Investing in Self Storage
The IBISWorld outlook projects that steady population growth, increase in the residential rental market, rising per capita disposable income and relocation numbers will continue to drive the growth of US self-storage facilities up 14 percent over the next five years.
Life changes such as divorce, deaths within the family and household downsizing all increase the potential for self-storage usage. Many businesses use self-storage facilities for overflow or medical record storage. And, since self-storage facilities require very few employees to manage a facility, overhead is lower and potential for return on investment is high, making investing in self-storage is a wise economic strategy.
According to a recent forecast from market research company IBISWorld, revenue from the US self-storage industry will exceed $30 billion in 2018 and approach $33 billion with an average 2.9 percent annual growth rate through 2020:
- $30.5 billion in 2018
- $31.5 billion in 2019
- $32.6 billion in 2020
Demand for storage units is expected to increase with rising levels of consumer confidence and consumer spending. Experienced operators competing for older, prime property locations in secondary markets should also drive prices higher while pushing cap rates lower.
Learn more about getting started in the self storage industry by contacting BETCO, the single source self storage specialists since 1984.
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