Companies in this industry rent or lease locations for self-storage, providing secure space (such as rooms, compartments, lockers, containers, or outdoor space) where clients can store and retrieve their goods. Major US companies include REITs such as CubeSmart, Extra Space Storage, Life Storage, and Public Storage (all based in the US), along with Dymon Storage (Canada), Safestore (UK), and Shurgard (Belgium).
Demand for self-storage services is driven by population growth and consumer spending. The profitability of individual companies depends on marketing and pricing. Large companies enjoy economies of scale in administration, marketing, and purchasing and are often better able to finance acquisitions. Small companies can compete by specializing in local markets or by offering niche services. The US industry is concentrated: the 50 largest companies generate about 50% of revenue. About 95% of self-storage companies operate just one facility.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services consist of providing units of varying sizes for storage of customers' personal or business belongings. A growing number of storage units are climate-controlled. Many companies provide storage space for large items such as cars, boats, and RVs; some larger companies offer products such as packing and moving supplies. Facilities vary in size, but an average facility covers more than 55,000 square feet, according to the Self Storage Association. Individual rental units typically range in size from 25 square feet to 300 square feet.