How You Should Price Your Self-Storage Units
Written by Chuck Vion on November 30, 2016 under Revenue Management
Self-Storage Market Rents
IRR forecasts $32.7 billion in self-storage transactions in 2016
According to Reis, a national statistics aggregator for 50 self-storage markets, the self-storage industry has seen about a 2 percent occupancy growth rate 2012 through 2015.
The following areas saw the best growth rates in:
- Northeast - most expensive
- South Atlantic - higher rent growth for climate control units
- West - highest performance for non-climate control units
Self-Storage Unit Pricing
The following charts show the growth rates for both climate and non-climate controlled units.
Self-Storage Market Rent: Climate Control 10x10
Self-Storage Market Rent: Non-Climate Control 10x10
Reasons For Self-Storage Growth
The main reason for the growth of the self-storage industry is almost directly connected with the growth of apartment occupancy. As many families are downsizing and choosing to live in apartments due to aging, economy or other incidents; people who once had a garage, attic or basement for storage are now without. In effect, people are not wanting to get rid of their stuff and instead are renting self-storage units.
Although apartments rentals are still on the rise, they are looking to lose their pace and development in the next coming years but will still remain in a growth state as more older generations are downsizing.
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Pricing For Profit
As self-storage companies incorporate systematic, dynamic, and data-driven methods into setting move-in rates and rent increase to existing customers, they typically realize sustainable increases in profits that are greater than anticipated.
Track Calls, Measure Marketing, Rent More
One of the top five expenses a storage business faces is marketing. Often times, the money spent on a marketing campaign does not produce the expected results. It is becoming the industry standard to use call tracking as a means to evaluate marketing campaigns.
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