Self Storage
What’s an investment-grade or “Class A” self-storage property?
Located in a major MSA
Excellent road or highway exposure, ditto for access
Brick, block or tilt-up construction surrounded by asphalt or concrete
New, spiffy, clean, well-maintained, minimal deferred maintenance
Strong market fundamentals and/or high barriers to entry
90 percent or higher occupancy
Top amenities: electronic gates, alarms, exterior lighting, video surveillance
On-site managers
Demand for self-storage has been increasing for a decade, with recent studies showing that the majority of Americans will have used self-storage at least once in their lives. There are so many benefits to investing in a self-storage property, they are almost impossible to list. Often called a recession-proof investment, self-storage properties offer stability in a way no other property type can.
The start-up cost of a self-storage facility is typically lower than that if a residential property because external beauty is not necessarily the focus. They can be placed on busy streets or off of highways in more industrial, utilitarian buildings and require little to no landscaping or grounds maintenance. Maintenance in general, is left up to the consumer, as the units they rent are not intended to be lived in.
The intrinsic stability of the self-storage property comes thanks in no small part, to the nature of people. The average consumer will, in most cases, amass more objects than he or she can store herself. Then average consumer is also hesitant to throw these things away. Self-storage has for the past fifty years, been the answer to that problem.
On the owners side, the benefits are endless. The high volume of tenants means there will very rarely be a cashflow problem, or a situation where cashflow is dependant on a single tenant. Changes in the market very rarely affect the self storage industry, as downsizing homes only implies a larger need for self-storage. All in all, it's a great investment opportunities for the experienced or beginner investor.
At Genard Company, we bring our direct experience in the self-storage sector, having successfully managed and profitably sold our Clima Safe Storage portfolio in 2022. We continue to maintain a stake in the industry through our part ownership of Safe Space Storage. With our real industry experience and all the tools at our disposal, we can help guide you through the exciting process of opening your own self-storage facility.