Self-storage has the potential to be a lucrative business, but it’s critical to think about all of your choices before making a selection. We’ll talk about 3 simple reasons why self-storage is such an excellent investment choice in this blog article, as well as some of the benefits you can anticipate!
Reason 1
Self-storage is a fairly recession-resistant investment. In fact, even during the Great Recession from 2007 to 2009, occupancy at self-storage facilities only dipped an average of 0.64%. Compare that to the U.S. homeownership rate which fell from 69% in Q41907 to 62.% by Q11909 – a full seven percentage points! Clearly, people still need a place to store their stuff, even during tough economic times.
Reason 2
Self-storage offers investors a safe portfolio hedge in the face of economic downturns, as well as high returns. Performance is comparable to that of the overall economy with many commercial property types (e.g. offices, retail, industrials). They perform well in a good economy and poorly in a bad one. In other words, their performance mirrors.
Reason 3
There are other reasons to like self-storage as an investment, as well. For one, the properties are relatively easy to manage. There is no need for on-site staff, and security can often be handled with cameras and gates. Additionally, self-storage is a very fragmented industry.
All in all, self-storage is a great investment option for commercial real estate investors. The sector is growing rapidly, and tenants are more likely to renew their leases than traditional commercial tenants. Additionally, landlords can charge higher rents without fear of losing occupancy rates.
If you’re looking for a high-yield investment with stability, self-storage might be the investment for you. Why not chat with one of our experts about making passive income from self-storage? We have many different options for you!
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