There are more offsite storage facilities in America than there are McDonald’s restaurants…
It’s considered to be the FASTEST growing segment of commercial real estate and has been for over the past four decades!
If you’re a potential real estate investor who’s looking to get their foot in the door, then what better way to be inducted into the market?
Here’s how storage units could act as your head-start in the competitive world of real estate.
First things first, it’s important to recognize WHY this particular branch of commercial real estate has consecutively proven to be such a stable investment opportunity for 40-years and running.
It’s quite simple if you think about it… We as Americans live in a country that makes up the world’s largest economy.
The inhabitants of the United States tend to get a bit trigger happy with their spending habits, which leads to excessive accumulation and eventually results in the need for additional storage space for the items they’ve acquired.
Lucky for you, the majority of these people aren’t in search of a five-star hotel equivalent, when it comes to offsite storage facilities.
Prospective storage unit renters are simply looking for a safe, weatherproof place to stash their junk. Nothing too fancy.
This is all the more reason why you should pursue this field!
With more than 50,000 self-storage facilities in the U.S. alone and each 10-by-15 foot unit charging roughly $100 in rent per month, you can see just how profitable the business really is.
Rather than devoting your time and effort into flipping houses scattered all throughout the city, why not do the same for multiple storage units within the same location?
In comparison to the typical process of renting out, you can effectively skip the upkeep of storage units.
Forget about painting walls and replacing faucets. Unlike a home, the only upkeep that’s involved is to repair any major damages and occasionally sweep out the unit before a new customer arrives.
In addition, many experts consider storage units to be recession-resistant and it’s hard to argue otherwise.
Housing values have yet to fully recover from the plunge they took during the 2008 financial crisis; however, self-storage was virtually unaffected.
A lot of people tend to overthink the situation. In reality, there’s ALWAYS a need for these convenient repositories of clutter for people to turn to.
One example of the demand of self-storage is due to the retirement of baby boomers. This demographic is slowly parting from the workplace and starting to settle down in smaller homes now that their children are grown.
These people want to keep the belongings that hold a sentimental value, despite not having the space after the move, which drives business towards offsite storage.
Another instance includes small businesses using the units to store inventories.
I think you get the picture. Self-storage units have proven that they’re here to stay and shown a chance to test the waters of the real estate industry.
Don’t get me wrong. I’m not here to paint storage facilities out to be some high-class, untouchable business. I’m simply highlighting the profitability that it poses to future real estate investors, such as yourself.