Storing up: Low rental vacancies have paved the way for high demand for storage units

The Storage and Warehouse Leasing industry is one of the fastest-growing sectors of commercial real estate. The industry grows when the economy strengthens, as more consumers can afford discretionary storage services. The industry has benefited from an increase in consumer spending and disposable income. Consequently, industry revenue is expected to rise over the five years to 2017. Over the next five years, the industry will continue to reap the benefits of an improving economy. Demand for storage units is expected to continue growing alongside per capita disposable income and consumer spending. However, competition in major metropolitan areas, which is already intense, will heighten in other areas as different companies seek to expand into similar areas...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • Industry operators generally have low overhead costs, limited staff, few utilities and low maintenance costs
  • Commercial use of storage facilities has grown at a slower rate than residential demand
  • Profit growth will slow as heightened competition and lower rental rates take a toll on earnings
  • Industry Report - Starting a New Business Chapter

    Barriers to entry for new operators in this industry can vary significantly by state and city. Overall, barriers are moderate, but are increasing across the United States. Costs to purchase or lease land or facilities, as well as property taxes, vary across regions and are a major barrier to entry. These expenses can be more manageable, though, in well-established, highly populated cities, whereas land costs can be significantly lower in smaller cities and suburban regions.There are several regulatory requirements that must be met by companies in the storage and mini warehouse business. The most difficult of these generally relates to zoning and land development conditions. Onc...purchase to read more.

    Additional Insights for the Storage & Warehouse Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Storage & Warehouse Leasing Industry are

  • Economies of scale
  • Proximity to key markets
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Population and Rental vacancy rates in the Storage & Warehouse Leasing industry impact industry performance..

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    What's in this report

    What is the Storage & Warehouse Leasing Industry?

    This industry primarily rents or leases space for self-storage. These establishments provide secure space where customers can store and retrieve their belongings at their convenience. Industry storage units include rooms, compartments, lockers, containers and outdoor space.

    Industry Products
  • 5 x 5
  • 5 x 10
  • 10 x 10
  • 10 x 15
  • 10 x 20
  • 10 x 25
  • 10 x 30
  • Industry Activities
  • Leasing or rental of mini warehouses and self-storage units
  • Rental of self-storage warehousing
  • Rental of coin operated lockers
  • U-lock storage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population
  • Rental vacancy rates
  • Per capita disposable income
  • Demand from public storage and warehousing
  • House price index

  • Current Performance
  • Cyclical and countercyclical demand
  • Profit margins bolstered by rental rates
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue grows as profit margins contract
  • Innovation and market conditions
  • Table: Storage & Warehouse Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Storage & Warehouse Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Retail Trade
  • Consumers

  • Key Selling Industries
  • Alarm, Horn & Traffic Control Equipment Manufacturing
  • Industrial Building Construction
  • Land Development

  • Products & Services
  • 10 x 10
  • 10 x 20
  • Other
  • 10 x 15
  • 5 x 10
  • 10 x 30
  • 10 x 25
  • 5 x 5
  • Chart: Storage & Warehouse Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Long-term residential customers
  • Short-term residential customers
  • Commercial operators
  • Military
  • Students
  • Chart: Major Market Segmentation for the Storage & Warehouse Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Storage & Warehouse Leasing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Storage & Warehouse Leasing Industry

  • Industry Globalization
    Public Storage,
  • Table: Public Storage - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Storage & Warehouse Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Storage & Warehouse Leasing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A facility designed or operated exclusively for the storage of goods in individual compartments or rooms, none of which exceeds 500 square feet in area.
  • Occupancy Rate
  • The amount of storage space occupied as a percentage of total available storage space.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify, the entity must distribute at least 90.0% of taxable income.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Storage & Warehouse Leasing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Storage & Warehouse Leasing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Storage & Warehouse Leasing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Storage & Warehouse Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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