COVID-19 has pushed inside us a pandemic induced recession. Additionally, it has forced businesses to operate remotely while putting many businesses out of the business too. Millions of people have lost their jobs and there was uncertainty everywhere.
This made investors confused about whether they should invest their money or wait for things to go back to normal. If they decide to invest their money, which assets should they buy? Despite all the challenges, the self-storage industry continued on its merry way and seen increasing demand, which is a clear indicator that it is immune to fluctuations in the market.
The self-storage and moving service industry is worth $80.8 billion in 2024, according to a Global Industry analyst report. What’s more, the potential rate of return for investors who invest in self-storage will see a year on year increase of 6.6% for the next seven years. This will encourage investors to invest in the self-storage industry but before they do that, it is important for them to know about the latest trends in the self-storage industry.
In this article by STORED, you will learn about seven self-storage growth trends you cannot afford to miss in 2024.
1. Temperature Controlled Units
Temperature controlled units have been around for quite some time now but their cons hamper its wider adoption. Investors prefer climate controlled units because they help them earn a higher rental income. This means that you will get a higher rate on your investment when you invest in such units. Moreover, it also provides more space to rent per acre.
Yes, you can get interior access for cheap but the most investor will invest in units which give them exterior access too. They will prefer units that offer heating and cooling facilities along with insulated doors to prevent heat and cool to escape. We might also see these temperature-controlled units make their way to car storage.
2. Remote Monitoring
Theft and harsh climate conditions are two of the biggest enemies of your self storage unit space. Remote monitoring solves both these problems by letting investors and renters of storage space analyze everything from the comfort of your room. We might see this trend trickle to temperature-controlled units as well as they are much more expensive but also a better choice if you have to store fabrics, electronics magazines, documents, antique items, and other valuables.
Apart from monitoring the interior and exterior of these units, investors and renters can also control the temperature in check. What’s more, they can also receive an alert or notification telling them if the temperature falls below a certain threshold. This comes in handy especially if you have stored items that require a certain temperature. You can prevent these items from damage
3. The Emergence of New Channels
With smarter systems in place, you no longer have to physically drive to your storage space to evaluate potential problems with your unit. You can now manage everything digitally without leaving the comfort of your room. Coronavirus has led to an increase in virtual tours, online payments and online bookings as well as an increase in the demand for self-service kiosks in order to comply with social distancing rules.
All this will pave the way for innovation in the self-storage industry while reducing reliance on physical location. We might also see the industry moving in a completely new direction as these new channels continue to emerge and dominate the market.
4. Biometric Security
Why would someone want to store their valuables in a self-storage facility? Because they feel that it is more secure there than at their home. That is why it is imperative for self-storage unit owners to ensure the safety of all the items. Even though, they are already locked behind the door and padlock which are usually accessible with a special key or code.
We might see more secure authentication methods such as biometric security make their way to these self-storage units in 2024 Instead of relying on these special keys and codes, more self-storage units will adopt fingerprint, face unlock or iris scanning technology for better security. Since biometrics are unique characteristics, it is harder to replicate for the thieves, who can easily get past those locks with codes and keys. This gives investors peace of mind as they don’t have to worry about the security side of things.
5. Lower Car Ownership
With millions of people out of their jobs and in debt, we can expect car ownership rates to come down in 2024. What this means that we will have more free spaces that were previously used as car storage spaces. Let’s say, you have a garage at your home which is empty, you can use it as a storage space or even think about renting out your garage space to someone else, who can use it to park their car. With online services, you can easily rent out your garage and monetize free space in your home in those crunch financial times.
6. Demand Will Grow
With unemployment rates at an all-time high due to this pandemic, more and more people are struggling to pay their rent, their mortgage and make their car payments. If you are a landlord, you might have a tenant who is jobless and he or she might not be able to pay down the rent on time so you need to be prepared for such a situation.
We might expect this trend to continue as vaccines might take months to make an impact and we might not see this pandemic go away very soon. If that trend continues, we might see many renters forced to change their living style. We will see many tenants move to their family homes and live with their parents. This will lead to an increase in demand for self-storage space which will boost the self-storage and moving service industry.
The same goes true for businesses as well. Most businesses will be forced to cut down expenses and reduce their workforce to keep the costs in check. The majority of businesses have already embraced the work from a home model and we will see hybrid work arrangements also make a strong comeback.
7. Strict Zoning
The first thing for storage developers to do is to get municipal approval to construct self-storage space. With strict zoning and architectural requirements in place, you will have to hire the services of an architect in order to comply with the rules and regulations and get municipal approval.
Which self-storage growth trend will make the biggest splash in 2024? Let us know in the comments section below.