- ID: 1091016
- July 2015
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry rent or lease locations for self-storage, providing secure space (such as rooms, compartments, lockers, containers, or outdoor space) where clients can store and retrieve their goods. Major US companies include REITs such as CubeSmart, Extra Space Storage, Public Storage, and Sovran Self Storage (all based in the US), along with Dymon Storage (Canada), Safestore (UK), and Shurgard (Belgium).
The US, where the self-storage industry originated, remains the top global market. Other well-established markets include Canada and Australia. Growth opportunities are strong in Asian markets such as Hong Kong, Japan, and Singapore, where the self-storage industry is just beginning to gain traction.
The US self-storage services industry consists of about 15,000 establishments (single-location companies and units of multi-location companies) with about $8 billion in annual revenue.
Demand for self-storage services is driven by population growth and consumer spending. The profitability of individual companies depends on marketing and pricing. Large companies enjoy economies of scale in administration, marketing, and purchasing and are often better able to finance acquisitions. Small companies can compete by specializing in local markets or by offering niche services. The US industry is fragmented: the 50 largest companies generate about 45 percent of revenue. About 95 percent of self-storage companies operate just one facility.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services consist of providing units of varying sizes for storage of customers' personal or business belongings. A growing number of storage units are climate-controlled. Many...