Self Storage Investment Articles

In today's competitive business landscape, customer service is not just a department; it's an ethos. For industries like self-storage, where the product is often perceived as a commodity, service can be the differentiating factor that drives customer loyalty and, by extension, profitability. In this article, we'll explore the direct correlation between top-notch customer service, customer loyalty, and increased profitability in the self-storage sector.

Few asset classes have consistently demonstrated resilience during economic downturns as self-storage facilities have.

When it comes to the prosperity of a self-storage facility, no team member holds as much sway as a proficient manager. Unfortunately, some facility owners overlook the significance of not just having a good manager but also retaining them long-term.

Before investing in a self-storage facility it's crucial to do your homework and carry out a comprehensive due diligence process before finalizing the purchase of the asset.

Like any investment, it's essential to understand the key performance indicators (KPIs) for self-storage to maximize returns and manage risks effectively. This article will delve into some critical KPIs for self-storage investments, such as occupancy rates, net move-in rates, rental income, expenses, and more. Occupancy Rate

In an unpredictable economic climate, savvy investors seek out opportunities that can weather financial storms. Here's why self-storage is a resilient and rewarding investment during economic uncertainty, covering the '4 Ds' of self-storage, the recent trends in remote work, and the sector's historical performance in bear markets.

Self-storage investments have become increasingly popular in recent years, offering attractive returns and stable cash flows. This blog post will discuss why investing in self-storage facilities can be a lucrative opportunity for investors, focusing on the growing demand, excellent tax benefits, impressive performance history, high-yield potential, recession resilience, and low overhead costs.

Owning a self-storage facility can be a lucrative investment, but to maximize its potential, it's crucial to find ways to increase its value. In this blog post, we will discuss various strategies to achieve this, including revenue management, improving the appearance of the asset, marketing, cost reduction, utilizing technology, and expanding the asset.

As a savvy investor, you're always on the lookout for profitable opportunities. One such opportunity that has been gaining traction in recent years is investing in self-storage facilities. With more and more people needing extra storage space, this industry has become an attractive option for those seeking solid returns.

Entering into a self-storage contract typically relies on information provided by the seller. However, discovering undisclosed problems during due diligence can necessitate contract renegotiation. This article outlines a strategic approach to successfully renegotiate a self-storage facility contract, ensuring a mutually beneficial outcome.

When buying a self-storage property, you always want to get the best deal you can. And a big part of that is how low a price the seller will accept. Are there any signs of what direction that will go? How can you guess how low a seller will go?

The CEO of Brooks Brothers – the renowned American clothier that has been a mainstay of men’s fashion for over a century – once said “we’re not good because we’re old, we’re old because we’re good”. That’s an interesting take on the relation between age and success. What’s the meaning of this quote and how does it relate to self-storage investing?

The U.S. self-storage industry has been around for half a century, but it has probably not seen as much structural change in all those decades as it has since 2020. The Covid era ushered in some megatrends that have rendered good storage facilities bad and hot markets cold. Yet there is opportunity amongst the turmoil if you position yourself correctly.

We all heard about self-storage buyers who would buy properties in major markets at low cap rates in recent years – often at cap rates just slightly above interest rates. 4% was a common theme, and that was based on a 3.75% mortgage. But those same buyers are in big trouble right now, and will likely either lose their properties in the years ahead or never hit any type of meaningful return on investment.

Many buyers think of a self-storage facility investment as being something in the millions of dollars. In the heart of the city that’s typically true. But if you look at storage properties in suburban and exurban markets you’ll find that storage facilities come in all types of shapes, sizes and price points. And that means that adding a storage property to your portfolio is attainable. So would that be a good decision for you? Here are some things to think about.

When you are looking for a self-storage facility manager, you often surmise that the best course of action is simply to steal the manager from the competitor down the street. It seems like a smart plan – you already can see what you get based on that property’s performance, right? The truth is that hiring the manager from down the street is not always the best plan.

Webster’s Dictionary defines “bollards” as “any of a series of short posts set at intervals to delimit an area (such as a traffic island) or to exclude vehicles” but self-storage owners define them as a way to save thousands of dollars on building repairs on a regular basis. Indeed, installing bollards in your self-storage facility may be the best idea you have this year.

When looking for a self-storage facility manager, one thought many owners have is to simply steal one from the storage property down the street. While there’s no question that this candidate may know the storage business and be available for a certain price, this strategy does not always result in the intended consequences. Here are the reasons that “hiring away” a competing storage manager rarely works.

America is rapidly changing as consumers embrace new lifestyles and discard those that no longer interest them. Meanwhile the U.S. economy has become ever more unstable and unpredictable, and the result are more severe cycles than ever experienced in the past. So how does self-storage investing fit into this rapidly changing America? Year agoa the term “megatrend” was coined to mean giant shifts in consumer behavior that can impact all America life. Here are the megatrends and the anticipated results:

There is a general misconception that larger players dominate self-storage acquisitions and make it hard for smaller buyers to compete. While it is true that large players like Public Storage do own the largest facilities due to high cost and difficulty in obtaining debt for those properties, the truth is that smaller players definitely have the upper hand in the majority of storage purchases. Why is that?

The second largest capital investment of any self-storage facility – after the building – are the roads and parking areas. These are an essential part of everything from access to aesthetics, and the lenders are phobic about their type and condition. They are expensive to install and to maintain. So the bottom line is that it’s important to understand what the options are for roads and repair and how those choices will impact your investment returns.

There are a finite number of good storage deals to buy in any given market in the U.S. And because of this restricted supply, many markets can appear “stale” after your initial efforts, as you have no control over what’s available and may have to wait for a mom and pop seller to make the decision to move forward. Since the more deals you look at, the better your odds of success, what do you do when you can’t find any good storage targets to buy in your market?

Everything runs in cycles, and you’re seeing that first-hand with the U.S. stock market which has begun its predictable descent. The market had a great run but it’s clearly over. If you are getting disgruntled or have lost confidence with stocks, then you might consider another investment option: income properties. And if a self-storage facility is in your list of income property resources, then here’s a comparison between storage investing and stock investing going forward.

There are many predictions for the stock market in 2022, and few of them are good. Meanwhile, the arrival of “stagflation” is going to usher in a stronger market for real estate in general and self-storage in particular. If you’ve been parking your money in traditional investments, maybe 2022 is the year to start exploring self-storage investing.

Wayne Gretzky once said “you miss 100% of the shots you don’t take” and that’s also true for self-storage investors.