The self-storage market was valued at $40.73 billion in 2020, according to a report by Mordor Intelligence. With a compound annual growth rate of 4.79% expected for the period of 2021-2026, the self-storage market is expected to reach a value of $53.92 billion by 2026.
“The increasing rate of urbanization is one of the significant factors positively driving the market growth,” says the Mordor Intelligence report, “Self Storage Market — Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026).” “The increasing urban population means smaller and increasingly expensive living spaces in cities with more renters who move around more frequently.”
With continued growth forecasted for the self-storage market, cold-formed steel (CFS) steel framing is expected to play a significant role as the industry expands from single to multi-story structures in urban areas. According to Nucor Buildings Group, steel is economical to build, maintain, and operate.
A growing trend in urban areas is multi-story self-storage structures with indoor access.
Self-Storage Market Trends
The upward trend in self-storage is expected to continued due to the following factors, according to Mordor Intelligence:
- Self-storage developers are building vertically in many urban areas, where land is getting scarce
- Baby Boomers, most of whom are in retirement or are gearing up for retirement, are shifting from large houses to compact condo units
- Multi-story, self-storage buildings with indoor access units are gaining in popularity in urban areas
- Self-storage buildings are proving to be one of the highest revenue-generating real estate investments in the past half-century
The average single-story self-storage facility is 90 percent metal with a concrete slab.
Single vs. Multi-Story Self-Storage
Single-Story
Single-story self-storage designs tend to be simple and consistent. According to Inside Self-Storage, developers typically use the same materials, and procuring them is very cost-effective. Single-story buildings usually feature a prefabricated metal building, with corrugated metal panels for the walls, metal studs for the structure and a simple roof. The average facility is 90 percent metal with a concrete slab.
Multi-Story
With land being scarce, self-storage developers are often forced to build vertically to take advantage of premium locations. It is common for municipalities in urban areas to require developers to construct units that blend in with their surroundings. Therefore, multi-story self-storage structures are more diverse than single-story structures, because they can be built in an endless number of ways. This means multi-story structures often require intricate designs and architectural features.
A growing number of building professionals are using prefabrication techniques to work smarter, faster and safer.
The Steel 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
Additional Resources
- 6 Factors to Consider to Maximize the Benefits of Off-Site Construction
- 5 Areas Where Cold-Formed Steel Opens Up Design Possibilities
- Lumber Prices Skyrocket, Steel Provides Cost-Effective Solution