The Make-Up of the Self-Storage Industry

Here are some facts about the self-storage industry, according to a recent RentCafe write-up:

#1—The sector consists of 2 billion square feet of rentable space

#2—The 100 largest companies own more than half of the inventory

#3—Large companies and small operators own 64.5% of the inventory, while the remainder is handled by four self-storage REITs and the U-Haul Holding company.

Said RentCafe analysts: “The fragmented ownership speaks volumes about the self-storage industry in 2025.” While Public Storage, Extra Space Storage, U-Haul, National Storage Affiliates and CubeSmart control much of the U.S. storage space,  “the market is far from a monopoly, leaving plenty of room for smaller operators to grow and compete,” according to the RentCafe analysts.

Who’s Building

The article explained that the “top contributors to new inventory” are diverse. U-Haul is set to add 3.5 million square feet of space to the market, while Public Storage is set to deliver an additional two million square feet.

Further down the rung are Extra Space Storage (567,000 square feet anticipated for 2025 delivery) and Reliant Real Estate Management, which plans to complete 522,500 by year-end.

The dark horse in this race is SAFStor, which is ranked 80^th on RentCafe’s list of overall ownership. SAFStor is forecast to deliver $482,500 square feet in 2025.

The Geographic Opportunities

The RentCafe analysts noted that each company has its own business and operating model. However, they share a preference for a certain type of location, specifically “highly urban, migration hotspots with strong economies and growing populations.”

But don’t discount those secondary and tertiary markets, the analysts said. “As interest rates stabilize, borrowing costs decrease, making it easier for self-storage owners to finance new projects,” they added.

The Conclusion

The pandemic aftermath in 2022 and 2023 generated a boom in self-storage construction. These days, development has calmed down, with the industry experiencing steady growth. RentCafe analysts commented that the self-storage REITs continue to play a large role in the sector’s future, while “smaller companies are making strides and undertaking new construction.”