Property investors might be surprised to learn that storage units have performed extremely well since the recession, offering their owners a great return on investment. Rents are high and most storage companies are reporting low vacancies. With the recession keeping new storage facility construction down, competition is also low, opening the door for investors across the United States.
While most other real estate commercial sectors have fallen flat in 2015, some storage companies have reported seven percent increases in rental income. Many investment firms have moved to constructing new storage spaces themselves to get their piece of the pie.
Publicly traded storage companies have also performed very well on the stock market. Extra Space Storage reported a 33% increase in their stock over 2015. They also reported that 94.5% of all their spaces in the United States were occupied, up from 92.1 percent.
Storage units may provide great rental income to investors while also helping buffer them from market volatility. Storage units generally stay in demand, based on deaths, moves, divorces etc.—all reasons that tend to not follow housing market trends. Storage unit values have held true since the recession and have since recovered better than other commercial sectors.
Hart Real Estate Solutions