Self-storage is a big business. It pulls in a ton of revenue. But even with high profits, the pandemic definitely put a dent in those numbers. The great news is that the industry is bouncing back. Mindful Workspaces & Storage update you on how and why this has happened.
More than 30,000 owners operate roughly 55,000 self-storage facilities nationwide. This is according to statistics from the Self Storage Association. Storage businesses like Public Storage and CubeSmart show up all along highways and in industrial areas, but the industry remains largely made up of small-business owners.
Before the pandemic hit, the industry averaged 3.5% annual growth for more than 30 years! Imagine that? After a drop in the first half of 2020 due to the pandemic, self-storage has bounced back. Occupancy rates and rents are at record highs.
Who is Mainly Using Self-Storage?
There is a strong residential customer base that has grown accustomed to using self-storage as an extra closet or bedroom and commercial clients that lease storage for inventory or supplies. Some customers use storage for only a few months, but many tend to be long-term users who are reluctant to switch units even when rents increase.
Units rent for $10-$200 a month, and even with a 10% increase, customers don’t vacate.
Operating costs, including taxes, electricity, and some labor, are low compared with other real estate classes, like hotels and senior housing. The structures tend to be sturdy. And improved technology allows for smartphone reservations as well as contactless operations with fewer on-site employees.
Even the cost of advertising, which is now largely online has declined because high occupancy rates have decreased the need.
And experts are unsure how post-pandemic behavior will affect the industry. For instance, what happens when storage renters leave their parents’ homes or do not need to use their second bedroom as a makeshift office?
Our workspaces are exactly what you need. If you are looking for a cost-effective workspace option, look into a workspace from Mindful Workspaces & Storage. We provide key solutions to many business issues such as very large workspace areas.
With locations all over Florida, from Plantation to Sunrise, and West Palm Beach to Lake Worth, you have a workspace company here for you right in your backyard.