What is the future of self-storage?
In the future, automation of self-storage will become an industry-standard increasingly. It allows companies to save on footprint, operational costs, and overhead, making operations more efficient overall. Prospective renters increasingly search, find and manage their storage solutions digitally.
The global Cloud Storage Market was valued USD 77.5 Billion in 2021 and is all set to surpass USD 208.1 Billion by 2028, exhibiting a CAGR of 17.9% during the forecast period 2022-2028.
Profitability is in the eye of the beholder. But, generally speaking, a self-storage business can be profitable. In fact, it can be more profitable than many other types of business out there. “Self-storage has evolved from the homely stepsister to the Cinderella of the commercial real estate industry.
Long the leader in self storage, Public Storage once again earns its place at the top of our list. With 186 million net rentable square feet under its belt at the end of September 2021, the company's distinctive orange signs can be seen in 39 states.
The most popular size storage unit is the 10×10 storage unit. This self-storage unit is roughly the size of a single bedroom or guest room. With 100 square feet of personal storage space, you can fit the contents of two bedrooms in this size storage unit.
Across Europe, there are 4,350 facilities, or 9 per million people, compared to 160 per million people in the United States.
Self-storage can be an excellent investment choice. The data available on this sector supports the supposition that investments in this field have the potential for massive revenue. Also, short-term leases (often month-by-month) make self-storage a super-efficient investment choice.
By one estimate, the typical profit margin of a self-storage business in the U.S. is 11%. That's well above the profit margins for many other types of small businesses; for example, the typical profit margin of a restaurant ranges from 3% to 5%.
Tax Reporting
Again, income from a self-storage facility (rental income) is considered passive.
In 2020, there were 5,234 self-storage facilities in Texas, making it the state with the highest number of such facilities in the United States. California also had a high number, with 3,728 self-storage facilities.
What demographic uses self-storage?
- 88% are between the age of 21 and 55 years of age.
- 78% have incomes between lower middle and upper middle income.
- 75% of tenants live or work within 2 miles of the property.
- 85% of tenants come from “Drive By Traffic.”
Percent of U.S. Households Renting a Storage Unit. Almost 10% of households in the United States are currently renting a self storage unit.
While growth rates are projected to remain steady, the self-storage industry has a strong track record of a high return on investment for most facilities. From 2009 to 2018, self-storage facilities averaged an annual ROI of 16.9%. This number was higher than office, industrial, retail or apartments during that time.
For two-bedroom apartments, we recommend a 10×10 storage unit, which can accommodate two bedroom sets including mattresses, dressers, bed frames and nightstands. If you have additional furniture from the living room, kitchen and dining room, you may need the larger 10×15 storage unit.
What Size Storage Unit Do I Need for a 4-Bedroom House? A 10′ x 30′ storage unit is ideal for a 4-bedroom house, especially if you have a large amount of furniture in those rooms.
Value of self-storage market worldwide 2020-2026
By 2026, the global self-storage market is forecast to be worth 64.71 billion U.S. dollars, up from 48.02 billion U.S. dollars in 2020.
In 2019, there were 47,863 self-storage facilities in the United States, up from 45,547 facilities in the previous year.
