On a Growth Trajectory Considered one of the top “recession-proof” markets, self-storage industry revenues increased from $24 billion for 2013 to $27.2 billion for 2014, or a 13.3% increase. The estimate for 2015 revenues is $31.6 billion and 2016, $32.7 billion. As of July 2015, the Self Storage Association (SSA) estimated that there were 48,500 primary self-storage facilities, an increase of 500 facilities since the end of 2013. Another source estimates that there will be 54,009 facilities by the end of 2015. According to the SSA, the occupancy rate at the end of Q2 2015 was 90%, compared to 86.8% at the end of 2013. For the 5 largest companies, their occupancy rate at the end of Q2 2015 was 92%.

Mostly Small and Suburban The self-storage industry is primarily small operators, as the SSA estimated at the end of Q2 2015 that more than 26,000 companies owned and operated a single facility and 4,000 companies had 2–9 facilities. More than half (52%) of all US self-storage facilities are in suburban communities, with 32% in urban areas and 16% in rural locations. Approximately 60% are single-story facilities, 40% multi-story. As of the end of Q2 2015, the average number of units in a facility was 546, with 18.7% of facilities offering boat/RV parking and/or storage and 31% truck rental.

Construction, Acquisitions and Investments With occupancy rates so high, 2014 construction spending for the industry was $590 million, compared to the recent historical low of just $241 million during 2011. Acquisitions of existing properties totaled $3 billion during 2014. During Q3 2015, Public Storage spent $26 million on new acquisitions with another $108 million under contract; Extra Space completed its $1.3 billion merger with SmartStop, acquiring 122 facilities; and CubeSmart acquired five facilities for $75.2 million. The financial fundamentals of the self-storage industry are so good that more than 50 private equity firms are seeking investment opportunities; and a highly respected real estate advisor forecasts 10 years of strong growth.

The Self-Storage Consumer Of the 5 major reasons why Americans move, military and downsizing didn’t change much from March to December 2014. Student increased from 4.94% to 8.11%, which is normal, while work relocation increased from 21.05% to 25.69%. Consumers’ average length of stay at a self- storage facility was 10.4 months from April to December 2014, with 2–5 months, 43.77%; 6–12 months, 31.47%; more than 12 months, 16.12%; and 1 month, 8.65%. Changes in Americans’ living arrangements from 1974 to 2014 are impacting the self-storage industry: living with a spouse, 67.3% vs. 51.7%; living alone, 9.7% vs. 14.3%; and living with a partner, 0.7% vs. 7.3%.

Making the Most of Market Evolution Home ownership in the US decreased from its high point of 69.2 percent during 2004 to 64.5 percent for 2014, the lowest point of the last 20 years, which has resulted in more people living in apartments and needing to store excess possessions. Although total US college enrollment decreased slightly during 2015, it is projected to increase every year from 2016 to 2024, 20.49 million and 23.14 million, respectively. To address the demand for self-storage because of US population growth, industry experts predict that approximately 3,500 new facilities will be built in the largest markets through 2020, with 400 of them scheduled for 2016.

Advertising Strategies Help self-storage facility owners create a TV/social media campaign to reach college students with a monthly discount for June, July and August, making it affordable to keep items in storage, so the facility doesn’t lose continuity with these customers. Suggest that self-storage facility owners use TV to reach the increasing number of new home buyers predicted for 2016 with an offer of their first month free after moving into their new home or a first-3-months package at a discounted rate. Self-storage companies with aggressive expansion plans can use TV to announce the availability of additional units and offer a 13- months-for-the-price-of-12-months special for new customers within a limited time of the new- facility opening.

Social Media Strategies Self-storage facilities can improve their social media engagement by providing links to pre- existing consumer content, such as how to pack items for storage or how to maximize the use of space. and alternating that content with localized information, tips and hints. Videos are one of the most engaging types of social media content, especially to attract college students. Facilities that depend on the college market can create simple videos hosted by a “brand ambassador” of college age and with content important to students. Host a contest, asking people to submit photos or a video of their basement, attic, garage or other room overflowing with clutter. Ask everyone to vote for the most cluttered. The winner receives free assistance from a professional organizer and a one-year unit discount.