G5’s Self Storage State of the Industry Report Highlights 2020 Market Conditions
Operators rely on marketing technologies like online leasing to manage costs and acquire new leases during challenging times
BEND, Ore. – April 8, 2020 – G5, the leader in digital marketing optimization, has released its Self Storage State of the Industry Report highlighting market conditions for 1H 2020. The comprehensive report also provides recommendations for how to use innovative digital technologies to overcome global challenges and turn marketing into move-ins.
“Oversupply, consolidation, rising advertising costs, and now the coronavirus, are affecting the self storage industry,” said Dan Hobin, CEO, G5. “Smart operators are turning to digital marketing technologies, particularly online leasing, as a cost-effective way to acquire new leases and continue to do business with customers during these challenging times.”
Key Findings Include:
- Occupancy rates for storage remain strong. Marcus & Millichap expects little impact on the demand for storage units as a result of coronavirus (COVID-19).
- Despite the oversupply of units at the end of 2019, with impacts on the global supply chain and slowing construction during the pandemic, new inventory levels will dip through 1H 2020.
- With stay-at-home measures in place, more people are seeking online leasing options. Recent data shows that interactions with online leasing jumped 39% between February and March 2020.
- In the wake of the coronavirus, storage operators have shifted their concerns from oversupply and dropping rents to leasing without human interaction and maintaining staff.
How Digital Marketing Can Help:
- Online leasing technology, like G5 Uber LeasingⓇ, helps control overhead costs and allows renters to lease a unit when it’s convenient for them, 24 hours a day. In addition, with renters and employees following stay-at-home orders, online leasing provides an alternate, immediate path for renters in need of storage. G5 data found that 50% of all online leases came in after business hours, resulting in up to 3-5 additional leases per month, per location.
- SEO remains the most cost-effective tactic for driving qualified traffic to self storage websites, while market and property-specific digital marketing fills the gap in lead generation strategies by reaching prospects online and on mobile.
- Advanced attribution models and predictive marketing can be used to evaluate campaign performance in real-time and automatically allocate advertising spend across the networks and channels that are converting.
The Self Storage State of the Industry report was completed while the world was in the midst of the COVID-19 crisis and operators are just now adjusting to the “new normal.” Those offering online leasing saw immediate benefits.
“With social distancing in place, people are much more likely to rent online, so G5 Uber Leasing is a lifesaver right now,” said Katie Cowen, regional director, Move It Storage. “We will continue to rely heavily on the G5 marketing platform as we plan our operations for the next few weeks.”
G5 will continue to publish this report twice a year, monitoring both industry and digital marketing trends. To download a free copy, click here.
As the leader in digital marketing optimization, G5 turns marketing into move-ins for self storage properties. Through its scalable lead generation strategies, emerging technologies, and AI-based solutions, G5 delivers higher quality leads and better ROI. Founded in 2005, G5 currently provides marketing solutions for more than 8,000 properties and two million units throughout the U.S. and Canada. Based in Bend, Ore., G5 is backed by private equity investor PeakEquity Partners. Learn more at GetG5.com.
PR & Corporate Communications Manager