Investing in Self-Storage
The Vitality of Self-Storage
Reliable, Recession-Resistant Industry Fulfills
Consumer and Business Needs
Reliable Demand
In good times and bad, self-storage facilities will always be in demand. When the economy is booming, household consumption increases and people have more items to store. During a downturn, people tend to downsize and move, using self-storage for their belongings. Businesses employ self-storage as a secure and economical replacement for office and warehousing space. A future-proof service, self-storage is reliably in
demand.
Self-Storage Industry Snapshot
|
Annual industry revenue |
$44.33 billion |
|
Number of storage facilities |
52,301 facilities |
|
Total rentable storage space |
2.1 billion square feet |
|
Storage space per person |
6.32 square feet |
|
Percentage of households that rent a storage unit |
11.1% |
|
Average monthly cost for a |
$85.30 |
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Stable Market Drawing New Investors
In recent years, self-storage has been an extremely stable investment, shielded from the declines experienced in other real estate asset classes. This market sector has maintained steady growth through the Great Recession, the pandemic, and the Great Resignation.
REITs, high net-worth individuals and institutional investors including large private equity firms are investing in the self-storage market, fueling increased sales prices and acquisition activity. Self-storage has a proven track record for delivering steady growth and return on investment.
Self-Storage as a Low-Cost, High Performing Asset Class
- Low operational costs related to personnel, maintenance/repair, capital expenditures, infrastructure, eviction expenses, utility costs.
- Strong NOI operating margins and low breakeven occupancy rates.
- Low turnover costs and easy management: show, rent, turnover, sweep and re-show.
- Fewer investors competing for opportunities than in other real estate asset classes.
- No rent regulation and month-to-month tenancies mean rental rates are immediately responsive to inflation and economic changes.
- Easy eviction/content auction.
- Low liability with no on-site tenants.
- Considerable opportunity for investment exists, with a majority of smaller operators.
- Scalable through expansion of an existing building or adding a new one, as development costs are much lower than for other asset classes.
Contact us to start a conversation about your interest in self-storage investment.