Self Storage Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 9,500 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.
Industry size & Structure
The average self storage company operates a single location, employs 6-7 workers, and generates about $2 million annually.
- The self storage service industry consists of about 9,500 companies that employ 59,500 workers and generate $19.5 billion annually.
- The industry is fragmented; the top 50 firms account for about 60% of total revenue.
- Just over half of self storage facilities are located in suburban areas; about 36% in urban; and 12% in rural.
- About 10% 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.
Industry Forecast
Self Storage Services Industry Growth
Recent Developments
Mar 21, 2025 - Nearly Three-Quarters of Households Priced Out of New Home Market
- Top US-based self-storage real estate investment trusts (REITs) saw net operating income and occupancy soften in the fourth quarter of 2024. CubeSmart’s same-store net operating income (NOI) fell 3.7% year-over-year in Q4 2024, and occupancy dropped to 89.3% from Q4 2023’s 90.3%. Extra Space Storage’s same-store NOI was down 3.5% from the fourth quarter of 2023, but occupancy rose to 93.7% from 92.5%. Public Storage’s same-store NOI declined 1.0%, and occupancy fell from 92.4% in Q4 2023 to 91.8%. National Storage Affiliates Trust’s NOI dropped 5.3% in Q3 2024, and occupancy fell to 85.2% from 87% in Q4 2023. CubeSmart’s CEO said, “Operating trends in the quarter were in line with our expectations given the volatile self-storage environment. Looking forward to 2025, we are optimistic that we have reached an inflection point in the trend of decelerating growth rates, although we remain cautious given the macro uncertainty.”
- A lack of affordability in the new single-family home market could hinder demand for self-storage. In 2025, nearly 75% of US households are unable to afford a median-priced new home, according to the National Association of Home Builders. Given a median new home price of $459,826 and a 30-year mortgage rate of 6.5%, more than 100 million US households are priced out of the market. In 23 US states and Washington DC, more than 80% of households cannot afford a median-priced new home, suggesting a significant discrepancy between home prices and household incomes. A healthy housing market is a demand driver for self-storage services.
- The average metro rate for medium (10x10 & 10x15) climate-controlled self-storage units decreased by 0.4% year-over-year in February 2025, according to Yardi Matrix. Average metro rates for medium (10x10 & 10x15) non-climate-controlled units dropped 0.8% year-over-year. Average annualized same-store street rates – storage rent rates quoted to new customers – for non-climate-controlled units fell 1% in February compared to a year earlier, while street rates for climate-controlled units declined by 0.6%. Net operating income (NOI) in 2024 was down by an average of 2.2% among major self-storage real estate investment trusts (REITs), a trend that’s expected to continue in 2025. While occupancy is likely to remain flat, a slowdown in new self-storage space coming online could support higher rents.
- Affordability in the US housing market is expected to improve slightly in 2025 and 2026, but strides will be due to falling interest rates rather than lower home prices, according to a recent Reuters poll of property market insiders. Nearly two-thirds (62%) of those surveyed in February 2025 said that affordability conditions for first-time home buyers would improve over the coming year. Polling medians suggested survey respondents expect average 30-year mortgage rates to drop to 6.76% in 2025 and 6.32% in 2026. While home prices are expected to continue rising, the pace of price growth will slow. Moody’s Analytics estimates there is a shortage of about 2.6 million units. Homeowners who locked in low mortgage rates before they began rising are reluctant to sell, leaving potential buyers relying more on the new home market.
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