
This represents an increase in membership of 2% on FY23, despite ongoing industry consolidation.
This represents an increase in membership of 2% on FY23, despite ongoing industry consolidation.
This represents an increase in membership of 2% on FY23, despite ongoing industry consolidation.
During FY24, SSAA welcomed 116 new members and increased its supplier membership by 24%.
Expenses $2,078,536 (FY23: $2,082,392) Net Profit $22,937 (FY23: $28,684) Net Assets $1,651,086 (FY23: $1,518,232)
During FY24, SSAA welcomed 116 new members and increased its supplier membership by 24%.
During FY24, SSAA welcomed 116 new members and increased its supplier membership by 24%.
During FY24, SSAA welcomed 116 new members and increased its supplier membership by 24%.
Across FY24, 51 members resigned and 44 let their membership lapse (uncontactable/no payment).
Across FY24, 51 members resigned and 44 let their membership lapse (uncontactable/no payment).
Across FY24, 51 members resigned and 44 let their membership lapse (uncontactable/no payment).
AU Members 87% (FY23: 88%)
Across FY24, 51 members resigned and 44 let their membership lapse (uncontactable/no payment).
AU Members 87% (FY23: 88%)
AU Members 87% (FY23: 88%)
NZ Members 13% (FY23: 12%)
AU Members 87% (FY23: 88%)
NZ Members 13% (FY23: 12%)
NZ Members 13% (FY23: 12%)
NZ Members 13% (FY23: 12%)
Member Engagement
Member Engagement
Member Engagement
Member Engagement
Member Benefits
Member Benefits
Member Benefits
Member Benefits
Some notable highlights include:
Some notable highlights include:
Some notable highlights include:
Some notable highlights include:
• Answered more than 1250 member enquiries over the phone
• Answered more than 1250 member enquiries over the phone
• Answered more than 1250 member enquiries over the phone
• Answered more than 1250 member enquiries over the phone
• Answered more than 300 enquiries via the SSAA Help Desks
• Answered more than 300 enquiries via the SSAA Help Desks
• Answered more than 300 enquiries via the SSAA Help Desks
• Answered more than 300 enquiries via the SSAA Help Desks
• Facilitated more than 127,000 checks and the reporting of over 863 incidents on
• Facilitated more than 127,000 checks and the reporting of over 863 incidents on
• Facilitated more than 127,000 checks and the reporting of over 863 incidents on StorerCheck
• Facilitated more than 127,000 checks and the reporting of over 863 incidents on
• Launched 22 online training modules
• Launched 22 online training modules
• Launched 22 online training modules
• Launched 22 online training modules
• Filmed and released more than 21 hours of video content
• Filmed and released more than 21 hours of video content
• Filmed and released more than 21 hours of video content
• Filmed and released more than 21 hours of video content
• Published more than 80+ articles
• Published more than 80+ articles
• Published more than 80+ articles
• Published more than 80+ articles
• Developed the SSAA Information Management and Cybersecurity Guidelines
• Developed the SSAA Information Management and Cybersecurity Guidelines
• Developed the SSAA Information Management and Cybersecurity Guidelines
• Created facility security checklists in collaboration with BorderForce
• Developed the SSAA Information Management and Cybersecurity Guidelines
• Created facility security checklists in collaboration with BorderForce
• Created facility security checklists in collaboration with BorderForce
• Created facility security checklists in collaboration with BorderForce
• Refreshed the CSA Guidelines to reflect the new self storage agreement suite
• Refreshed the CSA Guidelines to reflect the new self storage agreement suite
• Refreshed the CSA Guidelines to reflect the new self storage agreement suite
• Refreshed the CSA Guidelines to reflect the new self storage agreement suite
The FY24 financial statements report:
Total Revenue
Financial Performance
$2,101,473 (FY23: $2,116,066)
Financial Performance
Financial Performance
The FY24 financial statements report:
Total Expenses
Total
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event
The FY24 financial statements report:
$2,078,536 (FY23: $2,082,392)
The FY24 financial statements report:
Financial Performance
Total Revenue
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK.
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a
Total Revenue
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue
Total Revenue
Net Profit
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members,
The FY24 financial statements report:
$2,101,473 (FY23: $2,116,066)
$2,101,473 (FY23: $2,116,066)
$2,101,473 (FY23: $2,116,066)
$22,937 (FY23: $28,684)
Total Expenses
Net
Total Revenue
Total Expenses
Total Expenses
Net Assets
$2,101,473 (FY23: $2,116,066)
$2,078,536 (FY23: $2,082,392)
$2,078,536 (FY23: $2,082,392)
$2,078,536 (FY23: $2,082,392)
Expenses were also inline with FY23, demonstrating
Expenses were also inline with FY23, demonstrating
Net Profit
Net Profit
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK.
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK.
Expenses were also inline with FY23, demonstrating prudential financial management.
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK.
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is currently sub -let.
Expenses were also inline with FY23, demonstrating
Total Expenses
also inline with FY23, demonstrating
$1,651,086 (FY23: $1,518,232)
financial management.
Net Profit
by
Net Profit
$22,937 (FY23: $28,684)
$22,937 (FY23: $28,684)
$22,937 (FY23: $28,684)
$2,078,536 (FY23: $2,082,392)
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK.
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is currently sub -let.
Net Assets
Net Assets
Net Assets
As a non-profit
Net assets grew by 8.9% due to the revaluation of the Bundoora office,
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which
As
As a
$22,937 (FY23: $28,684)
$1,651,086 (FY23: $1,518,232)
$1,651,086 (FY23: $1,518,232)
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements. Expense Distribution
$1,651,086 (FY23: $1,518,232)
Financial Performance
Net Assets
$1,651,086 (FY23: $1,518,232)
The FY24 financial statements report:
Total Revenue
Expenses were also inline with FY23, demonstrating prudential financial management.
Financial Performance
The FY24 financial statements report:
$2,101,473 (FY23: $2,116,066)
Expense Distribution 34.3%
Total Expenses $2,078,536 (FY23: $2,082,392)
Re venue for FY24 remained cons istent with FY23, despite FY23 being a single event
Expenses were also inline with FY23, demonstrating prudential financial management.
Expenses were also inline with FY23, demonstrating prudential financial management.
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is currently sub -let
Expenses were also inline with FY23, demonstrating prudential financial management.
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is currently sub -let
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements.
Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is currently sub -let.
Total Revenue $2,101,473 (FY23: $2,116,066)
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements.
This re lative increase
a ttributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK. Expenses were also inline with FY23, demonstrating prudential financial management. Net assets grew by 8.9% due to the revaluation of the Bundoora office, which is curr ently sub -let
Net Profit $22,937 (FY23: $28,684)
Net Profit $22,937 (FY23: $28,684)
Net Assets $1,651,086 (FY23: $1,518,232)
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements.
Total Expenses $2,078,536 (FY23: $2,082,392)
Net Assets $1,651,086 (FY23: $1,518,232)
Governance
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements.
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements.
As a non-profit entity, the SSAA seeks to invest the majority of available funds into projects and services for the benefit of members. A mode st profit of $22,937 has been retained for future requirements.
Total Revenue for FY24 remained consistent with FY23, despite FY23 being a single event year. This relative increase in revenue can be attributed to the increase in new members, growth in partnerships and additional revenue from licencing StorerCheck to SSA UK.
Total Revenue for FY24 remained consistent FY23, despite FY23 being a single event year. This relative increase in
and
licencing StorerCheck to SSA
Expenses were also inline with FY23, demonstrating prudential financial management.
Expenses were also inline with FY23, demonstrating prudential financial management.
Net assets grew by 8.9% due to the revaluation the Bundoora office, which is currently sub -let
Net assets grew by 8.9% due to the revaluation the Bundoora office, which is currently sub -let
As a non-profit entity, the SSAA seeks to invest majority of available funds into projects and services for the benefit of members. A mode profit of $22,937 has been retained for future requirements.
As a non-profit entity, the SSAA seeks to invest majority of available funds into projects and services for the benefit of members. A modest profit of $22,937 has been retained for future requirements.
FY24 saw SSAA farewell longstanding director David Daddow in line with rotational requirements. The Board welcomed new director Elizabeth Rutland representing Independent Operators.
