Search
 

Why Self-Storage Investors Are Heading Outside the City

The self-storage market is growing in areas 50 minutes outside of a city where pricing is cheaper and tenants still have access to their goods through on-demand service.

By Kelsi Maree Borland | Updated on January 09, 2018

Los Angeles Los Angeles

The self-storage niche isn’t as prone to location as some other asset classes, thanks to new on-demand services. On-demand self-storage includes pick-up and drop-off services for tenants, allowing operators to occupy facilities outside of the city where pricing is cheaper. Locations aren’t merely miles outside of the city limits, but can be 45 minutes to an hour away. As a result, investors are beginning to look for locations in secondary markets where they can operate on-demand facilities at a fraction of the cost of properties in similar markets.

“We have stayed away from prime markets because the cash flow isn’t as significant,” Hunter Thompson, founder of Cash Flow Connections, tells GlobeSt.com. “The markets that are 30 minutes outside of a city don’t have as much of a differential as markets that are 50 minutes outside of the city, because the population density and the demand for the product isn’t as significant.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.