Self Storage Services

The 8,800 self storage service providers in the US rent or lease secure space, such as rooms, compartments, lockers, containers, or outdoor space, for clients to store and retrieve goods. Storage properties include one story buildings, multi-story buildings, climate controlled units, and parking areas for boats and motor vehicles. Sources of revenue include rent, sales of storage items (boxes, packing materials), insurance, late fees, administrative charges, and truck rentals. Large companies may offer management services.

Demand Dependent On Local Demographics

Because the majority of demand for self storage comes from customers within a one to three mile radius, a company’s business health is related to local population demographics and density.

Oversaturation Drives Down Occupancy

Some markets suffer from excess supply due to oversaturation.

Aug 23, 2026 - Blackstone Completes Self-Storage Divestment

• Blackstone Real Estate Income Trust's exit from self-storage suggests the property type may offer less attractive growth or return prospects than the REIT's preferred sectors, particularly data centers, industrial properties, and rental housing. BREIT sold its remaining 79 self-storage properties for $852.3 million in net proceeds and a $177.3 million gain, completing an exit that began three years ago, according to Bisnow. At the same time, BREIT invested $3.3 billion in data center development during the second quarter, underscoring its preference for a sector benefiting from strong leasing demand. About 90% of BREIT's portfolio is now concentrated in data centers, industrial properties, and rental housing.
• The average metro rate for medium (10x10 & 10x15) climate-controlled self-storage units decreased by 1.6% year-over-year in July 2026, according to Yardi Matrix. Average metro rates for medium (10x10 & 10x15) non-climate-controlled units dropped 1.3% year-over-year. Advertised street rates – storage rent rates quoted to new customers – for non-climate-controlled units fell 1.4% in July compared to a year earlier, while street rates for climate-controlled units declined by 1.8%. Public self-storage operators are optimistic that the sector is showing signs of a turnaround, as several years of sluggishness in the US housing market have hindered demand. However, Yardi Matrix notes that most of the improvement in 2026 has been due to fewer move-outs rather than stronger demand. A rebound in the housing market could trigger more move-outs, which may force self-storage operators to increase street rates to maintain revenue.
• The three top US-based self-storage real estate investment trusts (REITs) saw more stable performance in the second quarter of 2026. CubeSmart’s same-store net operating income (NOI) fell 0.7% year over year in Q2 2026, and average occupancy dropped to 90.4% from Q2 2025’s 90.5%. Extra Space Storage’s same-store NOI rose 3.5% compared to the second quarter of 2025, but occupancy fell to 94.2% from 94.4% over the same period. Public Storage’s same-store NOI decreased 0.2%, but occupancy rose from 92.3% in Q2 2025 to 92.5%.
• In July, Public Storage completed its $10.5 billion acquisition of National Storage Affiliates Trust, creating a portfolio of more than 4,500 US self-storage facilities with 327 million rentable square feet. The transaction further consolidates the self-storage industry and strengthens Public Storage's scale, market reach, and operating efficiencies. Shareholders of National Storage Affiliates received 0.14 Public Storage shares for each share held. Public Storage expects the deal to generate $110 million to $130 million in annual cost savings and other benefits within three to four years. The acquisition could increase competitive pressure on smaller operators while giving Public Storage greater resources to invest in technology, property improvements, marketing, and customer acquisition.

Industry size & Structure

The average self storage company operates a single location, employs 7 workers, and generates about $2 million annually.

• The self storage service industry consists of about 8,800 companies that employ 60,600 workers and generate $21 billion annually.
• The industry is fragmented; the top 50 firms account for about 64% of total revenue.
• Just over half of self storage facilities are located in suburban areas; about 36% in urban; and 12% in rural.
• About 13% of US households and 12% of US businesses rent self storage units.
• Large companies include Public Storage, Extra Space Storage, CubeSmart, and National Storage Affiliates.