Self storage

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Storage lockers at the Tampere Central Station in Tampere, Finland Storage lockers at Tampere railway station.jpg
Storage lockers at the Tampere Central Station in Tampere, Finland
Self storage building and garages.jpg
Self storage building and garages
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Self storage garages

Self storage (a shorthand for "self-service storage," and also known as "device storage") is an industry that rents storage space (such as rooms, lockers, containers, and/or outdoor space), also known as "storage units," to tenants, usually on a short-term basis (often month-to-month). Self-storage tenants include businesses and individuals.

Contents

When discussing why a storage space is rented, industry experts often refer to "4Ds of life" (death, divorce, delimitation, and discombobulation; the latter can refer to either the renter relocating to another area and needing space to store items until they can be moved to the new location, or a subsequent marriage resulting in the couple having duplicate items). [1]

Description

Self-storage facilities rent space on a short-term basis (often month-to-month, though options for longer-term leases are available) to individuals (usually storing household goods; nearly all jurisdictions prohibit the space from being used as a residence) or to businesses (usually storing excess inventory or archived records). [2] Some facilities offer boxes, locks, and packaging supplies for sale to assist tenants in packing and safekeeping their goods, and may also offer truck rentals (or may allow free use of a truck for a new tenant).

Most storage facilities offer insurance for purchase; also, the lessor may be covered by their own insurance policy (if such policy has coverage for items stored off the premises of the insured) or may purchase insurance to cover the items (which the facility may offer as a service through a third-party carrier, and in some cases may require the lessor to purchase as a condition of rental).

The rented spaces are secured by the tenant's own lock and key. Unlike in a warehouse, self-storage facility employees do not have casual access to the contents of the space (and, thus, the facility is generally not liable for theft). A self-storage facility does not take possession or control of the contents of the space unless a lien is imposed for non-payment of rent, or if the unit is not locked the facility may lock the unit until the tenant provides their own lock.

History

Although there is historical evidence of publicly available storage in ancient China, modern self-storage facilities (in which the tenant has exclusive access to the storage space) did not begin to appear until the late 1960s. The first self-storage facility chains opened in Texas. [3] This was often helped by the fact that most homes in Texas do not have basements, which in other places are often used for storage. [3]

The first self-storage facility in Europe was started in the United Kingdom by Doug Hampson, and opened in central London in 1979. [4] [5] Called Abbey Self Storage, it would become the first self-storage chain in Europe. "... it was Doug Hampson who gave Britain the modern self-storage industry, with its bright, clean corridors and endless rows of brightly-coloured doors. In the industry he is widely credited with the enviable title of the "father of UK self-storage". [5]

Modern storage facilities grew slowly through the '90s, at which time demand outpaced supply and caused a rush of new self-storage developments. From 2000 to 2005, over 3,000 new facilities were built every year in America. [6]

Self storage today

At year-end 2019, there were 47,539 self-storage facilities in the United States on industrial and commercial land parcels. There is more than 1.9 billion square feet of available self-storage in space in U.S. The six largest publicly traded storage operators (four REITs, and U-Haul own or operate approximately 18% of self-storage facilities. [7] The global industry was worth 48.02 billion U.S. dollars in 2020. [8] More recently, in many metropolitan cities where competition among storage companies is fierce, better parcels of land near residential and commercial areas are being converted into self-storage once approved by zoning panels. Companies are becoming more adept at manufacturing these modular storage units, allowing operators to get up and running quickly. To support the need, businesses like PODS are expected to enter the modular construction effort as well.

Self storage units.jpg
Self Storage Flexbox Hinged Door.jpg
Inside a self-storage facility, with a rollup door (left) and a hinged door

Mailstorage or on-demand storage is where customers' items are kept together in a warehouse rather than providing each customer with a storage unit.

