While the self storage industry hasn’t exactly been immune from the effects of the recession, it is generally accepted that the sector has experienced recession resilience and that the devastation that has visited other types of real estate has been less damaging for the self storage industry. This isn’t because of luck. It’s because of natural, positive differences in the way self storage works as business.

On average a self storage customer hires a self storage unit for about 12 months. If a self storage facility experiences an occupancy fall of 5% in a year, the remaining 95% of customers are likely to have moved in within the same year. This says something very positive about the self storage industry and tells a greater story that there is still a need for the service.

This isn’t a claim any other real estate class can make about its demand, especially during the worst recession in nearly 80 years!

Every other type of commercial real estate can spend huge amounts of money to acquire new customers. Retail, industrial and hotel industries have their own unique but expensive ways of acquiring tenants. Self storage seldom requires large capital expenditures of any kind and rarely does a storage unit require material refurbishment after a customer has vacated. The apartment landlord can only dream of such a situation whilst he repaints, buys appliances or fits new carpet between tenants!

A factor that contributes heavily to self storage remaining an effective service is the short term lease periods. Most self storage companies operate on 28 day or monthly storage contracts. This helps both the customer and the operator. Customers enjoy the flexibility and operators are able to adjust rental prices freely and reach quickly to market demand changes.

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