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G5's Self Storage State of the Industry Report: First Half 2019
Posted 4/1/2019
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Self storage remains one of the strongest investment opportunities in commercial real estate. Stay competitive and take advantage of your investment with a national and local understanding of current market trends. Your marketing strategy should be both informed by and reliant on current data and insights for your specific geographic region.

Where to start? G5 recently published a comprehensive Self Storage State of the Industry Report for the first half of 2019. It focuses on market trends, as well as the industry’s key influencers to supply and demand, construction starts and emerging technologies.

Download the full report here or continue reading for key takeaways from the market trends research.

Market Trends Overview

G5’s State of the Industry report summarizes data from Yardi Matrix, Marcus and Millichap and numerous industry sources to provide you with the following key takeaways for 2019.

  • Currently, 9.6% of existing self storage inventory are units under construction or in planning phases. Much of this construction is in urban areas that are experiencing population growth, particularly in the millennial 22 to 37 year old age range.
  • Average rents decreased nationwide in 2018 due to increased delivery, concessions and high occupancy goals. Demand has not kept up with supply increase over the last several years and likely will be carried by the storage needs of three demographics: baby boomers, millennials and Gen Z.
  • To stay competitive, but without relying on concessions, self storage investors should consider incorporating new-to-the-scene design elements and amenities. These features include biometric security systems, niche storage options, interior access and eco-friendly upgrades.

In addition to a thorough review of investment performance, the report also includes economic factors that impact the self storage industry - interest rates, cap rates and the Federal 10-Year Treasury.

Emerging Digital Marketing Landscape: It’s All Local

The self storage customer journey has changed and marketers need to tailor their strategies to be present at each touchpoint. Use current market data to adapt your marketing strategy and toolkit. If you have not upgraded your digital marketing technology recently, the two most important tools to invest in are your website and AI-powered digital advertising. Websites must be optimized for local search in order to compete with the number of new properties coming online in 2019. Next, be more competitive with personalized experiences and a high SERP ranking, made possible by digital advertising fueled by AI.

Now is the time to start thinking about tomorrow. Do not lose out on leads and revenue because your technology is behind. Download the G5 Self Storage State of the Industry Report today so you do not fall behind.

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