10 Things You Didn’t Know About the Self-Storage Industry
Why one of commercial real estate’s most resilient asset classes deserves a second look
When most people think of self-storage, they picture a row of roll-up doors and a padlock. What rarely comes to mind is one of the most resilient, recession-resistant, and quietly lucrative asset classes in all of commercial real estate. The ten facts below paint a clearer picture of why the industry has attracted serious capital for decades.
1. It’s a $47+ Billion Industry (and Growing)
The United States self-storage market reached USD $47.28 billion in 2026 and is projected to grow to $57.79 billion by 2031,[1] underscoring its steady expansion and long-term growth trajectory.
For context, the U.S. recorded music industry generated $5.6 billion in the first half of 2025 alone,[2] while Hollywood’s domestic box office totaled approximately $8.6 billion for the full year.[3] Even combined, those figures remain well below the scale of the self-storage sector, and are subject to significantly greater year-to-year volatility.
2. America Has More Self-Storage Facilities Than McDonald’s, Starbucks, and Subway Combined
There are approximately 66,ooo self-storage facilities across the United States.[4] By comparison, McDonald’s (13,700+ ), Starbucks (16,800+ ), and Subway (20,100+) together account for roughly 50,700 U.S. locations.[5] Despite this density, demand has consistently outpaced supply in most major and secondary markets, keeping occupancy rates at historic highs.
3. Self-Storage Has Outperformed Other REIT SectorsOver the Long Term
Self-storage REITs have produced some of the highest total returns of any real estate sector over multi-decade periods. Over the past 25 years, the self-storage asset class has achieved an average annualized return of approximately 16.8%,[6] outperforming other major property types including office, retail, residential, and industrial real estate. The sector’s leading publicly traded companies, Public Storage, Extra Space Storage, CubeSmart, and National Storage Affiliates, have established themselves as standout performers within the REIT landscape.
4. Secondary and Tertiary Markets Can Offer Stronger Risk-Adjusted Returns
From 2017 to 2019, elevated development activity in major metros such as New York, Dallas, Miami, Houston, and Denver led to temporary occupancy declines and rent pressure in certain submarkets. In contrast, many secondary and tertiary markets
experienced more measured supply growth. According to recent national data from Yardi Matrix (2023-2024), stabilized occupancy in many non-gateway markets has generally ranged in the mid-to-high 80% range, with stronger submarkets reaching into the low 90% range.[7]
While national occupancy normalized from its 2021 peak of approximately 92-94% to the mid-to-upper 80% range in 2023-2024,[7] smaller markets often avoided the sharp rent corrections seen in oversupplied Sunbelt metros. Barriers to entry in select secondary markets, including zoning restrictions, limited available parcels, entitlement hurdles, and community opposition, can help limit new competition and may create attractive risk-adjusted return opportunities for disciplined operators.
5. Operating Expenses are Remarkably Low Compared to Other Asset Classes
One of the most attractive features of self-storage is its lean operational profile. Unlike multifamily properties, self-storage facilities have no kitchens to repair, no bathrooms to maintain per unit, and no tenants calling at 2 a.m. about a broken appliance.
Operating expense ratios for well-run self-storage facilities typically run between 30-40% of gross revenue, compared to 45-55% for multifamily.[8] Many facilities are increasingly unmanned, using digital kiosks and remote management technology to reduce staffing costs further.
6. The Average Storage Unit Cost Is Comparable to Everyday Household Expenses
The national average rental rate for a standard 10×10 non-climate-controlled storage unit typically ranges between $110 and $140 per month, while climate-controlled units generally average $150 to $190 per month, depending on market conditions.[9] For many households, that monthly cost is comparable to, or less than, cable and internet service, a gym membership for two, or combined streaming subscriptions. Because storage is usually tied to major life transitions rather than discretionary spending, customers often retain units for extended periods. This relatively modest and recurring price point contributes to historically low tenant churn and stable cash flow for operators.
7. The Industry Survived and Grew Through Every Recession Since 1970
Since the 1970s, the U.S. has experienced seven official recessions, and throughout each cycle, the self-storage industry has demonstrated notable resilience.[10] During the 2007-2009 financial crisis, self-storage experienced less severe occupancy declines than office and retail sectors and recovered more quickly.[11] During the brief 2020 COVID recession, the industry saw strong demand driven by migration, household reconfiguration, and remote work transitions, with national occupancy levels reaching approximately 92-94% in 2021, near historical highs.[11] A key structural advantage is the sector’s month-to-month lease model, which allows operators to adjust rental rates quickly in response to market conditions. This contrasts sharply with office and retail properties locked into long-term leases, giving self-storage a built-in flexibility that helps mitigate inflationary pressures and economic shocks.
