top of page
Subscribe Now, and never miss a post
We'll also sign you up for our awesome Newsletter! (It's easy to unsubscribe) 

Do you wonder why Lenders like self storage?

Updated: Jul 11, 2022

By Garrett Byrd

Why - because compared to many other real estate business Self Storage has lower failure rate as seen in this Wells Fargo chart.


They noted the trend echoes an overall post-pandemic rebound for franchise businesses in general. According to the International Franchise Association, new franchises jumped 16% in 2021 from the shutdown era a year before. New growth is expected to stabilize this year, with new franchises growing just 2.2%.

At a time when restaurants hotels and retail and restaurants are hemorrhaging from post-pandemic and now the slow down of consumer spending. It makes sense that self-storage facilities will continue to see demand as consumers and businesses are more likely to downsize during a downturn. The four Ds — death, downsizing, divorce, and dislocation are aspects of real life. Recessions tend to heighten these life events, leading to increased rental activity in the self-storage space. As companies and consumers downsize, storage will continue to see demand.

Thinking of Investing in Self-Storage? positive highlights to consider:

  • Competition is Low: First to market and cost of land for new competitors

  • Staffing: Low staffing cost, highly trained and franchise-supported staff

  • Steady Rent Prices: Tenants are not particularly price-sensitive

  • Long Term Tenants: High switching costs & perceived vs. Actual length of stay

  • High Fragmentation: 80% independent operators or Mom and Pops Vs. 20% REIT owned

  • Large Industry: Similar to the number of Subway, McDonald’s, & Starbucks combined

  • Semi-Passive Management: Storage Authority model very manage-driven system

  • Ability to Meet Demand: Simplicity of phasing facility to gauge demand

  • Ancillary Income: Significant opportunities

  • Affordable Value-Adds: Low-cost opportunities

  • Adaptability: Flexible monthly terms & easy eviction process getting the unit back rentable state

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 941-928-1354 or to learn more about the Storage Authority Franchise opportunity.


bottom of page