Directors continued overseeing the execution of the 2023-2025 SSAA Strategic Direction, with a particular focus on developing the new self storage agreement and ongoing advocacy on insurance and alternative solutions.
The
The Board and the Audit, Finance & Risk Committee each met four times in FY24. The Audit, Finance & Risk Committee held a risk management workshop in February 2024 and continues to play an active role in budgeting, financial and risk management oversight.
The SSAA Office at Bundoora,
The SSAA Office at Bundoora, Melbourne is
The SSAA Office at Bundoora, Melbourne is held at a value of $840,000 (FY23: $738,746). During the year, part of the office was sub-let which generated income of $26,995 in FY24.
The SSAA acknowledges the ongoing support of industry, including principal partner Janus International Australia and major partners VISY Boxes & More, Southwell Lifts & Hoists, Storman, Storco, Universal Storage Containers and PTI Security, Convention sponsors, advertisers and all those who contributed their expertise for the benefit of members throughout the year.
The SSAA acknowledges the ongoing support of industry,
EUROPEAN SELF STORAGE MARKET UPDATE
The recently released 2024 European Self Storage Industry Report, co-produced by FEDESSA and CBRE, offers a thorough analysis of the current state of the European self storage market. With 9,575 operational stores covering 16.5 million sqm of gross storage area, the report examines emerging market trends and evolving consumer perceptions, making it essential reading for investors and operators alike.
2024 KEY INSIGHTS
Occupancy: Average occupancy across Europe fell from 79.9% in 2023 to 78.7% in 2024 when weighted by the overall size of the market. The result was primarily impacted by the largest market, the UK, which saw a drop of 2.5 percentage points, with decreases also reported across Spain, Norway, Austria, and Switzerland. Responses were gathered from all stores, including newly opened locations and expanding markets such as Portugal and Lithuania, where lower occupancy rates, typical of developing markets, often influence the results.
The industry is optimistic about increasing occupancy than revenue over the next 12 months, with 72% expecting higher occupancy. With general growth in the market driven by both consumer and investor interest, plus a proportion of stores in the ramp-up phase, it is no surprise that the majority of operators anticipate occupancy growth.
Revenue growth: It has been a mixed year for self storage revenue across Europe. On average, rental returns increased by 2% to €296.53 per sqm per year when weighted by market size. However, not all countries experienced an increase.
Portugal, Spain, Netherlands, Germany, and Belgium saw increases of over 5%, whilst Finland recorded a decrease.
Switzerland and Ireland have both significantly increased their self storage supply over the past 12 months. Switzerland, which has some of the most expensive real estate in Europe, also boasts the highest revenue per square meter of any market.
As economic conditions continued to tighten, some operators lowered their prices in an attempt to increase occupancy. Others maintained or increased prices, potentially sacrificing some occupancy for higher rental returns. The size and expansion stage of a market further influences the data, and the practise of discounting to ‘fill up’ to then push prices up as occupancy rates increase is widely witnessed.
Online pricing: Self storage operators are under increasing pressure to provide online pricing and full booking services as savvy customers now expect both price transparency and the ability to book online. Currently, 57% of operators display pricing on their websites, with 47% offering the option to complete storage contracts online. However, many operators face challenges associated with customers booking incorrect or inadequate storage solutions due to miscalculating space needs and not fully understanding the product or features of various facilities and spaces. This could explain why only 35% of operators
offer full online booking, including payment. To address these issues, businesses are enhancing their websites with features like online chat, space estimators, and AI-driven Q&A services to boost customer engagement and offer a more personalised experience. Additionally, the use of storage apps has increased by 25% over the past year.
Remote management: The proportion of remotely managed self storage facilities across Europe has grown significantly over the past year, with the technology more prevalent in markets like Austria (63%), Norway (72%), and Sweden (68%). This increase in remote access adoption is largely attributed to micro-sites or container storage locations where simple gate access systems replace the need for permanent staff on site. While the technology is more commonly implemented in new sites, it is less frequently retrofitted in larger facilities as seen in the UK with only 14% of stores being remotely managed, with France at 2%.
Online enquiries: The percentage of initial inquiries through company websites has increased from 64% in 2023 to 67% this year, with social media and local marketing inquiries also seeing a slight increase. Despite these minor changes, overall trends have remained stable since the pandemic. At a country level, Italy generates more customers offline
and through referrals, while Belgium and Sweden lead in online inquiries. These patterns are often linked to a country’s per capita supply, English proficiency, and technological adoption. For instance, Italy and Poland rely heavily on word of mouth, as English is less widely spoken. In contrast, Stockholm’s largely cashless environment likely contributes to Sweden’s high number of stores without permanent staff, and like Belgium, its high rate of online inquiries.
Other highlights include:
l 37% of the public have not heard of self storage, and a further 35% have heard of self storage but know nothing about the sector.
l Average rental returns are rising by 2% to €296.53 per sq.m annually. Portugal, Spain, the Netherlands, Germany, and Belgium had increases over 5%, while Finland experienced a decline.
l Self storage operators are investing more in security as technology improves and becomes more affordable, using AI to flag suspicious behaviour, along with enhanced CCTV and individual unit monitoring.
l 69% of survey respondents plan to implement AI in their businesses in 2024.
l Businesses remain optimistic about increasing profits, with 72% expecting an increase, and 92% no decrease in the next 12 months. From a market activity perspective, year-to-date transaction volumes remain strong at €875M, three times higher than the 2023 FEDESSA Survey figures. The UK continues to lead with a 34.6% market share, followed by France (15.8%), Germany (12.6%), and Spain (11.6%).
The past 12 months of economic uncertainty have posed challenges for Europe’s self storage market. Financial pressures on customers have led to fewer inquiries, and rising business and development costs have softened profits, which had been growing strongly in previous years. Occupancy rates have dropped in many markets, with the European average declining by just over one percentage point to 78.7%. Rental returns per square metre have varied, with some markets seeing declines as operators prioritised occupancy over returns. Still, the European average increased by 2%, reaching €296.53 per sq.m annually (excluding VAT).
Despite these challenges, demand for self storage remains robust, and most operators expect profitability to improve. Investment interest has steadily increased since 2020, with a diverse range of investors actively pursuing opportunities in this growing sector. l
The role of bank funding in the growth of the self storage industry: Trends, challenges, and opportunities
In recent years, the self storage industry has become a cornerstone of the real estate sector, showcasing remarkable resilience and growth. As this sector continues to evolve, access to capital, particularly through Bank & Non-Bank funding, has emerged as a critical factor in its expansion.
Key trends in bank funding for self storage
l Increased investment appetite: Big Four Banks have shown a decrease in funding appetite for self storage projects despite to the sector’s strong performance and relatively low risk. Typical Loan to Value Ratio’s (LVR) are capped at 50%-55% depending on occupancy levels for the asset. Current interest rates range from 6.50% - 7.50% pending risk analysis; typical interest times coverage ratio’s (ICR) range from 1.50x – 2.00x.
l Emergence of Non-Bank lenders: Non-Bank lenders continue to enter the market and have developed specialised financial products tailored to the unique needs of the self storage industry. Their entry is correlated with the decreasing major bank appetite; their view is the self storage sector remains strong due to high demand and asset class representing a low risk profile. Appetite for construction loans starts at LVR’s >60% with extended tenure to allow the facility to trade up occupancy. ICR requirements are typically 1x which allows sponsors to reposition stressed assets.
l Big Four Vs Non-Bank: A common misconception in the market is business operators are adverse borrowers for using a non-bank lender. Non-Bank lenders provide solutions to meet the clients short-term needs; with the intention to refinance to a major bank or allow time to effect a sale. At higher LVR’s and less conditions, Non-Bank lenders can be better value for money and require considerably less capital contribution from borrower.
Challenges in securing bank funding
l Rising interest rates: A high interest rate environment will reduce ICR’s on assets which could trigger a breach of loan covenants. This can lead to more stringent lending criteria or reduced LVR’s.
l Builder risk/uncertainty: All lenders have become increasingly cautious on a builders management and financial capability. For construction projects >$3m, lenders will undertake a due diligence on proposed builder which requires information like financial statements, past projects, management team etc. It’s imperative you advise the financier early in the process your intended builder to ensure they’re approved to undertake the project. Financiers will revoke their finance approval should builder not pass due diligence.
