The self-storage industry is one of the fastest growing areas of the commercial real estate industry. Not only has there been a rapid expansion in the recent past, there is also a real demand from the public to support it, and many self-storage facilities are independently owned. Consequently, there is a solid opportunity for independent agents to do very well writing this specialty line.
A Rapid and Diverse Expansion
- It took the self-storage industry more than 25 years to build its first billion square feet of space, but it added the second billion square feet only 8 years.
- Self-storage facilities are reasonably well distributed across the U.S: 32% urban, 52% suburban and 16% rural.
- There is more to storage than just furniture and items for the home. Nearly 20% offer additional storage for boats and RVs.
- Occupancy rates for self-storage facilities in 2014 were almost 90%.
- Nearly 10% of U.S. households currently rent a self-storage unit.
- About 30% of self-storage renters will rent for more than 2 years.
The Economic Impact
- More than 170,000 people are employed by Self-storage facilities in the U.S.
- More than $3 billion in property taxes from self-storage go to local government jurisdictions.
The Opportunity for Insurance Agents
As a specialty line, self-storage insurance is an attractive product for the independent agent. In addition to being a growing niche, it’s considered resistant to the effects of recession. Agents have a real opportunity to partner with growing self-storage facilities as an expert risk advisor, and insurance provider.
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Source: Self Storage Association, 2014-15 Self-Storage Industry Fact Sheet