Selfstorage

Americans have become a population of pack rats. Their need for storage space grows larger every year. As a result, the self-storage industry is booming. Although big players such as Shurgard attract most of the attention, smaller investors also can profit in this business. Figure 15.3 shows several sample listings from loopnet.com. You can see from these listings that self-storage can yield reasonably good cap rates.

Often, you can earn even more if the site will accommodate expansion. Alternatively self-storage can provide a profitable way to hold land while you wait, say 3-10 years, until you redevelop the site into a higher and better use (e.g., retail, offices).

Savannah, Tennessee

Status:

Active

A-1 Mini Storage consists of 79 total

Price:

$350,000

units with a good unit mix and is

Bldg. Size:

14,340 SF

situated on 3 acres of land providing

Cap Rate:

9.5%

lots of room for expansion.

Primary Type:

Self/Mini-Storage Facility

Redding, California

Status:

Active

3,500 SF of construction buildings/

Price:

$295,000

offices/bathrooms with yard space.

Bldg. Size:

3,500 SF

Space to add approximately 100

Cap Rate:

10.80%

storage units on unused land.

Primary Type:

Flex Space

Denison, Texas

Status:

Active

83 Watertight mini storage units on

Price:

$335,400

1.7 Acres in Denison TX, near Lake

Bldg. Size:

9,575 SF

Texoma. Good visibility, fenced with

Cap Rate:

9.30%

electronic gate. Construction 2003.

Primary Type:

Self/Mini-Storage Facility

Klamath Falls, Oregon

Status:

Active

Built to suit Mini and RV storage

Price:

$150,000

facility in high-density Mobile

Bldg. Size:

5,200 SF

Home community and Residential

Cap Rate:

8.00%

neighborhood. Cost includes 48 self-

Primary Type:

Self/Mini-Storage Facility

storage spaces.

Figure 15.3 Sample Listings for Small Self-Storage Centers

Figure 15.3 Sample Listings for Small Self-Storage Centers

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