Bank funding remains a cornerstone of the self storage industry’s growth and development. As the sector continues to evolve, financial institutions play a crucial role in supporting expansion, innovation, and sustainability. While challenges such as market saturation and economic uncertainty persist, opportunities abound for operators and lenders to collaborate and drive future growth. By leveraging favourable financing options the self storage industry can continue to thrive and adapt in an ever-changing economic landscape. Using an experienced broker who specialises in the self storage sector is the best way to access/navigate all funding options in the market. l
With thanks to Troy Williamson from The Brokerage for this article. www.thebrokerage.au
Sebastopol, Ballarat
122-124 Yarrowee Street, Sebastopol Victoria
Celebrating eight decades of innovation
A journey to 80 Years with Southwell Lifts & Hoists
As Southwell Lifts & Hoists gears up to celebrate its 80th anniversary in 2025, we reflect on a story of innovation, resilience, and engineering excellence. Let’s dive into the historical milestones, significant achievements, and enduring legacy of a company that has been a cornerstone of the vertical transport industry in Australia.
The early years: Founding and initial growth
Founded in 1945, Southwell Lifts & Hoists began its journey in the post-World War II era, when industrial growth was vital for rebuilding economies. The company’s inception was rooted in addressing the burgeoning need for reliable lifting solutions in various industries, including manufacturing, construction, and logistics. With a vision to deliver high-quality, dependable products, the founders laid a strong foundation that would support decades of innovation and growth.
“In those early days, we focused on providing simple, reliable lifting solutions for local businesses. We built a loyal customer base by prioritising quality and customer satisfaction,” states Hamish McGregor, Southwell’s Managing Director.
Technological
advancements and product diversification
The 1960s and 1970s were transformative for Southwell Lifts & Hoists. This period saw the company expanding its product line to include more sophisticated lifting solutions. Introducing hydraulic and electric-powered hoists revolutionised the industry, improving efficiency and safety.
One of the hallmark achievements of this era was the development of the freestanding goods hoist.
“The freestanding goods hoist was a game-changer. It demonstrated our ability to innovate and adapt to market demands, becoming a preferred choice for many industries,” says McGregor.
Expansion
and modernisation: The 1980s and 1990s
By the 1980s, Southwell had firmly established itself as an Australian vertical transport industry leader. This period saw the company expand its operations beyond Australia, entering international markets with highquality products. The demand for reliable and efficient lifting solutions grew globally, and Southwell was wellpositioned to meet this need.
The 1990s were characterised by modernisation and the adoption of cutting-edge technologies. Southwell invested heavily in research and development, creating advanced hoisting systems incorporating state-of-theart electronics and automation. This era also saw the
introduction of the in-shaft goods hoist, a cost-effective alternative to traditional lifts that required minimal pit and overrun space.
“Our commitment to innovation during the 90s allowed us to stay ahead of the curve. The in-shaft goods hoist was particularly significant, offering a space-saving solution that many industries needed.” McGregor explains.
The turn of the century: Embracing sustainability and custom solutions
As the world entered the 21st century, sustainability became a key focus for industries worldwide. Southwell Lifts & Hoists responded to this shift by developing eco-friendly lifting solutions that minimised energy consumption and reduced environmental impact.
The company’s commitment to sustainability was reflected in its products, designed to be durable and energy-efficient.
In addition to standard products, Southwell began to emphasise custom solutions tailored to clients’ specific needs.
“Our ability to deliver customised solutions has been one of our defining strengths. It’s all about understanding each client’s unique requirements and exceeding their expectations,” notes McGregor.
Recent innovations and achievements
Southwell Lifts & Hoists has led the industry with groundbreaking innovations in the past two decades. One of the most significant recent developments has been the creation of lifts specifically designed for self storage facilities. These lifts are tailored to address the unique challenges of the self storage industry, such as optimising space and ensuring ease of access for users.
“Our self storage lifts have revolutionised how facilities operate. They maximise space efficiency and provide seamless access, making it easier for customers to store and retrieve their belongings.” McGregor proudly shares.
The company’s dedication to excellence is also evident in its airport ground support equipment. These specialised lifting solutions are designed to meet the rigorous demands of the aviation industry, ensuring safety, reliability, and efficiency in airport operations. Southwell’s expertise in this niche market underscores its versatility and capability to excel in diverse sectors.
The people behind the success
At the heart of Southwell Lifts & Hoists’ success are its people. The company has always prioritised fostering a culture of innovation, teamwork, and professional development. The expertise and dedication of its engineers, technicians, and support staff have been instrumental in driving the company forward. Southwell’s
“ We’re excited about the future and committed to continuing our tradition of excellence.
commitment to employee wellbeing and continuous learning has created a work environment where creativity and excellence thrive.
“Our team is our greatest asset. Their passion and dedication drive our success and innovation,” says McGregor.
Leadership has also played a crucial role in shaping Southwell’s journey. Visionary leaders with a keen understanding of market trends and a relentless drive for innovation have steered the company through various challenges and opportunities.
“Our leaders have always had the strategic foresight to navigate market dynamics and maintain our competitive edge,” McGregor adds.
Looking ahead: The future of Southwell Lifts & Hoists
As Southwell Lifts & Hoists celebrates its 80th anniversary in 2025, it does so with a proud legacy of innovation, excellence, and community engagement. From its humble beginnings in 1945 to its current status as a leader in the vertical transport industry, Southwell’s journey is a testament to the power of vision, perseverance, and adaptability.
Looking ahead, the company is set to continue its tradition of pioneering solutions that meet the changing needs of its customers. With a strong foundation built on quality, innovation, and customer satisfaction, Southwell Lifts & Hoists is well positioned to embrace the future and achieve new heights of success.
“We’re excited about the future and committed to continuing our tradition of excellence,” McGregor concludes. l
Thanks to Southwell Lifts and Hoists. www.southwell.com.au
Understanding market asking rates is vital for real estate professionals in the self storage industry. Asking rates are a crucial component in determining the performance and value and of self storage assets, and having accurate, up-to-date data is essential for successful transactions. Typically, a facility’s submarket is defined by a 5-7 km radius or a 10-15 minute drive time, and tracking rental rates and trends across various markets can be an arduous task. StorExplore was developed as a comprehensive and agile platform for efficient asking rate analysis.
Recognising the demand for transparent and comprehensive rental rate data, Self Storage Advisory Australia developed the proprietary self storage analytics platform, StorExplore. By utilising available asking rent data from across Australia, StorExplore enables users to analyse historical
rental rates to help assess the performance and value of self storage assets. Whether offering an opinion of value, evaluating development feasibility, or assessing revenue potential, StorExplore equips professionals with the tools needed to deliver detailed market analysis and insights.
StorExplore has become a key tool in Self Storage Advisory Australia’s ability to provide high-quality real estate services. Realising demand
for the platform from other self storage professionals, StorExplore is also being prepared for release on a subscription basis. Further details can be found at storexplore.com.au.
How does StorExplore work?
StorExplore utilises geographic filters to select and analyse competitor stores within a submarket or region to compare asking rates and historical trends across various unit sizes and types—such as drive-up, ground, or upper-floor units. With continuous updates to its current repository of over 500,000 asking rates, StorExplore supports nationwide research across every major market.
Why is StorExplore useful?
Asking rents are leading indicators of potential revenue performance and self storage demand. Strong occupancy and demand typically result in higher asking rates, while lower rates often indicate reduced occupancy and weaker demand. By tracking asking rates over time, StorExplore provides valuable insights into current and future market performance. l
Thanks to Self Storage Advisory Australia. www.storexplore.com.au
Facility of the Year (Over 500 units)
Sponsored by Janus International Australia
FINALIST Storage King Perth Airport
Storage King Perth Airport, a finalist for the SSAA Industry Awards for Excellence Facility of the Year (Over 500 units), stands tall as a symbol of superior self storage services.
This expansive facility caters to a diverse clientele, including the local airport and FIFO market and the broader community. With a wide array of storage options ranging from single-metre lockers to large double-garage units, Storage King Perth Airport provides unparalleled convenience and flexibility.
