Episode 266: The Commercial Storage Opportunity Most Investors Don’t Even Know Exists

Announcer (00:03):

This is the Self Storage Podcast with the original self-storage expert, Scott Meyers.

Scott Meyers (00:13):

Welcome back to the Self-Storage Podcast. I’m your host, Scott Meyers, and if you’ve been with this show for any length of time, you know what we do here is cut through the noise, deal in data, and talk about what’s actually moving the needle for investors and operators in the storage space. Today’s episode is going to be a little different because while the show has always had storage in the name, the truth is the opportunity set I operate in, and frankly, the opportunity set available to you as an investor right now is significantly broader than the traditional climate controlled drive-up unit you probably picture when you hear the word storage. So over 21 years in this business, 29,000 units of five million square feet. Nationwide operations, I’ve had a front row seat to the way this industry has evolved. And I can tell you with full conviction, that’s what’s happening in commercial storage right now.

(00:58):

It’s one of the most compelling investment stories I’ve seen literally in two decades. So today we’re going to cover the landscape. We’re going to talk about self-storage, where it stands right now, what the data says and what smart investors are doing. Then we’re going to go deep on boat and RV storage, which is one of the most exciting supply and demand mismatches I have ever encountered in real estate. And then I’m going to walk through the other major sectors of commercial storage, industrial outdoor storage or iOS as we affectionately call it, aviation storage, wine and art and furs and other collectible type niche storages, as well as self-storage condos, and more because each of them tells a different story and each of them represents a real opportunity. And at the end of this episode, I got something I want to share with you about an event we’re putting together in Orlando this June that I believe is going to be genuinely a game changer for anyone serious about this space.

(01:47):

So let’s get into it. So before we break down these specific sectors, I want you to understand the macro picture because as always, context matters. Storage in all its forms is infrastructure. It’s not glamorous. It doesn’t make the headlines the way multifamily or office does, but it is the backbone of the American economy in ways that most people fundamentally underestimate. Think about it this way. Every manufacturer needs somewhere to store equipment. Every e-commerce business needs overflow inventory space. Every boat owner, every RV owner, every aircraft owner, every business with a fleet, they all have assets that need to sit somewhere securely when they’re not in use. And that somewhere is commercial storage, and the demand for it is relentless. Here’s what the data shows us at the broadcast level. The US self-storage market alone generated 45.4 billion with a B in revenue in 2025, according to Mortar Intelligence.

(02:40):

This is our data gathering partners that we use here on the podcast, and it’s projected to reach 57.5 billion by 2030. That is a nearly $12 billion increase in the base of business, the one most people already know about. And that’s before you layer in the adjacent sectors we’re going to discuss today. The reason storage performs so consistently across economic cycles is simple. It’s a needs-based asset, pure and simple. People use storage when they’re moving. They use it when they’re downsizing. They use it when they’re growing a business. They use it in good times and they use it in bad times. The average customer length of stay in self-storage right now is 18 and a half months, up nearly 2.5% year over year according to Yardi Matrix, another one for data gathering partners in the storage space. And that tells you something important. Once you have a client, they stay.

(03:30):

And here’s the other piece of the macro picture that I want to anchor everything else to that we discussed today. And that is that the commercial storage industry is rapidly expanding beyond what most people even recognize as storage. Industrial outdoor storage or iOS, which we’ll cover in a moment, is now a $200 billion plus market. Boat and RV storage is growing at a projected cost adjusted gross revenue of 12.5% through 2035. And aviation storage is chronically undersupplied. Wine and collectible storage is growing as high net worth asset ownership increases and storage condominiums are emerging as a powerful wealth building vehicle for small business owners. Now, you might think, but these really aren’t fringe categories. These are established institutional great asset classes that are attracting serious capital, and most individual investors haven’t even begun to look at them. And that’s the opportunity I want you to walk away understanding today.

