Self Storage Association: 81 Percent Growth in Number of U.S. Facilities Since 2000;...

Ground-Up Development Gives Way to Acquisitions, Expansions & Renovations

ALEXANDRIA, Va. -- New information released this week by the Alexandria, Virginia-based Self Storage Association (SSA) indicates that the number of primary self storage facilities in the United States has nearly

Despite the remarkable acceleration of the industry during the past six years, 2006 represented a marked slow down in new construction starts of primary self storage facilities, with 2,267 facilities added, compared to 4,568 added in 2005. Industry leaders will discuss the findings when the figures are presented next week at the SSA's Fall Conference & Trade Show in Las Vegas, Nevada.

"The U.S. self storage industry continues to expand at a pace in step with growing residential and commercial demand," states Michael T. Scanlon, Jr., President and CEO of the Self Storage Association. "However, dollars that heretofore had been allocated toward ground-up development of new facilities are now being channeled toward expansion and renovation of existing facilities, conversions to self storage from other uses, as well as an increase in the number of acquisitions being undertaken. Nearly one-in-ten American households now rents a self storage unit and nationally commercial business now accounts for about 30 percent of total self storage rental space," Scanlon added.

"Our most recent industry research confirms what our members have been saying - that the rising costs for land, tighter capital markets and the added costs associated with a longer entitlements (local zoning) process, have all had a negative effect on ground-up development," Scanlon continued.

The Self Storage Association, through its data and research partner PAC-Com, Inc., maintains a National Facilities Database providing an accurate picture of the self storage industry nationwide.

Thousands of self storage professionals will gather at Caesars Palace in Las Vegas September 6th-8th to enjoy great entertainment, including keynote speaker Ben Stein, and to consider the new information available exclusively through the SSA. Several new studies and publications produced by the Association will be introduced as well, including Zig Zagging Through Zoning, which will help developers maneuver the often tricky land planning process; and a publication by famed pollster Peter Hart focusing on the effect on self storage of the Baby Boomer Generation's mobility and retirement.