One of the most consistently reliable commercial real estate investments? Self-storage units. And a new study showing how much Americans are willing to spend on these units each month shows just how solid this investment type can be.
How expensive is it for Americans to store their old dressers, China sets and record players? A new study by Life Storage found out.
According to Life Storage, the average cost to rent a 10-foot-by-10-foot storage space in the United States for a month is $111.99.
Life Storage calculated this information by looking at the pricing numbers from the four largest self-storage companies in the country, Life Storage, CubeSmart, Extra Space and Public Storage.
Storage rates do vary, though, across the country. It’s most expensive to rent storage space in New York state. In Syracuse, New York, for instance, the average climate-controlled 10-by-10 storage space costs $162 a month, while a standard 10-by-10 storage space rents for an average of $125 a month.
A Midwest state, though, has some of the most affordable rates, acording to Life Storage. In Columbus, you can rent a standard – non-climate-controlled – 10-by-10 space for an average of $81 a month. And in Toledo, you can rent a standard 10-by-10 storage space for an average of $90 a month.
In Dayton, Ohio, you can rent a standard 10-by-10 space for the low cost of $69 a month. While in Cincinnati, that same space rents for an average of $95 a month.
Of course, not all self-storage rents in the Midwest are similarly low. In Chicago, a standard 10-by-10 space costs an average of $112 a month, while a climate-controlled space of the same size will rent for $131 a month on average.
And in Saint Paul, Minnesota, self-storage rents are quite high, $120 a month for standard 10-by-10 spaces and $144 for that same space in a climate-controlled version.
The lesson here? People are willing to pay good money each month to store their excess stuff. And as long as they are willing to do that, self-storage facilities will remain a solid investment for CRE pros.
Interested in self-storage rents acorss the country? Check out this interactive map from Life Storage.
