The Rate of New Drivers is Dropping Off a Cliff as Storage CEO Warns Urban Shift Demands New Model

Written by:

Steve Marcinuk

Date:

12 Aug 2025

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The next generation of storage customers won’t drive 20 minutes to an out-of-town facility, according to one industry leader, forcing a rethink of the traditional big-box storage model.

The Urban Shift

“More and more people are going to be moving into city centers. Everyone’s going to be living in relatively small buildings, cost of housing just goes up and up,” says Max Wilson, CEO of Pocket Storage. This urban migration, combined with shrinking living spaces, is creating what Wilson calls “a tailwind” for storage demand – but not in the traditional locations.

“The rate at which people are learning how to drive is dropping off a cliff in most big cities,” Wilson observes. “The younger generation grew up in a different time where the car wasn’t as essential to freedom.”

This shift poses a fundamental challenge to the traditional self-storage model, which Wilson describes as “100,000 square foot plus units, a 15-20 minute drive out to the edge of town for most people using it.”

The Location Challenge

Wilson argues that serving urban customers requires a completely different approach to facility size and location. “Self-storage has a relatively low end use value, so you’ve got to think fairly creatively about how you can get your hands on well-located spaces at affordable prices,” he explains.

His company targets facilities under 30,000 square feet in central locations, often repurposing existing structures like basement spaces, rear buildings, or underutilized parking areas. “You don’t need hugely prominent units to drive sales,” Wilson notes. “The footfall is online, not in real life.”

The Economics of Urban Storage

Making urban locations work financially requires rethinking traditional operations. “By the time you layer in staffing costs to sites under 30,000 square feet, the performance goes down,” Wilson explains. “Obviously, the larger the unit, relatively speaking, the smaller the proportion of the staffing cost.”

The solution, according to Wilson, is automation. By eliminating on-site staff through digital booking and access systems, smaller urban facilities become economically viable. This allows operators to serve customers where they actually live rather than forcing them to travel to industrial areas.

A New Model Emerges

Wilson’s company is testing this urban-focused model with their first location in London’s Bermondsey neighborhood – a converted warehouse in a former biscuit factory. Rather than competing on size, they’re focusing on convenience and accessibility.

“We’re looking at car parking spaces, basement spaces, rears of buildings,” Wilson says of their expansion plans. “We will take planning risk, you’ve got to think fairly creatively.”