Self storage has become a widely popular asset class, driven by increased density, greater movement of people, evolving living and working trends, and increased changes in lifestyle. Our local market is seeing increased development, international capital flow, and a growing trend of more prominent, larger-scale developments.
As land becomes more valuable and scarcer, Councils and Planning Authorities have shined a light on self storage, increasingly scrutinising where self storage facilities should be located and how they contribute to broader community objectives.
A recent planning outcome in the USA has trigged us at Four Leaves to consider how local planning policy is likely to shape the future of our sector.
The Atlanta Example: A Pause to Reconsider Land Use
In June 2026, the City of Atlanta introduced a temporary freeze on new self storage developments while it reviewed planning controls and land use priorities. City leaders argued that some sites may be better suited for housing, retail, employment uses or community infrastructure, particularly in rapidly growing urban areas. The review was not intended to prohibit self storage, but rather to ensure facilities were developed in appropriate locations and integrated effectively into the urban environment following a boom in self storage development.
The debate highlighted several key planning questions surrounding the best use of development land (such as housing and employment uses), design interaction with surrounding land uses, mixed use storage developments, and traffic/amenity impacts.
While we have yet to see any regional freezes on self storage approvals in Australia, many of these same questions are already being considered by local councils.
Australian Planning Controls: Increasing Focus on Land Use Outcomes
In Australia, self storage developments are generally assessed under local planning schemes, with requirements varying between states and councils. Facilities are commonly located within industrial zones, commercial precincts and mixed-use areas, although planning policies differ considerably across the States and Territories.
Some councils and planning authorities have supported major facilities where proposals align with zoning objectives, traffic requirements and employment outcomes. For example, an approximately $90 million self storage and light industrial development at Gladesville in Sydney received approval through the NSW planning panel process, recognising the compatibility of the use within the broader employment precinct.
Similarly, the Victorian Government recently approved a major self storage facility in Burnley through the VIC Development Facilitation Program, reflecting state support for investment in employment and commercial uses.
In other instances, developers have pursued appeals through planning courts, with facilities ultimately approved where broader community need, and planning merit, could be demonstrated (refer to the case studies below).
Councils typically assess proposals against factors such as:
- Building design and visual impact
- Site accessibility
- Strategic land use objectives
- Traffic generation
- Employment creation
- Compatibility with neighbouring uses
In some urban locations, councils have questioned whether premium sites should be reserved for higher employment-generating uses, active retail frontages, and/or helping to solve Australia’s housing crisis. As we know, self storage is vital in providing an essential service supporting residents, trades, local businesses and households living in smaller dwellings mostly linked to affordability, all of which sometimes seem to be overlooked from a planning context.
Examples of Local Council Approaches
Across Australia, planning outcomes for self storage developments vary significantly.
In metropolitan growth corridors, councils often support new facilities where they provide services to expanding populations and small businesses. Industrial precincts remain attractive locations, particularly when they are located on the edge of surrounding residential development which drives the bulk of local demand.
In inner locations, such as newly created Activity Centres, and mixed-use/ gentrification areas, councils seem to have more focus on active street frontages through including office and retail components, integration of design, improved traffic management, sustainability initiatives such as solar energy and water harvesting.
Some newer facilities have responded by incorporating office suites, business hubs, parcel management services and customer-facing retail components to ‘activate’ the street frontage, moving beyond the traditional “warehouse box” model.
Why Self Storage as a Land Use Remains Important
Despite planning debates, the fundamentals supporting self storage remain strong.
Australia continues to experience strong population growth, higher housing densities and increased apartment living, rising lifestyle changes requiring flexible space solutions and a growing number of small businesses and e-commerce activity, all needing to lean on the convenience of self storage.
Self storage supports households during life transitions, assists businesses with stock storage and temporary disruptions, and provides affordable space alternatives without requiring larger commercial premises.
The Future of Self Storage Development
As Australian cities continue to grow, self storage will remain an essential part of the property landscape. From a planning perspective, the conversation is evolving from simply where facilities can be built to how they can best contribute to the communities they serve.
The Atlanta experience highlights a broader international trend: cities are increasingly seeking developments that align with strategic planning objectives, create employment, support housing and contribute to vibrant communities.
For developers and investors in Australia, this means early engagement with councils, considered site selection in areas that have a growing need for self storage, and high-quality design that add to the surrounding landscape.
Facilities that respond to community needs by demonstrating that they meet growing demand whilst providing excellent urban design outcomes are likely to achieve stronger planning results and greater long-term success.
Australian Case Studies: What Councils Are Looking At
Recent planning decisions across Australia demonstrate that councils are not necessarily opposed to self storage. Instead, they are increasingly assessing whether a self storage proposal aligns with broader strategic planning objectives and delivers an appropriate outcome for its location.
