Why Open a Self-Storage Facility In 2021

Why Open a Self-Storage Facility In 2021

2021-02-23T14:50:05+00:00 February 8th, 2021|Build Self Storage|

The year 2020 had its fair share of challenges that led to a considerable downsizing. As 2021 unfolds, the 4D’s (death, divorce, downsizing, and dislocation) that cause an upsurge in demand for self-storage facilities continue to manifest. Thus, asserting that 2021 is an excellent time to actualise your plan of Building a Self Storage Facility is an understatement. It is a perfect period.

Why Open a Self-Storage Facility In 2021?

A self storage facility

The 2008 financial crisis showed that the self-storage industry is recession-proof. Investors reaped a commendable 5.1% return rate during the recession. In 2021, businesses are downsizing as their employees continue to work from home. Divorces are on the rise, and individuals are hurriedly looking for storage spaces to safeguard their belongings against contamination. The rush may be among the factors that will cause a 5% annual increase in the demand for self-storage facilities, as predicted earlier. Building a Self Storage Facility in 2021 is a good idea.

Best Season to Open a Self-Storage Facility in 2021

A woman showing the storage facility

If you’re building a self-storage facility, the season to open it is spring. In March and April, most countries are reeling from the cold winter, and the warm spring weather spins them into action. They move, and as usual, they require a safe place to store their possessions before they wholly move to a new house. Subsequently, they rent a self-storage unit.

In May, the summer break approaches. Students prepare to be out of school, and thus, dorm clearing is in full swing. They end up renting self-storage facilities to safeguard belongings before school opens again.

Finally, homeowners love cleaning out their houses in spring. As spring cleaning blooms, individuals search for affordable spaces to store the belongings they plan to use soon. For example, they need secure facilities to keep their warm winter wear. Self-storage comes in handy and provides a convenient solution.

The primary challenge associated with Building a Self Storage Facility in spring is pricing. Low prices mean your units will approach full occupancy fast, and you may miss out on high paying customers. High prices mean the competition will end up with most of the clients. Thus, you must study the market and select a price that is just right.

Other Reasons to Open a Self-Storage Facility

Summer is the second-best period to open a self-storage facility. You stand to corner the customers who were either in no rush to rent or felt the spring prices were higher than their budgets. Climate controlled facilities may also attract well-paying customers in summer. However, you may not rake in as much cash as you in the previous season.

Winter is among the periods you may avoid opening your safe-storage facility. Its cold climate renders people inactive. A majority of the population is busy preparing for the Christmas holidays. Fall also experiences decreased demand for self-storage occupancy. You can use these periods to prepare your facility for high-demand seasons like spring.

The year 2020 had its fair share of challenges that led to a considerable downsizing. As 2021 unfolds, the 4D’s (death, divorce, downsizing, and dislocation) that cause an upsurge in demand for self-storage facilities continue to manifest. Thus, asserting that 2021 is an excellent time to actualise your plan of Building a Self Storage Facility is an understatement. It is a perfect period.

Talk to the experts today.