Our Role In The Rise Of Self Storage

With almost 2.5 billion square feet of self storage space in use, it’s clear that the United States has a love affair with self storage. From the outside, it would appear as if the self storage industry carries all the elements of failure. For instance, its base is in commercial property which has been badly hit during the global financial crisis. Most facilities are located on the outskirts of towns and cities in areas that could hardly be described as welcoming. Tenants are not forced to pay a deposit in many cases; they are able to rent by the month and can leave at anytime. For a normal business, this would represent all the ingredients of dismal failure yet self storage companies thrive.

Why Self Storage Facilities Are Successful
The most obvious reason why such companies continue to expand and enjoy increasing profits is because demand is increasing. The average American worker is mobile and constantly on the move. This means they need somewhere to store their possessions while other affairs are put in order. Perhaps more importantly, the goods that are stored can’t be consumed nor will they rot. This includes porcelain ornaments, metal garden furniture and children’s toys kept for sentimental reasons only. Economists once assumed that such goods could be disposed of without any guilt yet people rarely throw away such items. In fact, they are willing to pay to keep their possessions hoarded away safe and sound.

It is also a mistake to believe that short-term contracts also mean low profits. Although goods are stored on a month by month basis, most Americans keep their items stored away for several years at a time. It could be that the freedom offered by self storage facilities is the reason behind this behavior. As long as the monthly rent is paid, facilities don’t care what you store (within reason) and they certainly don’t care about the length of time items are stored for.

While other landlords hate dealing with the issue of non-paying tenants, self storage facilities hold all the power. If you don’t pay your bills, they are legally allowed to keep hold of your goods until you settle the debt. Fail to do this within a specified period of time and they are allowed auction off your goods to cover their losses. There is even a television show called Storage Wars which highlights these auctions. In many cases, goods are sold for rather high prices and companies easily cover their lost rent revenue and then some.

A Prosperous Future
Even though self storage has a less than savory image, its popularity continues to grow and this trend will continue in an era of rampant consumerism. Despite grim warnings from various philosophers who state that we are all in danger of becoming tied to our possessions, an increasing number of people are willing to pay cash to keep things they don’t really need nor want. A more sensible option would be to organize a yard sale and get rid of these unnecessary items but sentimentality and an unwillingness to ‘let go’ means that self storage’s star will continue to burn bright.