Self storage offers potential diversification benefits to real estate portfolios. The six key demand drivers of self storage are: population growth, percentage of renter-occupied housing units, average household size, average household income, supply constraints and economic growth.
While investors should know the current composition of demand, understanding the trend in demand composition is vital. Self storage tenants fall into four main categories: residential, commercial, student and military.
Source: 2011 Self Storage Almanac