SELF-STORAGE INVESTING
INVESTMENT & DEVELOPMENT
The Self-Storage industry proved resilient in the recent recession. During the recession, construction of self-storage facilities came to a screeching halt. Tight lending and apprehension regarding the future led most developers to wait and see what would happen.
If you are considering investing in self storage or expanding your current facility, consider this:
The self-storage industry demonstrated remarkable resilience during the recent recession. While construction of self-storage facilities paused due to tight lending and economic uncertainty, the industry bounced back quickly. This stability makes self-storage a reliable investment choice.
Self-storage thrives on change. Whether people are moving, changing jobs, getting married or divorced, starting small businesses, or growing their families, self-storage provides the necessary space. During recessions, storage demand shifts as renters need space due to home foreclosures, downsizing, or temporarily living with family. As the economy recovers, storage facilities see increased activity with more home sales and moving activity.
Financing for self-storage projects is readily available and remains one of the safest commercial investments with the fewest defaulted loans. Banks continue to offer loan packages but now require more from developers. Expect to pay approximately 25% down for conventional financing, or as low as 10% with SBA programs.
Self-storage facilities maintain high resale value due to the industry’s strong performance. Buyers are willing to pay top dollar for existing facilities. Trachte’s knowledgeable staff can guide you in building a facility that will attract future investors.
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 – especially during a recession. It’s an industry streamlined for success. Plus, it’s built to generate income right from the start while appreciating over time. And with a proven, experienced, smart self-storage building supplier on your side, profit potential has never been better.
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