Self-storage businesses lease a variety of unit sizes to residential and business customer/tenants. Popular unit sizes (with width shown first and depth shown second) include:

The storage units are typically window-less, walled with concrete cinder blocks or corrugated metal, and lockable by the renter. Each unit is usually accessed by opening a roll-up metal door, which is usually about the same size as a one-car garage door (smaller units may be accessed by a hinged metal door). A controlled access facility may employ security guards, security cameras, individual unit door alarms and some means of electronic gate access such as a keypad or proximity card. A few facilities even use biometric thumbprint or hand scanners to ensure that access is granted only to those that rent. Self-storage facility operators frequently provide 24-hour access, climate controlled storage, outdoor storage for RVs and boats, and lights or power outlets inside the storage unit as amenities to set themselves apart from competitors. Some storage facilities have open roofs i.e. a wire mesh roof which are not that secure, compared to ones that have full covered tin roofs that provide added security and privacy.

Example of an older, urban self-storage facility. American self storage.jpg
Example of an older, urban self-storage facility.

In rural and suburban areas most facilities contain multiple single-story buildings with mostly drive-up units which have natural ventilation but are not climate-controlled. These buildings are referred to as "traditional" storage facilities. Climate-controlled interior units are becoming more popular in suburban areas. In urban areas many facilities have multi-story buildings using elevators or freight lifts to move the goods to the upper floors. These facilities are often climate-controlled since they are comprised mostly, if not totally, of interior units. Warehouses or grocery stores are sometimes converted into self-storage facilities. Loading docks are sometimes provided on the ground floor. Also, complimentary rolling carts or moving dollies are sometimes provided to help the customers carry items to their units. Urban self-storage facilities might contain only a few floors in a much larger building; there are successful self-storage businesses co-located with manufacturing plants, office tenants and even public schools.

One in ten U.S. households now rent a self-storage unit. [10] The growing demand for self-storage in the U.S. is created by people moving (some 40 million people move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate. [11]

Over 54,000 self-storage facilities currently exist in the U.S. [12] ranging from companies with a nationwide presence to companies with regional footprints or even stand-alone independent "mom and pop" facilities.

Demand for storage space remains stable as of Q4 2015. The supply for self-storage is also relatively stable. Often, the process to build a new storage building is onerous and can take years. Additionally, this specific asset class often gets push back from communities, due to its nature. [1]

The self-storage sector is highly fragmented, which is in contrast to other asset classes in the industry. 80% of self-storage facilities are owned by individuals or small investors.[ citation needed ]

There is a belief amongst investors that the self-storage industry is recession-proof. This belief is supported by the 5.1% total return the sector delivered to investors in 2008 during The Great Recession. [13] The self-storage industry reported strong results during the COVID-19 pandemic. [14] [15] This is due to the fact that self-storage is considered to be an "essential business" in many jurisdictions so during a lockdown many facilities never closed and many people were reportedly panic buying storage units to keep valuables safe from contamination. [14] [15]

Self storage worldwide

Self Storage Building in Fairfax County, Virginia Self Storage (53890184196).jpg
Self Storage Building in Fairfax County, Virginia

Self-storage or variations on the business model are now found in many parts of the world. In 2014, FEDESSA, the Federation of European Self Storage Associations, published a report about the state of the self-storage industry in Europe. In this report, it was estimated that 975 facilities exist in the United Kingdom, 430 in France, 264 in The Netherlands, 210 in Spain, 131 in Germany, and 112 in Sweden. No other country in Europe has more than 100 facilities. Overall, the report estimates 2,391 total facilities in Europe, or about 75 million square feet of rentable storage space. This compares with over 52,000 facilities in the US (236 million square feet), and 1,100 facilities in Australia (39 million square feet). [16] In the UK, charges are related to capacity in ft², transportation, hour/loading, with low-cost alternatives to traditional self-storage.

