Build Your Firm logo
Accounting Niche Worth Considering

Accounting Niche Worth Considering


by Hugh Duffy

Self Storage Facility

Here's a niche that most accountants never consider. Quite frankly, it's relatively simple and steadily growing here in the United States.

Rather than give you the answer, here are some quick facts:

-This niche is the fastest growing subsegment within commercial real estate over the last forty years.

-This industry's growth was very evident during Covid as many businesses closed and families downsized.

    If you are like most Americans, you own too much stuff and opt for storage units to store old furniture, clothing, cars, office equipment, cars, boats, etc.

    Right now, there are over 50,000 self-storage facilities operating in the United States. And over half of the owners of self storage facilities are small operators. And the average occupancy rate is 96.5%. Yes, that's a staggering occupancy rate.

    Over 20% of Americans use self storage. And over 65% of them own a garage.

    Typically, a 10x10 unit costs $132 per month to rent (without climate control). For air conditioning, the cost is $152 per month. And the typical storage facility is operated by 3.5 people per facility.

    As Covid struck, many storage facilities experienced a spike as businesses reduced office space as employees worked from home or moved further away from the office.

    Geographically, the top three cities for self storage are Dallas, Houston and New York City. And San Francisco maintains the highest rates in the country at $216 per month for a 10x10 (without air).

    If you interest is peaked, here is a Self Storage Accounting niche website. Pretty darn simple.

    Graber & Associates Certified Public Accountants

    If you are still on the fence, here are some other fun facts:

    - Over 75% of self-storage tenants are homeowners.

    - Self-storage has around 70% net operating income.

    Hugh Duffy