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5 Key Factors That Make Self-Storage a Resilient and Recession-Resistant Asset Class

By Garrett Byrd

Self-storage is considered to be a recession-resistant asset class due to several factors:

  1. Steady demand: Demand for self-storage remains relatively stable during economic downturns. While demand for other types of commercial real estate may decrease during a recession, self-storage demand tends to hold up well. This is because people still need a place to store their belongings, even if they are downsizing or experiencing financial difficulties.

  2. Low operating costs: Self-storage tends to have lower operating costs than other types of commercial real estate. Self-storage facilities are typically simpler to operate and maintain than other types of commercial properties, which means that they can be more cost-effective during a downturn.

  3. Diversification: Self-storage has a low correlation with the broader economy. Unlike other types of commercial real estate, such as office or retail properties, the performance of self-storage is not directly tied to the economy. This means that self-storage can provide diversification benefits to a real estate portfolio.

  4. Repurposing opportunities: Self-storage can benefit from distressed real estate situations. During a recession, there may be opportunities to acquire distressed properties or properties that are being foreclosed upon. Self-storage facilities can be repurposed from other types of real estate assets, such as retail or industrial properties, which can provide additional investment opportunities.

  5. High occupancy rates: Self-storage facilities tend to have high occupancy rates, which provide a stable source of income during economic downturns.

Overall, self-storage has proven to be a relatively stable and resilient asset class during economic downturns. However, as with any real estate investment, there are risks involved, and investors should conduct thorough due diligence and consider a franchise model with experienced professionals guiding you every step of the way before making any investment decisions.

If you would like to learn more and start your journey to self-storage ownership click the link here:

Storage Authority Franchising is about owning your own hometown self-storage business and having the professional systems and knowledge to assist and guide you. We like to say You are in business for yourself but not by yourself. If you are thinking about self-storage you owe it to yourself to contact Garrett Byrd at Direct: 941-928-1354 or to learn more about the Storage Authority Franchise opportunity


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