Amid a Multifamily Boom, This Self-Storage is the Gift That Keeps on Giving

Why Self-Storage Still Appeals to Investors

Self-storage is not a new concept. It’s been around for decades, and despite fluctuations in the residential real estate market, it has proved to be perennially popular. Here are some of the reasons for its staying power.

Diversified use

Demand is not limited to relocation, new babies, divorce, or death. Many people with storage units choose them to alleviate clutter in their homes and garages. Indeed, 1 in 3 Americans now rent a storage unit, and a further 18% plan to do so in the future, according to StorageCafé—offsetting the lulls in short-term and mid-term rental housing. 

Flexibility

As storage leases are typically month-to-month, landlords can adjust prices quickly to accommodate demand, setting it apart from conventional commercial buildings.

Low overhead

There is little ongoing maintenance compared to residential real estate or retail buildouts. Repairs are daily and predictable and do not require delicate negotiations around tenant occupancy.

Fewer headaches

Tenant disputes are rare due to the type of asset class self-storage falls into and the straightforward lease agreements. 

Room to Grow

The Sunbelt dominates U.S. self-storage markets. Atlanta led the charge, with new deliveries, topping 1.5 million rentable units in H1 2025, according to Multi-Housing News, with Phoenix, Los Angeles, Tampa, Houston, and Chicago also making the top 10 in new inventory additions.

Investing in Self Storage

Large REITs such as CubeSmart, Public Storage, and Extra Space Storage are dominant in the self-storage space and offer the lowest barrier to entry. Investing is like buying any stock. 

However, if you want to buy and set up your own self-storage space, there are several loan options, such as a conventional commercial loan, an SBA loan, and a CMBS (commercial mortgage-backed security) loan, which is turned into a security or bond and sold to investors on the secondary market. Rental opportunities are always featured on commercial listing sites like loopnet.com or crexi.com under “industrial.”

An Ongoing Attraction for Small Investors 

Small investors have flocked to self-storage in recent years as an alternative to residential real estate. Needless to say, several gurus with courses and training programs, such as Mike Wagner’s Storage Rebellion and AJ Osborne’s SelfStorageIncome.com, are ready to accommodate the ever-growing legion of interested parties looking for an alternative to conventional landlording.

Final Thoughts

Self-storage was invented by mom-and-pop investors, who took commercial spaces and added doors to them. Now it is dominated by Wall Street titans, and opportunities tend to be thin on the ground. However, the continual demand for storage space makes it a growing asset class.

As older mom-and-pop investors age out and developers and investors construct new facilities, opportunities arise. However, as with any investment, choosing a market with high demand, obtaining municipal approval, avoiding overleveraging, and quickly filling units are the keys to success.