Storage units saw unprecedented business due to the pandemic - The Hustle
The Hustle

Storage units saw unprecedented business due to the pandemic

Self-storage has boomed since the onset of the pandemic, resulting in higher rent, less empty space, and rising stocks, per The Wall Street Journal.

The industry’s 4 largest companies — Public Storage, Extra Space Storage, Life Storage and CubeSmart — have reached 95%+ occupancy. The average monthly rent hit $155.65 in November — the highest in 5 years.

Meanwhile, Extra Space Storage’s shares are 2x more valuable than they were pre-pandemic.

What’s causing this?

Several things, including:

In addition to 5 public companies, there are also 30k+ storage owners operating ~55k facilities in the US, per The New York Times.

The business is appealing due to its low overhead and tenants who often stay put, even when rent increases by 10%.

And when tenants don’t pay, their units’ contents are auctioned off

While bidders typically don’t know what exactly is in a unit, flipping units can be a decent side hustle — hence the premise of the “Storage Wars” franchise.

Some of the weirdest buyer finds include:

Sure, why not?

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