8. Technology Is Creating Meaningful Value-Add Opportunities
The self-storage industry has undergone a meaningful operational transformation over the past decade. Automated kiosks, smart gate access systems, centralized call centers, online leasing, and revenue management software have streamlined operations while reducing on-site staffing requirements. Dynamic pricing technology, functioning similarly to airline and hotel pricing models, adjusts rental rates in real time based on occupancy, unit availability, seasonality, and local demand. According to technology provider Storable, operators that implement automated revenue management tools have reported measurable improvements in realized rental rates compared to static pricing models.[12] Public self-storage REIT disclosures also indicate that revenue management systems contributed to record same-store revenue growth during the 2021-2022 demand surge.[13]
9. Climate-Controlled Storage Is the Fastest-Growing Segment
As customers increasingly store temperature-sensitive items, including electronics, wine, documents, pharmaceuticals, artwork, and household furnishings, demand for climate-controlled units has grown steadily across both urban and suburban markets. Industry data indicate that climate-controlled units typically command rental premiums of approximately 20-40% over comparable non-climate units, depending on region and supply conditions.[14] Recent development trends show that climate-controlled product now represents a majority of new construction deliveries in many markets,[14] with institutional developers increasingly favoring climate-controlled builds due to higher achievable rents, stronger tenant retention, and improved asset quality at exit.
10. One in Ten American Households Currently Rents a Storage Unit
According to the Self Storage Association, approximately 1 in 10 U.S. households rents a self-storage unit at any given time, representing over 14 million households.[15] The U.S. also leads the world in per-capita storage space, with roughly 5-4 square feet of storage space for every man, woman, and child in the country, and total U.S. inventory now exceeding 2.0 billion square feet spread across more than 50,000 facilities.[15] For investors, these figures underscore just how embedded self-storage has become in American life, and how durable that demand is likely to remain regardless of economic cycles.
The Bottom Line
Self-storage didn’t become a multi-billion-dollar industry by accident. It was built over six decades by operators who recognized an underserved need, survived every economic storm the modern era has thrown at it, and quietly outperformed nearly every other real estate asset class along the way. That history isn’t just interesting. It’s investment-grade evidence that this sector operates by fundamentally different rules than the rest of commercial real estate.
For investors and real estate professionals building durable, cash-flowing portfolios, self-storage remains one of the most compelling and still underappreciated places to deploy capital.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All investment decisions should be made in consultation with a qualified. financial advisor. Past performance of any asset class is not indicative of future results.
Want to learn more about self-storage and other real estate investment strategies? Visit our blog for more insights, market analysis, and investment perspectives from the Spartan Investors team.
Sources:
[1] Mordor Intelligence. United States Self-Storage Market. https://www.mordorintelligence.com/industry-reports/united-states-self-storage-market
[2] Recording Industry Association of America (RIAA). 2025 Mid-Year Music Industry Revenue Report. https://www.riaa.com/reports/2025-mid-year-music-industry-revenue-report-riaa/
[3] Box Office Mojo. Domestic Box Office Yearly Data. https://www.boxofficemojo.com/year/
[4] Tractiq. Self-Storage Market Data. https://tractiq.com/self-storage-market-data/; Self Storage Association (SSA). Industry Fact Sheet. 2023.
[5] ScrapeHero. 10 Largest Food Chains in the USA. https://www.scrapehero.com/location-reports/10-largest-food-chains-in-the-usa/; respective brand franchise disclosure documents.
[6] Nareit. Total Returns Index, historical data through 2023. The Motley Fool. “3 Types of REITs That Have Outperformed the S&P 500.” March 30, 2024. https://www.fool.com/investing/2024/03/3o/3-types-of-reits-that-have-outperformed-the-sp-500/; Nareit. “Historical Outperformance by Equity REITs.” https://www.reit.com/news/blog/market-commentary/historical-outperformance-by-equity-reits-extends-to-almost-every-property-type
[7] Yardi Matrix. National Self-Storage Report. Fall 2023; 2024 updates.
[8] Marcus & Millichap. U.S. Self-Storage Investment Forecast Report. 2023-2024 editions; Self Storage Association (SSA). Operating Expense Benchmarks; Public REIT financial disclosures (Public Storage, Extra Space Storage, CubeSmart).
[9] SpareFoot. Self-Storage Annual Rate Index. 2023; Yardi Matrix. Self-Storage National Reports. 2023-2024; public REIT rental rate disclosures.
[10] National Bureau of Economic Research (NEER). U.S. Business Cycle Dating Committee. https://www.nber.org/research/business-cycle-dating
[11] CBRE. U.S. Self-Storage Market Outlook. 2022-2024 editions; Yardi Matrix. National Self-Storage Reports. 2022-2024.
[12] Storable / SiteLink. Revenue Management Performance Summaries.
[13] Public REIT investor presentations: Public Storage, Extra Space Storage, CubeSmart; Yardi Matrix. Self-Storage National Reports. 2022-2024.
[14] Marcus & Millichap. U.S. Self-Storage Investment Forecast. 2023-2024 editions; Self Storage Association (SSA). Industry Data and Operator Benchmarks; Yardi Matrix. Self-Storage National Reports. 2023-2024.
[15] Self Storage Association (SSA). Industry Fact Sheets. 2023-2024; Yardi Matrix. National Self-Storage Reports; SpareFoot. Industry Statistics