(04:22):

Let’s start with the asset class I know better than anything else, the one I’ve spent 21 years of building a business in, and that is self-storage. First, I want to give you the most honest picture, not the promotional version, but the real state of the market as we stand today in 2026. Because I think informed investors make better decisions than optimistic ones, which is the reason why. It’s the only reason why we created our education companies to make better investors out there to make better decisions so that we can transact easier in the marketplace. The US self-storage industry now encompasses more than 2.1 billion square feet of total rentable space according to Storage Cafe, and there are approximately 50,000 facilities operating nationwide. That is a staggering amount of inventory, and yes, there are markets that are oversupplied. There are markets where new construction over the past five years is a pressured rents and occupancy, and that’s the reality.

(05:11):

But here’s what the data also shows, and this is critically important. National average occupancy at stabilized facilities sat at 77% in Q4 of 2025. That number is essentially flat year over year. In the West, occupancy is running at nearly 80%. And the average street rate for a standard 10 by 10 non-climate controlled unit is $119 per month nationally, with climate control averaging $134 per month. And in high barrier markets like San Rafael, California, that number is over $300 per month. So what does that mean for investors? It means the story is not a single story, no pun intended. Self-storage is hyperlocal, a market with excess supply in Phoenix does not tell you what’s happening in a tertiary Midwest market where no new product has been built in 15 years. That’s where I’ve always focused my attention and finding the pockets where supply is constrained, demand is durable and constant, and the institutional operators, well, they really haven’t shown up yet, or at least in mass.

(06:10):

Now, let me talk about the transaction environment, because this is where it gets interesting. Transaction volume and self-storage totaled at nearly 2.85 billion in the first half of 2025. According to Cushman & Wakefield, that puts it roughly in line with the pre-surge levels from 2019. After the enormous wave of capital that flooded the sector between 2020 and 2022, nearly 50 billion in transaction volume over just three years, we’ve returned to a more normalized environment. And I would argue that is a healthier environment for discipline investors who know how to underwrite deals. Valuations have come down from their peaks clearly, and cap rates average 5.8% over the past six quarters after hitting an all- time low of 5%, obviously driving values up. And in that late 2022, construction costs became elevated. Financing became tighter and the pipeline was slowing. And according to Dodge pipeline, there was a significant increase in projects put on hold in Q2 of 2025.

(07:08):

I can attest to that personally, meaning new supply is moderating, and that’s a tailwind for existing assets with solid occupancy. The technology dimension of self-storage is also something I wanted to touch on because it’s reshaping how this business operates and how we operate. Digitized leasing platforms are trimming operating expenses by up to 25% for operators who are deploying smart access systems according to more door intelligence and revenue management software is now … It’s just table stakes, which means that this is what it takes to be competitive or to be left behind. AI powered pricing and dynamic rate systems are becoming industry standard, period. And operators who aren’t adopting these tools are going to find themselves that have structural cost disadvantage against those like us who already are. And I say all this because it connects directly to something I’ll talk about at the end of this episode, but the bottom line on self-storage is this.

(08:00):

It remains an exceptional business, not because you can build it anywhere and print money, that era is over. But because demand is durable, operations are scalable and for investors who know how to find the right market, structure the right deal and operate efficiently, the returns are still very compelling. 29,000 units across five million square feet of space doesn’t happen by accident. It happens because of process, discipline, and market knowledge, and that’s what I’ve spent the last 21 years building. Now I want to shift to the sector that I believe represents one of the most compelling investment opportunities in all of commercial real estate right now. And I don’t say that lightly. Boat and RV storage. Let me start with the raw demand picture because the numbers here are extraordinary. There are approximately 25 million households in the United States that own either an RV or a boat.

(08:44):

The RV Industry Association projects wholesale RV shipments of around 349,300 units in 2026, near the highest totals in recent years. And there are 11.6 million recreational boats registered in the United States and full-size pickup truck sales while the primary towing vehicle for both RVs and boats increased at 14.5% year over year and early 2025, according to Cox Automotive. That is an enormous and growing base of assets that need somewhere to go. Here’s the problem, and this is where the opportunity lies, as always. According to Yardi Matrix, there are fewer than 2000 dedicated RB and boat storage facilities in the entire country. Research from Toy Storage Nation and industry education firm estimates that five times the current supply would be needed just to meet existing demand based on current ownership levels. Their data suggests that the market needs 70 new facilities per month. The market is producing fewer than 70 per year.