Storage auctions

In the United States, self-storage facilities may hold storage auctions or lien sales to vacate non-paying tenants according to their enforcement rights that are outlined within the lien law of each jurisdiction. In Canada, the process and legal requirements are outlined in the Repair and Storage Liens Act. [17]

Facilities owners are generally required to first notify the tenant of the outstanding debt, commonly by certified or registered mail to the address on file with the facility. If the debt remains unpaid, the facility must then give public notice of the sale or auction, generally in a newspaper of general circulation in most states, though some states may allow public notice of sales to be done via the internet. The tenant has the right to pay their outstanding bill at any time until the moment the auction begins and thus reclaim rights to the unit and their items; those units would be removed from the auction (which, in some cases, may result in the entire auction being cancelled). [18]

The auctions/sales are open to the general public, with most bidders buying for the purpose of reselling for profit. Once the auction for a unit starts, the door to the unit is opened and potential bidders are allowed to view the contents only by looking in from the doorway; they may not step inside, touch, or move any of the contents prior to the auction. Generally, the spaces and their contents are sold "as is, where is" with no warranties or guarantees implied or provided, and the terms of sale are cash-only upon conclusion of the auction. The purchaser of a unit takes possession of its entire contents and is responsible for removing them within a set period of time. In some cases, the facility may allow the purchaser to rent the unit and/or charge a refundable deposit for cleaning of the unit once it has been emptied.

Certain jurisdictions require facility owners to immediately confiscate controlled items such as firearms if they are in plain sight within a delinquent unit. Also, a jurisdiction may require the purchaser to turn over some items (such as family photos and tax/business records) to the facility owner.

In the fall of 2010, two new television programs featuring storage auctions, Storage Wars and Auction Hunters , were released. The popularity led to additional shows such as Storage Hunters , Storage Wars: Texas , and Storage Wars: New York which helped increase the visibility and interest of storage auctions. Storage Wars: Canada also debuted on the Outdoor Living Network in 2013.

See also

Related Research Articles

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<span class="mw-page-title-main">Apartment</span> Self-contained housing unit occupying part of a building

An apartment, flat, or unit is a self-contained housing unit that occupies part of a building, generally on a single storey. There are many names for these overall buildings. The housing tenure of apartments also varies considerably, from large-scale public housing, to owner occupancy within what is legally a condominium or leasehold, to tenants renting from a private landlord.

<span class="mw-page-title-main">Warehouse</span> Building for storing goods and giving services

A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns, or villages.

<span class="mw-page-title-main">Lease</span> Contractual agreement in which an assets owner lets someone else use it in exchange for payment

A lease is a contractual arrangement calling for the user to pay the owner for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment are also leased. In essence, a lease agreement is a contract between two parties: the lessor and the lessee. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. The lessee also agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree to the condition that the car will only be used for personal use.

A rental agreement is a contract of rental, usually written, between the owner of a property and a renter who desires to have temporary possession of the property; it is distinguished from a lease, which is more typically for a fixed term. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the lessor and the renter as the lessee.

Repossession, colloquially repo, is a "self-help" type of action in which the party having right of ownership of a property takes the property in question back from the party having right of possession without invoking court proceedings. The property may then be sold by either the financial institution or third party sellers.

<span class="mw-page-title-main">Public Storage</span> US international self storage company

Public Storage is an American international self storage company headquartered in Glendale, California, that is run as a real estate investment trust (REIT). It is the largest brand of self-storage services in the US. In 2008, it was the largest of four publicly traded storage REITs. There are more than 2,200 Public Storage self-storage locations in the US, Canada and Europe. It also owns 42 percent of an office parks subsidiary, sells packing supplies, and provides other services. As a REIT, it is owned by real estate investors, who receive more than 90 percent of the company's profits as a return-on-investment.

