REPOST: What is driving the soaring demand for art storage?

Artworks are no longer bought simply as aesthetic additions to enhance homes, but also as investments believed to skyrocket in value in the future. As such, safe and high-quality storage is needed to keep them in pristine condition. Read more on this Apollo Magazine article:

With the number of art galleries increasing at a rapid rate, more collectors entering the field, collectors building substantial holdings, and museums expanding, the demand for fine art storage has increased, too.

Art-storage firms typically offer fireproof buildings, trained security personnel, surveillance cameras, motion detectors, and transport. Crating, shipping, customs, and condition reports are among the other services they offer. Clients can store their artworks either in rooms that accommodate the holdings of other clients, or in private rooms. Viewing spaces where dealers, as well as art advisors, can display the art works they have on offer to clients are also a feature. Private collectors also use viewing spaces on a short-term basis.

‘I think that from 30 to 50 per cent of major collectors use our viewing rooms where they can take their friends to see their other collections,’ says Simon Hornby, president and CEO of New York-based ‘art logistics’ firm Crozier Fine Arts. (The company was founded in SoHo in 1976 and acquired by the information management company Iron Mountain in 2015.)

Before joining Crozier, Hornby served as senior vice president and executive director of Global Risk Partners, an international risk-control and loss-prevention firm specialising in fine art and valuables. Twelve years ago, Hornby was instrumental in the development of the Global Risk Assessment Platform (GRASP), a method by which insurers can evaluate warehouse and museum facilities.

In 2016, Crozier increased its number of storage facilities, adding 250,000 square feet of art-storage space with two new locations in Newark, New Jersey and New Castle, Delaware. Earlier this year, it acquired Cirkers, an art-storage firm in New York, which was founded in 1873. In all, Crozier now controls approximately 750,000 square feet of storage across eight facilities in six locations along the east coast: Manhattan, Brooklyn, New Jersey (where there are two), Connecticut, Delaware, and Southampton. Plus, it has expanded both its Chelsea headquarters and Southampton warehouses. Approximately 40 per cent of its clientele are private collectors, 40 per cent institutions, 10 per cent individual artists and designers, and 10 per cent are art advisors.

The London-based firm Cadogan Tate now offers 13 storage facilities, with four in London, three in New York, three in Los Angeles, and one in each of Miami, Paris, and Nice. Its clients are dealers, collectors, art museums, interior decorators, and auction houses, including Christie’s, Sotheby’s, and Bonhams. The firm opened its first Miami facility last year and will open its fourth New York storage facility, conveniently located between New York City and the Hamptons, in August. ‘Now, we are currently exploring opportunities for state-of-the-art storage facilities in Chicago and Dallas as well as internationally, in particular Hong Kong,’ Graham Enser, global managing director of fine art at Cadogan Tate, says. ‘With yet more art fairs, galleries and new dealers sprouting up in Manhattan, Brooklyn, and Queens, we have seen a growth in customers looking to store pieces destined for art fairs,’ he adds.

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