Spanning four main storage areas across two floors, the facility boasts large goods hoists, facilitating efficient movement of belongings. Recent upgrades, including a $750k investment in modern amenities such as 32-channel CCTV surveillance, new Southwell goods hoists, and a customer meeting room with corporate video and TV, have further enhanced the customer experience.
With 881 units and a net lettable space of 6200 square meters, Storage King Perth Airport is a bustling hub of activity. Managed by a dedicated team of three, the facility prides itself on its exceptional occupancy rate, averaging between 91% and 92% over the past year.
The facility’s approach to pricing is strategic, preferring short-term promotions over discounts to maintain competitiveness. With every tenant enjoying 24-hour access—a key selling point—the facility emphasises value and customer experience. Quarterly price reviews ensure a balanced yield and rent roll increase approach without compromising customer satisfaction. Safety and security are paramount at Storage King Perth Airport. Gated access, modern keypad entry systems, and 32 high-resolution CCTV
cameras ensure round-the-clock surveillance. Alarmed gates and sensors provide additional security outside of office hours, offering peace of mind to tenants.
The dedicated staff at Storage King Perth Airport play a pivotal role in the facility’s day-to-day operations. From assisting tenants with their storage needs to ensuring cleanliness and security, the team goes above and beyond to deliver outstanding service. Recent accolades, including the Storage King Facility of the Year award, are a testament to their hard work and dedication.
Marketing efforts at Storage King Perth Airport are targeted and multi-faceted, encompassing online advertising, direct mail, social media engagement, and television advertising. By partnering with local businesses and sponsoring community events, the facility fosters strong ties with the community, driving local engagement and awareness.
Customer service is paramount at Storage King Perth Airport, focusing on understanding and meeting the needs of each tenant. The team adopts a consultative approach, building customer trust and rapport to ensure a positive experience. Additional amenities, such as free shuttle services to the airport during office hours, further enhance customer satisfaction.
Storage King Perth Airport’s commitment to excellence in self storage solutions is unparalleled. From its stateof-the-art facilities and robust security measures to its customer-centric approach and community engagement initiatives, the facility embodies the industry’s best practices. A deserving finalist for the SSAA Awards for Excellence. l
Facility of the Year (Over 500 units)
Sponsored by Janus International Australia
FINALIST
Rent a Space Queanbeyan, NSW
Rent a Space Queanbeyan, a pioneering addition to the self storage landscape, was a finalist for the Facility of the Year Award (over 500 units). This recognition is a testament to the facility’s unwavering commitment to customer-centricity and operational excellence.
Nestled in the heart of Queanbeyan, Rent a Space’s latest venture stands as a beacon of convenience, offering 940 secure units spread across two stages. Boasting a comprehensive suite of amenities and cutting-edge design features, the facility sets a new standard for storage solutions in the region.
Designed with the customer experience in mind, Rent a Space, Queanbeyan features 44 driveway units and three large awnings, providing ample protection during loading and unloading. Customers can easily access upper levels via three rapid passenger ride-on goods lifts, ensuring seamless movement of belongings. Leveraging the site’s natural topography, the facility incorporates 41 oversized units with larger roller doors, catering to high vehicles and maximising storage space.
Upon entry, customers are greeted by a bright and inviting office and Box Shop, complete with a complimentary meeting room and a separate waiting area with comfortable lounges, coffee-making facilities, and a children’s activity station. Embracing eco-friendly practices, Rent a Space, Queanbeyan features energyefficient materials, water capture and bioretention systems, solar panels, passive daylighting, and eco-landscaping, underscoring its commitment to sustainability.
its establishment on December 30, 2022, Rent a Space Queanbeyan has maintained an impressive occupancy rate. The facility’s strategic pricing approach focuses on balanced growth and strong occupied unit rates, ensuring competitiveness while upholding profitability.
Managed by two store managers, Rent a Space, Queanbeyan prioritises outstanding customer service and security. Advanced systems such as security fencing, electronic sliding doors, individual unit alarms, and CCTV surveillance guarantee customers’ safety and peace of mind. A free move-in service provides customers with a safe and convenient way to move their items into storage in a breeze, saving over $400 for removals. Plus, free trailer hire for all customers.
The exceptional Queanbeyan team, comprising passionate individuals new to the self storage industry, has played a pivotal role in the facility’s success. Their dedication to professionalism, helpfulness, and friendly assistance has earned Rent a Space, Queanbeyan a stellar reputation, reflected in its impressive Google star rating of 4.8.
Through a comprehensive marketing strategy encompassing mass media, sponsorship, content marketing, and digital advertising, Rent a Space, Queanbeyan has positioned itself as the premier self storage destination in the region. By fostering community engagement and leveraging educational resources, the facility aims to demystify self storage and encourage its use among local residents.
Being a finalist in this category highlights Rent a Space Queanbeyan’s dedication to excellence, innovation, and customer satisfaction driven by its modern design, eco-friendly practices, and commitment to exceptional service. l
Since
Facility of the Year (Over 500 units)
Sponsored by Janus International Australia
WINNER
National Mini Storage Ormiston, NZ
National Mini Storage Ormiston in New Zealand won the Facility of the Year (over 500 units) for 2023. This accolade is a testament to its unwavering commitment to innovation, customer satisfaction, and community engagement. With a meticulous focus on every detail, National Mini Storage Ormiston has raised the bar for the industry, setting a benchmark for others to aspire to.
From its inception, National Mini Storage Ormiston was envisioned as more than just a storage facility; it was designed to provide quality and convenience for the local community. Built on a long, narrow site with limited access to primary road frontage, the facility's site and construction posed unique challenges. However, the project was executed flawlessly through ingenuity and determination, resulting in a modern, fivelevel facility that maximises space and functionality.
One of the facility’s standout features is its drivethrough loading area, which streamlines the process of unloading and loading belongings for customers. This innovative design element reflects National Mini Storage Ormiston’s commitment to providing convenience and ease of access to its clientele.
Safety and security are paramount considerations in the design and operation. The facility has state-of-theart security features, including PTI individual unit alarms, CCTV surveillance cameras, infra-red security over the tops of the units and controlled pin pad access. These
measures ensure customers’ belongings are protected around the clock, providing peace of mind.
Since its opening in November 2022, National Mini Storage Ormiston has embarked on a journey of expansion and growth. With the recent completion of the third and fourth levels, the facility is poised to offer even more storage options to meet the needs of its customers. The focus now is on leasing up occupancy to 70-80% by early 2026, demonstrating the facility’s commitment to continuous improvement and excellence.
In addition to its commitment to quality and innovation, National Mini Storage Ormiston is deeply invested in its community. Through initiatives like the Creating Space sponsorship platform, the facility supports local organisations and causes, such as Underdog Basketball, which provides training to children in the area. By giving back to the community, National Mini Storage Ormiston demonstrates its role as a responsible corporate citizen, enriching the lives of those it serves.
At the heart of National Mini Storage Ormiston’s success are its dedicated staff, who are passionate about delivering exceptional service to every customer. Every team member, from the branch manager to the sales consultants, plays a crucial role in ensuring that customers’ needs are met and exceeded. Through ongoing training and development initiatives, the staff are equipped with the skills and knowledge needed to provide the highest level of service.
Regarding pricing and marketing, National Mini Storage Ormiston adopts a customer-centric approach. Rather than relying on external discounted promotions, the facility focuses on providing value through prepaid discounts, referral programs, and excellent service. Marketing tactics include targeted online advertising, social media engagement, and community sponsorships to raise awareness and attract new customers.
Looking ahead, National Mini Storage Ormiston remains committed to its core values of quality, innovation, and community engagement. As it continues to grow and evolve, the facility will serve as a shining example of excellence in the self storage industry, inspiring others to reach new heights of achievement.
