The Self-Storage industry has been the fastest growing segment of the commercial real estate industry over the last 40 years and has been considered by Wall Street analysts to be “recession resistant” based on its performance since the recent economic recession started in 2008.¹ According to the Self Storage Association, there are over 48,500 Self-Storage facilities in the United States.  The number of Americans utilizing Self-Storage has increased by nearly 50% in the past 18 years, a trend that is likely to continue as baby boomers downsize and urbanization continues.

The fastest growing segment of the commercial real estate industry over the last 40 years –92% nationwide occupancy.
As people move out of their homes and downsize, they need a place to put their stuff.
All walks of life use storage units including doctors who store their archived files and business owners who keep their eBay inventory in a storage unit and run their business from the facility.
Four walls and a roll-up door. No paint, no carpet, no plumbing to repair… It doesn’t get much simpler!
Since this isn’t someone’s residence there are fewer laws regulating rents. And, if someone stops paying you, you don’t have to evict or file foreclosure. You can typically put an “over lock” on the storage unit within a matter of days and auction off the contents within 45-60 days.
Relative to other real estate where people live in the property, storage is easier to manage and has less liability. 95% tenants don’t return to unit until the day they move out. You only need 1 manager per 400 units versus 1 per 100 for apartments.
Commercial and private loans available.
You can control the appreciation by increasing income and decreasing expenses. (More on this later.) You can ‘t do this with single family rentals.
Unlike a single family rental, when one person moves out you still have MANY more tenants paying the rent.

Comparison of Real Estate Investments

REAL ESTATE COMPARISON Single Family
Rental
Apartment
Complex
Mobile
Home Park
Storage
High Demand
Recession Resistant
Easy Tenants
Lower Expenses & Repairs *
Fewer Rent Regulations
Easy Management & Less Liability
Available Financing
Forced Appreciation
Cashflow

*Assuming you own just the park and not the mobile homes.

¹Self Storage Association.  Sources: Quarterly SSA surveys of member and non-member companies conducted by Conquest Communications of Richmond, VA; “Self Storage Demand Study” ©2013 Edition; National Facilities Database (NFDb); 12/2014 ©2014; Reis, Inc. (quarterly reports for over 10,000 facility responses through Q1 2015).