The Rise of Self-Storage
The self-storage industry has seen tremendous growth in recent decades as more people and businesses utilize these facilities to store excess goods. There are a few key reasons self-storage has become so popular:

- Downsizing living spaces: As the average size of homes and apartments decreases, people simply do not have enough room to store everything they own. Self-storage provides a solution to this issue by offering additional space outside the home.

- Changing lifestyles: More mobility in careers and personal lives means people relocate more frequently. Rather than getting rid of possessions, many choose to store items when moving to a new location.

- Economic uncertainty: In difficult economic times, Self-Storage acts as a safety net for those who may need to quickly downsize a living space or business location if their financial situation changes.

- Online shopping boom: The rise of e-commerce has increased the number of packages, gifts, seasonal items, and other goods people receive and need to store out of season. Self-storage provides a place for these items.

- Small business needs: Startups and growing small businesses frequently need extra space to store inventory, paperwork, equipment, and supplies outside of their primary business location. Self-storage meets this need affordably.

Revenue and Locations

The self-storage industry has seen average annual revenue growth of approximately 5% each year over the past decade. In 2021, total industry revenue was an estimated $44.1 billion according to industry research groups.

There are an estimated 54,000 self-storage facilities across the United States today providing storage space in all 50 states. The states with the largest number of facilities are California, Texas, Florida, Illinois, and Pennsylvania. This high number of locations ensures convenient access to self-storage for both personal and commercial users across urban and rural areas.

Growth of Climate-Controlled Units

One rapidly expanding sector within the self-storage industry is climate-controlled units. Whereas standard units provide a basic storage space protected from weather, climate-controlled units tightly regulate temperature and humidity levels.

- Increased use of electronics and collectibles: Many people now store valuable electronics like laptops, gaming systems, cameras and collectibles/heirlooms that require stable temperature and humidity levels to prevent damage over time.

- Small business needs: Companies storing goods like wine, crafts, delicate fabrics or chemicals find climate-controlled storage protects inventory quality and freshness.

- Document preservation: Organizations storing important paper records and documents greatly benefit from climate control, which slows the deterioration of paper over decades compared to fluctuating temperatures.

- Medical supplies: Facilities near hospitals increasingly offer climate-controlled units to store emergency or seasonal medical supplies that demand strict temperature and humidity conditions.

While costing more per month, demand for climate-controlled self-storage has grown approximately 7-10% annually as customers recognize the value these units provide for valuable and temperature-sensitive goods. This sector will continue fueling industry expansion.

Self-Storage Units and Facility Design

There are many common types and sizes of storage units available:

- Standard: Generally provide 5x5 to 10x10 foot spaces for personal and smaller business items.

- Oversized: Larger drive-up units from 10x15 to 10x30 feet for boats, RVs, architecture models, and other bulky goods.

- Climate controlled: As above but with strictly regulated temperature and humidity ideal for collectibles, documents, and electronics storage. Sizes are comparable to standard units.

- Records storage: Units in special areas providing optimal document preservation with controlled temperature, humidity, smoke detection, and fire suppression.

Facilities feature 24/7 electronic access, surveillance cameras, lighting along driveways and in units for safety. Newer designs incorporate green materials and recycling programs. Many offer truck and van rentals, moving and packing supplies to help residents with storage needs. On-site offices provide customer support from leasing to billing assistance. Well-maintained properties generate satisfied long-term rental customer bases.

Opportunities for Growth

As Americans continue migrating to cities and downsizing homes, e-commerce increases, and businesses require flexible workspaces, the demand drivers for self-storage will remain strong. Development of new facilities is expected in popular cities and expanding suburbs. Additional growth may include:

- Wine and beverage storage: A rising number of cellar/tasting room facilities provide barrel storage, bottling and shipping services.

- Vehicle/boat storage: Indoor parking with plugin power for recreational vehicles and classic cars sees increased use seasonally and while traveling.

- Industrial/manufacturing space: Contractor yards, inventory overflow, and flexible production spaces complement standard self-storage.

- High-security storage: Sensitive documents, collections, fine art and other specialty storage units employing additional security measures.

Overall, trends indicate continued expansion of self-storage square footage, technologies and value-added services in coming years, fueled by demand from personal, commercial and specialized sectors. This industry has proven to provide solutions supporting changing lifecyles in the digital economy.

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