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Why Self-Storage Businesses Are a Good Investment

Writer: Derek WalkerDerek Walker

The outside of a storage facility with brick walls and large retractable doors. The sky above is blue with few clouds.

Investing in a self-storage business offers a unique combination of stability, low overhead, and growing demand. Unlike other real estate investments that are influenced by market fluctuations and economic downturns, self-storage properties have often proven to be recession resistant. Whether you’re an experienced investor or just beginning to explore opportunities, self-storage could be an option worth considering.


To help you make the right decision, we’ll explore some reasons why self-storage businesses are a good investment, including demand drivers, market trends, benefits, and risks. By the end, you’ll be able to decide whether self-storage is a lucrative investment option for you.



An open storage unit with metal walls and a light on one side. In the unit are boxes and plastic bins stacked together.


What Can Be Stored in Self-Storage Units?

Self-storage is incredibly versatile, offering tenants space for both common and nonstandard items. Here are some of the most popular types of goods stored in self-storage units:


Household items: Furniture, appliances, seasonal decorations, and personal belongings are commonly stored when people move, declutter, or downsize.

Vehicles: Many facilities allow tenants to store vehicles like cars, boats, and RVs, especially in areas with limited residential parking.

Business inventory: Small and medium-sized businesses often use self-storage to store extra inventory, office supplies, or promotional materials.

Documents: Some customers, such as business owners, use self-storage for secure document archiving.

Specialized storage: Climate-controlled units accommodate temperature-sensitive items, including art, antiques, wine collections, and electronics.


This wide range of use cases ensures steady and diversified demand, which is one of the pillars of self-storage’s investment appeal.


Drivers of Demand for Self-Storage

Why are more people and businesses turning to self-storage? Several factors are driving this demand, and understanding them can reveal the industry’s strong growth potential.


Mobility

Whether it’s for a job relocation or personal reasons, moving is a consistent driver of storage needs. People in transition look for a safe and temporary place to store their belongings.


Downsizing and Minimalism

With the rise of minimalism and smaller living spaces, self-storage offers individuals a practical way to keep sentimental and less-used items without sacrificing space at home.


Life Events

Significant events like divorce, inheritance, or university enrollment often compel individuals to turn to storage units for convenience.


Business Growth

E-commerce booms and small business growth create an ongoing need for affordable storage solutions for inventory and materials.


Urbanization

The growing trend of urban living, where smaller apartments and limited storage space are common, has fueled the popularity of self-storage facilities in urban areas.


Market Trends Shaping the Self-Storage Industry

The self-storage industry is evolving rapidly, shaped by modern consumer behaviors and technological advancements. Here’s an overview of the current trends making waves in the market:


Technological advancements: Innovations like online booking platforms, remote monitoring, and automated facilities give modern storage solutions a tech-first edge.

Sustainability: Facilities offering eco-friendly options, such as renewable energy or low-impact construction, are becoming more attractive to environmentally conscious customers.

Shifting demographics: Millennials and Gen Z tenants are becoming an increasing share of the self-storage customer base due to urban living trends and job mobility.


Why Self-Storage Is a Smart Investment

Self-storage stands out as a worthwhile investment due to its unique advantages. Here’s why this option is capturing attention from investors across the globe.


Steady Cash Flow

Thanks to month-to-month lease options, self-storage facilities can offer stable and recurring income with fewer vacancies than traditional rentals might experience.


Recession Resilience

Even during economic downturns, self-storage demand tends to remain steady or even increase as people look for cost-effective storage solutions during transition periods.


Low Operating Costs

While other types of real estate may require constant maintenance or tenant-related expenses, self-storage facilities often have lower upkeep costs, especially for standard, non-climate-controlled units.


Scalability

From single-unit properties to larger portfolios, the operational model of self-storage makes it easy to scale depending on your goals or budget.


High Return on Investment

When strategically located and managed well, self-storage facilities can be highly profitable, offering strong ROI compared to other real estate investments.



The main corridor of a storage facility. There is fluorescent lighting above and the door of one unit is open.


Challenges and Risks To Consider

While self-storage boasts many benefits, it isn’t without its challenges. Any serious investor should take the following risks into account.


Competitive Market

The increasing popularity of self-storage investments has led to market saturation in some areas. This means that early research is key to picking the right location.


Location-Dependent Success

Facilities in areas with declining populations or weak job markets may have trouble maintaining high occupancy rates.


Regulations and Zoning

Zoning restrictions and local permit issues can complicate acquiring or constructing a self-storage facility.


Customer Turnover

Month-to-month leases offer flexibility but can also result in higher tenant turnover, requiring continuous marketing.


Property Upkeep

While maintenance requirements might be lower, keeping the self-storage facility in top condition is crucial to attracting and retaining tenants for the long term.


By acknowledging and planning for these risks, you can mitigate potential pitfalls in your investment strategy.


Tips for Finding a Profitable Self-Storage Property

Consider these strategies for finding the ideal property:


Research market demand: Look for areas with growing populations or specific markets like university towns and industrial hubs.

Check out competitors: Scope out the competition to ensure your facility can offer something unique, like better customer service or climate-controlled units.

Find the right location: Pick properties near residential areas or highways to attract a mix of personal and business clients.

Evaluate size and features: Smaller facilities in well-populated areas or those with high demand for specialized features (like RV parking) usually perform well.

Work with industry experts: Consider hiring advisors or consultants who have experience in self-storage investments.


Key Areas To Construct Self-Storage Facilities

While self-storage can thrive in many places, certain areas have particularly strong demand, including:


Urban centers: Think cities or bustling metro areas with limited personal storage space.

Rural sites: Rural areas can present unique opportunities since there is often lower competition and reduced construction costs.

Suburbs: Suburban areas with growing populations are ideal for capturing the attention of families and small businesses.

College towns: Students frequently need short-term storage solutions, making a facility located in a college town a consistent revenue stream.


Is Self-Storage the Right Investment for You?

Self-storage is a viable investment opportunity with proven benefits like steady income, low operating costs, and resilience during economic uncertainty. Its versatility makes it appealing to a broad range of tenants, from homeowners to small businesses. While this option may come with its share of risks, knowing why self-storage businesses are a good investment will help you minimize the pitfalls and amplify the potential for high returns.


If you’re ready to take advantage of the growing self-storage market, work with our team at Box Pro. We’re the experts when it comes to investing in these units, and our self-storage consultants are here to assist you every step of the way. Reach out to our team today to learn more.

 
 

© 2025 by Box Pro LLC

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