Self-storage has long been seen as a sector that can withstand economic downturns. Conventional wisdom once held that six net rentable square feet per person provided a sufficient amount of self-storage space.
Today, depending on the region, the majority of industry insiders would tell you that the figure is between 10 and 13 square feet per person. The self storage market is still expanding at an astounding rate even though COVID-19’s effects on the economy are still being felt by consumers.
It is anticipated that growth will continue. Self-storage has been protected from the effects of broader market changes, in contrast to other real estate asset classes that have suffered during the epidemic, even ones that were once thought to be stable.
Business owners are rethinking their office leasing as more and more employees choose remote or hybrid work. The necessity of working primarily from home for much of 2020 and 2021 increased demand for self-storage as business owners sought to reduce spending on leased office space. Companies are now thinking about making remote employment the norm. As a result, office spaces are being reduced in size or abandoned entirely, which raises the need for storage even more.
Self-storage is also rising for homeowners. Nowadays, a fine percentage of homes have a self storage unit. People will always require storage, regardless of the economic climate. When the economy is strong, individuals amass material possessions and require storage space. People and corporations reduce their workforces when times are rough.
Self-storage demonstrates to be an economical alternative to residential or commercial renting space as families look for smaller, more affordable living spaces and businesses leave their brick-and-mortar buildings.
Clientele of Self-Storage Facilities
As the millennial population grows as a customer base, new opportunities to disrupt the self-storage industry are emerging. Millennials typically expect a technology-rich and responsive experience, and self-storage businesses are evolving to meet the demand.
In comparison to most other countries, the Ireland has smaller living spaces due to increasing rental costs. People thus purchase more stuff than they can store, leading many households to use self storage.
The same holds true for organizations that either downsize to smaller facilities with less room than before or need extra storage space due to an increase in demand.
Self storage has repeatedly shown that it is a hardy sector, and much of its power stems from the needs it fills. Demand varies and can be triggered by a variety of significant life events at every stage; some age groups require it more than others and for various reasons.
Young adults with growing children can store their belongings while they complete the necessary repairs, or they may choose to rent a nearby unit as a cost-effective overflow for their belongings.
When moving to larger homes, Gen Xers who have reached the point where their financial status permits them to do so and seniors who must downsize or move to fulfil their retirement goals can both use storage.
Students who find themselves living at home can rent a locker to store their belongings in until they can return to their dorm quarters. In these times of shifting conditions, the self-storage sector is remaining upbeat and offering an important service to all generations.
With confidence among self storage companies and investors still being relatively high, the business also does a wonderful job of adjusting to changing times and changing needs, whether embracing online property management solutions or applying smart tech for their everyday operations.
It is obvious that the self-storage sector continues to play an important role for people across all generations. Budget-conscious people can use it as an affordable overflow room, and people who are remodelling or moving into a new house can use it more momentarily while they get situated.
The clientele may also be changing a little, as more college students are now visible; this could be a sign that Gen Zers are renting in greater numbers as they pursue online education, possibly staying with family members at home and needing somewhere to store their precious goods.