Self-storage is emerging as the top trend in the property market for very specific reasons
- Lower Capital Barrier to Entry: Self-storage units offer a more accessible investment option than residential properties due to their significantly lower costs.
- Low Maintenance Costs: Self-storage units require less maintenance and management compared to traditional rental properties, reducing ongoing expenses for investors.
- Liquidity: The entry price for self-storage units is lower, leading to better liquidity and a larger pool of potential buyers.
- Tenant Vacancies: Multiple self-storage units can help mitigate financial risks associated with tenant vacancies, unlike large residential properties.
- No Disruptive Tenants: Investors can outsource the management of self-storage units, making it a passive investment without the complexities of dealing with difficult tenants.
- High Demand: The self-storage industry is experiencing high demand, with one in ten US households renting a self-storage unit.
- Recession-Proof: Historical data suggests that the self-storage industry is resilient during economic downturns, making it a potentially recession-proof investment.
A few decades ago, the concept of self-storage was relatively unknown. Today it is a multi-billion dollar industry worldwide. The self-storage industry had seen significant growth over the years. It’s highly fragmented with a mix of major players and smaller entities operating across these regions, therefore figures are not precise.
According to the IMARC Group, the global market for self-storage is estimated at $57.4 billion and projected to reach $87.8 billion by 2032, with an expected CAGR of approximately 4.7% from 2024-2032.
The self-storage sector’s scalability allows investors to start small and expand as capital becomes available
What makes Stradix’s offshore buy-to-let self-storage so unique?
South Africans now have an opportunity to invest in international real estate at a fraction of the cost associated with traditional properties. Reselling of self-storage facilities are common practise as indicated in the vast market size. However, Stradix’s approach, enabling the purchase of individual self-storage units, opens the door for South Africans to invest offshore in real estate at a real affordable price.
Also want to start small and expand as capital becomes available?
Want to check out the stats and info for yourself?
Here are some pretty comprehensive links:
- FEDESSA Annual Reports(Federation of European Self Storage Associations):
- https://www.fedessa.org/publications/european-annual-industry-report-2023.html
- The annual FEDESSA reports provide detailed insights into the self-storage industry across Europe.
- CBRE Investment Management (Market Research) – The resiliency of U.S. self storage and return to new normal
- The resiliency of U.S. self storage and return to new normal | CBRE Investment Management (cbreim.com)
- The article concludes that despite recent challenges, the U.S. self-storage sector remains a resilient and attractive investment, with fundamentals expected to return to pre-pandemic norms. Supply constraints and continued investor interest underscore the sector’s potential for sustained growth and inflation-resistant returns.
- Forbes – Self Storage Isn’t Just for Hoarders: A Primer For Investors
- https://www.forbes.com/sites/fredhubler/2023/09/05/self-storage-isnt-just-for-hoarders-a-primer-for-investors/?sh=531ed8c577be
- The article emphasizes the sector’s resilience, growth potential, and strategic investment opportunities, particularly in the face of economic uncertainties, positioning self-storage as a valuable component in an investor’s portfolio.
