Ever since the concept of self-storage was introduced in the United Kingdom, facilities like GoodStorageBristol.co.uk have grown exponentially. According to Jon Perrins, the executive chairman of Steel Storage Holdings, he sees a bright future with a lot of growth for the self-storage industry. After the generally disappointing economic growth during 2011 and 2012, the economy is showing clear signs of recovery during 2013 and 2104 and it is expected to continue to 2015.
Self storage is not as ingrained in the British way of life compared to the Americans. In the United States, the self storage industry is surging and many new projects are currently in development. In Sothern Wisconsin, it is expected that at least 4,878 new self-storage units will be available in the market by the end of 2015 or early 2016. Average development in the area is from 300 to 600 units.
One of the main reasons for the surge in development is that owners of old and functionally obsolete industrial spaces are looking for new options for the space. Banks are also willing to lend money and provide SBA funding for self-storage projects because aside from apartments, self-storage facilities are one of the safest forms of real estate investment.
Brian Parrish of Milwaukee-based PARADIGM Real Estate LLC said that local players are expanding their self-storage facilities to safeguard their territories from out-of-state players whose markets have already been oversaturated with self-storage facilities. Adam Matson who is the SVP of Milwaukee-based NAI MLG Commercial the boom can be attributed to an improving economy. People now have more disposable income and they are now cleaning their garages of stuff to be stored in self storage units. When these people move, they bring with them their belongings instead of selling them.
There are many conversions because there is high demand for self-storage units. Self-storage facilities are stable investments because once a renter moves into a unit, they don’t move out unless they have plans of relocating. There is 7.3 square foot of storage space available for every American because there are more self-storage facilities in the US than McDonalds, Wendy’s and Burger King Restaurants combined.