National Mini Storage Ormiston’s journey to self storage excellence is a testament to its unwavering dedication to quality, innovation, and customer satisfaction. The facility embodies the industry’s best practices, from its innovative design and state-of-the-art security features to its community engagement initiatives. As a deserving recipient of the SSAA Industry Award for Facility of the Year (Over 500 units), National Mini Storage Ormiston sets the benchmark for excellence in self storage. l
Manager of the Year
Sponsored by Storman
FINALIST
Farag Marey
Facility Manager at Rent a Space Self Storage, Girraween, NSW
In the world of self storage, seasoned professionals like Farag stand out as beacons for their excellence. As a finalist for Manager of the Year at the SSAA Awards for Excellence, Farag’s 14-year tenure in the storage industry reflects a deep understanding of customer needs, operational intricacies, and community engagement. His journey at Rent a Space Girraween epitomises a commitment to honesty, reliability, and unparalleled service.
Farag’s tenure at Rent a Space Girraween since 2020 has left an indelible mark on the facility and its clientele. His exceptional rapport with customers, coupled with his adept management skills, has garnered widespread admiration and trust. Under his stewardship, the facility has experienced significant growth in revenue and occupancy rates, a testament to Farag’s strategic acumen and dedication to customer satisfaction.
Customers fondly remember Farag for his engaging personality and commitment to their needs. Whether sharing a cup of coffee or providing historical anecdotes, Farag’s genuine approach fosters a sense of community within the facility. His ability to connect with customers on a personal level has earned him glowing recommendations and numerous word-of-mouth referrals.
“ Farag’s approach to sales and customer service revolves around the golden rule: treat others as you would like to be treated and go above and beyond to ensure each customer receives a stress-free experience.
Farag’s approach to sales and customer service revolves around the golden rule: treat others as you would like to be treated. He goes above and beyond to ensure each customer receives personalised attention and a stress-free experience. Farag’s dedication to understanding customer needs and providing tailored solutions has led to a surge in ancillary
sales, showcasing the impact of his customer-centric approach.
In times of adversity, Farag’s conflict resolution skills and genuine empathy shine through. He prioritises finding solutions that benefit both parties, embodying a “win-win” philosophy that reinforces customer trust and loyalty.
Farag’s leadership extends beyond the facility’s operations; he fosters a thriving team culture built on open communication and mutual respect. By valuing input from team members and promoting two-way dialogue, Farag ensures everyone feels heard and valued, contributing to the facility’s overall success.
Farag’s journey at Rent a Space Girraween exemplifies the transformative power of dedication, empathy, and continuous improvement. His unwavering commitment to customer satisfaction and community engagement sets a high standard for excellence as a finalist for Manager of The Year. l
Southwell Service & Modernisation
Southwell Engineering doesn’t just engineer market-leading lifts and hoists. Our experienced team of technicians can make tired and broken-down hoists work better than they did brand new. We can also add new functionality more cost-effectively than installing a replacement.
Southwell’s expert technicians will bring back ‘as new’ functionality to your lift
Upgrade from goods-only to goods plus personnel and disabled access to meet the latest codes NCC/BCA, WHS Standards at a fraction of the cost of a new hoist
Enhance your lift communication system to GSM standard for better workplace safety
Switch out manual doors to an electric roller door for efficiency and ease of use
Quick turnarounds for reduced downtime
Guaranteed and maintained by Southwell Lifts and Hoists with 100% parts backup
Fully Compliant with AS 1418 Parts 1 & 8, AS 5246 Part 1, Classification A6, and all WHS regulations
Before After
Southwell Engineering
Southwell is a proud, family owned company. Since 1945 we’ve been engineering and manufacturing high-quality hoists and scissor lift products at Camden, New South Wales, delivering and installing them around Australia, New Zealand and the world. We design registered one of the original Australian hoist designs and we’ve continued to innovate with creations like our Car Lift with Integrated Turntable, adding neatly to our standard range of Car Lifts and Goods Hoists.
Manager of the Year
Sponsored by Storman
JOINT WINNER
Priya Khatri
Facility Manager at Rent a Space Self Storage, Marsden Park, NSW
Priya is a seasoned professional with seven years of experience in the self storage industry and was named a joint winner of the Manager of the Year award in the SSAA Awards for Excellence.
Priya’s journey in the sector has been nothing short of extraordinary, marked by dedication, resilience, and a relentless pursuit of excellence.
Transitioning from an accounting background to the self storage industry posed initial challenges for Priya, however her adaptability and determination enabled her to navigate this transition seamlessly. With previous experience in management accounting for renowned companies like Hellmann’s Freight Forwarders and Swire Shipping, Priya brought a wealth of financial management and logistics expertise to her self storage role.
Joining Rent a Space in July 2016 marked the beginning of Priya’s transformative journey. Starting as a casual employee, Priya quickly rose through the ranks, demonstrating exceptional leadership qualities and a passion for excellence. Her appointment as the Store Manager of Rent a Space Marsden Park in 2021 was a testament to her dedication and outstanding performance.
A relentless focus on customer service and operational efficiency characterises Priya’s approach to management. Under her leadership, the Marsden Park facility witnessed unprecedented growth, significantly increasing revenue
and occupancy rates. Priya’s strategic initiatives, including building strong partnerships with local businesses and fostering a culture of excellence among her team, have driven this growth.
One of Priya’s key strengths is her commitment to continuous learning and development. Over the past two years, she has undertaken diverse training programs covering areas such as customer service, sales, safety, and operational management. Investing in her professional development has further enhanced her effectiveness as a manager.
Priya has exemplified remarkable resilience and problem-solving prowess in confronting the challenges inherent in business operations. Three distinct scenarios underscore her adept management of difficult circumstances. Firstly, when faced with the necessity of terminating 40 temporary outdoor car, boat, and caravan spaces to make way for a second self storage building, Priya proactively engaged with customers, addressing their concerns, and presenting viable alternatives. She ensured transparent communication and facilitated a smooth transition, retaining
customers by offering solutions at other company locations. Secondly, during the nine months of Building B construction, Priya effectively managed traffic flow, maintained cleanliness amidst scaffolding, and minimised disruptions to existing customers, especially business clients. Her dedication was evident in handling electrical outages and facilitating customer access, showcasing her negotiation skills and empathy. Lastly, amidst severe floods in July 2022, Priya and her team supported distressed customers, offering free truck services, hot beverages, and clean towels, exemplifying compassion, and responsiveness during emergencies.
Priya’s journey from accounting to self storage management is a story of perseverance, passion, and transformation. Her visionary leadership and relentless pursuit of excellence have propelled the Marsden Park facility to new heights and set a benchmark for the industry as a whole. As she continues to chart new territories and inspire those around her, Priya stands as a shining example of what can be achieved through dedication, hard work, and determination. l
JOINT WINNER
Rosemary Angyasy
Facility Manager at Jim’s Self Storage, Williamstown, Victoria
Rosemary has been recognised as a joint winner of the Manager of the Year award in the SSAA Awards for Excellence, underscoring her dedication and outstanding contributions to the self storage industry.
With nearly two decades of experience, Rosemary’s journey is characterised by commitment, unparalleled expertise, and an unyielding passion for the industry.
Rosemary’s tenure at Jim’s Self Storage facility began in 2006 as a casual staff member, gradually progressed to a full-time assistant manager position in 2010 and was eventually promoted to Manager in 2019. Her journey reflects her exceptional performance and unwavering dedication to the team’s mission.
Rosemary’s commitment to professional development is evident through her attendance at industry conventions, training sessions, and participation in business performance days. She has also engaged in comprehensive online courses covering critical areas such as staff management, diversity awareness, and legal training, enhancing her skills and knowledge base.
Despite the challenges posed by the COVID-19 pandemic, Rosemary’s adept management led to a remarkable increase in occupancy and revenue. Through strategic pricing strategies and proactive customer support measures, she
maintained and strategically grew the business amidst uncertain times. The implementation of new services and enhancements in the Box Shop led to increased sales and customer satisfaction.
Rosemary’s dedication to community engagement is exemplified by her partnerships with local sporting clubs and community groups. By fostering meaningful connections, she has promoted the business and contributed to the community’s well-being.
Rosemary’s personalised sales and customer service approach has garnered high customer praise, reflected in positive Google reviews. She goes above and beyond to understand and address customers’ needs, fostering a culture of empathy and support.
Under Rosemary’s leadership, a vibrant team culture thrives, marked by open communication, recognition of achievements, and opportunities for personal and professional growth.
