Vital Statistics of the Self Storage Industry

Self storage industry has been found to be the fastest growing new industry in the commercial property sector that has emerged in the country over the last three decades. The estimate has been made on the basis of the registration of new companies, setting up of new facilities and the amount of total square feet of area added for the purpose. The number of companies whose prime income is from providing storing facilities is phenomenal and it is still growing. The amount of gross revenue in the year 2007 has crossed 20 billion dollar and the per-facility revenue has been over three hundred thousand dollars.

Self storage industry has gained from the popularity of the concept and it has grown so fast that in the last twelve years the use has grown from one in every seventeen households to one in every ten. Converted to percentage growth it comes to sixty-five. The concept of self storing has caught on so fast and the revenue generated has been so lucrative that many companies have joined the fray tough the primary income of these are from other sources. There are almost nine thousand such companies operating in the country. These statistics are based on the actual figures that are available to the authorities. The actual size of the industry is larger and there are many facilities that are lying beyond the record of the authorities.

Self storage industry has a variety of members. There are companies who have multiple facilities all over the country and there are some that end in themselves. There are quite a few operators who just operate a single unit and it is the source of primary income. Of the large companies that are doing business in the country, the top five operate about one facility in every ten that are operated in the country. The rest are operated by over thirty thousand companies spread all over the country. An estimate provides that the current area available for self storing in the country is over two billion square feet which converts to about six square feet per person.

The users profile has shown that the self storing facility is quite popular among the military personnel and the usage near the domestic military bases grows higher with sometimes the military personnel using almost all of the available storing units. The self storage industry values the military personnel and the associations of self storing facility operators often provide discounts and incentives like discounts on rental rates, free period of usage, gift certificates, and no change in rent during overseas deployment, waiver of deposits and fees, etc.

The competition within the self storage industry is hotting up with a survey saying that the market is overbuilt at almost every level, local, state or national. The industry has confessed that at every instance a self storing facility has to compete with anything between three to twenty facilities to get customers. This is the urban scene. The rural scene is not very different as each facility has to compete with three to ten facilities. The rapid growth in the self warehousing industry that was seen during the late nineties and early parts of the new millennium has slowed down considerably though it has not stopped altogether. The last two years has added fewer facilities that what was added in the previous years.

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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