Self storage is in its infancy in Brazil, with only approximately 300 self storage facilities nationwide, versus 58,000 in the United States. The market is running at capacity with new facilities recording rapid lease-up rates. However it is highly fragmented.
Most operators are sole traders offering low quality, coupled with poor visibility and remote locations. The largest operator in Brazil has about 25 sites, while U.S. market leader, Public Storage, reports that it currently operates 2,350 facilities in the U.S.
Rising real estate prices coupled with a migration to modern apartment towers in affluent areas, an increase in family income and the consequent rise in consumer spending, are drivers fueling the expansion of the Self Storage market in Brazil.
Key demand drivers:
Moby Self Storage focuses on locations with high visibility and good access in major cities across Brazil, to ensure rapid stabilisation, margin protection and asset appreciation.
Moby currently manages 6 assets in São Paulo and Rio de Janeiro, and its operations are characterised by:
- Simple construction using local materials
- Knowledge transfer from the internationally experienced JV partners
- Simple business model requiring low staff levels
- State-of-the-art operating system