<span class="mw-page-title-main">Garage (residential)</span> Walled, roofed structure for storing vehicles

A residential garage is a walled, roofed structure with a door for storing a vehicle or vehicles that may be part of or attached to a home, or a separate outbuilding or shed. Residential garages typically have space for one or two cars, although three-car garages are used. When a garage is attached to a house, the garage typically has an entry door into the house, called the person door or man door, in contrast with the wider and taller door for vehicles, called the garage door, which can be opened to permit the entry and exit of a vehicle and then closed to secure the vehicle. A garage protects a vehicle from precipitation, and, if it is equipped with a locking garage door, it also protects the vehicle(s) from theft and vandalism. Most garages also serve multifunction duty as workshops for a variety of projects, including painting, woodworking, and assembly. Garages also may be used for other purposes as well, such as storage or entertainment.

<span class="mw-page-title-main">Storage room</span>

A storage room or storeroom is a room in a building for storing objects. They are not designed for permanent residence, and are often small and without windows. Such rooms often have more lenient requirements for fire protection, daylight entry and emergency exits compared to rooms intended for permanent residence.

A serviced office is an office or office building that is fully equipped and managed by a facility management company, also known as an office provider, which then rents individual offices or floors to other companies. Serviced offices, also referred to as managed offices, flexible offices, business centers, executive suites or executive centers, are often found in the business districts of large cities around the world. A serviced office broker will commonly help business center owners and facility management companies to rent serviced office space. Companies offering serviced offices are generally able to offer more flexible rental terms, as opposed to a conventional leased office which may require furnishing, equipment, and more restrictive leases. Space is normally flexible, allowing for additional space to be allocated at short notice, should the size of an individual business change. Serviced office providers often allow tenants to share reception services, business machines and other resources, providing reduced costs and access to equipment which may otherwise be unaffordable. By providing businesses with access to a workplace, technology and people central to its operations, the serviced office can be considered a type of virtual office. Serviced offices are a central component to the flexible workspace industry.

<span class="mw-page-title-main">Automated storage and retrieval system</span> Robotic warehouse for physical objects

An automated storage and retrieval system consists of a variety of computer-controlled systems for automatically placing and retrieving loads from defined storage locations. Automated storage and retrieval systems (AS/RS) are typically used in applications where:

<span class="mw-page-title-main">Extra Space Storage</span> American self-storage company

Extra Space Storage Inc. is a real estate investment trust headquartered in Cottonwood Heights, Utah that invests in self storage facilities. The company rents storage units, including climate controlled units, drive-up units, lockers, boat storage, RV storage and business storage under the brands Extra Space Storage, Life Storage, and Storage Express. As of March 28, 2024 the company owned and/or operated 3,714 locations in 43 states, and Washington, D.C. comprising approximately 2.6 million units 283.4 million square feet of net rentable space. It is the largest owner of self storage units in the United States and the largest self storage property manager.

<span class="mw-page-title-main">Pallet racking</span> Material handling storage aid system designed to store materials on pallets

Pallet rack is a material handling storage aid system designed to store materials on pallets. Although there are many varieties of pallet racking, all types allow for the storage of palletized materials in horizontal rows with multiple levels. Forklift trucks are usually required to place the loaded pallets onto the racks for storage. Since the Second World War, pallet racks have become a ubiquitous element of most modern warehouses, manufacturing facilities, retail centers, and other storage and distribution facilities. All types of pallet racking increase storage density of the stored goods. Costs associated with the racking increases with increasing storage density.

<span class="mw-page-title-main">Locker</span> Storage compartment

A locker is a small, usually narrow storage compartment. They are commonly found in dedicated cabinets, very often in large numbers, in various public places such as locker rooms, workplaces, schools, transport hubs and the like. They vary in size, purpose, construction, and security.

Storage Wars is an American reality television competition series that airs on the A&E network. It initially aired for twelve seasons, from December 1, 2010, to January 30, 2019. A 15th season has aired as of August 15, 2023.

Life Storage, Inc. was a real estate investment trust headquartered in Williamsville, New York, that invested in self-storage units. The company was previously known as Sovran Self Storage and Uncle Bob's Self Storage. The company completed a merger with Extra Space Storage in July 2023.

