Investing In Self-Storage Units
Let's talk a little about investing in self-storage. When is comes to investing in commercial real estate, you have the option of engaging in several types of property-based strategies. In this post I'm going to take a look at one of the fastest-growing areas of investing, which is, of course, self-storage, a burgeoning real estate investment sector that benefits from the people who need a place to store their extra items and possessions.
What is Self-Storage? #selfstorage
Businesses that offer self-storage give people a space to store their possessions. Why would a person choose to store their stuff in a big box? Well...
1. Because they either don't have space to store it themselves for the moment.
This would apply in cases where people are moving or in-between living situations.
2. They just don't need to have access to it for the time being and don't want to store it.
See: old family heirlooms, items they will be selling in the future, items they don't need but just don't feel like getting rid of.
A Couple of Fun Facts About Self Storage:
- Self-storage facilities generate more than 20 billiion dollars in revenue annually in the U.S.
- There are nearly 50,000 facilities in the US alone.
- Several TV shows, such as "Storage Wars" are based on the popularity of storage facilities.
Why are storage facilities a smart investment?
1. Storage Facilities Continue to Grow #selfstorageAppleton
Despite the economic downturn of the late 00's, the self-storage industry was hardly damaged. Even people who were displaced by the recession had to have places to store their stuff, so they moved it into storage. And, as the economy has adjusted, self-storage has seen major growth.
Think about it; when stuff is stored, it's a real hassle to move it or clean it out. So often times, it just stays exactly where it is-- and in this case, it's in the storage unit. So there is a lot of storage space being rented that is "long-term" in nature.
2. Storage Facilities Are Easy to Manage #selfstoragefoxcities
The management of most storage facilities is fairly routine. There is never a ton of work to do after a tenant moves out as there isn't much possibility of damage or mistreatment of a unit.
Having an onsite manager who can handle new leases and online marketing is recommended, but in reality this is a position that can be easily filled and managed.
3. Storage Facilities Are Adaptable and Stable #selfstorage
With storage facilities, you don't face the same long-term problems that can occur with extended vacancies because your customer base is relatively large. Likewise, since the rental of storage spaces is a short-term scenario, owners can react to changing market conditions swiftly and easily.
So you can see why storage units are an investment worth looking into. In fact, I'm so bullish on Investing in Storage Units that I've begun specializing in it myself in the last couple of years-- with fantastic results.
So if you are in the Appleton/Fox Cities/Green Bay/Easter Wisconsin area and are interested in either selling, investing in, or buying storage facilities, please contact me today!
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If you are thinking about investing in self storage facilities, Jacci Konkle has some advice for you! Read the blog post here: http://www.sellmyappletonhouse.com/realestateadvice/2015/7/7/ask-jacci-why-should-i-invest-in-self-storage
Want to invest in self storage units? Read this post: http://www.sellmyappletonhouse.com/realestateadvice/2015/7/7/ask-jacci-why-should-i-invest-in-self-storage
As an Appleton (Wisconsin) based realtor and investor, Jacci Konkle has the drop on the latest and greatest in real estate investing. In this blog post, she tackles the topic of self-storage, which is hot hot hot! http://www.sellmyappletonhouse.com/realestateadvice/2015/7/7/ask-jacci-why-should-i-invest-in-self-storage