The Changing Self Storage Industry Landscape: 2018
The self storage industry is poised for more changes in 2018 and beyond. Back in 2015, industry revenue was projected to exceed $30 billion. According to these same forecasts, growth would continue at a rate of roughly 3 percent through 2020. This year has seen moderate revenue growth. Current forecasts call for growth of 3 to 5 percent in revenue increase by year’s end.
As our industry outlook remains positive. A series of significant developments in the first quarter of this year will contribute to my industry’s growth. Briefly, here are some trends in self storage:
Artificial intelligence, machine learning, and the like are redefining the landscape for many industries. Self storage is gradually becoming less of a stranger to its benefits. There are growing numbers of self storage operators who have committed to the partial automation of their properties — and a handful who have gone all-in on remote automation, as my company has. Creating collective emphasis on this strategy’s benefits — including potential increases in net operating income, which can be achieved through the elimination of onsite property manager salaries.
Centralization and automation will increasingly become a focal point for self storage operators (and in turn, the investment community) this year and beyond.