Bullish self-storage investors are flocking to the sector as growth in e-commerce drives demand from Americans who are renting space to house their stuff.
That demand has spurred a self-storage construction boom, Bloomberg reports. Self-storage facilities are inexpensive to build and maintain, which helps landlords achieve strong margins. Public Storage, the largest self-storage company in the country, has enjoyed a gross margin of 72% during the first three months of this year.
Venture-backed startups have moved into the space recently, including Clutter, which uses teams of movers to carry customer belongings to and from warehouses on demand. In an ironic twist, some landlords are even toying with the idea of buying weak retail properties to convert them into storage facilities.
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