Why Invest in Self Storage
November 12, 2008
The self storage industry is known to perform well even in a stagnant economy, but many wonder how itís surviving the current recession not to mention the plunge on Wall Street. Rest assured the self-storage industry continues to prosper.
If you are considering investing in self storage or expanding your current facility, consider this:
- City approval: timing has never been better to get approvals from city and county boards. With housing construction and commercial projects halted or altogether abandoned, communities are welcoming ways to stimulate growth. And this makes great opportunity for industrious self-storage developers.
- Renter demand: one trend never changes: change. Self storage thrives on change - people moving to new neighborhoods and new jobs, marrying or divorcing, starting small businesses, growing their families. However, with the current economic conditions the use of self storage has changed. Fewer units are being rented by homeowners moving from home to home or storing their possessions during a remodel. Instead, renters need storage due to home foreclosures, downsizing, or to make room to temporarily live with family. By in large, demand for self storage continues to be strong.
- Financing: financing for self storage projects is still available. Of all commercial construction, itís still the investment that experiences the fewest defaulted loans. Because of this, banks continue to offer loan packages but are now requiring more from the developer. Owners now need over 30% down on their business loan instead of 15% as in previous years. Furthermore, the term of the loan has been shortened from 30 years to 20 years.
There's nothing steady about the stock market, especially these days. But self storage is a tangible investment, one that stands the test of time Ė especially during a recession. Itís an industry streamlined for success. Plus, itís built to generate income right from the start while appreciating over time. In fact, many existing owners are planning expansions throughout 2009 to capitalize on the mounting demand. And with a proven, experienced, smart self-storage building supplier on your side, profit potential has never been better.
Start making smart money with self storage, listen to our free "Investigating Self Storage" webinar now!