Storage unit franchises generally fall under the real estate or property management businesses category. These businesses provide self-storage units for individuals and businesses to rent on a short or long-term basis. The storage units can be of various sizes and types, such as climate-controlled units, drive-up units, and units for storing RVs, boats, and other vehicles. Some storage unit franchises may also offer additional services such as moving and packing supplies, vehicle rentals, and mailbox rentals.
Storage unit franchises include Public Storage, Extra Space Storage, U-Haul, CubeSmart, and Life Storage, among other companies.
The self-storage industry has seen steady growth in recent years, with an increasing demand for storage space driven by population growth, urbanization, and an increase in e-commerce. According to a survey by the Self-Storage Association (SSA), the average US occupancy rate for self-storage facilities is around 90%. And according to Business Wire, the global self-storage market reached a value of US$ 51.32 Billion in 2021. Looking forward, the market's expected to reach a value of US$ 71.37 Billion by 2027, exhibiting a CAGR of 5.65% from 2021-2027.
Here are some storage unit franchise market trends
Trend 1: A number of factors are driving the growth of the self-storage industry, including population growth, urbanization, and an increase in e-commerce. The rise of e-commerce has led to an increase in home deliveries, contributing to a need for additional storage space. Additionally, the growth in the number of people moving to urban areas leads to increased demand for storage space, as people tend to need more space in apartments and condos.
Trend 2: The self-storage industry is also becoming increasingly competitive, with a growing number of players entering the market. This is leading to more choices for consumers but also resulting in increased competition for storage unit franchise operators.
Trend 3: The industry is seeing more innovation and technology adoption, such as online reservations, reservations via mobile apps, self-service kiosks, and contactless rentals. These developments are making the self-storage experience more convenient for customers and also helping to improve operational efficiency for storage unit franchise operators.
It's essential to research the industry and your specific market before starting a business, which you can do with the help of Franchise Clues.
The initial investment and opening costs for a storage unit franchise can vary depending on the specific franchise and the size and location of the facility. However, the initial investment for a storage unit franchise can be substantial.
According to a report by Franchise Direct, the initial investment for a storage unit franchise can range anywhere from $1.5 million to $10 million or more. This includes the franchise fee, which can range from $50,000 to $150,000, and the costs associated with purchasing or leasing the property, building or renovating the facility, and purchasing equipment and inventory.
Additional costs associated with opening a storage unit franchise include:
It's important to note that these figures are approximate and may vary depending on the specific franchise system, location, and other factors. It's also important to keep in mind that these costs are for the initial investment only and do not include ongoing operational costs, such as property taxes, maintenance and repairs, utilities, and employee salaries, which will be incurred once the business is open. Therefore, it's always recommended to consult with the franchise company and conduct a detailed cost analysis before making any decision.
Opening a storage unit franchise can offer a number of benefits, including:
When opening a storage unit franchise, it's important to pay attention to the following points:
It's always recommended to conduct thorough research and consult with the franchise company, a lawyer, and an accountant before making decisions.
Franchise Opportunities Include: