Office buildings and apartment complexes are often top of mind when it comes to commercial real estate. While these options make up two of the largest categories of commercial property, there are many other types of investments.
Storage facilities, although often overlooked, can provide a strong return and cash flow.
Why Invest in a Storage Facility
Here are a few reasons why you might want to consider investing in a storage facility:
Demand
As the population and economy grow, so do our storage needs. Rising demand for storage space helps boost property values and rental income.
Turn Time
Compared to other types of rentals (residential, office space, etc.), storage facilities typically have a very short turn time. Smaller self-storage units may take less than a couple of hours to have cleared out and ready for the next renter.
Operating Expense
Operating expenses are relatively minimal compared to other commercial real estate investments. Lower taxes, fewer management requirements, and minor utility expenses (especially if your storage is not temperature-controlled) keep operating costs down.
Group of Renters
Storage facilities bring value to a broad group of renters. Both businesses and individuals consistently use self-storage for various needs, minimizing vacancies and turnover.
Number of Units
Self Storage typically involves owning a large number of units. The greater quantity means that a single renter deciding to leave minimally impacts cash flow.
Make a Game Plan
You should start by mapping out your long-term investment goals and making a game plan to get yourself there. Even if a storage facility is not your first investment, you may consider adding one to your portfolio in the future.
Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.
We give out $250 gift cards for referrals that become our real estate clients.
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