Self Storage
Top Performing Real Estate Investment

The best real estate investment in the past decade was produced by investments in the Self Storage Industry according to the Bloomberg Riskless Return Rankings.  The risk-adjusted return among the 10 U.S. real estate investment trust indexes showed adjusted investment return of 10.6 percent.

Self Storage Industry - Amazing Growth
The fact is that the self storage industry has seen significant changes and growth over the past 20 years, for example, in 1996, 1 out of 16 American households rented a storage unit, today that number is 1 out of 10.  With this many people renting storage space, it appears that the rental of a storage unit has become part of the American lifestyle.

Self Storage REITs
Self storage was among the top-performing market sectors of all U.S. real estate investment trusts (REITs) in 2012 according to the National Association of Real Estate Investment Trusts (NAREIT), with a 19.94 percent total return (the sector posted a 35.22 percent return the year before in 2011).

The four publicly traded U.S. self-storage REITs are Public Storage Inc., CubeSmart, Extra Space Storage Inc., and Sovran Self Storage Inc.

Internet Marketing - Creating Many Opportunities

There are over 50,000 self storage facilities located through-out the United States, of which over 80% of them are owned by independent operators – those that own anywhere from 1 to 3 facilities.  The Self Storage Association reports that over 50% to 60% of new business for self storage companies is originating from searches performed over the internet.   As a result, self storage companies with high internet search rankings are seeing their revenues significantly improve.

The Self Storage REIT companies are starting reap the benefits of their ability to out-market the independent operator over the internet.  Armed with substantial funds and professional staffs, the REIT’s are starting to dominate internet search results taking business away from smaller, less sophisticated operators.  This situation is not only helping the REIT’s generate more revenue, but, it is also creating acquisition opportunities from struggling independents.