Is the self-storage industry growing?

Is the self-storage industry growing?

IBISWorld expects the U.S. self storage market to grow at a 2.2 percent compound annual growth rate to $44.5 billion by 2024. So, we remain very optimistic about our industry and the future of Global Self Storage.

When did storage units become popular?

Still, it wasn’t until around the 1960s that the self storage industry became truly successful in the United States.

How big is the self-storage industry?

Self-storage sector snapshot

U.S. self-storage sector snapshot Data
Annual industry revenue $39.5 billion
Number of storage facilities (range) 49,000+
Total rentable self-storage space 1.9 billion square feet
Self-storage space per person 5.9 square feet

Is there a demand for storage units?

The most significant drivers for demand for self-storage are population growth and rental vacancy. Renters seek additional space from storage facilities due to limited space in their home increasing the demand for storage space. The price of storage properties plays a role in demand for industry services.

What percentage of people use self-storage?

Self Storage Facility Occupancy The national average self storage occupancy rate in 2018 was 91.7%. While this roughly 1% lower than the year before, occupancy rates have continued to increase since their 75.7% low in 2010.

Are storage units a good investment?

For many real estate investors, self-storage is an appealing asset class because it has large income potential with low overhead, fewer construction costs than other commercial real estate (CRE) sectors, and relatively low ongoing management. Cash flow with large income potential.

Is self-storage a profitable business?

Self-Storage Business Facts Typically, a self-storage facility still makes a profit at 60% to 70% of full occupancy. Currently, the industry average occupancy stands near 90%, according to Statista.

Is a self-storage business a good investment?

What state has the most storage units?

Texas
Number of self-storage facilities, by state U.S. 2020 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.

How much does it cost to start a storage facility business?

On an average a single-story storage facility costs $25 to $45 per square foot to build, while a multi-story costs $42 to $70 per square foot for construction. A high-end storage unit facility has 60,000 and 80,000 rentable square feet and costs $45 to $65 on construction per square foot as estimated by Mako Steel.

How much is a self-storage business worth?

Notice how many self-storage facilities cluster around $4 per square foot of income and $40 per square foot of value. In fact, the average self-storage facility sells for just under $40 per square foot according to the Self Storage Almanac. facility earns $4 per square foot and is worth about $1.6 million.

How do you value a self-storage business?

Divide your net operating income (NOI) by the cap rate to calculate your property value. This reflects your income stream, which is an important consideration in determining a sale price for your self-storage facility.