The business model developed in Texas is beginning to expand into cities in the Argentine interior, with annual revenue of approximately $70,000 million worldwide.
Self-storage is a segment of the real estate industry and plays a key role in helping industries expand their reach. For businesses, it serves as a private space to store various types of items to promote sales or to store excess inventory, thereby freeing up more space.
In Argentina, this trend is taking hold gradually, whereas in Europe it began several years ago and is now starting to pay off over time. In light of this situation, domestic industries have begun implementing it in the AMBA, and it is gradually spreading to various cities in the interior.
Growth in the United States and E-commerce
In the United States, it began to be used more widely thanks to the reality show “Who Pays More?”, in which buyers compete to win auctions for various items with a starting price.
One of the keys to the continued exponential growth of self-storage is e-commerce, or online retail. Many new entrepreneurs are starting to invest in small items for resale and need a place to store them, which is where the real estate business comes in.
Another reason for its growth in the country is that it reflects the increase in business activity in established markets such as Spain, the United Kingdom, France, and Germany, even as new types of operators and formats continue to emerge.
The industry that is beginning to take shape
With a market poised for explosive growth, national associations for this industry began to form in various types of countries, although there is one official body: the Federation of European Self Storage Associations. This organization is responsible for identifying other countries where the industry is beginning to develop solid structures so that it can analyze their data and establish relevant regulations.
On the other hand, markets in Asia are also experiencing significant growth. Without going any further, China accounts for a large share of global business, and it is estimated that its revenue will reach $4.6 billion by 2025. According to the data, the highest concentration is in major urban centers.
The United States, the world's leading example
The United States remains the industry leader, accounting for nearly half of global revenue. Marcos Victorica, the Argentine CEO of BAS Storage, explained this phenomenon: “This is largely due to the fact that the country is increasingly becoming a ‘society of things.’ Americans own more and more items, and when they run out of space in their homes, they turn to storage units to keep them. It’s the same reason why self-storage is growing worldwide: it stores things that are growing faster and faster, rather than people who are growing slower and slower.”
Self-Storage as an Investment Strategy
Another factor driving the growth of this new business model is the possibility of using it as an investment. Instead of relying on product prices to rise or fall in order to make a profit, the owners of these storage facilities capitalize on companies’ lack of space by offering them additional space to store their goods. In this way, they generate profits through another viable business strategy.
Source: Ámbito Financiero
Marcos Victorica is Founder and CEO of BAS STORAGE.
Company that is revolutionizing the American real estate market by creating a product based on the American economic infrastructure.