| In an earlier article, I mentioned the value of | | | | to these questions will help you determine first the |
| self-storage units as valuable real estate gems, even | | | | ideal location for a facility, and also what demand you |
| if they aren’t in the commercial real estate | | | | might expect. |
| mainstream. I’d like to explore some basic | | | | As a rule of thumb, no matter how inexpensive the |
| considerations for this type of investment, as it is | | | | land may be, never presume that clients will want to |
| something I get asked about with some frequency. | | | | go the extra mile to use a storage facility. Consumer |
| First, you need to consider the overall demand for | | | | love convenience and if your facility is either off the |
| the units you may have in mind. I’ve heard many | | | | beaten path or has any sort of limited access, these |
| an investor talk about some location near them that | | | | seemingly minor items can have a huge impact on |
| would be “perfect for storage units”. Perfect | | | | your occupancy. |
| perhaps for them, but not necessarily a good | | | | Last, there is the issue of the type of units you |
| investment. It all comes down to the number of | | | | want to offer. Will there be variable sizes? Is there |
| available units in your area and how “full” | | | | onsite security and, if so, what type? Is there an |
| they are to make a truly good investment decision. | | | | onsite manager? Will you offer air-conditioned units? |
| For example, if there are three competing facilities in | | | | These types of questions will naturally affect your |
| your immediate area, and each is 75% occupied, is | | | | construction costs and must be answered before |
| there really a need for a fourth one? Probably not, | | | | any effort in this type of investment is undertaken. |
| and you don’t want your business bottom line to | | | | When you assemble all the pertinent information you |
| rely upon your new facility somehow being more | | | | need, it is time to put your ideas into a solid business |
| marketable than what is already there. Full occupancy | | | | plan, as this will be essential to attracting any private |
| in other facilities, or simply a lack of them, are more | | | | capital or getting a bank loan to fund your venture. |
| what you should be looking for here. | | | | Overall, storage units can be a very steady and |
| Another things to consider is where the facility will be | | | | profitable form of commercial investing but do your |
| located. Is it near a heavy residential area? Ideally, is | | | | homework, treat it like a business should be treated, |
| it near several local apartment complexes? Answers | | | | and your success will reflect your efforts. |