In moments of crisis, Rosemary's leadership and competence shines through, demonstrating her ability to navigate complex challenges with poise and efficiency. Confronted
with an office flood triggered by a malfunctioning hot water system, she swiftly assessed the situation and sprang into action. Despite the absence of the General Manager and owners who were overseas, Rosemary took charge, rallying the team for an urgent cleanup operation even on a Saturday morning. Amidst the chaos, she meticulously organised staff to communicate with affected customers, inspect damaged units, and salvage wet belongings, prioritising both safety and customer satisfaction. With finesse, Rosemary navigated the insurance process and coordinated repairs, including extensive rebuilding efforts spanning four weeks. Despite the significant disruption, her adept management ensured minimal inconvenience for the business and its customers, earning high praise from both the owner and General Manager for her exceptional crisis handling.
Be awarded joint winner of Manager of the Year is a testament to her exceptional leadership, strategic insight, and commitment to excellence. Her impact on the success of Jim's Self Storage has been profound, making her deserving of this prestigious accolade. l
Top three reasons self storage facility maintenance is crucial to your ROI
While spooky haunted houses with creaking doors and dim lighting might be alluring, dilapidated self storage facilities are far less appealing. Let’s face it: No one wants to keep their precious belongings in a rundown building.
Preventative maintenance is essential to attracting new customers and keeping your current ones. Here are three reasons why maintenance is crucial to boosting your facility’s profits.
REASON #1:
It saves time
Time is money, and a regular maintenance routine will save you time in the long run. Organising tasks with a maintenance calendar keeps you focused, preventing wasted hours on projects that won’t benefit your self storage business.
Recognising the early signs of potential issues can help you avoid significant expenses. Scheduling tasks and estimating costs will also help reduce stress. Regular upkeep is key, with some tasks being seasonal, like gutter cleaning, and others needing attention annually.
If managing all the upkeep feels overwhelming, consider hiring a professional to handle tasks beyond your expertise. This ensures your facility remains in top condition without taking up too much of your time.
REASON #2: It saves money
Preventative maintenance is key to saving money. While you can’t predict the future, maintaining your facility’s critical assets can help you avoid bigger expenses down the road.
Features like roll-up doors and rooves are essential for protecting your customers and their belongings. If they’re not functioning properly, you could be liable for damages or injuries, which would cost far more than routine maintenance.
“ Regular maintenance requires effort, but the benefits far outweigh the costs. A well-maintained facility keeps tenants happy, increases occupancy rates, and boosts your return on investment.
Security is another area where maintenance can save money. Theft can deter business, so maintaining secure features like video surveillance, lighting, gates, and fencing is essential to prevent costly crimes.
REASON #3: It sets you apart
You don’t need a brand new building to attract customers, but your facility should look its best. Paying attention to your competition and keeping your location clean and well-maintained can be the deciding factor for many potential renters.
Both the exterior and interior of your self storage property need regular attention. For curb appeal, plan to trim grass and shrubs, seal driveways to prevent cracks, and keep windows clean. Inside, ensure keypads and doors are free of grime,
and sweep out storage spaces as soon as tenants move out.
A well maintained facility gives customers peace of mind and increases the likelihood they’ll choose your business over others.
Conclusion
Regular maintenance requires effort, but the benefits far outweigh the costs. A well maintained facility keeps tenants happy, increases occupancy rates, and boosts your return on investment. Taking a proactive approach to maintenance is a smart strategy that pays off in the long run. If you need help with your maintenance plan, contact Janus International to learn about the Facilitate program today. l
Thanks to Janus for this contribution. www. janusintl.au
Maximising the value of your self storage facility
Understanding a facility’s true worth involves several important factors that help owners gain a clearer perspective on their property’s performance.
One critical distinction for facility owners is between actual income and potential income. Actual income refers to the revenue currently being generated, while potential income reflects what the facility could earn if optimised to market conditions. Often, long-term tenants pay lower rates than newer ones, which results in actual income falling short of the facility’s potential.
However, many private owners focus on more than just profits. Some choose to keep rents low because they are satisfied with their returns, while others support their local communities by offering discounted or even free storage to non-profits or loyal tenants. These decisions reflect values such as loyalty and community care, not a business oversight.
For example, a 6mx3m unit might rent for $500 per month in the current market, but some tenants could be paying as little as $350 due to older agreements. This income gap can make the facility appear underperforming, though the owners may have sound reasons for maintaining such deals. When purchasers understand the difference between actual and potential income, this will be reflected in the sale price.
In one case, Matt highlighted to buyers a facility’s potential of generating $1.4 million when aligned with market rates, even though at the time it was generating $1.03 million annually. This insight led to a sale price over $3 million above the owner’s expectations.
Some owners avoid rate increases, leading to a gap between actual income and market rates. One facility hadn’t raised rents for 14 years, while competitors charged 40% more. Communicating to the market the potential revenue a new owner could generate secured a sale of $2 million higher than expected.
Key strategies for maximising income:
l Occupancy optimisation: Adjusting the unit mix to meet market demand can maximise occupancy and income.
l Market comparisons: Regular comparisons with competitors can reveal growth opportunities without compromising tenant relationships.
l Capital improvements: Upgrades in security, amenities, and general facilities can justify higher rents and attract more tenants.
l Buyer appeal: Demonstrating a facility’s potential income allows buyers to see growth opportunities, often resulting in higher offers.
The role of specialised software
Specialised self storage software significantly enhances the understanding of a facility’s performance. Many owners still rely on generic accounting software, which doesn’t capture the nuances of self storage operations, such as unit occupancy rates and income
“ Adopting industryspecific software gives a clearer picture of operational data, helping owners and buyers assess the facility’s true value.
projections. Adopting industryspecific software gives a clearer picture of operational data, helping owners and buyers assess the facility’s true value.
In some cases, facilities already use self storage software but fail to keep data up to date. Outdated or inaccurate information, such as old prices or incorrect unit sizes, can misrepresent the facility’s operational status. Regularly updating this data ensures accurate performance insights.
By considering these factors, self storage facility owners can fully understand the value of their business. Whether focused on community support or profit maximisation, owners can take steps to unlock their facility’s potential through software updates, strategic improvements and clear understanding of market rates. l
With thanks to Matt Walsh from Highway Frontage www.highwayfrontage.com.au
UNLOCKING A MORE SUSTAINABLE FUTURE
ESG (environment, social and governance), is increasingly becoming a priority for business big and small. Investors are seeking opportunities that align with sustainable priorities, owners are looking for ways to minimise their environmental footprint (and their expense lines) and consumers are re-evaluating their choices in light of environmental impacts.
Whilst self storage as an asset class is considered to have lower energy consumption, emissions and environmental impacts than more traditional real estate categories, there are still plenty of opportunities to unlock sustainable solutions in self storage. Neglecting sustainability could be a missed opportunity, as even small steps towards environmental responsibility can make a significant impact and enhance your facility’s green credentials.
Adopting more sustainable practices offers several benefits:
l Higher facility valuations: ESG compliance can boost your facility’s value and attract investors who prioritise eco-friendly assets and consider the carbon footprint of the assets they buy
l ROI for smaller operators: ESG initiatives can lower energy costs and provide tax incentives, offering a positive return on investment
l Attracting Gen Z: Embracing sustainability can set your facility apart and appeal to the environmentally conscious younger generation
Local Spotlight: Abacus Storage King
Abacus Storage King (ASK) recently released its inaugural Sustainability Report which outlines its commitment to connecting to people, caring for the planet and committing to doing the right thing in line with good governance. ASK also confirmed its commitment to net zero scope 1 and scope 2 emissions by 2030. Here’s a glimpse of how ASK are approaching sustainability at a portfolio level:
REDUCING OUR FOOTPRINT
REDUCING OUR FOOTPRINT
Global Spotlight: Sheeplands Self Storage
There’s nothing quite like a self storage operator who thinks outside the box.
Sheeplands Self Storage won the 2023 FEDESSA Sustainability Award for their unique approach to sustainability, showcasing their investment in solutions which maximise the natural attributes of its landscape.
Sheeplands Self Storage is carbon negative, with all of the electricity used to power its storage units, office and commercial spaces created via a unique combination of solar installations.
