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As Self-Storage Market Grows, Developers Favor Steel for Its Speedier Construction and Longevity

With annual revenue reaching $29 billion, the self-storage market is undergoing change as investors seek steel framing for their new projects. Steel-framed self-storage projects erect faster and are more durable and resilient, industry sources say.

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The self-storage market continues to grab investors’ interest and capital. Self-storage sales in 2022 hit a record high in line with the exceptional demand evident in the sector. Reports indicate approximately one-third of all Americans use self-storage. The average self-storage occupancy rate is about 92% and is expected to hold throughout 2023. Investors continue to capitalize on this lucrative market, which has seen its annual revenue reach $29 billion. 

Within this growing market, self-storage owners face increased competition and, thus, are seeking ways to build units more efficiently. Cold-formed steel (CFS) framing is seen as the most cost-effective framing option, according to the industry publication Inside Self Storage. 

Steel Framing Advantage

Steel framing provides several key advantages to self-storage building developers, satisfying the requirements of both single and multi-story structures:

  • Prefabrication: Steel framing is the ideal choice for prefabricated construction, because it may be cut to precise specifications
  • Urban Infill: Steel framing is effective for urban infill projects, because it is lightweight and strong. Compared to concrete, steel framing reduces building load and can achieve cost savings on footings and foundations
  • Complex Design: For multi-story structures, steel framing can solve complex design challenges, including complex curves, angles and unique visual features

 

U.S. Self Storage Industry Snapshot

  • Annual industry revenue: $29 billion
  • Number of storage facilities: 51,206 facilities
  • Total rentable storage space: 2.04 billion square feet
  • Storage space per person: 6.1 square feet
  • Average monthly cost for a self-storage unit: $100.04

Source: SpareFoot Storage Beat

 

Self Storage Steel Framing

Metal does not warp, crack, split or creep, thereby maintaining its shape and structural integrity.

Steel Builds Faster, Outlasts Concrete and Wood

“The materials you choose for your self-storage development will have a huge impact on building costs, longevity and overall value,” says Tony Bouquot,  general manager of the Metal Building Manufacturers Association. 

“Metal is a favorite in this industry, and for many good reasons,” Bouquot adds.

Bouquot notes several advantages of metal-framed buildings:

  • Speed: Metal framing Erects 30% faster than wood and concrete framing
  • Longevity: Metal generally outlasts concrete or wood. Corrosive-resistant steel resists typical causes of deterioration, such as mold, termites/insects, moisture, etc.
  • Durability: Metal does not warp, crack, split or creep, thereby maintaining its shape and structural integrity
  • Resilience: Isotropic nature of steel provides dimensional properties that give it the same strength from side to side, up and down and in all loading directions. It also offers resiliency against wind

 

Self-Storage Market Trends

The upward trend in self-storage is expected to continue due to the following factors, according to Mordor Intelligence:

  • Building vertically: Land is getting scarce, so developers are building taller self-storage structures in urban areas  
  • Targeting retirees: Baby Boomers, most of whom are in retirement, are shifting from large houses to compact condo units
  • Indoor access: Multi-story, self-storage buildings with indoor access units are gaining in popularity
  • High ROI: Self-storage buildings are proving to be one of the highest revenue-generating real estate investments in the past half-century

 

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