In the last article, we looked at the self-storage industry from the perspective of economies of scale, sharing the outlook that the industry would enter a full-fledged growth phase, centered around operators with infrastructure and technology, like attic storage, using the example of the largest market in the world, the United States.

In this article, we will focus on the concept of smart cities, which is gaining attention as a strategy to address rapid urbanization and space shortages. In particular, we will discuss how self-storage can activate urban idle spaces, complement the functions of residential and commercial spaces, and evolve into digital-based assets from the perspective of effective space utilization, sustainable urban infrastructure, and data-driven operational systems, which are core elements of smart cities.

Solving Urban Problems through Technology: 'Smart City'

<Living space per capita in major cities around the world / Source: National Statistical Agencies>

As the global urban population is projected to exceed 5 billion by 2030, the issue of space shortages in cities is becoming increasingly serious. Over the past decade, the living space per capita in large cities has decreased by nearly 20% on average, and Seoul is no exception. Currently, the average living space per capita in Seoul is 19.7㎡, smaller compared to major cities abroad such as New York (32.9㎡), London (31.6㎡), and Tokyo (20.5㎡). This rapid urbanization is causing complex problems across cities, including traffic congestion, housing difficulties, environmental pollution, and energy waste.

As a new urban management model to solve these issues, smart cities are gaining attention. Smart cities aim to manage urban resources effectively through advanced information and communication technology (ICT) and data-driven analysis, enhancing the quality of life for citizens. In particular, unlike traditional urban development, which responds retrospectively to urban problems, smart cities employ real-time data and predictive technologies to proactively address issues.

In smart cities, key technologies include infrastructure monitoring using IoT sensors, AI-based energy demand forecasting, traffic flow analysis via big data, and urban simulation based on digital twins. The government views this as a core infrastructure of the Fourth Industrial Revolution, having designated Sejong and Busan as national pilot smart cities to promote advanced technology validation. The central theme of smart cities is how to utilize limited urban space efficiently, leading to the development of various infrastructures and platforms that can reconfigure excess spaces, going beyond just sharing vehicles and office spaces.

Core Infrastructure of Smart Cities: Self-Storage

<Smart City infrastructure functions of Attic / Source: Second Syndrome>

The core of smart cities is 'urban efficiency', with the ultimate goal of improving the quality of life for citizens by solving problems experienced by existing cities in various fields such as space, energy, transportation, environment, and safety through technology. At the center is the optimization of urban infrastructure using data, and it is emerging as a core strategy to digitize physical assets and convert them into shareable forms.

In this context, self-storage is establishing itself as a solution that not only offers simple storage services but also activates urban idle spaces and transforms them into smart infrastructure. Attic is converting various idle spaces, such as commercial facilities that have been long-term vacant for more than 8 months, retail buildings, semi-basement housing, and public institution residences, into available storage infrastructure, thereby adding new value to inefficiently neglected urban assets.

This transformation of space also shows distinct advantages in energy efficiency. Automated smart storage can operate without on-site personnel and minimize energy consumption used for lighting and heating/cooling. In fact, Attic has achieved an average energy savings of about 48% compared to existing commercial facilities.

Thus, considering that self-storage can enhance both the utilization of urban space and energy efficiency, Attic contributes to strengthening the sustainability that smart cities pursue.

<Case studies of urban space utilization through Attic / Source: Second Syndrome>

From an operational standpoint, Attic is realizing a high level of efficiency and control by combining AI and IoT technologies. The headquarters monitors over 170 sites in real-time with only 3 staff members, indicating that the labor input per site is just 0.01 persons.

Most importantly, self-storage functions as an 'essential living infrastructure' that reconstructs the very spatial structure of citizens' daily lives, rather than being viewed merely as storage facilities. In high-density cities like Seoul, the mixed nature of residential, office, and commercial functions leads to frequent spatial inefficiencies. Furthermore, the domestic residential environment has a standardized area and structure, making it difficult to reflect various lifestyles or changing demands.

Attic contributes to increasing flexibility and usability of space within these constraints of urban structure. In fact, about 47% of Attic members are single-person households, mostly residing in small housing types like officetels or villas, and among customers who utilized Attic, 97% reported that their living environment improved through storage services. This statistic demonstrates that self-storage functions as a practical living infrastructure that enhances the quality of urban housing beyond being just simple storage space.

Thus, self-storage has established itself as a key infrastructure that not only complements the shortage of residential spaces but also improves the quality of life for urban residents and enables flexible use of space. To realize 'livable cities', which smart cities aim for, self-storage must be considered an essential urban component.

Self-Storage Evolving into a Logistics Network and Data-Driven Urban Infrastructure

Self-storage possesses infrastructural strengths that can function as logistics hubs in urban areas. While large logistics centers are concentrated in the outskirts, self-storage is dispersed throughout the city, enabling much quicker and more flexible responses from storage to pickup.

Particularly, for small businesses and online sellers, it is highly useful as a micro-logistics hub within the city, and in the future, it can form a more interconnected last-mile network through API connections with logistics platforms and delivery services. This will be a realistic alternative that can simultaneously improve logistics efficiency and urban living convenience within smart cities.

Self-storage can be naturally integrated into smart city platforms that connect and optimize the various functions of the city. Especially, its function as a last-mile logistics hub is noteworthy.

About 52% of Attic users utilize it based on logistics-related travel routes (home ↔ office ↔ Attic), and the cumulative number of service requests related to logistics has reached around 3,300. This suggests that self-storage can operate as a key infrastructure that not only functions as simple storage space but also disperses urban logistics flows, reducing traffic congestion and energy consumption.

<Expansibility of Attic based on data / Source: Second Syndrome>

Another noteworthy point is that the data collected through Attic's storage infrastructure has the potential to be utilized in the realization of smart cities. Customer usage patterns, stored items, travel routes, seasonal demand fluctuations, and other datasets are crucial for accurately understanding urban living patterns and logistics flows. This data can be applied in various urban functionality improvements, such as transportation policies, logistics infrastructure design, and local commercial analysis. In fact, Attic is refining location analysis, pricing strategies, and service operations based on this.

The Smart City that Attic Will Create

A smart city is not merely a city with integrated technology, but a model that efficiently manages resources and maximizes space utilization. From this perspective, self-storage holds significant potential to establish itself as essential infrastructure for smart cities.

Especially, Attic, leading the self-storage industry in Korea, provides optimal solutions that can support spatial innovation in smart cities, and it will continue to drive sustainable development through automation technologies and smart logistics connections. Please keep an eye on Attic as it expands its synergy with smart cities, creating a new paradigm for the urban spaces we live in.