Self Storage offers investors the opportunity to diversify their investments with relative safety and confidence. The Self Storage sector has proven to be one of the most robust real estate segments over the last few decades.
Here are some of the features which makes self storage business an exciting investment opportunity:
Self storage investment as a business model is an attractive preposition for entrepreneurs seeking a business resilient to economic downturns. Though self storage is an easy and profitable way for people to get into business for themselves, it still requires a fair bit of planning and some start-up capital to be built and launched.
Here’s a quick look at the key factors every new entrant needs to consider when building a new facility.
Location and Market Analysis: The right location and a thorough market analysis provide the best basis for success. Research will quickly identify whether your conversion site has potential. If competing facilities in an area have 90% or more occupancy, demand is clearly high! and the location may just be apt for your self storage construction. The ideal location is visible to traffic, has good access, and is close to population centres.
Demographics: Demographics and proximity to population centres will play an important part of your self storage plan. Anyone with limited storage will provide demand if they want to keep their belongings safe. Apartment complexes and mobile populations always need extra or temporary space. Businesses are also significant storage users, with typically over a third of rented space given to this sector. Therefore, the best locations will have proximity to both residential and commercial districts. So, demographics is an important factor you need to consider when preparing the investment plan for your self storage business.
Self Storage Business Plan: With the in-depth information you’ve gathered on Self Storage with market research, you can start writing your business plan. This is essential, especially when you need financial help from a bank. They need to see the potential of your business proposal in facts and figures; a business plan does that.
Financing: If you need a bank, an investor or another party to help finance your project, a feasibility study and business plan will be essential to secure monetary funds. Janus International can assist you by providing project costs and financial projections. We will work with finance companies and may be able to assist you with purchasing our products. We can guide you and help prepare you prepare a self storage investment plan.
Maximising Profit: Optimum space use with unit size and mix is the first step to maximum return. However, climate controlled areas also increase rates along with freestanding relocatable units around your facility. So, before you start buildings your self storage facility, use our self storage check list to ensure you have all areas covered for your construction project!
Self storage facilities can be purpose built or can be created by converting an existing building. Conversions are more common, as owners of empty buildings use self storage as an effective means of adding new income.
Janus International is an expert in both new and conversion projects. We provide end-to-end support, from planning a self storage facility to its final handover. Contact us today, to learn more about how you can turn your self storage venture into a profitable business.
This self storage investment guide provides a quick overview of the basics to those who are planning to start a self storage business. If you would like further information, Janus International is available to assist you. Contact our team; we would be delighted to answer any questions that you may have.