Guests Zachary Dickens, Anne Mari DeCoster, and Kara Kolodziej discuss the $45 billion self-storage industry in America. They explore the reasons for renting storage units, operations and economics, diverse use cases, nuances of auctions, and the economic viability of storage units. Real-life stories include valuable discoveries like a car from a James Bond film and handling cremated remains.
Americans store belongings due to consumerism and high housing costs.
Self-storage industry profits attract real estate investors seeking consistent returns.
Deep dives
The Growth of Self-Storage Industry in the US
The self-storage industry in the US has boomed with one in five Americans renting a storage unit. High housing costs, urbanization, and consumerism have driven this industry, which is worth an estimated $45 billion. Real estate investors are increasingly interested in self-storage due to its consistent profitability.
Evolution of Storage Units into a Lucrative Business
The modern self-storage industry originated in the 1960s as a real estate investment strategy. Initially, storage units were meant to cover taxes on undeveloped land slated for future commercial projects. Over time, entrepreneurs recognized the profitability of self-storage as a standalone business, leading to the growth of over 52,000 storage facilities in the US.
Diverse Uses and Quirky Finds in Storage Units
Storage units serve various purposes, from storing furniture and vehicles to preserving heirlooms and small business inventory. While popular culture depicts storage units as treasure troves, the reality is that foreclosed units often hold sentimental items, not valuable goods. The industry experiences rare but peculiar discoveries, ranging from abandoned evidence to forgotten coffins.
Americans love to buy new stuff and hate to get rid of old stuff, which is why storing it all has become a $45 billion business. Zachary Crockett cleans out the garage.
SOURCES:
Zachary Dickens, executive vice president and chief investment officer of Extra Space Storage.