Trends
Ageing demographics makes for an interesting future-investment, proposition.
From the demographics it looks like the caravan storage industry is in for a bumper time. Over the next 20 years Australians are retiring in considerable numbers. According to the caravan industry association of Australia in their 2020 industry report, “there is a reasonably strong correlation between the percentage of the population over 65 years, and the total number of Caravan and Campervan registrations”.
This recently published graph provides the best illustration yet on what lies ahead with our age demographics and the fact that a great many Australians are going to become sixty-five or over. I have articulated this with the (Red Line) and will begin to work less or perhaps retire completely.
According to the Caravan industry report, there was 741,443 caravans and campervans registered for the year preceding 31 January 2020. This was a 4.2% growth since last year and over the past 5 years 26.7% growth or an average of around 5% per annum
And then follows that with this many caravans being registered each year, many of the owners of whom will be looking for storage solutions.
Requirements for Caravan Storage.
Developing a caravan and recreational vehicle storage business looks just as good.
Each plot commands around $1000 per annum for the average caravan, with oversized vehicles about double that.
Ideally the storage-surface will be paved or at least dry and solid, but there are numerous existing storage facilities which are simply open land, or in other words greenfield.
The key to operating a caravan storage business is not only having the space but security.
Ideally the site will have alarmed electric fencing and security cameras and onsite staff would be most ideal. There is virtually no limit to the size of your storage facility other than the market for storage in any area with some facilities store up to 2100 recreational vehicles.
In terms of the financial, each typical recreational vehicle (caravan etc) will use around 25-35sqm of space. This means each hectare of land should give you around 200 net spaces after removal of carriageways turning lanes, on-site offices and ingress and egress etc. Each allotment will generate around $1000 each per annum or at full occupancy around $200,000 per annum
Some existing caravan storage facilities accommodate up to 2100 caravans. With that many caravans stored, that should produce an income of around $2M per annum. If turnover is anything like this, this is ideal, as it will go a long way to providing all the other risk mitigating & sales enhancing expenses such on-site and off-site staff and pickup and delivery etc.
And of course, there are lots of accessory income as an operator you won’t be limited to just caravans there are many varieties of recreation vehicles such as boats, motorhomes, jet ski’s etc which all need different types of storage as well. In addition to that, there will be customers who will want undercover storage as well, and perhaps some self-storage to compliment the RV storage, such as boating accessories etc.
Please view our references here. 2020 Caravan and Campervan data report and the Australian government’s 2021 intergenerational report
Please view our listings which could suit your next caravan or RV storage business here and welcome you to call us anytime for further discussion
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