So despite the pandemic, or perhaps because of it, demand for self-storage continues to put up strong numbers. Despite an initial dip at the start of the pandemic, rents bounced back in May. Actually exceeding pre-pandemic levels. And even though experts predicted a slowdown, all remained steady.
An expert discussed the current state of the storage sector and provided insight on what’s driving the industry’s growth.
So what are some of the new trends that have emerged during 2021? The pandemic highlighted the need for companies to adopt technology and innovate to maintain operations and customer engagement. For self-storage providers, making the customer experience of renting storage easier and more efficient is key.
The platform delivers strategies that address the challenges that come with staffing, budgeting, billing, collections, auctions, rental rate adjustments, online marketing and maintenance.
What is the main demand driving these markets?
Our key industry growth drivers are high occupancy rates, job growth and population growth. The industry-wide demand remains high. The average occupancy rates are still above 92% in 2020. The occupancy rate remains high despite the increased supply of net rentable space now totaling about 58 million square feet industry-wide.
Self storage demand is strong and shifting to lower-cost cities, as population and migration growth increase in secondary markets.
There continues to be tremendous expansion opportunities with strong demographic and market fundamentals in secondary and tertiary markets in the Northeast, Mid-Atlantic, Midwest and South-Central regions of the U.S.
What type of self-storage facilities are in the highest demand now?
Obviously, the highest demand is for traditional indoor storage, climate-controlled storage, and outdoor storage for boats/cars/RVs.
Experts predict a slowdown in development, how do you see this?
There are now nearly 50,000 self storage facilities in the US. That is an increase of 3,000 since 2019. While supply has increased, demand remains high as well. Since 2010, average occupancy rates have climbed steadily from 75.7% to 92.2% in 2020.
So if you are looking for a cost-effective storage or flex space option, don’t overlook a unit / office 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.