Booming Markets for Self-Storage Real Estate Self-storage has continued its streak as a high-performing commercial real estate asset class.
by Ryan Gibson F rom 2009 to 2018, self-storage facilities outperformed office, industrial, retail, and apartments. This sector’s stellar track record doesn’t mean self-storage is a sure bet anywhere. Data points such as unemployment rate, average household income, population and income growth, and net migration all help indicate whether a market is primed for a new or enhanced facility. Here are eight hot markets, spread across three states, that demonstrate strong potential.
DENVER AND COLORADO SPRINGS, CO The Mile High City has experienced rapid growth over the past few years. Denver not only is the No. 1 location in the country for STEM jobs but also has become a top destination for professionals working from home. These workers descended on the city as part of a nationwide migration away from densely populated areas on the East and West coasts. These factors illustrate why, in 2022, Denver was named the sixth-fastest-growing city in the country.
To the south, Colorado Springs also scores high points for growth. The Milken Institute ranked it among the best-performing cities of 2022, citing its high employment rate and the presence of top military, aerospace, and software companies. Well-established employers help determine a market’s long-term viability. Regions that demonstrate steady performance in the job market attract workers, who then fuel increased demand for housing and storage.
24 :: INVESTOR REVIEW :: MAR-APR 2023
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