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Survey: Renter Interest Strong in Self-Storage Space
Self-storage tends to be the “quiet” real estate asset class. It isn’t the industrial and multifamily darlings of investors. Nor does it represent the doom and gloom affixed to the office sector. Rather, “the last three years have brought tremendous growth for the self-storage sector” due to what Marcus & Millichap analysts called “the behavioral and economic effects of the health crisis . . .” The outlook is a little murkier for this sector in the coming year, but according to Marcus & Millichap’s “2023 Self-Storage National Investment Forecast,” investors remain interested.
Also interested in self-storage? Renters.
According to a StorageCafe survey, 21% of Americans currently use self-storage space, while an additional 15% anticipate doing so in the future. At the same time, the industry is on tap to add close to 53 million square feet of storage space this year.
The reasons for the uptick in storage-conscious Americans include the following:
Increase in employment flexibility. Even with return-to-office mandates, many employees are still involved with a hybrid work arrangement, in which they work from home or from outside co-work spaces. As home space is becoming work space, extra stuff is ending up in storage.
A boost in RV travel. More Americans hitting the road mean more are buying recreational vehicles. Not everyone has the driveway room, garage space or even street area to store these massive vehicles when they’re not on the road. This is leading to an increase in demand for both vehicle and RV storage.
Growing multifamily density. New apartment units built in large-scale communities tend to be smaller than their older counterparts. This means that renters are looking for away-from-home storage solutions. “In fact, our survey shows that self storage is now particularly popular among renters,” StorageCafe analysts pointed out.
Other highlights of the survey included that:
- The Gen X cohort shows the highest use of storage space
- People rent self storage due to lack of home space
- Internet searches for self-storage space is increasing in Southwest cities
- ◦Lease
- ◦People
