A Better Definition of Self Storage
WHY SELF STORAGE?
Long Term Security
Tenants rent long term, with most staying anywhere from 1-3 years. They are also slow to move out once they’ve rented space, so there is less turn-over. It’s a lot of work to move and people hate moving. This also means they will tolerate rent increases. Which ultimately provides predictable and consistent cashflow every month.
According to the NAREIT the self-storage asset class outperformed other sectors in the most recent recession. When the economy is good, and disposable income is on the rise, people buy more “stuff” and need a place to store it. In the midst of the recession, when homeowners were losing their homes to foreclosure or downsizing to apartments, they also needed a place to put their stuff. Where do they go? Self-storage units!
Nearly 73% of self-storage properties remain in the hands of older Mom & Pop operators. With the baby boomer business owners now reaching retirement age, there’s a plethora motivated sellers on the market. Which provides the perfect opportunity for our objective of consolidation.