Reasons to Invest in Self-Storage
Investing in real estate has long been considered a secure choice, offering investors
substantial returns over the long term. From apartments and family homes to commercial
properties such as warehouses and office blocks, there are many potential ways to profit
in this sector.
An investment area that has emerged in the commercial real estate sector is that of self-
storage. The self-storage market size is currently estimated at $58.26 billion and is
expected to grow to $72.15 billion by the end of 2028.
One reason for this is the rise in urbanization resulting in less living space at higher prices
as well as a higher number of renters that move home more frequently. This article will
take a closer look at some of the reasons to consider self-storage as an investment choice.
Whether it's moving home, downsizing, traveling, or home staging, there are many
reasons why one would need to make use of storage facilities, making the demand for self-
storage a steady one. In Europe, Denmark had the highest occupancy rate of 90% for self-
storage facilities in 2023. This was followed by the U.K. and France, with occupancy rates
Thanks to factors such as the use of smart devices and self storage SEO services which
help these businesses enhance their online presence it has now become easier to access
self-storage facilities helping to fuel the demand for these services.
With consistent demand comes a steady stream of clients ready and willing to make use of self-storage
facilities, ensuring a steady income stream for investors.
There is relatively low competition in self-storage compared to many other real estate
sectors. Currently, the self-storage industry is highly fragmented, with only a few big
companies owning a small portion of the total market. The top three companies together
account for less than 15% of the revenue generated in the industry while the biggest
company has a 8.3% share of the market.
With fewer competitors vying for the same self-storage properties greater potential
exists for investors to find undervalued properties and negotiate favorable deals on them,
resulting in potentially higher returns on their investment.
Low Operating Costs
Unlike many other real estate investments, it is relatively simple to operate a self-storage
facility. These costs will vary depending on factors such as the location and size of the
facility but typically include things like utilities, property insurance, maintenance, payroll,
lease payments and marketing.
There is also the potential to reduce these costs further through initiatives such as solar
panels on roofs which can lead to savings on energy bills, and the addition of items and
equipment that can improve security and efficiency of the site as well as enhance the
For example, online booking systems can reduce the need for additional staff while
security features such as surveillance cameras and smart locks can mitigate the risk of
vandalism and theft keeping insurance premiums and maintenance costs at a low.
Factors such as the consistent demand, low competition and relatively low operating costs
associated with self-storage facilities make this area of real estate a potentially lucrative
investment for those looking to broaden their portfolios.