Sheeplands Self Storage is home to Europe’s first commercial floating solar system on an on-site reservoir, capable of generating 200,000 kw hours per year, which they have generated in full. This system is also complemented by a 50kw ground-mounted system and a 100kw roof-mounted system.
Sheeplands Self Storage has also invested in two biomass boilers housed within two 20ft containers, which in turn power LED lighting and provides heating for its headquarters by burning small wooden pellets.
A family-owned company that prides itself on customer service, integrity and security with some Berkshire charm, Sheeplands is part of a fourth-generation farming family. The entire Sheeplands facility is a unique experience, combining a range of indoor and outdoor self storage solutions with a commercial business hub and local agricultural opportunities.
Steps towards a more sustainable self storage facility
There’s several steps self storage operators can consider to integrate sustainability and ESG principles into their facility and operations.
Here are some actionable ideas:
l Install solar panels to produce on-site electricity
l Investigate whether battery storage for solar is suitable for your facility
l Go paperless - automate facility operations to increase efficiency
l Install energy-efficient lighting to lower energy use and costs
l Growth on the agenda? Consider repurposing existing buildings, cutting down on new construction materials
l Adhere to sustainable construction guidelines for new builds
l Consider a green roof, green wall or other opportunities for landscaping around your facility
l Encourage customers to safely dispose of hazardous materials
l Choose eco-friendly cleaning products and pest control solutions
l Set up recycling programs for materials like paper, cardboard, and metal
l Limit your use of single-use plastics where possible
l Offer a drop-off point for electronics recycling
l Support local wildlife and habitats with nesting boxes
l Invest in water-saving devices such as low-flow toilets and taps
l Use electric-powered equipment for maintenance and landscaping
l Setup a water recycling facility or employ grey water solutions for gardening
l Choose renewable energy sources from providers where possible
l Consider installing electric vehicle charging stations
l Perform regular energy and water audits to ensure continuous improvement
l Partner with local charities to improve the circular economy
Incorporating sustainability into self storage not only benefits the environment but also boosts business efficiency and helps set you apart. These snapshots show that adopting eco-friendly practices— such as solar panels, energy-efficient lighting, and water-saving technologies—can significantly reduce carbon footprint while lowering costs and increasing facility value. Smaller operators can learn from these examples, implementing scalable ESG initiatives to enhance market appeal, attract environmentally conscious customers, and future-proof their business for long-term success. l
Why engage a professional in self storage investing?
Investing in self storage is akin to painting your house: while you can tackle it alone, enlisting the help of a seasoned professional can save you time and money, ultimately leading to a superior outcome.
Understanding market dynamics
Self storage is often considered a defensive asset class, demonstrating resilience across various economic conditions. However, the market is more complex than it appears at first glance. Each self storage catchment operates differently, influenced by unique supply and demand dynamics. Economic shifts and lifestyle changes can affect individual markets and sub-markets in diverse ways that aren’t always obvious to those new to the sector.
Leaning on experience
Qualified and knowledgeable professionals have experience in what you are navigating. They can provide insight into processes, likely outcomes and potential risks. They have data, insights and analysis to share; but most importantly, they have experience in what should, or may, come next. Be prepared for what lies ahead through proper planning, preparation and the experience of a professional that has been there before.
Identifying opportunities
For those with existing assets, your facility may have untapped potential. Small improvements can lead to significant value enhancements, but understanding how to leverage these opportunities requires expertise. Capitalisation rates, investor strategies, and macroeconomic factors all play a role in your investment’s success.
Expert advisors stay attuned to market fluctuations and can provide crucial insights and guidance on what changes will make the biggest impact at your facility, empowering you to make well-informed decisions.
Maximising returns
Experienced self storage investment professionals offer tailored strategies to boost your investment’s value, whether through performance optimisation, expansion, asset repositioning, or strategic portfolio management. Their knowledge of off-market transactions and market dynamics, as well as their deep understanding of the unique values of self storage, can help you maximise returns.
“ An experienced advisor can identify potential threats, develop strategies to mitigate them, thereby protecting your investment.
By partnering with informed and experienced professionals, you gain access to industry benchmarks that enable you to optimise your facility, increase returns, and enhance overall value. This expertise can be invaluable in navigating the intricacies of self storage investing.
Mitigating risk
Investment risks are ever-present. Regular consultations with professionals across self storage and engagement with SSAA keep you informed about emerging risks. An experienced advisor can identify potential threats and likely impacts and develop strategies to mitigate them, thereby protecting your investment.
Achieving the best outcome
Many investors believe they achieve a good deal without the guidance of a real estate agent or investment advisor. However, how can you be sure that the price you’re paying or receiving is the best achievable?
Engaging a specialised self storage real estate agent, qualified valuer, or experienced advisor ensures you’re making informed decisions and getting the most value for your investment. It also takes the stress out of the process.
In this niche market, collaborating with a team of professionals who share your understanding of self storage is crucial for achieving the best outcomes.
Investing and divesting in self storage can significantly impact your financial future. The right advice could differentiate between a satisfactory outcome and an exceptional one. A trusted advisor is not just a resource; they are also an invaluable asset in navigating your investment journey. Their expertise can truly be worth its weight in gold! l
Thanks to Linda Sharkey Four Leaves Property fourleaves.property.com.au
SSAA New Service Members
Who is OpenTech Alliance?
A technology solutions provider exclusively serving the self storage industry since 2003. Get robust, scalable solutions, backed by a trusted partner committed to your success.
What can OpenTech solutions do for you?
INSOMNIAC® CIA Access Control:
l Manage single gates to multi-site portfolios with cloud-based technology that helps you easily l manage facility gate access remotely and monitor visitor activity with robust data reporting and l analytics.
INSOMNIAC® SmartLock Electronic Locks:
l Get unparalleled facility automation with automatic locks that help you control unit access and manage l delinquent and vacant units with an efficient, reliable locking solution.
INSOMNIAC® Full-Service Kiosks:
l Greet tenants face-to-face with personalized selfservice kiosk solutions that can help you rent l units, accept payments and reduce staffing at your self storage facility.
“Your access control needs to be one of the most stable and solid parts of your operation. CIA has become a set it and forget it part of our operation,” says Aaron Alsweiler, CEO, Safe Store (Pakuranga, NZ).
BJB Architects is an architectural firm specialising int commercial and industrial projects. The team at BJB Architects brings together a wide range of skills, expertise, and knowledge, with a strong focus on functionality and adaptability to ensure the longevity of developments.
With extensive experience in the self storage sector, BJB Architects is passionate about doing things differently, thinking outside the literal box to explore who is storing, what is being stored, and how to enhance the experience of endusers in the self storage industry.
BJB Architects recognises that the commercial feasibility of self storage projects is paramount. This understanding is central to the firm’s approach and drives every decision made. The firm offers comprehensive services for both existing sites and new developments, including feasibility studies, managing development applications, and providing ongoing construction support.
BJB Architects is committed to building strong, collaborative relationships with clients, ensuring the best possible outcomes for every project.
If you want to get in touch, please contact Barry at +61 439 841 848 or email barry@bjbarchitects.com.au.
Why you shouldn’t cut safety spending during tough economic times
By Tim Callinan.
In challenging economic periods, businesses often look for ways to cut costs. However, compromising safety can have serious consequences. Maintaining safety standards is a regulatory requirement and a crucial aspect of sustaining a healthy and productive work environment.
Increased risk of not addressing hazards
Cutting safety budgets often results in unaddressed hazards, leading to more workplace accidents. According to Safe Work Australia, the cost of workplace injuries and illnesses is significant, not just in terms of medical expenses but also in lost productivity and potential legal liabilities. By neglecting safety, businesses may face higher costs in the long run due to accidents that could have been prevented with proper safety measures.
Impact on employee morale
Safety is closely linked to employee morale. Employees who feel safe are more likely to be engaged and productive. Conversely, if they perceive that their employer is cutting corners on safety, it can lead to a decline in morale and trust. A study by Safe Work Australia found that employees who feel safe at work are more likely to be satisfied with their jobs and less
“ Cutting safety budgets often results in unaddressed hazards, leading to more workplace accidents.
likely to leave. Investing in safety demonstrates a commitment to employee well-being, boosting morale and reducing turnover rates.
