In the storage sector, phrases like “Awesome,” “Magnificent” and the idea that a warehouse can be worth more than what is kept inside are common refrains among industry professionals. In Madrid, demand for storage space often outpaces the space itself. The key is locations where housing is compact and residents need extra areas to store belongings, furniture, or bikes for children.
Official data on rents for this asset class don’t exist, but the average rate shown on the Idealista portal for the capital indicates about 25 euros per square meter each month. This reflects a scenario where paying over 100 euros monthly for a compact four-square-meter unit is not unusual.
According to BrainsRE, a real estate data platform, a storage space costs roughly 66 percent more than a bedroom rented at an average of 15 euros per square meter. Colliers, a consulting firm, notes national rents in the city center typically range from 30 to 35 euros per square meter, while peripheral or lower-income areas fall around 18 to 22 euros per square meter.
The map provided by Idealista for buying and selling in the capital remains uniform. Despite higher rental offers, the city shows a balance, with buying prices averaging 2,804 euros per square meter, which sits about 23 percent below the overall housing price in Madrid, according to enrollment data.
As with rentals, certain neighborhoods illustrate stark contrasts. In Villaverde, the lowest average apartment price in the capital is around 1,943 euros per square meter, and storage spaces cost about 50 percent more than housing. In Usera, another lower-cost district, storage rooms for sale reach around 1,000 euros per square meter, exceeding apartment prices.
Spain hosts around 600 storage facilities, with more than half located in Madrid and Barcelona. The national stock represents roughly 12 percent of Europe’s total, while London alone boasts over 1,000 facilities. Luis Sendra, deputy director of Capital Markets at Colliers, notes that the European market is highly concentrated by location yet diverse in operators and ownership. About 75 percent of the national market is controlled by owners who own only warehouse space.
Storage rooms grow quietly
A company established in 2017 has developed several hundred storage rooms. Grupanxon, a stakeholder in Grupo BH and allied with the Gabriel International fund, announced plans for more than 600 storage rooms in its 2020 corporate presentation. Their site indicates projects totaling 941 properties, aided by Urbanitae real estate crowdfunding, which provided a 3.2 million euro loan with a 10- to 12-month maturity and interest rates in the 10 to 15 percent range.
Another player, Re-Aviva, a firm focused on urban recycling, has also participated in the surge of storage rooms. They have completed two projects, Embajadores-Matadero and Puerta de Hierro. The first project delivered four flats and 47 storage rooms. A partner of the company, Ildefonso Muelas, explains that half of the units were sold quickly to building occupants, with the remainder to residents nearby.
International investment funds remain highly interested in Spain. In addition to Madrid and Barcelona, they are turning attention to Seville, Malaga, and Valencia, according to Sendra.
Funds with a patrimonial focus that own storage room portfolios and delegate management to operators can yield notable returns, typically around five to six percent. Funds that own an operator and engage in buy, adapt, and lease strategies may see returns around nine to ten percent. One notable deal is Oh my box!, where Safestore paid 17.25 million euros and the buyer is projected to realize a nine percent return. The operator involved was acquired as part of the transaction.
Profitability in storage room ventures
Profitability depends on city area, especially where housing is smaller and storage space is scarce. In Madrid, Carabanchel stands out as the district with the smallest average residence size, roughly 69 square meters. The average value for storage-related asset transactions reported by registrars sits around 1,534 euros per square meter, with an additional 200 to 400 euros per square meter needed to convert a building into a storage complex according to industry sources.
With Idealista’s existing market prices around 2,643 euros per square meter, developers can target a return around 36 percent. A newspaper affiliated with Prensa Ibérica notes that some firms achieve returns in the range of 50 to 100 percent within six months for select projects.
Rental operations versus management roles
The storage segment includes multiple participants. Some firms, such as Grupanxon and Re-Aviva, acquire buildings, design and market storage spaces, and then sell to end users or investors. Their project returns can vary widely, from around 35 percent to over 100 percent depending on project costs and scale.
Ownership approaches differ. Individual owners may use spaces personally or lease to investors. Large investors form the backbone of the market, with user requirements guiding regulatory compliance and safety standards. Local rules diverge by city, for example, Barcelona restricts basements while Madrid permits them with conditions.
Most storage operators rely on mutual funds. Bluespace, part of the Fremont fund, controls 45 storage buildings. Homebox, linked to the French Rousselet family, operates 34 sites; Guardatot has 22; Box Infiniti runs 21; and Pongo Trasteros operates 12. Operators pursue varied strategies. Guardatot emphasizes compact spaces and technology that minimizes staff needs, while Bluespace seeks large spaces in suitable locations to exploit economies of scale and boost profitability.