Self-storage is often considered a “quiet” real estate asset class, not garnering the same attention as industrial and multifamily investments. However, analysts from Marcus & Millichap have noted that over the last three years this sector has seen tremendous growth due to behavioral and economic effects of the health crisis. While outlook for 2021 may be a bit more uncertain, investors remain interested according to their 2023 Self-Storage National Investment Forecast.
Renters are also showing interest in self-storage space with 21% currently utilizing it while another 15% anticipate doing so in the future; an estimated 53 million square feet of storage space is expected to be added this year alone. This increase can partially be attributed to employment flexibility which allows many employees work from home or outside co-work spaces creating a need for extra storage solutions; RV travel has also been on rise leading people needing vehicle and RV storage options; finally growing multifamily density means renters are looking away from home for additional space due recent apartment units being smaller than older counterparts.
A StorageCafe survey further revealed that Gen X cohort shows highest use of self-storage followed by lack of home space being main reason behind renting such services while internet searches related to self -storage increasing particularly in Southwest cities .
