Will you get left behind in 2026?
There’s a transformation happening in business storage demand right now, and almost nobody in the self-storage world is talking about it:
Facilities who focus more heavily on business customers are refinancing at lower rates than consumer-focused storage operations.
The investors who figure this out the fastest might get a serious head start in 2026.
Let me show you what I’m seeing.
But first, quick updates from the world of storage:
📊 What’s Happening This Week:
Inside Self-Storage AI forecast – ISS released their own 2026 forecast using their AI assistant Elysia; Predicting that acquisitions in 2026 will be “somewhat easier” as market conditions stabilize, but with tighter underwriting standards and conservative capital. Check out the AI analysis here.
Storage Post sponsors Pinstripe Bowl at Yankee Stadium – Storage Post Self Storage announced a sponsorship agreement for the 2025 Bad Boy Mowers Pinstripe Bowl at Yankee Stadium, demonstrating consumer-focused marketing strategies by the operator. Full story from Business Wire.
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Everyone focuses on the “weekend warrior” consumer customer:
Someone moving, decluttering, going through a life transition. They rent for 6-12 months and leave.
And these are rock solid moneymakers. But…
Business customers are different.
Consumer customers stick around for about 8 months on average.
Businesses average out on storage rental at 37 months.
They also show lower seasonal volatility, and they tend to be less price-sensitive.
But here’s the biggest point that I saw in the data I reviewed:
Business customers pay 15-25% MORE per square foot.
And it’s because they’re not shopping on price, they’re shopping on convenience, security, and reliability.
A contractor storing $50K of equipment doesn’t care if you charge $150 or $175 for a 10×10. He cares that his stuff is safe and accessible.
Here’s what the data shows:
Group A: Less than 20% business customers
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Average occupancy: 78%
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Average rate: $105/unit
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Turnover rate: 34% annually
Group B: More than 40% business customers
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Average occupancy: 89%
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Average rate: $127/unit
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Turnover rate: 12% annually
These numbers are WILD – and the banks notice:
When these facilities need to refinance, Group B is averaging 0.35% lower rates than Group A.
Here’s my prediction:
The facilities that capture business storage customers are going to see strong returns through 2026…
And when the next refinance cycle hits they’re going to have lenders fighting to give them capital.
Most investors won’t figure this out until it’s too late and the market’s already shifted.
Here’s to capitalizing on trends instead of chasing them,
Cody