LEHI, UT, February 2, 2019 —
Interest in Self-Storage continues to grow amid talks of an upcoming recession.
Historically, Self-Storage as a real estate sector has experienced some of the lowest default rates in recessionary times, making this sector "recession resistant." Life forces that drive demand for storage, such as death, divorce and business expansion or contraction, create demand in both up and down economic cycles and, therefore, tend to mitigate risk as a property type.
Self-Storage also benefits from high operating margins, favorable cost of construction, low cost tenant rollover, and a diversified tenant base.
With these benefits in mind, some firms are aggressively investing to include Self-Storage in their portfolios in order to maintain portfolio performance in case of a recession. GDP has recognized these benefits for years, which is why most of our projects are focused on Self-Storage.