(09:38):

That is not a slight imbalance. That is a structural crisis of supply that creates a generational opportunity for investors who move now, and the market is responding slowly. Between 2023 and 2025, the number of RV and boat storage properties grew from 800 to 1,798 according to RD data, more than doubling. But even with that growth, the global RV and boat storage market is projected to reach 8.48 billion by 2035, growing at a 12.5% compound annual growth rate. That’s not the growth profile of a saturated market. That’s the growth profile of an asset class in the early innings of institutionalization. Now let me talk about why the supply gap is so persistent because it’s not just a matter of no one noticing. Two major structural forces are creating and sustaining this demand. HOA restrictions and local ordinances. Fewer than 14% of homeowner associations even permit RV airboat working for residents.

(10:33):

Zoning codes in most municipalities prohibit street or driveway storage of these large vehicles. So the owner of a $150,000 motor home or a $75,000 boat has no legal option to park the asset at home. They have to rent space and they will pay for quality. This brings me to the Class A story, which is where I’ve been spending time and where I believe the smart money is going. Because unlike traditional self-storage users, RV and boat owners are storing six-figure assets. They are not looking for a gravel lot with a chain link fence. They want covered or enclosed facilities, wide access lanes, security cameras, gated access, dump station, wash bays, and increasingly they want concierge services. These are exactly the same amenities that the drive at premium pricing, and because these owners are often driving 50 miles or more to access storage near travel corridors, national parks or coastal access points, they are significantly less price sensitive than your typical self-storage tenant who wants their facility to be located in their neighborhood right next door if they could.

(11:31):

And the business model here is compelling. And for investors who already understand storage operations because the fundamentals of managing a facility, driving occupancy and optimizing pricing are transferable. This sector represents a natural and extremely lucrative expansion. And I want to be straightforward with you. These sites are harder to find. The entitlements can be challenging and the capital requirements for Class A facilities are while they’re higher. But the returns, the occupancy profiles and the tenant retention metrics in this sector are exceptional. And the supply constraint means that a well-sighted, well-built facility in a demand-rich market can lease up faster than almost anything else I’ve seen in two decades of doing this. Now, I want to spend a few minutes giving you a high level view of the other sectors that make up the broader commercial storage landscape because while my personal operational depth is in self-storage and boat and RV, the investment thesis for each of these categories deserves your attention.

(12:25):

If you haven’t been paying attention to iOS or industrial outdoor storage, you need to start now. CBRE’s Q4 2025 report documents that iOS has become one of the best performing segments in all of industrial and commercial real estate. The natural IOS rent premium climbed to 17.9% above traditional industrial rents at the end of 2025, and average rents are running at $13.10 per square foot versus $10.85 per square foot for traditional industrial. And the vacancy rate for iOS nationally, 2.5%. Compare that to 6.47% for traditional industrial. This is an asset class where demand is dramatically outpacing supply driven by e-commerce, logistics, construction, utilities, and supply chain repositioning. And according to PWC, the overall IOS market is a $200 billion market with over 1.7 billion in institutional capital raised in the past year alone. This sector is in the early stages of institutionalization, which means the pricing inefficiencies still exist, but the window is closing.

(13:31):

And turning to aviation, which I have a little bit of experience in, there are approximately 220,000 general aviation aircraft registered in the United States and hangar space is chronically undersupplied in nearly every major market. Airports have long waiting lists. Private aviation activity also grew significantly post-pandemic and has remained elevated. The aviation storage investor is serving a tenant base that is not price sensitive. Aircraft owners pay premium rents for the right facility and they stay for years. This is a niche that requires specialized knowledge, but the returns for those who get it right are exceptional. And now let’s turn to wine art and collectible storage. High net worth asset ownership is growing in this country and with it, the demand for climate controlled, highly secure, professionally managed storage for wine collections, fine art, memorabilia, and other high value collectibles is on the rise. This is a premium segment with premium pricing, a loyal tenant base, and almost zero direct competition from traditional self-storage operators.

