1. Self-Storage Market 2018 Profiler
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2. Storage Facility Market Overview
Storage Facility Market Overview
According to IBISWorld, annual revenue for the self-storage industry was estimated to be $38 billion for The average monthly cost for a storage unit was $ Just less than 10% (9.4%) of US households rent a self-storage unit.
There are 44,149 to 52,000 self-storage facilities in the US, with the largest companies owning 18%; the next 100 operators own 8%; and small operators own 74%, according to the Self-Storage Almanac 2018.
The industry has been growing rapidly, with 7.0% growth from 2012–2017. During alone, sales increased 4.3%. With increasing consumer spending, the industry is expected to continue to grow.

3.
The Year Ahead
There has been a surge in construction of self- storage units, which began during 2014 and accelerated through 2017, creating abundant supply. Construction spending on these units exceeded $2.27 billion from January through August 2017, an 89% increase.
Most construction has occurred in Dallas, Phoenix, Nashville, South Florida, Denver, Portland, Raleigh and Charlotte, or fast- growing metros. Even more units during will increase vacancy rates and depress rent growth in some markets.
Vacancies are expected to increase 80 basis points to 11.1%; climate-controlled rents are forecasted to increase 2.4%; and non-climate- controlled rents will increase 2.6%.

4. Storage Market Drivers
Storage Market Drivers
According to Strategic Storage Trust, the six demand drivers are population growth, percentage of renter-occupied housing units, average household size, average household income, supply constraints and economic growth.
Household income has been increasing, and by 2.4% during the second half of Homeownership is expected to be more expensive because of the new tax laws, boosting the rental market. Experts expect the economy to expand during 2018.
Baby Boomers are beginning to downsize their households and need storage for items of sentimental family or historic value. This is expected to benefit the self-storage industry.

5. Operations of the Storage Operators
Operations of the Storage Operators
According to a January 2018 presentation from ExtraSpace Storage, the company has the highest same-store revenue compared to major competitors, at a 4.6% increase compared to 3.5% for Public Storage, 4.0% for LifeStorage and 3.8% for CubeSmart.
Public Storage generated $1.17 billion in net income for 2017, a decrease of 1.0% YOY. The company attributed this to its interest expense, losses from hurricanes and debt load. Increased self-storage net operating income from higher rents offset this loss.
Increasing property taxes in many areas have increased self-storage facilities’ operating costs. The average annual expenses for self- storage facilities is $353,324.

6. What’s New in the Industry
What’s New in the Industry
Self-storage companies have taken possession of empty buildings, such as big box stores, hotels and office buildings, and converted them into storage facilities. U-Haul looks for buildings with 100,000+ sq. ft., good clearance height and working elevators.
Millennials, an increasing self-storage customer segment, typically buy services via apps, which has made valet storage popular. These facilities are outside city centers, but they pick up and deliver customer items.
Some storage companies are eliminating the on-site manager and substituting automated systems. While reducing costs, this also eliminates upsell opportunities.

7. Advertising Strategies
Advertising Strategies
Recommend to your self-storage advertisers to differentiate themselves by highlighting any added amenities, such as security, the ability to receive packages, etc.
Consider a promotion targeting new residents in the community from another state or city in the state by offering a special rate during the 60-day period they are moving into their new residence to rent space for the possessions they discover won’t fit into their new home.
Consider partnering with a local moving company/service to offer current customers and local residents a special rate for the company to pack and transport items from a home or business to the storage facility relieving the customer of this time- consuming task.

8.
New Media Strategies
Record and post a series of videos to help customers maximize their use of self-storage, with topics, such as how to pack possessions to keep them secure, the best methods for placing objects in a storage locker, etc.
To facilitate a pick-up-and-delivery service, especially targeting Millennials, a mobile app is an absolute must. Such an app must also be heavily promoted on Instagram and Snapchat, for example, with Millennial-age employees/ spokespeople sending the messages.
Self-storage is a local service that can benefit from an influencer marketing campaign. Ask one or more longtime customers who live in the same community you’re located to post regularly to social media about his or her experiences, storage tips, etc.

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