The Demographics of Demand

Executive Summary

A rising tide of micro-merchants —from Etsy creators toTikTok shop entrepreneurs— is rapidly transforming the self-storage sector into more than just a household solution. For high-net-worth individuals and institutional investors, this evolution signals not only stability but also untapped growth opportunities.

• Micro-merchants are becoming a core tenant class, using units as affordable make-shift logistics centers.

• Major operators are responding by redesigning unit mixes and repurposing big-box retail assets for business use.

• Traditional tenants—boomers downsizing and urban renters—continue to provide a foundation of stability.

• Together, these audiences create a diverse, resilient sector with upside potential for long-term investors.

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The Demographics of Demand

Walking into his 10’x20’ storage unit on a quiet weekday evening, e-commerce entrepreneur Marcus Reynolds feels like he’s entering his office. But it’s not an office in the traditional sense—it’s a storage facility on the outskirts of Raleigh, NC, complete with shelves stocked with handmade candles, packing materials, and an inflatable photo backdrop.

“Honestly,” Marcus says, “I’ve saved thousands by avoiding a warehouse lease—and the month-to-month flexibility means I scale with my sales.” His side-hustle crafting luxury votives has grown into a six-figure business without ever stepping into a brick-and-mortar space.

This story is fast becoming archetypal. Micro-merchants like Marcus aren’t peripheral; they’re reshaping demand. They're renting larger, climate-controlled units, paying premium per square foot, and staying years longer than residential customers.

Self-storage has long relied on the twin engines of boomers—downsizing, relocating, or managing estate transitions—and urban renters who see storage as an extension of their compact apartments. But in 2025, another engine is firing: e-commerce micro-entrepreneurs, whose business fortunes depend on flexible, affordable space.

Industry operators are responding. Big-box conversions —turning shuttered Sears, Kmart, and Toys 'R' Us locations into multi-story storage facilities— are aligning perfectly with micro-merchant needs. These spaces offer dock doors, high ceilings, and suburban access, making them ideal for business tenants who require more than a closet but less than a warehouse.

The economics are compelling. Micro-merchants stay longer, pay more per square foot, and often purchase add-on services like package acceptance and extended-hour access. Meanwhile, boomers and urban renters provide a stable base of demand. The result is a sector with dual DNA: stability and growth.

Conclusion

Step inside a storage unit today and you may not find dusty boxes at all—you may find a retiree reorganizing, a renter storing skis, or an entrepreneur building a business under the glow of a work lamp.

For high-net-worth individuals and institutional investors, the self-storage story is no longer just about defensive stability. It is about demographic inevitability meeting entrepreneurial innovation. Storage remains the place for life’s belongings, but increasingly, it’s the launchpad for tomorrow’s businesses. And that blend of stability and growth is what makes the sector so compelling for capital allocation in 2025 and beyond.