A Recession-Resilient Asset Class

The self-storage industry consists of more than 50,000 storage facilities nationwide1 ,with average occupancies of 96.5 percent as of 2021 third quarter.2 The sector outperformed other asset classes in 2021, demonstrating remarkable resilience throughout the COVID-19 global pandemic.3 With many companies adapting to a hybrid workplace culture,the demand for self-storage continues as many Americans are changing living situations and moving to different areas.4

Demographic trends,such as relocation and the aging of the millennial generation,also continue to be strong drivers of self-storage.Baby boomers and GenX account for majority of Americans that use self-storage units.4

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Why Self-Storage5?

  • Approximately 40% of Americans rent a self-storage unit

  • Rising housing rents contribute to self-storage demand 6

  • Considered one of the strongest inflation hedge options in commercial real estate 7

  • 42% of residents with homes ranging from 1,500-3,500 sq. ft. and 39% with homes averaging less than 1,000 sq.ft.turn to storage

Life Events Driving Self-Storage Demand

  • Death
  • Divorce
  • Downsizing
  • Dislocation
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Why Invest in Self-Storage?

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Continued Rent Increases Throughout 2022

Since the onset of the pandemic, the national average marketed rent for a standard 10-by-10-foot self-storage unit has increased by 13%.8

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2021 In-Place Customer Rental Duration

Majority of tenants lease for more than one year. Operators can also implement monthly rent increases resulting in higher revenue the longer a tenant occupies a unit.9

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Self-Storage Use by Home Size

Residents of both spacious and smaller homes utilize self-storage for various household items.9

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Inland’s Self-Storage Resource Center

Self-Storage Successfully Navigates Market Cycles

One of the More Recession-Resilient Alternative Real Estate sectors

Strong demographic demand and a favorable outlook for rent growth suggest self-storage may continue to perform well in the coming years thanks to life event driven demand.

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1 NeighborBlog. Self storage Industry Statistics 2022. August 15, 2022.

2 Wealth Management.com. Why Self Storage is a Great Addition to Investment Portfolios. September 26, 2022.

3 Inside Self-Storage. How Will Self-Storage Perform in the Year Ahead? A Real Estate Market Outlook for 2022. January 15, 2022.

4 Yardi Matrix. National Self Storage Market Report-September 2021.

5 Storage Café. More than a Third of Americans Rent Self storage, with Furniture the Most Stored Item. August 15, 2022.

6 REjournals website. A craze for self storage: New development in Chicago more than triples in 2022. May 31, 2022.

7 2022 Self-Storage National Investment Forecast. Marcus & Millichap.

8 2022 Self-Storage National Investment Forecast. Marcus & Millichap. Graph: StorageCafe analysis of online survey data · Createed with Datawrapper.

9 Green Street U.S. Self-Storage Outlook, January 20, 2022.

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