- What Is A Self-storage Market Report?
- Scope Of The Reports
- Self Storage Market Report 2022
- Self Storage Market Overview
- What Is The Growth Rate Of The Self Storage Market?
- Which Region Has The Highest Growth Rate In The Self Storage Market?
- Competitive Landscape
- Recent Developments
- Who Are The Key Players In The Self Storage Industry
- Self-storage Industry Outlook
- Self-storage Market Trends
- Final Thoughts
The COVID-19 outbreak has resulted in an upsurge in real estate revenues, and several operators have noted greater purchase and occupancy.
The main forces behind these developments in the self-storage business are data, reports, and demographics. These variables may be derived from self-storage market reports.
What Is A Self-storage Market Report?
A self-storage market report is a report that is created based on the constantly shifting market behavior of the self-storage industry.
It is a written document that reflects information on the market conditions relating to products, services, and transactions involving the business.
In other words, a market report provides information on a product or service while taking into account factors such as pricing, supply and demand, transactional style, and market trends.
Scope Of The Reports
One segment of the commercial property sector is the self-storage business. Due to global trends of rising urbanization and improving economic outlooks, this industry's growth is anticipated to be favorable throughout the projection period.
The report examines market and competitive developments in the worldwide self-storage industry. Additionally, it provides key analysis and client-type analysis (Personal & Business).
The analysis includes a section on COVID-19's influence on the market.
This report is determined by user type: personal or business.
Geography: North America, Europe, Asia Pacific, Rest of the World.
Self Storage Market Report 2022
According to Yardi , despite a decline in performance following significant summertime gains, growth rates are still significantly higher than they were in December 2020, when all unit types had nationwide year-over-year rises of 2-4 percent.
The classic "4Ds" of self-storage demand (death, divorce, displacement, and disaster) are among the causes for optimism.
Owners and managers observe demand coming from two new Ds which are development and distribution/business demand, in addition to those more established drivers.
Investors are expressing optimism about demand, rent growth, and capital trends for the upcoming year.
As we look back on 2021, I think it was the best year for the storage business ever. The year 2022 could be even better.
Self Storage Market Overview
According to an article published by, Mordor Intelligence worldwide self-storage market, also known as market research, has a value of USD 48.02 billion in 2020 and is projected to grow at a CAGR of 5.45 percent from 2021 to 2026 to reach USD 64.71 billion.
Due to trends of greater urbanization and better regional economic outlooks, this industry is predicted to expand positively throughout the projection period. These elements have stimulated the expansion of new firms.
Additionally, COVID-19 has prompted many company owners to use self-storage. Self-storage demand increased as a result of having to work from home for the majority of 2020 in order to avoid paying space rent.
There is a declining demand for office space as more businesses choose to adopt a remote work model permanently.
Self-storage is most often chosen, particularly in major Asian cities where renting office space may be expensive.
- Urbanization's accelerating rate is one of the key elements boosting the market's expansion. The growing urban population results in more tenants who move around more often, and smaller and more expensive living areas in cities. This tendency is most evident in London, where the population in 2015 reached an all-time high of 8.6 million. By 2030, the population is anticipated to exceed 10 million.
- The market's growth is being favorably augmented by the improving economic outlook in the nations of the United States, Europe, and Asia. Continuous innovation, R&D, and capital investment are the main drivers of economic growth in the United States.
- The market's expansion is hampered by government regulations. The Department of Homeland Security has continued to issue vague warnings to storage facility owners that their facilities may be used to keep items that may be utilized in a terrorist attack.
What Is The Growth Rate Of The Self Storage Market?
Self-storage has always been praised as a sector that can weather economic downturns. Conventional wisdom once held that six net rentable square feet per person provided a sufficient amount of self-storage space.
Today, depending on the location, the majority of industry insiders would tell you that the figure ranges between 10 and 13 square feet per person.
The self-storage business is still expanding at an astounding rate even though COVID-19's effects on the economy are still being felt by consumers.
It is anticipated that growth will continue. Self-storage has been protected from the effects of larger market shifts, in contrast to other real estate asset classes that have suffered during the epidemic, even ones that were formerly thought to be solid.
According to Rejournals , self-storage markets worldwide were worth $48.02 billion in 2020. By 2026, it is anticipated to be worth $64.71 billion.
According to Mordor Intelligence , the Self Storage Market is growing at a CAGR of 5.45% over the next 5 years.
