Self-Storage in Spartanburg: Manufacturing Workers and Growing Demand

Here’s something I’ve noticed about storage demand in manufacturing towns: it’s stickier than you’d think.

Spartanburg has this massive industrial workforce — BMW, Michelin, Milliken, dozens of smaller manufacturers. These are shift workers making decent money. A lot of them live in apartments or smaller homes. And when you’ve got a household income that supports buying stuff but not a big enough house to keep it all in, where does the overflow go? Storage. Every time.

That’s the basic thesis on self-storage in Spartanburg. It’s not glamorous. But the fundamentals are solid and they’re getting stronger.

What’s driving demand

Population growth is part of it. Spartanburg County has been adding residents consistently, driven by job creation at the major employers and their suppliers. The county attracted 1,024 new jobs from 20 projects in 2025 alone. Those are people who need to live somewhere, and a lot of them start in apartments or rental houses while they figure out the area.

But it’s really the housing mix that matters for storage. A lot of the new housing going up is multifamily — apartments and townhomes with limited closet and garage space. Every one of those units is a potential storage customer. I’ve seen the data on this across multiple markets. For every 100 new apartment units, you typically see demand for 8-12 storage units within a year. In Spartanburg, that math just keeps compounding.

The other factor is turnover. Manufacturing jobs bring in workers from other areas. People relocating for a job at BMW or one of the supplier plants. They rent an apartment first, put their stuff in storage while they get settled. Some of those units stay rented for years. I’ve seen rent rolls where a quarter of the tenants have been there five-plus years. That kind of retention is gold. Low turnover means low re-leasing costs and predictable income.

What I look for in a Spartanburg storage deal

Occupancy above 85% tells me the location works. Below that, I want to know why. Is it a rate problem? A management problem? Or is there just too much competition within a three-mile radius? Each answer leads to a different conclusion about value.

Rate per square foot is where most of the value conversation happens. I see a lot of facilities in Spartanburg running rates that are 15-20% below where they could be. Especially the mom-and-pop operations that haven’t adjusted pricing in years. They’re proud of being full — and they should be. But being full at 60% of market rent means there’s a ton of money left on the table. I don’t pay the seller for that upside — that’s my value-add after closing. But I do want to see that the market supports higher rates.

Climate-controlled versus drive-up is the other big one. Climate units rent for 40-60% more per foot. A facility that’s mostly climate-controlled is worth significantly more than one that’s all drive-up. Same total square footage, totally different income stream. I like a mix, but I’d rather have more climate than less.

The competitive picture

Spartanburg isn’t oversaturated like some markets. There’s been some new construction along I-85, a couple of Extra Space and CubeSmart facilities. But the secondary locations — Boiling Springs, Duncan, the Highway 29 corridor — still have room. Existing facilities in those areas are running strong occupancy because the new supply went to the interstate corridors. If you’re in one of those secondary spots with good occupancy, you’ve got a solid asset.

If you own a storage facility in Spartanburg County, it’s worth understanding where you sit relative to the competition. Even a 100-unit facility in the right spot can trade well if the income is there.

For more on what’s happening with industrial growth in Spartanburg and how it feeds into storage demand, take a look at my broader market coverage.

Got a storage facility you’re thinking about selling? Let’s talk. 704-600-3839.