(14:32):

The barrier to entry is knowledge and specialization. That’s it. It’s not capital. And then there are storage condominiums of which we are building one right now, which is one of the most underappreciated concepts in the commercial storage space. A storage condo is essentially, it’s an owner-occupied storage unit, typically a high bay garage or workshop space that a business owner or collector purchases outright, builds equity in and uses for their own operations. The developer builds them, sells them, and either walks away or retains a management role in an HOA. The demand from small business owners and collectors, contractors, and hobbyists is strong and continues to grow. And in many markets, these units are selling quickly and are appreciating rapidly as well. I can speak to our project that is down in Texas right now. We are 40% pre-sold and we haven’t opened our doors yet. And the price of those properties that the units that are not sold continues to rise and we haven’t even finished completion of the construction yet.

(15:28):

Folks, this is an asset class that is at both an investment vehicle and a product, and that when you understand how to develop and position it, the economics are extremely attractive. And then comes, well, we’re rounding out a number of different asset classes within our asset class from microwarehousing, cold storage, contractor yards, and tractor trailer storage. Each of these sectors responds to a specific structural need in the economy. Microwarehousing serves the last mile delivery and e-commerce fulfillment demand that is only accelerating and cold storage responds to the growth of food delivery, pharmaceutical logistics and fresh goods distribution as well in that race for the last mile. Then there’s contractor and tractor trailer yards that serve the construction and logistics industries, which are going anywhere, anytime soon, and are on the rise as well. These are not speculative bets, by the way, or niches within the niche.

(16:20):

They are picks and shovel businesses serving real durable demand right now. The through line across all of these sectors is the same. Demand is structural, supply is constrained, and most investors are still only looking at one slice of the pie. So that is a broad look at the demand and the opportunities that are out there in all things storage right now in the market. So let me close today with something I am genuinely excited about because what I’ve just walked you through in the past 25 minutes is a broad map of an industry, but a map is only useful if you know how to use it. So in June, I’m bringing together what I believe will be the most comprehensive commercial storage investment event ever assembled. The Commercial Storage Summit takes place June 4th through the 6th this year at the Florida Hotel in Orlando, Florida.

(17:05):

We’re holding this for three days and we have 12 plus storage sectors that we’re going to be covering and an educational experience unlike anything else in this industry. So here’s the structure. Day one, Thursday, June 4th is a full day hands-on AI implementation workshop. We’re going to show you exactly how we are using artificial intelligence to move faster in the market, dramatically reduce overhead and operate a scale that was simply not possible five years ago. And this isn’t a theory session. This is practical, applicable strategy from operators in all forms of storage who are using these tools each and every day. And then days two and three, Friday and Saturday, these are the intensive investment sessions covering the full commercial storage spectrum, self-storage, boat and RV, industrial outdoors, storage condominiums, high bay flex space, aviation and marine storage, collector and hobby suites, microwarehousing, wine and art storage, contractor yards, cold and data storage, and more.

(18:00):

You will leave with a comprehensive understanding of each sector, the investment thesis behind it and the operational model, as well as then the data to underwrite a deal. So we have assembled the nation’s top speakers and educators across each of these categories, practitioners, not theorists, people that are in the industry day in, day out. People own and operate these assets that they’re talking about from stage. And I want to be direct with you about why this event exists because for 21 years, I’ve watched the commercial storage industry be misunderstood, underestimated, and overlooked by the broader real estate investment community. And I’ve watched a small number of disciplined investors build extraordinary wealth precisely because of that misunderstanding. The goal of this summit is to change the information landscape to give investors, operators, and developers the knowledge they need to participate intelligently in one of the fastest growing real estate sectors in America.

(18:50):

So early bird registration is $497 per person. That’s your ticket price and regular pricing will go up to 697. So just know that seats are limited and based on the interest we’ve already seen that this event will sell out. So this event is hosted by The Storage at Mastermind, and you can register and get to full details in the show notes. So if you have questions, reach out directly to info@storagemastermind.com. And I will say this one more time because I want it to land. The commercial storage industry is one of the fastest growing real estate sectors in America. Every sector we talked about today from self-storage to iOS to boat and RV to aviation is being driven by structural demand that isn’t going away. And the investors who take the time to understand it, who show up in Orlando in June and put in the work are going to be in an extraordinary position.

(19:40):

That’s what this show is about. That’s what the summit is about, and I hope I will see you there. Thank you for listening to The Self-Storage Podcast. I’m your host, Scott Meyers. Until next time, go build something great.

Annoucer (19:51):

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