The self-storage industry is a sector of the U.S. commercial real estate that has expanded in recent decades. This is due to unprecedented population growths that have resulted in more people moving in and out of their homes and needing additional storage. Self storage is becoming one of the new, popular areas for real estate investors to enter.
Who Uses Self Storage?
The first step is to know who invests in self storage and if their populations will increase soon. A typical customer is anyone who accumulates junk and runs out of storage space at home or at a business. However, this doesn’t mean that everyone is willing to pay monthly fees for professional storage. The most common types of customers are home buyers or sellers who are moving many personal items and need temporary storage.
How High is the Demand?
According to Forbes.com, self storage has remained resilient throughout the COVID-19 pandemic with many people still using the services. The rate of demand, measured by CAGR, is expected to increase by 134.79% until the year 2025. This high demand means that more investors are investing in self-storage businesses.
Fewer Maintenance Fees
Self storage is a low maintenance industry with few complexities. The demand is high yet the level of maintenance needed to continue investing is low. Financial experts predict that self-storage investors will have a steady cashflow with few building costs. They predict a large income potential with significant returns of investment.
The Prevalence of Self Storage
In major cities and neighborhoods, self-storage units are in greater use than in smaller places. Population growth is the biggest cause of this high demand for storage space. When more people move into a city or town, they increase the demand for self-storage companies. Another important factor is the increase in the population density. When more people rent apartments, they are more likely to need space from storage facilities.
A self-storage facility is not just a good place to rent a space. It’s also a great investment for anyone looking to earn a passive income in an increasingly lucrative market. Many property owners are increasing the demand for self-storage units, and more real estate investors are seeing the benefits of investing in this field.