For years, many have supported self-storage as a great way to invest your money. Mindful Workspaces & Storage certainly agrees with that statement. It is a recession-resistant and often overlooked way to invest. Recently, StorageMart, the eighth largest self-storage company announced Bill Gates joined forces with them as an investor.
There are several factors that drive the self-storage industry higher. Growing urbanization, increased downsizing from coronavirus, lifestyle changes, and more. While there are many things that affect real estate performance, self-storage is influenced by the transition and trauma business. The industry often plays a role as people difficult life events. As a result, it is one of the most recession-resistant asset classes.
Why is Self-Storage So Successful
According to Mordor Intelligence Research, the valuation of the self-storage market reached $87.65 billion USD in 2019. By 2025, that valuation is expected to grow to $115.62 billion.
Self-storage is strong during the looming coronavirus-inspired recession due partly to urbanization. Renters need a place to store the belongings that no longer fit when their rental spaces shrink, they move home with family or choose a more nomadic lifestyle.
Another source of demand comes from businesses. During a recession, many businesses, unfortunately, risk the loss of failing. The hope is that these businesses are able to get back on their feet. Until then, however, they need a place to store their belongings — self-storage facilities.
Another factor supporting the success of self-storage is the low cost of development. This helps with profit potential.
However, even with the steady stats and increased demand, there are still many who are concerned that the looming recession will affect the values of self-storage and that people will no longer be able to afford to store their belongings. Despite the recession, there are opportunities for investing in self-storage right now — more specifically for the bullish investor.
This is a great time to educate yourself and do your research. Investigate those projects that you previously set aside. You may find that they make sense at the current interest rates. Whether the market continues to enter deeper into a recession, or recovers quickly, there will always be opportunities in self-storage facilities.
If you are looking for a cost-effective storage option, don’t overlook a storage unit from Mindful Workspaces & Storage. They provide key solutions to many business issues such as extra office space. And remember that storage containers do not require much to set up and are a great temporary alternative for businesses that require storage.