Self Storage

Millennials & Baby Boomers are choosing to downsize to live in smaller, more amenity rich homes, which has led to increased demand for storage space. Americans’ have a growing need for storage space: national storage usage has grown from 2 square feet per person 20 years ago to 8 square feet per person today.

Self storage typically has an expense ratio of under 30%, making these an extremely profitable asset. Patriot's ground up developments and expansion projects have even lower operating expenses, minimal overhead, allowing us to create larger investor IRRs.

Self Storage has generated an average 16.8% over the last 20 years, outperforming both traditional investments like Stocks & Bonds as well as other real estate asset types. Self storage is also very resilient to recessions as consumers store more when they downsize. Rents have increased over 20% during the Covid Pandemic alone.

Most facilities were built post 1980, and the asset class requires very little capital expenditures, allowing for more capital to be distributed or used to finance the expansion of the property. New construction has very minimal repair & maintenance requirements for 20 to 30 years+.

Month-month leases allow us to increase rates to outrun inflation and based upon supply and demand. Typically, around 70% of tenants are on autopay. The average rental duration of a storage unit is approximately 14 months, with nearly half of tenants renting for over 1 year.

Properties can be built quickly as most of the structure is prefabricated, allowing for higher returns on capital. Storage development costs are low, and typical construction costs can be $50 to $65 + per sqft and sale values in the market for stabilized property is in the region of $130 to $200 per sqft, making development or expansion extremely profitable.