Why Self-Storage? ...
It's A $38 Billion Dollar Industry
Regardless of the recent recession and demographic shifting, few building
types have sustained revenues like self-storage.
While malls, starter residential homes, and luxury commercial type investments have struggled, self-storage has been one of the safest bets in real estate over the last fifty years. Behind the locks and aluminum roll-up doors is a $38 billion industry.
1 in 10 Americans pay an average of $91.14 per month to use self-storage. Consumers find it to be a place for material overflow of the great American dream. SpareFoot, a company that tracks the self-storage industry, states that the U.S. contains more than 50,000 facilities and over 2.3 billion square feet of rentable space.
$32.7 billion in 2016
This unsexy self-storage industry made $32.7 billion in 2016, according to Bloomberg. Self-storage has seen 7.7 percent annual growth since 2012, according to analysts at IBISWorld, and now employs 144,000 employees across the country.
Demographic trends of baby boomers downsizing and millennials moving into more dense locations in the big city has only increased the demand for self-storage. The emotional connection to consumer’s belongings is one not to be ignored. They need the extra space, as do small businesses with their extra inventory.
The last few years have seen record-setting investment in self-storage expansion with $4 billion alone in 2017.
In 2018, there is planned to be construction converting of 800 facilities to the market, according to Investing Daily.