Short answer: Storage demand is driven largely by life events such as moves, downsizing, divorce, death and business changes, which happen in good times and bad. Mark’s storage income carried him through 2008–2009 when other commercial real estate stalled. Today’s challenges are higher interest rates, rising insurance, tax and marketing costs, and oversupply in some markets.
Why it has held up #
Mark has been in and around storage since 1995 and seen booms, recessions, overbuilding and rebounds. He got back into storage at the end of 2007; when the recession hit, it took him 18 months to earn anything selling commercial real estate, while storage kept producing income. His observation is that more wealth tends to be created in challenging times than in booms.
Today’s challenges #
- Interest rates raise borrowing costs and leave less room for error.
- Operating expenses, especially insurance, property taxes and online marketing, are rising.
- Oversupply in some trade areas pressures rents and slows lease-up.
- Construction costs make development harder to justify.
Resilient doesn’t mean risk-free: individual facilities can and do struggle, particularly in weak or overbuilt trade areas.
Related answers #
- Is now still a good time to get into the self-storage business?
- Is self-storage oversupplied, and where is the opportunity for smaller investors?
- How do interest rates, inflation and the bond market affect self-storage deals?
Source: Mark’s posts Make 2026 Your Year in Self-Storage and Why the Smaller Investor Can Win in Today’s Self-Storage Market
