For many decades, the self-storage industry in the United States appeared virtually immune to economic change due in large part to the nature of the product. When the economy booms, Americans acquire more and need more room to store what won’t fit in their garages and sheds. During slower times, Americans tend to downsize and rely on self-storage to store their items during these transitions.
The economic challenges that began in 2007, however, made an impact on every commercial real estate sector to include self-storage. But while the industry did feel the negative effects of the Great Recession, self-storage rebounded more quickly and more robustly than other real estate sectors and continues its upward trajectory.
A recent Moody’s Investors Service announcement entitled “Moody’s: US Self-Storage Industry Continues to Grow” cited a new report that concludes that the self-storage industry is experiencing solid demand with increasing rents while the supply of new facilities remains limited.
The announcement cites several key factors contributing to the positive growth trend including short-term leases that permit quick response to changing market conditions, the diversity of the industry’s customer base, and the stabilizing influence of commercial customers that tend to lease spaces for longer than average.
As an independent insurance agent or broker, you have an opportunity to partner with self‑storage businesses to help ensure they have adequate insurance coverage as they continue to grow. Contact MiniCo’s Customer Care Department at firstname.lastname@example.org or 800-447-8383 for more information about the self-storage industry in your state.