Which Region Has The Highest Growth Rate In The Self Storage Market?
Mordor Intelligence also says that Asia Pacific is growing at the highest CAGR over 2021- 2026.
Multiple international businesses compete for attention in the industry's dispersed market space.
The participants have concentrated on giving competitive pricing, marketing initiatives, commercials, and other facilities like parking lots, round-the-clock access, and climate control, to name a few.
The existence of these businesses and their ongoing creative endeavors are escalating the current market situation.
Several new entrants supported by VCs have been successful in the industry since it has only modest entry barriers for new companies. This can make the market rivalry even more fierce.
In July 2021, to address the strong supply-demand fundamentals and alluring long-term dynamics, including resilience over economic cycles, the international investment firm KKR purchased three self-storage buildings in Austin, Texas, and Nashville, Tennessee.
Also, Booking Ninjas introduced its self-storage management services, giving users a quick and easy way to control their storage.
With this solution, businesses can experience seamless password management, account balance monitoring, payment history tracking, gate code access, and bill payment. They can also use it for AutoPay set up, push notifications, and more, all from the convenience of their smartphones.
Who Are The Key Players In The Self Storage Industry
The heavyweights in the self-storage industry include; U-Haul International Inc, Life Storage Inc, CubeSmart LP, National Storage Affiliates, and Safestore Holdings PLC are the major companies operating in the Self Storage Market.
Self-storage Industry Outlook
Customers still use self-storage facilities because they are limited by the space in their houses. The National Self-Storage Research Report from real estate brokerage firm Marcus & Millichap predicts that this property market will rise following its expansion in 2014.
According to the research, "to date, the strong performance of self-storage assets is mostly driven by increased space demand." U.S. consumers are definitely back in an accumulation phase,
This is after hunkering down during the recession, buying new items that will surely send previous goods to self-storage facilities throughout the nation.
Investors should bear in mind these statistics illustrating the market's condition given the increased demand for self-storage facilities:
According to National Real Estate Investor, self-storage facilities had occupancy rates that broke records in 2014, averaging over 90% on average.
Investors are currently more interested in self-storage than in the past due to occupancy levels that are close to all-time highs.
Self-storage sector group executive managing director R. Christian Sonne of real estate investment company Cushman & Wakefield Inc. said there was fierce investor competition for these properties last year.
According to Sonne, self-storage is now legitimate and is no longer that strange business concept that no one can fully comprehend.
Family money, equity companies, and hedge funds are just a few of the institutions that have entered the industry, which is now regarded as at least core, if not core-plus.
More investors may try to diversify their portfolios by buying more self-storage buildings since they view them as an asset with excellent returns.
In the third quarter of 2014, according to Sonne, there was fierce buyer competition for both individual assets and portfolios in the self-storage industry.
Average Rent Change
According to the analysis produced by Sonne for Cushman & Wakefield, investors are upbeat about making investments in the self-storage sector in 2015 because they anticipate a steady stream of cash flow.
An increase in market rent change rates served as proof of this upbeat attitude.
According to the study, the average rent change for the domestic self-storage market was 3.5 percent in the second half of 2014, which was higher than the 3.25 percent seen in the second half of 2013 but equal to the rate in the first half of 2014.
Number Of Storage Facilities
According to a survey by Aegon Realty, there were reportedly 25 million self-storage units in the United States in 2013. There may be a greater need for self-storage facilities as more individuals rent and run out of room for their possessions.
Investors might acquire facilities in locations with a high concentration of multifamily units if they anticipate a rise in demand for these properties. In the U.S., 1 in 10 households now rent a self-storage facility, up from 1 in 17 families in 1995, according to the survey.
The Average Wealth of Households For The Majority Of Tenants
The Aegon Realty research also revealed that slightly more than half (51 percent) of households that rented self-storage units made $50,000 or more annually.
This suggests that renters of self-storage facilities are increasingly earning a variety of salaries, which may translate into a larger market for self-storage owners. According to the survey, 15% or so of tenants had a family income of $125,000 or more.
Self-storage Market Trends
The top eight trends in the self-storage market that you should be aware of have been identified in order to keep you informed.
Increasing Competition & Consolidation
Historically, the self-storage market has been very fragmented, but as the need for warehousing increases, publicly traded real estate investment trusts (REITs) are entering the market.
