Section 1 • Industry Profile


have grown much larger, there has also been a substantial in- crease in the number of small entrepreneurs who own only one or two facilities. Hence, those smaller operators continue to dominate the industry as a whole. In the larger metropolitan markets, however, the ownership profile looks quite different.


Moving forward, a small entrepreneur will


be able to successfully build a new self-storage facility in just about any of the top metro markets in the U.S. ...


Self-storage operations in the top 25 to 50 markets are con-


trolled primarily by large, sophisticated companies, giving them a greater percentage of ownership in these markets compared to self-storage across all markets in the U.S. This can be attribut- able to very different dynamics. First, the larger operators prefer these metro areas because they are able to get the highest rents in the market, often coupled with higher occupancy rates. Sec- ond, because the larger operators are typically better capital- ized, they can afford to pay higher land costs to develop and higher acquisition prices to purchase facilities in these markets. It is highly anticipated that these trends will continue in the


future. An interesting introspective on this, shared by Dean Jernigan, president of Miami-based Jernigan Capital, is to com- pare self-storage to the hotel industry in the mid-1980s when there were many different brands of hotels and motels across the U.S., especially in the larger markets. The introduction of technology—1-800 numbers, national sales centers, and nation- al ad campaigns—started the consolidation trend. In the 1990s, with the introduction of the Internet, growth and consolidation rose to a new level. Today, no astute businessperson would build a hotel along an Interstate without it being a national brand. Self-storage is headed in the same direction. Moving for- ward, a small entrepreneur will be able to successfully build a


Market Share*


Table 1.1 – Ownership Profile (By Percentage) 2014


Largest Self-Storage Company By Number of Facilities


By Rentable Square Footage


Market Share of Top 10 Companies By Number of Facilities


By Rentable Square Footage


Market Share of Top 25 Companies By Number of Facilities


By Rentable Square Footage


Market Share of Top 50 Companies By Number of Facilities


By Rentable Square Footage


Market Share of Top 100 Companies By Number of Facilities


By Rentable Square Footage Source: MiniCo Publishing


34 Self-Storage Almanac 2015


Public Storage 4.7 5.8


13.1 16.0


15.1 18.1


17.1 20.8


18.5 22.5


Table 1.2 – Total Self-Storage Facilities by State Number


Rentable State of Facilites


Alabama 1,262 Alaska Arizona


167


Arkansas California Colorado


Connecticut Delaware


District of Columbia Florida Georgia Hawaii Idaho Illinois


Indiana Iowa


Kansas


Kentucky Louisiana Maine


Maryland


Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada


New Hampshire New Jersey New Mexico New York


North Carolina North Dakota Ohio


Oklahoma Oregon


Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah


Vermont Virginia


Washington West Virginia Wisconsin Wyoming


1,341 889


5,137 1,272 369 110 22


3,578 1,641 103 438


1,316 931 322 622 662


1,119 182 542 620


1,509 490 722


1,140 501 226 692 250 713 634


1,471 1,750 99


1,494 1,000 941


1,418 107


1,015 128


1,325 6,620 663 156 988


1,583 278 721 197


National 51,476 * U.S. Weighted Average


Square Footage 64,551,300


8,542,050 68,592,150 45,472,350 262,757,550 65,062,800 18,874,350 5,626,500 1,125,300


183,014,700 83,937,150 5,268,450 22,403,700 67,313,400 47,620,650 16,470,300 31,815,300 33,861,300 57,236,850 9,309,300 27,723,300 31,713,000 77,185,350 25,063,500 36,930,300 58,311,000 25,626,150 11,559,900 35,395,800 12,787,500 36,469,950 32,429,100 75,241,650 89,512,500 5,063,850 76,418,100 51,150,000 48,132,150 72,530,700 5,473,050 51,917,250 6,547,200 67,773,750 338,613,000 33,912,450 7,979,400 50,536,200 80,970,450 14,219,700 36,879,150 10,076,550


2,632,997,400 Source: ESRI, Hoovers, NGKF, MiniCo and United States Census Bureau


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