EuroMiniStorage is a self storage company founded by a group of Canadian investors in Central and Eastern Europe. It is the largest personal self-storage company in Romania and Hungary, being the first to offer large-scale purpose built and industry standard facilities both in Budapest and Bucharest.

<i>Storage Wars Canada</i> 2013 Canadian TV series or program

Storage Wars Canada is a Canadian reality television series on OLN that aired from 2013 to 2015. The series followed a group of buyers looking to strike it big by buying storage units at auctions when rent is not paid. It was the first international version of the Storage Wars franchise.

<span class="mw-page-title-main">StorageMart</span> Self-storage facility chain

StorageMart is a chain of self-storage facilities headquartered in Columbia, Missouri that operates facilities across the USA, Canada and the UK. StorageMart was founded in 1999 by Gordon Burnam, who had been involved in the self-storage industry since 1974.

Self-storage boxes, also known as self-storage bins, are storage containers often rented by individuals and businesses in metropolitan areas. The storage box service offers on-demand pick-up and drop-off services to storage facilities; the self storage service does not.

References

  1. 1 2 Pleven, Liam (October 13, 2015). "Need to Store That? Booming Self-Storage Industry Says No Problem". The Wall Street Journal. ISSN   0099-9660 . Retrieved 2015-10-23.
  2. ↑ "Industry Statistics Sampler: NAICS 531130 - Lessors of miniwarehouses and self-storage units". Census.gov. Retrieved 2012-02-01.
  3. 1 2 Vanderbilt, Tom (2005-07-18). "Self-Storage Nation - Americans are storing more stuff than ever". Slate.
  4. ↑ Cohen, Daniel (2018-07-27). "Tales from the storage unit: inside a booming industry". Financial Times. Retrieved 2019-08-12.
  5. 1 2 Yearsley, William (2014-04-14). "The self-storage millionaires". BBC News. Retrieved 2020-06-30.
  6. ↑ Mooallem, Jon (2009-09-02). "The Self-Storage Self - Storing All the Stuff We Accumulate". NYTimes.com. Retrieved 2012-02-01.
  7. ↑ "Radius+ Insider Statistics". Radius Plus. radiusplus.com. 2020-02-03.
  8. ↑ "Value of self-storage market worldwide in 2020 and 2026". Statista . 2020. Retrieved 19 December 2022.
  9. ↑ "U.S. Self-Storage Industry Statistics". SpareFoot. May 26, 2015. Retrieved June 16, 2015.
  10. ↑ "SSA | Home" (PDF). Selfstorage.org. 2005-04-19. Retrieved 2012-02-01.
  11. ↑ "Industry Facts & Figures". SelfStorage.com. 2013-04-29. Retrieved 2013-05-01.
  12. ↑ "Self-Storage Industry Statistics" . Retrieved 2016-02-29.
  13. ↑ Friedman, Robyn A. "Investors Gird for Storage Wars". Wall Street Journal. ISSN   0099-9660 . Retrieved 2015-10-23.
  14. 1 2 "Transacting in Turbulent Times: The Impact of Coronavirus Across All Segments of the Self-Storage Industry". Inside Self-Storage. 2020-04-02. Retrieved 2021-06-22.
  15. 1 2 Brandt, Libertina. "A top self-storage exec explains how demand and occupancy within the sector have been resilient during the coronavirus pandemic: 'It's a great performing asset class as compared to other property classes'". Business Insider. Retrieved 2021-06-22.
  16. ↑ "European Self Storage Annual Survey 2014" (PDF). FEDESSA. 2014-10-01.
  17. ↑ "Repair and Storage Liens Act, R.S.O. 1990, c. R.25". Queen's Printer for Ontario. Retrieved 2021-10-15.
  18. ↑ "SSA Lien Laws". Self Storage Association. Retrieved 2015-02-18.
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