MIAMI—I cut my teeth in commercial real estate news writing about the self-storage industry. The growth over the last 20 years has even surprised me.
According to IBISWorld, self-storage industry revenue in the United States will climb past $30 billion in 2018 and will approach $33 billion two years later. What's more, IBISWorld predicts self-storage revenue will grow at an average annual rate of 2.9% through 2020.
GlobeSt.com caught up with Jay Massirman, managing principal of Miami-based Rivergate Companies and partner at Miami City Self Storage, to get some insights. His firm just inked a joint venture to drive more urban infill self-storage development.
“Looking ahead to 2018 in self-storage, you're going to less suburban starts and more selective developments in urban locations around the country in places like South Florida, New York City, Boston California and other urban markets,” Massirman tells GlobeSt.com. “The sprawling, industrial-looking facilities that have historically dominated the sector are giving way to vertical, low and mid-rise buildings that are designed in character with the surrounding urban neighborhood it is located in. This follows the continued population shift toward living in cities.”
All told, IBISWorld predicts the number of self-storage facilities in the US will grow 14% from 2015 to 2020. That growth rate is higher than most self-storage experts have forecast. But industry watchers are bullish, especially with urban growth. (Self-storage is one of the safest bets in Florida commercial real estate.)
“Another trend that will drive the sector in 2018 is the increasing amount of Baby Boomers who are downsizing and relocating to more vibrant areas,” Massirman says. “Less living space means less room for all of those families' items of importance. That will further fuel demand for high-end self-storage facilities in dense urban neighborhoods nationwide.”
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