Self-Storage Services Industry Overview

Excerpt from Self-Storage Services Report

Companies in this industry rent or lease locations for self-storage, providing secure space (such as rooms, compartments, lockers, containers, or outdoor space) where clients can store and retrieve their goods. Major companies include REITs such as CubeSmart, Extra Space Storage, Public Storage, and Sovran Self Storage.

Competitive Landscape

Demand for self-storage services is driven by population growth and consumer spending. The profitability of individual companies depends on marketing and pricing. Large companies enjoy economies of scale in administration, marketing, and purchasing and are often better able to finance acquisitions. Small companies can compete by specializing in local markets or by offering niche services. The industry is labor-intensive: average annual revenue per employee is about $140,000. The industry is fragmented: the 50 largest companies generate about 40 percent of revenue. About 95 percent of self-storage companies operate just one facility.

Products, Operations & Technology

Major services consist of providing units of varying sizes for storage of customers' personal or business belongings. About half of storage units are climate-controlled. Many companies provide storage space for large items such as cars, boats, and RVs; some larger companies offer products such as packing and moving supplies. Facilities vary in size, but an average facility covers more than 45,000 square feet, according to the Self Storage Association (SSA).