When we mention self storage, probably the first image that comes to mind is roll-up doors on the side of the highway surrounded by some chainlink fence. In a lot of cases, that’s right.
However, self storage doesn’t just live in the small towns, it’s in the heart of our greatest cities too, and storage in Los Angeles can look incredibly different from Huntsville, AL.
Before you begin making a marketing strategy, it’s crucial to know what makes urban markets unique, who your customers are, and what renters in big cities care about the most.
Truthfully, there’s as much overlap as there is a difference.
According to the 2023 SSA Demand Study, there’s very little difference in the reasons why urban tenants rent compared to rural or suburban tenants. That’s because life doesn’t discriminate based on where you live.
However, just because people tend to rent for similar reasons, there are still key differences that only come with city life.
For example, the statistics of tenants who rented to make space for a new baby are much higher than in suburban and rural areas. The logic is sound: city dwellers have less space.
For a lot of urban tenants, they barely have any space in their hall closet, let alone space to set up a new nursery.
Because so many people are pressed for even a few square feet of storage space, smaller units like lockers, 5x5, and 5x10 units are also rented at a higher rate in urban self storage. In fact, 40% of urban renters prefer sizes like 5x10 or smaller!
Pug Pro Tip: Are you building a new facility? Focus on building smaller units if you’re in a metropolitan area!
One of the key differences between markets is that there are more full-time employees in urban settings than there are in suburban or rural areas. There’s sound logic to it too, when things cost more, you need more money.
Not only do urban tenants have a higher employment rate, but they also make disproportionately less money than rural or suburban tenants. In fact, nearly 3x the number of urban tenants (16%) compared to suburban (6%) make $20,000 or less as their yearly income.
Generally speaking, urban renters make less across the board.
This matters a lot to self storage because it’s all a part of the bigger picture. Not only do urban tenants tend to have a smaller income, but they are also renting their housing by over 30% more compared to rural and suburban communities.
That may seem like an irrelevant statistic, but it changes how people choose to store with you.
For example, you’re more likely to have short-term rentals in large cities. Urban tenants often rent their unit for 3 months or less – nearly 50% more than other communities.
Not only are these tenants staying less time, but they’re also a lot younger than other markets. A huge shift is taking place in the self storage world, and the urban market seems to be ahead of the trend, 59% of tenants in metropolitan markets are millennials or younger.
That’s a significant increase from the average of 47-48% from suburban and rural markets! A younger market is a different market.
For example, 20% of Gen Z renters and 16% of millennials visit their storage units at least once a week. This is a huge leap compared to the 6% of boomers who do the same. Younger tenants mean a lot more foot traffic.
Self Storage Urban Tenant Demographics:
Before we get into different marketing methods, let’s talk about what people want. According to the demand study, there is a lot of overlap, but also crucial differences with larger city tenants.
Top 5 Amenities Urban Tenants Want:
As we can see, these amenities are what tenants prefer no matter where they are in the country. If you’re not offering any of these amenities, it might be time to make some upgrades.
None of these amenities are too surprising either, of course, an urban tenant who works more and gets paid less is going to want reasonable rates, or pest control in a city where bedbugs take over entire buildings.
It’s no surprise that an urban tenant would prefer close proximity and lower rates, but there are some amenities that are more popular than other markets.
Extra Amenities Urban Tenants Prefer:
There’s a pretty clear logic to these. Of course, someone living in New York would prefer to have U-Haul services, they probably don’t own a vehicle. Why would a tenant want package pick-up services? They’re tired of having their packages stolen from their doormat.
Urban tenants are far more likely to see crime when they store, so security is crucial! A staggering 13% of metropolitan tenants have experienced theft or vandalism with their self storage. That’s over a tenth of your tenants!
Drawing in new tenants means offering what they’re looking for. As a matter of fact, urban renters are far more likely to care about amenities than other demographics.
Understanding what your tenants share in common with their rural counterparts is important, but even more important is understanding what makes the urban market unlike any other.
In summary: urban tenants tend to work more often, have smaller paychecks, and less space. Be the solution they’re looking for!
Start with what’s important to your tenants.
Do they want a lower rate? Host promotions for new tenants.
Do they want pest control? Advertise it on your fliers and billboards.
Remember, the rules are different here, a billboard means something almost entirely different in Brooklyn as it does in Orange County, SC. For example, the amount of time someone has to read your billboard is more substantial, with more stoplights as well as commuters on foot. You have a lot more available space to give details about your facility, like what promotions and amenities you’re proud to offer!
Pug Pro Tip: Having a little humor or being a part of social trends can take your facility from a small business to a brand!
Similarly, a move-in promotion may have more appeal to an urban tenant who needs to clear space for their new nursery, and since we know they prefer smaller units, start with promoting those.
One of the most exciting things about marketing in a large city is how limitless your imagination can be. Cities provide unique architecture, countless landmarks, and public spaces to promote your brand. The more creative you can be, the better.
One of the most surefire ways to be noticed in your city is to have a strong online presence. Having a clear Google Business Profile, as well as a user-friendly website, you’re already well on your way to being one of the most seen facilities online.
At StoragePug, we know the importance of a strong website, and having a branded billboard will help, but nothing like having a fierce online presence can. If you’re overwhelmed and you don’t know where to begin with your marketing–start there!
Urban marketing is about adapting and being in tune with the city you’re serving.
Find the unique flavor of your city, and become a part of the conversation. Once you understand who you’re selling your units to, how to market becomes a lot simpler.
Want to learn more about what tenants want from you? Here are some of my other favorite posts!
At StoragePug, we build self storage websites that make it easy for new customers to find you and easy for them to rent from you.
