You probably drive by self-storage warehouses all the time. It is quietly one of the fastest-growing industries in the U.S. It’s partly driven by technology. People are buying stuff online all the time, and they need places to store it all. This article dives into the industry in detail.
There’s so much excitement around the new storage industry that it seems as if the only ones urging caution are the largest operators. They see a coming drop in consumer spending, one that will in turn result in less need for more space for your stuff.
Life Storage, a publicly-traded landlord based in Williamsville, New York, has said it’s done shopping for newly constructed facilities. Public Storage CEO Ronald Havner, meanwhile, warned on his most recent earnings call that the American consumer is “stretched and or under stress.”
That won’t necessarily slow the building boom, said SpareFoot’s Gordon. There are more than 50,000 storage facilities in the U.S., and mom-and-pop operators control about 80 percent of them.