Smart Diversification: Why Investors Love Self Storage

January 11, 2024
 min read

In the ever-evolving world of investment, diversification remains a cornerstone strategy for mitigating risk and maximizing returns. Amidst traditional investment avenues, Self Storage Facilities have emerged as a compelling option, offering stability, consistent growth, and resilience against economic fluctuations.

The Stability of Self-Storage Investments

One of the key attributes that make Self Storage Facilities an attractive investment is their stability. The demand for storage space remains relatively constant, irrespective of economic conditions. People require storage during life transitions, such as moving, downsizing, or even during challenging economic times. This consistent demand ensures a steady revenue stream for investors.

Data from the National Self Storage Association indicates that the self-storage industry generated over $40 billion in revenue in 2022. Furthermore, during economic downturns, such as the 2008 recession, self-storage REITs posted a minimal negative return of just 3.86%, showcasing the sector's resilience compared to other real estate investments.

The Appeal of Consistent Growth

Self Storage Facilities have historically had consistent growth. The industry has witnessed a steady increase in demand, driven by factors such as urbanization, smaller living spaces, and the transient nature of modern lifestyles. With a growing need for storage solutions, investors can anticipate a sustained upward trajectory in this sector.

Flexibility and Scalability

Investors appreciate the flexibility and scalability that Self Storage Facilities offer. These properties can cater to a diverse clientele, ranging from individuals seeking temporary storage to businesses requiring space for inventory. This broad appeal ensures a wider market reach and enhances the potential for steady occupancy rates.

Conclusion: A Wise Move Towards Self-Storage Investments

In conclusion, the investment in Self Storage Facilities represents a smart diversification strategy. The sector's stability, consistent growth, and resilience to economic shifts make it a prudent choice for investors seeking to optimize their portfolios.

Patriot Holdings: Leveraging the Self-Storage Sector

Patriot Holdings has capitalized on the opportunities presented by the Self-Storage sector. With $350 million in Assets Under Management and a position as a top 10 self-storage owner in New England and a top 50 national self-storage owner, Patriot has demonstrated a strategic approach to leveraging this asset class.

Patriot's focus on improving and expanding Self Storage Facilities ensures that the properties meet the evolving needs of consumers while providing investors with sustainable and attractive returns. By strategically selecting locations and optimizing operations, Patriot has successfully navigated the nuances of this sector.

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