Many have noted that millennials prefer spending money on experiences rather than things. This trend has raised red flags among some investors in self storage because fewer goods being purchased, they feel, should translate into lesser demand for self storage space.
But this sentiment is overly pessimistic, as many of the millennial trends could actually boost the self storage industry. For example, many experiences, such as skiing, biking, surfing, etc., require equipment that needs to be stored.
Of course, demand for self storage is also driven by the myriad life changes that millennials experience as much as other generations including moving within and between cities, job loss, marriage, divorce and death.
It is also important to note that millennials are leading the pack in moving to walkable urban centers and away from suburban sprawl. Because urban residences tend to be less roomy than their suburban counterparts, this may translate into an increased need for storage in those popular downtown centers, accompanied by reduced demand in more suburban locations.
Investors tracking the latest trends impacting the self storage space are equipping themselves with key market information to inform their investment decisions. Many are also turning to technology platforms like Ten-X Commercial, which can provide sellers and brokers with access to millions of additional buyers across the world in order to fully achieve their sale expectations.