Four Leaves estimates that approximately half of the Australasian self storage market is held by independent and smaller operators. These groups not only represent mum and dad investors/ambitious entrepreneurs, but also smaller investor groups with four facilities or less.

Larger operators, with between five and 20 facilities, make up roughly 9% of the market share.

This results in ~41% of the ANZ market (by Net Storage Area) being held/operated by the three major groups – National Storage, Storage King and Kennards Self Storage, two of which are listed vehicles (known as Real Estate Investment Trusts, or REITs). Both REITs have had several takeover attempts in the past twelve months, one of which was successful which will ultimately result in the privatisation of the largest self storage REIT, National Storage, later this year.

The ANZ self storage market was once dominated by family-run, owner-operator facilities; however, in recent years it has quickly become an “institutional asset class” dominated by private equity groups and global capital.

Yet despite this evolution, the sector remains far from fully consolidated with the opportunity sitting within the “fragmented” 50% of the market.

The next wave of consolidation is here, and it looks like it will be more significant than anything our market has witnessed previously.

Investment Landscape

All eyes are on the investment market currently. Throughout 2025, the following major deals and majority stakes were negotiated, estimated at over $5.5 billion AUD:

Over 2025, 87% of deals were acquired by private equity groups, 9% were acquired by private operators, and only 4% were acquired by the two REITs, Abacus Storage King and National Storage. This defies the trend, where historically, 50%-80% of transactions annually were done by these two groups.

A Market Still Rich with Private Ownership

While major platforms such as National Storage REIT and Abacus Storage King have built substantial footprints across Australia and New Zealand, a large proportion of self storage facilities remain privately owned.

Many of these assets were developed 15–25 years ago. They are well located, often tightly held, and have delivered consistent cash flow through multiple economic cycles. For a generation of owners, self storage has proven to be one of the most resilient property investments available.

However, time changes markets, and it changes owners.

Succession planning, estate structuring, and capital recycling or private equity trading are now becoming increasingly common. In many cases, the next generation is less interested in operating facilities. In others, the opportunity to crystallise value at historically strong yields is simply too compelling to ignore.

This natural ownership transition is a powerful consolidation driver.

Institutional Appetite Remains Strong

Importantly, the demand side of the equation is not weakening.

Self storage has demonstrated defensive characteristics across cycles, including during the Global Financial Crisis and the COVID period. Investors are drawn to:

  • Dynamic pricing, outperforming inflation
  • Diverse customer bases which are not locked into leases or set rental increases
  • High operating margins (as high as 75%!)
  • The ability to manage arrears effectively – keeping a lid on bad debts
  • Strong cashflow and cash conversion

Global capital continues to view Australia (in particular) as a stable, transparent market with sophisticated operators and continued capital growth. Capital that entered the sector over the past decade has not retreated, but rather, it has matured.

Large operators are now focused on operational efficiencies, technology integration and bolt-on acquisitions that improve geographic coverage, brand awareness, and economies of scale. Scale is no longer just about footprint; it is about systems, brand leverage and margin optimisation.

The next phase of consolidation will likely be more strategic than opportunistic.

The Rise of the “Portfolio Premium”

In earlier cycles, acquisitions were often about aggregation – quite simply, to grow the size of a portfolio across the market. In the current market, acquisitions appear to be more considered.

Facilities that integrate into existing networks attract stronger pricing. Proximity to existing assets and the ease of “bolting on” is the priority of the buyer.  

There is increasingly a distinction between “institutional” assets and those requiring significant repositioning. It’s reflected in the achievable price and the buyer pool depth.

Similarly, the ability to acquire an entire market of well positioned, well-built assets attracts a larger portfolio premium than we have seen in the past. Our analysis of recent major portfolio deals suggests that portfolio premiums are in the region of 15% to 20% in terms of price, and capitalisation rate premiums as high as 100 basis points over stand-alone capitalisation rates.

Selling Upside

One of the major selling points of any asset is the ability to demonstrate the available upside – whether through revenue growth or further development; and in the best cases, being able to demonstrate both.

The incoming purchaser wants to extract more from the asset and in the case of consolidation into a larger operating platform, they should be able to do so. This is due to increased brand awareness, more competent management, being one step removed from the customer, and being more commercially focused. We describe this as institutionalisation of the asset – and this is what keeps the market moving.

Debt Markets and Capital Recycling

Another driver of consolidation is the ever-changing debt landscape.

As interest rates normalise, balance sheet strategy becomes more of a priority. Listed and large private groups are continually assessing their cost of capital. We anticipate that disposals of non-core or secondary assets may occur alongside acquisitions of higher-quality or better-located facilities amongst the major groups in the near term.

For smaller owners, this creates potential partnership or exit opportunities that may not have existed a decade ago.

However, it’s important to remember that the majority of self storage assets are sold off-market and typically, they are directly sold through relationships. Off-market transactions are favoured due to confidentiality, reduced operational disruption / protection of customers, and a general desire for discretion within the ANZ market.

As consolidation accelerates, trusted advisory relationships will become increasingly important. The ability to align the right asset with the right buyer can materially influence the end result.

What the Next Five Years May Look Like

If the past decade was about the maturity of self storage across ANZ into an institutional asset class, the next five years may be about optimisation and scale refinement, similar to what we have observed in the USA market. We expect to see:

Importantly, consolidation does not mean that opportunity disappears. It often means that the market is becoming more sophisticated – something we have been observing for the past few years across ANZ.

For entrepreneurial operators, there remains scope to develop, reposition and create value. For long-term owners, there is a window to crystallise generational gains.

The Australasian self storage market is not yet a fully consolidated market, but it is no longer a fragmented market in the traditional sense.

The next wave is measured, strategic, and driven as much by capital structure as by growth. Owners who understand where their asset sits within this broader landscape will be best positioned to make informed decisions.

Whether that decision is to grow, hold or sell, one thing is increasingly clear: Consolidation is well underway.