In today’s investment world, smart investors often look for opportunities that can bring steady returns and grow over time. Many are also looking for ways to generate passive income. An area gaining attention in the commercial real estate sector is self-storage.
Investing in self-storage can help diversify investment portfolios and potentially earn good returns.
1. Stability during tough times
Self-storage stays strong even when the economy struggles. When people face money problems, they often need to downsize their homes. This creates a bigger need for storage. The same holds true for businesses looking to cut costs or downsize. This steady demand makes self-storage a reliable investment, even when times are tough.
2. High demand and limited supply
There is more demand for storage space in America than there are storage units available. This means existing storage properties can have lots of tenants and steady rental income. As cities become crowded, the need for storage keeps growing. This makes self-storage a strong market for investors.
3. Simple operations
Self-storage investments are easier to manage than many other types of commercial real estate. For example, you do not need to spend as much time looking after them. This simplicity is attractive to investors who may not have a lot of time to manage their properties.
According to Census.gov, American self-storage facilities had occupancy rates above 90% in 2021. Given the potential benefits of the industry, self-storage is worth considering for investors who want to grow their portfolios and build wealth over time.