Investing in Self Storage facilities will allow you to build equity while attaining great cash flow. Currently, there are an estimated 40,000 Self Storage facilities in the United States, with 1.4 billion feet of self storage to be exact!
The Self Storage industry is dominated by the “Big Boys”- Self Storage R.E.I.T.’s such as Extra Space Storage, Sovran Self Storage, and Public Storage to name a few. However, there is enormous opportunity for the individual investor to create an amazing income stream from participation or outright ownership of Self-Storage, Mini-Storage, or Mini Warehouse properties. Many have taken advantage of these opportunities to become financially independent. Some have done this by building their own Self Storage facilities or buying distressed properties, or by investing with companies that specialize in buying, re-branding and consolidating Self Storage, Mini Storage and Mini Warehouse properties.
An Intuit on-line article posted by Josh Ritchie states “It’s rather easy to see why mini-warehouses and self-storage units enjoy an average pre-tax profit margin of 12.3%. When you get right down to it, such facilities have almost no ongoing costs. Other than perhaps a mortgage for the land and building they occupy and some minimal administrative staff, all a self-storage business does is store other people’s belongings. Fancy office space, sky-high utility bills, human resources teams, in-house lawyers… in most cases, none of these costs come into the picture. Thus, the average self-storage facility can simply rent space to consumers and pocket a handsome profit with very little overhead to consider.”
According to Wikipedia, “One in ten U.S. households now rent a self storage unit. The growing demand for self storage in the U.S. is created by people moving (some 40 million Americans move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. In February 2011, 73% of storage facility owners responding to a survey by selfstorage.com reported revenue as stable or growing from the prior year.”
Industry experts and owner/operators acknowledge that a Self Storage, Mini-Storage or Mini Warehouse business has development costs that are one-third to one-half that of multi-family, office, retail, or hospitality properties. They also continuously report operating costs that are a fraction of other real estate properties and show the break-even point as being much lower than most other real estate ventures. It is a verifiable proven fact that, compared to other real estate investments, Self-Storage, Mini-Storage or Mini Warehouse businesses have the ability to absorb economic fluctuations while maintaining value during both good and bad economic times.
Does this sound good or what? Self-Storage facilities, Mini-Storage facilities and Mini Warehouses are a consistent, growing industry. They have low overhead, minimal administrative staff needs, low exposure to liability claims or lawsuits, and a record of steady, stable profits regardless of the state of national or regional economies. People generally invest in self storage because of relatively low monthly maintenance costs, high profit potential, and the general ease of ownership.
The Devcon Group, LLC has identified and is pursuing some great opportunities in the Self-Storage, Mini-Storage and Mini Warehouse industry. Whether you need a consultant to help you identify a property for development as a Self Storage or Mini-Storage business, or you need building the facility, or if you simply want to invest in an industry that has demonstrated strong, stable earnings, we welcome you to visit our website at https://www.thedevcongroup.com to get a look at what we are doing and to explore our current offerings in this industry.
Tommy Hammond, President
The Devcon Group