What is the Demand for Self Storage?
Growing at an annual rate of 5.76%, demand for self storage is increasing
The self-storage industry is flourishing, with demand significantly increasing as the population continues to grow. The increase in mobile lives, which can be attributed to the high number of professionals that move around the country, has also contributed to this trend.
It’s important to note that the demand for self-storage units varies with the local population density, the use of business-enhancing self storage software, the costs of storage units, etc. For example, in dense urban centres, there’s more demand for self-storage units because people have less space and more belongings.
So, what is the demand for self-storage? We’ll expand on this in a bit.
Why’s There a High Demand for Self Storage?
The following factors have influenced the huge market for self storage:
1. The transportation industry.
Storage facilities have proven to be convenient checkpoints for enterprises providing shipping and transportation services, allowing for the reloading or dropping off of cargo as needed. This scenario has gained popularity in recent years since it streamlines the process of getting items from location A to location B.
Self storage options serve admirably as a safety checkpoint in times of crisis. Of the various benefits, decreased maintenance costs compared to renting huge buildings stand out as the most significant. With their convenient location, the many storage facilities provided are a haven for stowing away and safeguarding possessions at any time.
2. Rent hike.
Landlords, whose primary source of revenue is rent collection, attribute the increase in rent costs to the general upward trend in prices. Large corporations, which spend a disproportionate share of their resources on rent and utilities (such as gas, electricity, and heating), have had enough of these shifts and are looking for sustainable and more suitable alternatives. Therefore, self storage facilities are optimal, as they provide sufficient storage space and freedom from the rising rent of traditional office spaces, allowing them to dedicate their financial resources to more pressing issues.
3. The COVID-19 pandemic.
The vision and demands of the worldwide market have been radically affected by the recent pandemic of 2020, and the self storage industry hasn’t been left out (particularly in the Asia Pacific region). More and more companies are shifting their practices, and telecommuting from home is becoming the norm.
These new trends led to a decline in the popularity of big offices and a corresponding rise in rent charges, making them unaffordable for all but the most prosperous corporations. That’s why lots of people have started using a new service that provides a place to save their inventory, paperwork, and other necessities. As more people stayed home for work, the need for storage units increased.
Although the pandemic has eased in most parts of the world, many businesses are rethinking whether they should return to their pre-pandemic ways now that the remote work model has proven successful.
Self storage unit rentals will continue to be in demand as long as this storage space requirement exists. Though it was a surprise, the pandemic has stimulated some sectors of the economy.
How Recent Trends Are Influencing the Demand for Self Storage
Self storage is thriving because more people are opting to declutter their homes. The demand for self storage has also seen an increase in recent years, which isn’t surprising considering the boom in online shopping. This is because people running e-commerce stores need a form of warehouse to store their goods, as their homes may not provide the sufficient space they require.
The workplace storage facility, traditionally used by businesses to store goods and equipment, has now become a popular option for people who want to declutter their homes and store personal belongings when they move out of a property without paying expensive removal charges.
In today’s digital age, the demand for self storage has skyrocketed as more and more people are beginning to understand the value of their belongings. For example, people who rarely live in their homes would rather store their valuables (like cars or motorbikes) in a self storage facility with ample security than in their homes (which may be less secure). This demand will only grow as technology advances and occupies an even greater part of our lives.
More people are investing in self storage due to its growing market, which is influenced by several factors, including the transportation industry, rent hikes, and the COVID-19 pandemic. From the consumer’s perspective, self storage is necessary for anyone who values their personal property enough to put it in a safe location.
Frequently Asked Questions
Is the self storage market expanding?
Yes, it is.
For example, in countries like the US, the increasing population means more individuals need convenient access to self storage options. To put things in perspective, around 40 million Americans relocate annually due to various life events, including getting married, divorcing, retiring, having children, etc., as the United States Census Bureau reported, thus requiring self storage space.
Who uses self storage the most?
Most individuals that use self storage belong to the Gen X demographic group, with 54% of Gen Xers renting a unit at some point. This is closely followed by baby boomers (51%) and millennials (40%).
How much do self storage locations earn?
You can make between $600,000 and $1,250,000 annually operating a self-storage facility.
However, several variables influence this figure. These include the facility’s size and location, whether or not you had to get a loan to start the business, and how you intend to invest.