Why Is Self Storage Stable in a Downturn

At Marcus & Millichap, we have a lot of brokers who specialize in different product types, whether it be hotels, retail strip centers, or apartment complexes. And they'll come to me and say, "Why is self-storage so popular? And the main reason is that self-storage does pretty well, even when we're in economic downturns. And if you think about it, it really makes sense because people use storage when there's a disruption in their life, whether it be downsizing, divorce, or a death in the family. All of those are reasons why someone would need to store their extra stuff. That's also a big reason why the self-storage industry as a whole has seen such a boom over the last five to seven years. You have all of this capital coming from investors who used to only look at apartment complexes, retail, hotels, and the like. Now, they're looking at self-storage facilities because they know how profitable they can actually be.