Self-Storage Industry Outlook
December 8th, 2016
Even during times of national economic struggle, the self-storage industry has managed to outperform other asset classes of commercial real estate. This strong stability translates to opportunities for investors and options for clients. And there is no reason to suspect that this will change in the foreseeable future; the self-storage industry outlook is positive. In fact, IBISWorld predicts that self-storage revenue will grow at a rate of 2.9% through 2020 (source). Business is good, and there are many reasons to believe that it will stay that way.
SELF-STORAGE INDUSTRY OUTLOOK
So why is it that the self-storage industry remains strong and constant while others struggle? It all boils down to the fact that storage is a service that just about anyone can use at any given time. There is a great array of clients, creating plenty of options for customers and businesses. With so many opportunities to explore, it’s no wonder the self-storage industry outlook is positive.
People from all walks of life use storage units. Those of great wealth and disposable income are likely to buy things. The catch about buying things? You need somewhere to put them. At the other end of the spectrum, you have folks of more modest means in need of the same service.Life events often create the need for storage space as well. In downsizing to a smaller home or while in transition between homes, people often find themselves with more things than they have room for. Furthermore, circumstances such as divorce or death can leave people with possessions they cannot store in their homes. Likewise, with so many young people renting homes rather than buying and with college enrollment as high as it is, people are moving all the time. Apartment and dorm spaces can vary greatly in size, and self-storage units can obligingly accommodate excess belongings.
The economy has little impact on the self-storage industry outlook. It is one of the only industries in which this is the case. Even the economic recession of 2007 had almost no effect on self-storage businesses overall. In times of both economic boom and hardship, people can use storage units. When times are good, people spend money, and they need places to store their excess possessions. When times get tough, people relocate, downsize, or move back in with mom and dad, and these situations tend to leave people with possessions they no longer have room to store. In both instances, people need a safe place to store their things.
Unlike most other major industries, self-storage remains pretty well fragmented. The large-scale, national operators control less than 20% of the market. This is a staggering number considering how most other industries operate. In fact, independently owned self-storage facilities still constitute nearly 75% of the market. This shows an extraordinary resilience within the industry against big business taking over, and it allows investors in the private sector to operate on their own terms and gives them a better shot at success than most other industries can offer.
Self-storage is a unique industry. Business has remained strong and consistent even through tough times, and the self-storage industry outlook suggests that that will continue. Should you find yourself in need of extra storage space in southwest Missouri, Eastway Storage Center would be happy to accommodate your needs. We are proud to boast high-quality storage facilities, a helpful staff, and a convenient location just off Highway 65. Check out the sizes and pricing of our climate-controlled units to learn more about our services. Then, give us a call at 417-864-7867 or contact us online to speak with one of our friendly representatives today!