Here are some examples.
Fishermans Bend, Melbourne (Victoria)
Port Melbourne Storage Pty Ltd v Melbourne City Council [2024] VCAT 332
A proposed four-storey self storage facility within Melbourne’s Fishermans Bend Employment Precinct. Melbourne City Council refused the application, arguing that the site should support higher-value employment uses consistent with the long-term vision for Australia’s largest urban renewal project.
The case highlighted an emerging planning consideration: while self storage is recognised as a legitimate commercial use, councils may question whether premium employment land should instead accommodate industries that generate greater employment density or contribute more directly to innovation and advanced manufacturing.
Interestingly, VCAT subsequently overturned Council’s refusal. VCAT found that:
- Self storage is a legitimate use within the Industrial Zone.
- Current planning controls did not prohibit self storage.
- Councils cannot refuse an otherwise compliant development simply because they would prefer another future land use.
- Planning decisions must be based on the existing planning scheme and not aspirations for future planning controls.
It is an excellent example of the tension between long-term urban planning and current planning law.
Greystanes, Sydney (New South Wales)
Kennards Self Storage Pty Ltd v Cumberland Council [2025] NSWLEC 1720
In 2025, Cumberland Local Planning Panel rejected a proposal to significantly expand an existing self storage facility and introduce 24-hour operation.
The reasons were not related to the self storage use itself but included excessive building height and visual bulk, non-compliance with parking requirements, and the request for unrestricted operating hours
Council initially refused the proposal. Rather than ending there, Kennards appealed to the NSW Land and Environment Court.
During a compulsory conciliation conference, the parties negotiated amendments to the development.
The Court subsequently upheld the appeal and granted development consent with conditions including design modifications.
Campbelltown, Sydney (New South Wales)
Kennards Self Storage Pty Ltd v Campbelltown City Council [2021] NSWLEC 31
Another important NSW decision. Council refused approval for a large self storage facility on Menangle Road due to biodiversity impacts, flood risk, traffic concerns, and visual appearance.
Following amendments and expert evidence, the Land and Environment Court approved the proposal.
Bushland Beach, Queensland
ML Parkway Pty Ltd v Townsville City Council [2024] QPEC 53
Following Townsville City Council’s refusal of a proposed 145-unit self storage facility, within a Low Density Residential Zone; the Queensland Court of Appeal overturned the decision, finding the proposal complied with the relevant planning framework and noting that similar developments had previously been approved by the Council.
Council argued:
- the proposal conflicted with the residential character
- community expectations favoured neighbourhood services
- the use was inconsistent with the intended zoning.
The developer appealed. The Planning and Environment Court allowed the appeal. The Court observed that similar self storage developments had already been approved by Council and that the impacts on surrounding residents would be acceptable.
Interestingly, the Court rejected self storage as an example of a warehouse use under the Planning Scheme rejects that self storage is an industrial use, stating that self storage facilities “are a modern iteration of warehousing…designed to serve, and be attractive, to a range of customers, including residential users“.
Helensvale, Queensland
Self Storage Helensvale Holdings Pty Ltd v City of Gold Coast Council [2021] QPEC 29
The City of Gold Coast refused a propsoed self storage development because it considered the proposal inconsistent with aspects of the planning scheme.
The developer appealed. The Planning and Environment Court approved the development despite several technical planning non-compliances.
The Court placed significant weight on:
- demonstrated community demand
- lack of adverse planning impacts
- compatibility with surrounding uses
- strategic need for additional storage capacity.
The Court concluded that sufficient planning grounds existed to justify approval notwithstanding the identified conflicts with the planning scheme.
Sunshine Coast, Queensland
Solac No. 14 Pty Ltd v Sunshine Coast Regional Council [2015] QPEC 44
This case involved amendments to an already approved self storage development rather than a new application.
The developer sought approval to increase building height, make modifications to stormwater, and delay dedication of public open space.
The Court found the amendments did not result in a substantially different development and approved the changes.
In Conclusion…
The question remains: do we need a temporary freeze on new self storage developments, similar to that introduced by the City of Atlanta?
We don’t believe so.
Australia’s planning framework is already well equipped to assess self storage proposals on their individual merits. The challenge is not the volume of new developments, but ensuring they are located in the right catchments, thoughtfully designed, and aligned with the long-term objectives of the communities they serve.
Well-planned self storage facilities play an essential role in supporting growing populations, small businesses and changing lifestyles. Developments that respond to genuine market demand, enhance the urban landscape and complement their surrounding environment will continue to strengthen both the communities they serve and the long-term health of Australia’s self storage sector.
