Like all businesses the storage sector was founded out of necessity. Humans have always been capable of storing their stuff. Historical evidence indicates that Ancient China had public storage facilities. Over the years, demand for secure storage has risen exponentially. Florida is home to many modern storage facilities. These units were invented in the mid 1950s. Self-storage units are growing in popularity each year. In 1990, storage demand stood at its highest. As storage space increased, so did the demand for new facilities in the US. The New York Times published the 2009 report “The Self Storage Self,” which revealed that in the period 2000-2005, more than 3000 storage facilities were created each year. Storage remains in high demand. According to the website here Association of America (SSA), self-storage facilities offer 2.3 trillion square feet. It is more than three-times larger than Manhattan in terms of square footage. One in ten US households has storage space.
These statistics can lead you to wonder if you might be interested in owning a piece of the self storage pie. What are the pros and cons?
It is important that you research the best place to store your items. The location of self storage is crucial for a business to succeed. When you are searching for the best location, consider cost, property taxes, assimilation regulations, and other factors. Before you purchase any property, it is important to do extensive research. In the past decade, self-storage has been a popular option for landowners and entrepreneurs with large land tracts. These buildings can be a poor investment due to their location in densely populated areas. This limits the number potential clients. A well-located property will bring in more clients. This will increase the return on your investment. The first year of your investment will result in 6.755% returns.
For a self storage company to be open, it will require a large initial investment. Finance may be offered by national lenders. Many professionals in the industry recommend Wells Fargo’s Self-Storage Division. Wells Fargo offers programs designed for self-storage entrepreneurs. The miniperm is one program that pays interest for the first year. Three years later, amortization begins. As you reach debt coverage goals the amortization increases over the next three year. This loan is one the best. You may only need a mini-perm loan to complete your project in one year. However, it could take years to fill these units. It would be very difficult for you to get a loan once the construction is complete.