Self-storage investing is gaining popularity. It has demonstrated excellent revenue potential while also having lower maintenance concerns than other CRE investment types. However, before investing in self storage, there is a lot you should learn. This post will cover the factors to consider before entering the self-storage investing world.

Factors to Consider Before Investing in Self Storage

Market Conditions

The first point is to consider the value of investing in different places. That means evaluating the market conditions in the region where you plan to invest. Factors like solid population growth and economic development indicate a good market for self-storage investing.

New vs. Existing

One important question is whether to invest in an existing facility or build a new one. Both options have pros and cons. An existing facility will come with cash flow and be easier to finance. However, you’ll have more design control when building a new facility.

Target Customers

Investors should consider the target customers of the self-storage business. If you buy an existing facility, it might already have a customer base. There might also be various segments you could consider. For example, you could offer storage for businesses, college students, or multiple forms of specialized storage.

Property Locations

Once you know an area is ripe for investing in self-storage, you can consider locations. For example, you want your location to be accessible to your target customers. Visibility is also an essential factor for many self-storage facilities.

Regulatory Compliance

Investors should also research the regulatory landscape where they plan to invest. Look into the laws that govern self-storage businesses. Consider your insurance and tax obligations. You’ll also need to learn about the local zoning laws and building codes.

Maintenance and Management

One factor that makes self-storage facilities attractive to investors is that they are typically less expensive and easier to manage and maintain than other commercial real estate investments. However, you should learn about management and maintaining these facilities before investing. Good management and maintenance ensure the financial health of the investment while protecting the asset.

Property Evaluations

Investors also need to learn about evaluating self-storage properties as investments. Knowing what to look at will help you make better decisions when investing. Location and property condition are obvious factors to consider. You should also consider the potential income and occupancy rates. Operational costs are also crucial for performing a complete property analysis.

Are you looking to invest in self storage in the Columbus, GA, area? Click here to contact The Cummings Commercial Team. We are local CRE experts ready to help you achieve your goals.

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