Issue 79 – Storage is better than Big-Macs
Introduction…Turns out the only thing Americans may love more than Big Macs is hoarding.
There are more self-storage facilities in America than there are McDonald’s restaurants, according to a recent report from the commercial real estate publication REJournals. The U.S. has more than 4 times the number of self-storage facilities than McDonald’s. There are 58,000 self-storage facilities in America compared to only 14,146 McDonald’s restaurants at the end of 2016.
Finding a place for extra scrapbooks, holiday decorations, office records, boats and RVs isn’t exactly cheap either. The average American household is using about 18 square feet of storage at an average rental rate of $1.42 per square foot per month.
The industry makes more than $24 billion in revenue annually. Plus, state and property taxes get to scoop up about $3.25 billion.
Here are 4 reasons Why We Love Self-Storage More Than McDonald’s:
We are a hyper-consumer nation consuming more than $14 billion in goods and services, much of which ends up in storage
The psychology of self-storage is we have month to month leases with no end date so the renter thinks he will move out next month that never comes
We are a nation on the move with 12% of the population moving each year
When the economy is improving, we buy more stuff – when the economy is downsizing we store more stuff
Conclusion: So why are we building more storage facilities? The population and the economy are growing. But, more importantly, the trade area for storage is only 3-mile circle. Take 18 square foot per household in an area and you can see the demand is great and growing. And we have more room to grow as only 10% of the American households have discovered the joy of self-storage.
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