SELF-STORAGE MARKET ANALYSIS

Consumers are price sensitive and demand low rental rates, thus, squeezing operator margins. Online rental services provide transparency, making it difficult to raise prices. Economic downturns reduce demand as people decrease discretionary spending. Regulations can limit development of new sites in desirable areas. Customers increasingly demand climate-controlled units and added security features, raising costs. Younger demographics also show less interest in accumulating physical goods.

Market Opportunity: Emergence of automated storage facilities

Steady population growth and smaller living quarters boosts need for supplemental storage. Operators can target specific customer niches like college students or businesses. New facilities offering high-tech amenities may appeal to young age customers. Partnerships with commercial real estate developers open possibilities to acquire prime lots. Consolidation of regional operators remains possible to achieve economies of scale.