Long-term financial benefits
Investing in safety can actually save money in the long run. Safe Work Australia reports that businesses can save between $2 and $6 for every dollar invested in injury prevention. These savings come from reduced healthcare costs, lower insurance premiums, and fewer lost workdays, vital for financial stability in tough times.
Enhancing reputation and compliance
Maintaining high safety standards also enhances a company’s reputation. Customers, clients, and partners are likelier to trust and do business with companies prioritising safety. Additionally, compliance with safety regulations is non-negotiable. Failing to meet these standards can result in hefty fines and legal issues, further straining financial resources.
Tim is an experienced Health and Safety Practitioner, OHS and Environmental systems Auditor and Tertiary Qualified Engineer. He has held operational and consulting roles, being responsible for Health and Safety and developed, implemented, and maintained OHS and Environmental Management Systems for global organisations in the manufacturing, construction, and logistics industries.
Safety as an investment, not a cost
It’s essential to view safety as an investment rather than a cost. Investing in safety measures leads to a healthier, more productive workforce and a stronger reputation. Businesses that prioritise safety during economic downturns position themselves for success.
In conclusion, cutting safety spending during tough economic times can increase risks, lower morale, and raise long-term costs. By investing in safety, businesses protect employees, enhance their reputation, and save money. Safety must always remain a priority, regardless of economic conditions.
Let’s build a safer workplace together. l
The OH&S Help Desk has been established by the SSAA to support its members. This advisory service is free. Free call 1800 067 313 (Australia); 0800 444 356 (New Zealand); or email admin@selfstorage.com.au.
Key legislative changes for business owners: What you need to know for 2024
It’s essential for business owners to stay informed about recent legislative changes. Below are key updates that became effective in August 2024. By Cath Nicholson.
Independent contractors
New rules are now in place to help clarify whether someone is an employee or an independent contractor. The focus is now on the actual work relationship, not just the contract terms. Reviewing your contractors regularly is vital to ensure they aren’t misclassified, as incorrect classification can lead to serious risks under workplace, tax, superannuation, and workers’ compensation laws.
The ‘whole of relationship’ test is now used by constitutionally covered businesses to determine if a worker is an employee or contractor. If a worker earns more than the highincome threshold (set at $175,000 from 1st July 2024), they can opt out of this test and use the ‘start of relationship’ test instead by providing a written opt-out notice.
Additionally, new frameworks protect contractors working in the gig economy or road transport industry. For more details, refer to the relevant government resources.
Right to disconnect
Under the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, employees now have the right to disconnect from work-related communications outside of their ordinary working hours unless it’s unreasonable to refuse. This law takes effect from:
l 26 August 2024 for businesses with 15 or more employees (non-small businesses)
l 26 August 2025 for small businesses with fewer than 15 employees.
Employers can still contact employees outside of working hours, but employees are not required to respond unless it is deemed reasonable.
“ The ‘whole of relationship’ test is now used by constitutionally covered businesses to determine if a worker is an employee or contractor.
Casual employment changes
As of August 26, 2024, several changes have been made to casual employment:
l Casual Employment Information Statement (CEIS):
• Non-small businesses must now provide this statement to new casual employees as soon as possible after employment and again at six and 12 months of employment.
• Small businesses are required to provide it upon commencement and after 12 months.
l Definition of casual work: Casual employees are those with no firm advance commitment to ongoing work, and they must be paid a casual loading or specific casual rate.
l Casual to permanent employment conversion: The process has been simplified. Eligible employees can now request a conversion rather than having the employer offer it.
l Fixed-term casual contracts: New restrictions are now in place for educational institutions that hire casual employees on fixedterm contracts.
Other key updates from 1st July 2024
l Pay guides and award wage increases: Updated pay guides and award wage increases are released every year. Make sure that wage and allowance rates for your employees were updated
from the first full pay period after 1 July 2024.
l Superannuation increase: The superannuation rate has risen from 11% to 11.5%, effective from the first pay period in July 2024.
l High-income threshold increase: The high-income threshold, now set at $175,000 from 1st July 2024, determines whether employees can lodge unfair dismissal claims if a modern award or enterprise agreement doesn’t cover them.
Final reminder
If you have award-based employees on an annualised salary, review these arrangements to ensure they still meet requirements after the wage increases. Also, ensure that employees with above-award pay rates still earn more than the updated minimums. l
If you need any clarification or assistance, feel free to contact HR Central. For New Zealand members please check your local legislation as these may vary.
If you would like any further information call the
Beware increased scrutiny: Real Estate Agents the subject of Federal Government’s money laundering ‘crackdown’
Have you heard about the federal government’s new ‘crackdown’ on the flow of so-called ‘dirty’ money through Australian real estate? By Jack Watson.
On 11 September 2024 the Attorney-General introduced the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 into Parliament. This comes amidst Australian real estate being a top target for global money laundering. One of the key factors in this is Australia being one of the few nations that do not include real estate agents and lawyers within their laws to combat money laundering. If passed by Parliament, it would represent a significant step forward in Australia complying with international standards and combatting money laundering.
The Bill proposes a series of new regulations designed to enhance transparency and accountability within the real estate industry. The reforms include stricter reporting requirements and enhanced due diligence obligations for real estate agents and legal practitioners involved in the sale of property.
What does it mean?
One of the key components of the new regulations is the requirement for real estate agents to verify the source of funds in property transactions.
This measure is aimed at ensuring that the money being used to purchase property is legitimate and not derived from illegal activities. Similarly, lawyers are now required to conduct more rigorous checks on the financial backgrounds of their clients, particularly when handling large sums of money or complex transactions.
The Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency, will play a pivotal role in enforcing these new rules. AUSTRAC’s expanded mandate includes increased monitoring of transactions and greater powers to investigate and prosecute cases of suspected money laundering.
Is this a problem for me?
The crackdown on money laundering is expected to bring about significant changes in how real estate transactions and related legal services (i.e. conveyancing) are conducted in Australia.
While the immediate effects may include increased regulatory oversight and potentially frustrating operational adjustments, the long-term goal is to create a more transparent and trustworthy environment for both professionals and the public.
The recent changes in money laundering regulations could affect you in several ways, depending on your involvement in real estate transactions or legal services. Here’s how these changes might impact you:
l Increased verification: If you’re involved in buying or selling property, you can expect more stringent checks on the source of funds. This means you’ll need to provide additional documentation to verify where the money is coming from. This is designed to ensure that the funds used in the transaction are legitimate.
“ The recent changes in money laundering regulations could affect you in several ways, depending on your involvement in real estate transactions or legal services.
l Potential delays: The increased scrutiny and verification process might lead to longer processing times for transactions. Be prepared for possible delays in closing deals as real estate agents and financial institutions implement the new requirements.
l Additional costs: There might be additional costs associated with meeting the new compliance requirements, such as fees for legal or financial advice to ensure all documentation and processes are correctly handled. Generally, while these changes aim to enhance the integrity of financial and real estate transactions, they may lead to more paperwork,
Jack Watson.
potentially higher costs, and longer processing times for transactions involving significant amounts of money.
l Enhanced security: While the new regulations may introduce additional steps in property transactions, they are intended to create a more secure environment by reducing the
risk of money laundering and financial crime.
l Industry adjustment: Real estate agents and lawyers are adjusting to these new rules, which may affect how they handle transactions and interact with clients. You might notice changes in how they request and process information.
Conclusion
The federal government’s introduction of the Anti-Money laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 represents a significant shift in Australia’s real estate landscape. Whilst the purpose of these reforms is to restrict and combat the flow of illicit funds throughout the Australian property market, they also place additional obligations upon real estate agents and lawyers that may cause impediments to their practices. If passed by Parliament, the short term immediate impacts will be alterations to verification processes that may result in potential delays and additional costs. However, in the long term these potential changes will result in a more secure and transparent real estate market. If you are involved in the real estate market, it is necessary to stay tuned to the progress of this Bill to ensure compliance with any operational changes. l
If you require assistance, please contact the SSAA Legal Help Desk.
Disclaimer: The information contained in this article is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances. Please refer to the SSAA’s website for more information on the SSAA’s Legal Help Desk.
