Self storage
Self storage is an industry that rents storage space, also known as "storage units," to tenants, usually on a short-term basis. Self-storage tenants include businesses and individuals.
When discussing why a storage space is rented, industry experts often refer to "4Ds of life".
Description
Self-storage facilities rent space on a short-term basis to individuals or to businesses. Some facilities offer boxes, locks, and packaging supplies for sale to assist tenants in packing and safekeeping their goods, and may also offer truck rentals.Most storage facilities offer insurance for purchase; also, the lessor may be covered by their own insurance policy or may purchase insurance to cover the items.
The rented spaces are often secured by the tenant's own lock and key. Unlike in a warehouse, self-storage facility employees do not usually have casual access to the contents of the space. A self-storage facility does not take possession or control of the contents of the space unless a lien is imposed for non-payment of rent, or if the unit is not locked the facility may lock the unit until the tenant provides their own lock.
History
Although there is historical evidence of publicly available storage in ancient China, modern self-storage facilities did not begin to appear until the late 1960s. The first self-storage facilities opened in Texas. This was often helped by the fact that most homes in Texas do not have basements, which in other places are often used for storage.The first self-storage facility in Europe was started in the United Kingdom by Doug Hampson, and opened in central London in 1979. Called Abbey Self Storage, it would become the first self-storage chain in Europe. "t was Doug Hampson who gave Britain the modern self-storage industry, with its bright, clean corridors and endless rows of brightly-coloured doors. In the industry he is widely credited with the enviable title of the "father of UK self-storage".
Modern storage facilities grew slowly through the '90s, at which time demand outpaced supply and caused a rush of new self-storage developments. From 2000 to 2005, over 3,000 new facilities were built every year in America.
Self storage today
At year-end 2019, there were 47,539 self-storage facilities in the United States on industrial and commercial land parcels. There is more than 1.9 billion square feet of available self-storage in space in U.S. The six largest publicly traded storage operators own or operate approximately 18% of self-storage facilities. The global industry was worth 48.02 billion U.S. dollars in 2020. More recently, in many metropolitan cities where competition among storage companies is fierce, better parcels of land near residential and commercial areas are being converted into self-storage once approved by zoning panels. Companies are becoming more adept at manufacturing these modular storage units, allowing operators to get up and running quickly. To support the need, businesses like PODS are expected to enter the modular construction effort as well.Mailstorage or on-demand storage is where customers' items are kept together in a warehouse rather than providing each customer with a storage unit.
Self-storage businesses lease a variety of unit sizes to residential and business customer/tenants. Popular unit sizes include:
- , about the size of a large Telephone booth
- , about the size of a large walk-in closet,
- , about the size of a child's bedroom,
- , about the size of a living room,
- , about the size of a one-car garage,
- , about the size of a large master bedroom, and
- , about the size of a two-car garage.
Image:American self storage.jpg|thumb|right|Example of an older, urban self-storage facility.
In rural and suburban areas most facilities contain multiple single-story buildings with mostly drive-up units which have natural ventilation but are not climate-controlled. These buildings are referred to as "traditional" storage facilities. Climate-controlled interior units are becoming more popular in suburban areas. In urban areas many facilities have multi-story buildings using elevators or freight lifts to move the goods to the upper floors. These facilities are often climate-controlled since they are comprised mostly, if not totally, of interior units. Warehouses or grocery stores are sometimes converted into self-storage facilities. Loading docks are sometimes provided on the ground floor. Also, complimentary rolling carts or moving dollies are sometimes provided to help the customers carry items to their units. Urban self-storage facilities might contain only a few floors in a much larger building; there are successful self-storage businesses co-located with manufacturing plants, office tenants and even public schools.
One in ten U.S. households now rent a self-storage unit. The growing demand for self-storage in the U.S. is created by people moving, and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate.
Over 54,000 self-storage facilities currently exist in the U.S. ranging from companies with a nationwide presence to companies with regional footprints or even stand-alone independent "mom and pop" facilities.
Demand for storage space remains stable as of Q4 2015. The supply for self-storage is also relatively stable. Often, the process to build a new storage building is onerous and can take years. Additionally, this specific asset class often gets push back from communities, due to its nature.
The self-storage sector is highly fragmented, which is in contrast to other asset classes in the industry. 80% of self-storage facilities are owned by individuals or small investors.
There is a belief amongst investors that the self-storage industry is recession-proof. This belief is supported by the 5.1% total return the sector delivered to investors in 2008 during the Great Recession. The self-storage industry reported strong results during the COVID-19 pandemic. This is due to the fact that self-storage is considered to be an "essential business" in many jurisdictions so during a lockdown many facilities never closed and many people were reportedly panic buying storage units to keep valuables safe from contamination.
Self storage worldwide
Self-storage or variations on the business model are now found in many parts of the world. In 2014, FEDESSA, the Federation of European Self Storage Associations, published a report about the state of the self-storage industry in Europe. In this report, it was estimated that 975 facilities exist in the United Kingdom, 430 in France, 264 in the Netherlands, 210 in Spain, 131 in Germany, and 112 in Sweden. No other country in Europe had more than 100 facilities. Overall, the report estimated 2,391 total facilities in Europe, or about 75 million square feet of rentable storage space. This compared with over 52,000 facilities in the US, and 1,100 facilities in Australia. In the UK, charges are related to capacity in ft², transportation, hour/loading, with low-cost alternatives to traditional self-storage.Hong Kong
Fire safety regulation and compliance in self storage facilities in Hong Kong became a focal point after the deaths of two firefighters in the Amoycan Industrial Centre fire that happened in June 2016. The fire led to discussion in the Legislative Council, and the subsequent tightening of guidelines led to the closure of several operators and prosecution of others.Singapore
The industry in Singapore underwent a lengthy review by the industrial development agency, JTC Corporation which started in 2021 with a moratorium on self-storage use requests for industrial land, in the latter's prioritization of sufficient industrial land for future manufacturing use.The review, which concluded in January 2025 and took effect in April, affected major players with regional presence like , Extra Space, , and Lock+Store, as well as fewer than 10 smaller counterparts, where facilities in land zoned for heavy manufacturing— or in core areas prioritized for non-self storage usage—have to move out after their lease expiry. Some of these lease expiry range from two to four years, with some extending to 2030. All new sublet, assignment and lease renewal applications for self-storage activities outside of land reserved for self storage will be subject to assessment by JTC.