The self-storage industry has seen significant growth over the last few years because of urbanization, population growth, and the increased demand for affordable storage. This growth is not limited to the US, but spans across borders, reaching far and wide – even as far as across the pond.

As an example, one of Norway’s leading self-storage companies in Oslo, Flexistore minilager i Norge, is experiencing a surge in its client base. In an interview we had them in preparation for this article, however, they told us that the cause of growth lies not in urbanization or population growth – numbers of which are quite stable – but rather, in a general increase in activity after the Covid restrictions were released.

Regardless of the country, the outlook for the self-storage industry seems quite optimistic. But does this recent and booming growth mean that it is too late to invest in this industry?

We would argue that it’s not. By looking at some key facts about the self-storage market, as well as the pros and cons of investing in it, we want to show you that it could prove itself to be a valuable part of your diversified portfolio.

What is the Self-Storage Market and How Much Money Does it Make?

The average self-storage company covers a space of 500 feet, and has 25 available units. Some of the most popular types of self-storage facilities in this space include:

• Moving and Storage Facilities (MSA)
• self-storage Centers (SSC)
• self-storage Warehouses (SWF)
• self-storage Containers (SSC)

Furthermore, storage operators are typically owner-operators with an average net worth of $2.3 million, but there are also larger corporations that make up a significant portion of the industry’s revenues.

What is perhaps of most interest to you, however, is that the self-storage sector has over $23 billion in annual revenue – a number that is expected to grow by over $10 billion in the next 10 years.

With these statistics, it’s clear that there’s a lot to be made by investing in this burgeoning industry. But before sending you off into your new investment adventures, we first want to mention some of the pros and cons.

Pros of Investing in the Self-Storage Industry

There are many advantages of investing in this industry. The primary one is that it’s a very passive business, unlike other retail-centric industries like grocery stores and clothing stores which require constant management and continuous predictions of the market.

The other major advantage of investing in this industry is that it provides access to an affordable investment opportunity for people who are looking for long-term investments with low risk.

Cons of Investing in the Self-Storage Industry

Whereas there can be much to be gained from prudent investments in self-storage, there are also some cons and potential risks that are associated with it. These include:

• It can lead to high losses for over-eager investors who, encouraged by the said-to-be low risk, think that they can just pour the money into the self-storage industry and expect it to yield great returns
• The industry has been going through a lot of changes lately, with many new competitors coming in and forcing prices down. This can potentially reduce the ROI of your investments

After having considered the pros and cons of investing in the self-storage industry, we believe you are ready to seriously consider it as a viable option if you’re looking to diversify your portfolio and explore this market.

The Self-Storage Sector is a Great Investment Now

All in all, we would argue that self-storage is a great investment now, as it appears to be one of those sectors that will remain less volatile than others, despite the changes that are happening. The Self Storage Association predicts that industry revenue growth will average 4% year-over-year through 2023, and U.S. Census data shows there was an 8% increase in self-storage space from 2009 to 2018, with continued upward growth projected by the SSA through 2027. These numbers are highly optimistic, and show that there might be something in it for you, should you start investing in the self-storage industry.