Stand Out with Niche Self Storage
In 2018, average rents in the self storage industry decreased nationwide due to concessions, increased delivery, and high occupancy goals. Research also shows that demand hasn’t kept up with the supply increase over the last several years, but will likely be carried by the storage needs of millennials, baby boomers, and Gen Z. In order to stay competitive without relying on concessions, self storage operators should consider incorporating niche self storage services into their business plan. Niche self storage such as wine storage, RV and boat storage, and portable storage offer businesses the opportunity to boost revenue by bringing in new renters at a premium price.
Types of Niche Storage and How to Promote Them
Catering to market niches allows you to charge more for these in-demand spaces and increase revenue by actively meeting the needs of people looking for specific solutions. Renters that choose a specialty, niche storage option typically rent longer than someone interested in a traditional unit. Niche storage allows for hyper-focused local marketing. Working with an integrated marketing partner like G5 can help you promote your services to the right audience and fill units while staying competitive in your market.
Conducting market research to discover what niche services will sell in your area will help you determine what solutions you should offer. Wine storage may not be as profitable in the Midwest, but in California and Oregon – Wine Country – a wine storage club may be very popular. Consider working with local wineries or wine clubs to promote your specialty storage and targeting keywords such as “wine collectors club in Portland, OR.”
RV and Boat Storage
Are you located near large recreational areas, lakes, national parks, or rivers? These areas are prime for RV and boat storage. Target keywords that incorporate nearby outdoor recreation locations such as, “boat storage near Lake Shasta.” You can really stand out by partnering with dealerships to provide information on RV and boat storage on their websites.
Document storage and shredding may become a less popular niche as more and more companies go paperless, but it hasn’t gone extinct yet. Due to the sensitivity of many business documents, and paper products in general, promoting climate-controlled document storage can be a lucrative avenue for self storage operators. Document storage helps businesses get documents out of the office while providing additional protection in a climate-controlled environment. Target renters who need volume storage for medical records, legal documents, and more.
Investing in portable storage units can be a scalable move for self storage facilities. Portable storage would be a good investment for storage facilities in college towns and near military bases. As Gen Z enters college, portable storage can be a great option during the summer and when students study abroad. Portable storage expands your customer base and allows you to charge two, even three times higher rates than traditional storage units. You can promote portable storage by partnering with local apartment complexes, universities, and military bases and targeting keywords that focus on these localized markets.
Stand Out in the Storage Industry
Baby boomers hold 70 percent of the nation’s disposable income and they’ve invested a lot of time and money into their belongings. Their willingness to pay more for added benefits and conveniences speaks to the demand and potential earnings that come from niche storage. This storage-savvy group, as well as elder millennials with disposable income, can be targeted to help boost revenue and bring in new renters.
Learn how you can take advantage of opportunities within the self storage industry by downloading the State of the Industry report.