Queensland's Gold Coast is attracting international investors in the self-storage industry because of its reputation as Australia's fastest-growing city.

Aside from reputation, director Lisa Murdoch of independent valuer LandMark claims institutional buyers considered the Gold Coast a good investment because storage facilities did not require staff or costly maintenance.

Murdoch said, “The self-storage industry on the Gold Coast has the attention of merchant banks, property trusts, and property syndicates at the moment.”

The director explained yields of nine to 11 percent had created interest in a sector where values remained dependent on key factors such as occupancy rates, management brand, the quality of developments and the development potential of the facility.

The self-storage property market holds high investor confidence; however, Murdoch cautioned about “long-term operators who would be monitoring markets with an eye to exiting the industry.”

Just Real Estate Investments director Tony Grbcic gave a different reason for the attraction. He said cashed-up investors merely wanted to maximize returns through properties aligned to well-known brands like National Storage and Storage King.

The expansion of the branded storage companies had created a more liquid market for owner-operators. It has also increased vendor expectations.

Grbcic said, “We are currently searching for self-storage investment opportunities ranging in price from $2 million to $5 million in prime industrial areas.”