They now control around 20% of the self-storage industry, which may not sound like much, but their strong financial position gives them a lot of clout.
They may offer consumers reduced rents and profit from pay-per-click and internet marketing, sharing administrative and operating costs across their huge portfolios. This significantly increases the pressure on privately held self-storage businesses to improve.
Some self-storage businesses are allowing themselves to be bought out by REITs because they are unable to compete with them due to a lack of funding and resources.
Growth-hungry REITs may make offers that are too attractive to pass up, despite losing their independence. It goes without saying that this increases REITs' market share and reputation.
The Storelocal self-storage cooperative is currently being considered by small self-storage operators that wish to keep their independence but yet be able to compete with REITs.
Valet Self-storage As An Ancillary Service
It was previously believed that full-service self-storage or valet self-storage would grab so much attention.
For an additional fee, companies providing this service would pick up their clients' things from their homes or places of business, and they would even offer to box and wrap them before storing them in a climate-controlled space.
Although the idea never really caught on, many self-storage facilities now provide valet service as an extra service.
Offering valet self-storage as an option can assist facilities in high-income areas or places with a lot of lucrative enterprises that draw in clients who value convenience.
Changing Management Styles & Customer Service
Many REITs have a "hands off" management approach that involves little direct communication and involvement. Although some consumers favor this managerial approach, it has a poor level of customer service.
Some self-storage businesses set themselves apart in this way. They frequently have a positive relationship with their clients and offer first-rate service.
They may also demonstrate their worth by providing other services like moving vehicle rentals, moving materials, insurance, and a selection of boxes. Of course, they still have to stay current.
Self-storage businesses today will be most successful if they can blend automation and technology with individualized customer care, such as assisting customers in selecting the best storage space for their goods.
Online applications are only one example of additional helpful technology for self-storage businesses.
In addition to letting customers pay bills, examine move-in and move-out dates, report problems with photos, view a live feed of their apartments, and more, these applications may give owners useful consumer data.
Understanding Generational Similarities
Because they served baby boomers who may have recently become empty-nesters or were retiring and wanted to downsize, several independent self-storage facilities in the past were hesitant to implement the new technology just outlined.
It was believed that this generation will value interpersonal relationships over automation and cutting-edge technology.
The idea that baby boomers are an analog generation is out of date, according to research on how they utilize technology.
Although the pandemic helped older generations absorb technology more readily, baby boomers increasingly favor digital innovation, and utilization of digital channels was already on the rise prior to COVID-19.
According to 2019 Pew Research Center research, the majority of baby boomers (nearly 70 percent) now own smartphones.
Therefore, self-storage business owners should not be hesitant to accept new technology. The younger Millennial and Zoomer generations will find them more appealing as a result because they grew up with these technologies and have learned to anticipate them.
It's up to the owners to find the ideal balance between customized service and automation and technology because there's still something to be said about face-to-face interaction.
Alternative Use Of Space (Ecommerce Businesses)
Self-storage facilities have developed into an excellent location for e-commerce companies to keep their products, serving as a "hub" between the manufacture of goods and their shipment.
Seeing as self-storage units could be any size a person needs, individuals are normally not relevant to business rates or taxes.
The storage company pays, at less expensive warehouse rates, and rent is a fraction of the cost compared to renting a storefront of a similar size. Operating an eCommerce business from a storage unit is also a growing trend, according to BBC News.
Of course, not every type of company can be operated from a storage unit; the Self Storage Association handles this. However, independent self-storage facilities that have openings could choose to promote this as a choice if they don't mind visitors coming back often.
Location & Aesthetics
Self-storage establishments used to all have the same appearance: rows of metal structures with one story and an orange or yellow paint job.
The circumstances are changing! Many self-storage facilities today are made to suit the local architecture by blending in with their surroundings. They could have elegant landscape and exterior decorations.
In recent years, neighborhood groups have required specific designs in order to prevent the construction of a "eyesore" in their region, so for some facilities, it isn't even a possibility.
This implies that self-storage business owners nowadays must carefully consider the location where they plan to construct in order to guarantee that their design blends in with the environment.
With proper management and task automation being some of the most essential elements for a successful self-storage business growth, your storage facilities will be well-managed and optimized with the Booking Ninjas Self Storage Management System to better serve your customers.
Use our one-stop system to benefit from remote access, ticketing, POS systems, online customer acquisition, and many more.Schedule a free call with us now and improve your storage.