01 Feb 2022

Off to a Good Start

James McLean

Union Realtime

I’m bullish on storage. The Self Storage industry has all the right signs pointing towards a strong 2022. In past years, the vast construction of new facilities had led to declining rates, as the demand for Self Storage couldn’t keep up with the supply growth. With mass office shutdowns due to COVID-19 working class people left metropolitan areas in favor of suburban lifestyles. For those who stayed, the need for more space in the home caused by ubiquitous remote work situations all contributed to increased demand for Self Storage.

The average price per square foot is a strong indicator of the health of the industry, as it shows how much people value self storage. The average price per square foot for the first week of January in 2021 was $1.36*. A year later - the average price per square foot for the first week of January in 2022 was $1.65*. This is over a 21% increase, a great sign that the Self Storage industry is still powering into 2022.

2021 showed that Self Storage was resilient, but with such a strong January, I am confident that 2022 will only reinforce this idea.

*(rounded to the second decimal)