The Deal
Recently, Storage King acquired Blackpool Self Store in Blackpool, England for £3.6 million. Storage King, which operates 29 facilities in the United Kingdom, is owned by Stor-Age Property REIT and operates the Stor-Age Self Storage brand in South Africa.
The Facility
Opened in 2005, the facility comprises 30,100 square feet and offers room for expansion. The facility at 20 Clifton Road is in the Tellcom Business Centre.
With data from StorTrack, we took a closer look at the market demographics to learn what made this facility an attractive investment.
The Market
Blackpool is a seaside resort on the Irish Sea coast of England. It’s known for Blackpool Pleasure Beach, an old-school amusement park with vintage wooden roller coasters. Built in 1894, the landmark Blackpool Tower houses a circus, a glass viewing platform and the Tower Ballroom, where dancers twirl to the music of a Wurlitzer organ.
The population within a three mile radius is 130,483 and more than 33% of households rent with a national average of 36%. Additionally, the median household income in the immediate trade area is £31,394. Stepping out to a five-mile radius, the population increases to 214,610 with 29% rental homes and a median household income of £34,068. The national average for median household income is £38,180.
Supply
With 12 and 17 facilities in a three and five-mile radius, respectively, it seems the area is well served. The square footage per capita is 2.21 within a three-mile radius and
2.72 within a five-mile radius with a national average of 1.37. Population growth will be the major contributing factor to physical and economic occupancies. Because the use of promotions has declined within recent months and limited inventory is being advertised, it could indicate a stabilised market (20% vacancy).
Demand
Rate trends within a five-mile radius had demonstrated a 1.74% decrease throughout the past year however, with no development activity reported and no new facilities opened, the area still demonstrates strong metrics with only 2.21 square feet of storage per capita and 2.72 square feet of storage per capita within a three and five-mile radius, respectively. Nationally, rental rates have trended upwards by 13.33% over the past year.
Three Things You Should Know about Blackpool
There was an increase in rental rates in February but overall, prices have remained relatively flat within the past three months. Because there was no indication of correcting these rates, it can be assumed the market has a strong tolerance for price adjustments.
Of the known product in the three-mile radius, 43% of units are being advertised online while the five-mile radius advertises 33% of product.
Finally, average rental costs are consistent with the national average of £708 and £707, respectively.
For more information on this or other markets, visit StorTrack at StorTrack.co.uk.
