Business is Booming! According to the RMA Journal, March 2012, the Self Storage Industry stands strong in the face of a tumultuous economy.
The Self Storage Industry is rock solid. It is one of the few industries expected to experience strong growth while other businesses have been severely shaken in the past few years.
While many industries felt the crush of the subprime
mortgage crisis, Self Storage Facilities actually benefited from the accompanying high foreclosure rates. As the housing bubble burst in 2008-2009 and housing rates fell, consumers relied on Self Storage Facilities to store their possessions. In fact, the industry saw a 3.9% increase in 2011 and is expected to experience escalating growth over the next five years.
So what happens when the economy recovers? Self Storage Revenue continues to soar, according to the financial experts at the RMA Journal. Demand for self storage will increase as consumers' disposable income grows. Storage becomes less of a luxury for home owners with many possessions (see our blog post about Storage for Boys and Their Toys.) Demand from small business that needs additional storage space will also drive revenue. As the market recovers, downstream demand will strengthen, funneling more dollars into self storage facilities.
The Self Storage Industry is characterized by high profitability. Because operational costs are low, operators and investors benefit from a high percentage of profit to revenue. In particular, storage and warehouse leasing companies have low labor costs due to the self-service nature of the business. In summary, because of their strong cost structure, business model and growth opportunities, the Self Storage Building market remains a great investment.
Considering investing in Self Storage Facilities? Download the full RMA Journal article.
Mako Steel is the leader in Self Storage Construction and Engineering. We will work with you to cost effectively design your next self storage project. Our experts will help you maximize the efficiency of the site while keeping your Self Storage Construction Costs down.
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