How to Evaluate a Market for Self Storage
HTML-код
- Опубликовано: 16 сен 2024
- Before I got involved with self-storage I was stuck on a treadmill. Yes, I made good money, but it was my clients that owned my time and not me. If I wanted to make more money I had to put in more hours. If I stopped working money stopped coming in.
Self Storage changed that for me once and for all. And I want to show you how it can work for you.
Self-storage facilities investments are a quiet but growing sector of commercial real estate. Based on current demographic trends, they’re ready to benefit substantially.
You see, we live in a consumer culture. Americans love to buy stuff. At the same time, the average size of the American home continues to downsize. Which means people need a place to put all that stuff.
Enter self storage.
At this point, almost 10% of American’s use self storage and the industry has grown to bring in over $20 billion dollars in annual revenue.
I want to show you how to get started in this industry and create true financial freedom.
THIS ISN’T GUESS WORK - IT’S A REPEATABLE MODEL
With over 1 million square footage of self storage facilities across four states, we’ve created a scalable model that works.
We seek and purchase under performing facilities. When we lay our modern we know almost exactly how the asset will perform in any given market. Our strategy has worked in large booming markets as well as extremely small rural areas.
Knowing how to read the market though, is a major key to that success. It's the big question everyone interested in storage wants to know - how do you evaluate a market for self storage?
There are a lot of considerations and calculations to take into account, but it's much more simple than I think a lot of people make it out to be. You just have to know what to look at, and that's exactly what I'm going to cover in this video.
I hope you all enjoy this look into the self storage market, and please be sure to send us your questions and comments!
Until next time,
AJ
---------
Self Storage Income Website: www.selfstorag...
Self Storage Income Podcast:
- iTunes: podcasts.apple...
- Stitcher: podcasts.apple...
![How to Double the Value of a Storage Facility [Keys to the Value Add Strategy]](http://i.ytimg.com/vi/9MdIAEPmTaY/mqdefault.jpg)
![How to Double the Value of a Storage Facility [Keys to the Value Add Strategy]](/img/tr.png)
Great content, presented in an clear, concise way! Thank you so much.👍🏻👍🏻👍🏻👍🏻
Glad you enjoyed it G Smith! Thank you for the comment and the support!
Ok, this was Brilliant. I'm getting ready to launch into Storage and this was the most clear and concise way I heard to evaluate a market. Please take this Video DOWN, so my competitors don't learn this...
🤣🤣🤣 Excited to hear it Thomas and happy to help!
You should look into the Four Quadrants Model developed by DiPasquale and Wheaton. While a bit unwieldy and difficult to interpret at first, it will help you explain some of this material a lot better.
Thanks James, I'll definitely check it out!
Great content. Thank you for sharing your knowledge and experience.
Hey @joeweston3185, thanks for the comment. Glad you enjoyed it! 👍
Thank u for the knowledge
Just read your book. Very helpful. Thank you!
Sweet!! Thanks ChakRaw4Life!
Great video AJ! Thanks!
Hello! Love the educational resources you are providing on this topic. I'm looking at starting a development in a city in Louisiana. How exactly would you go about determine the occupancy rates and total square footage of the competition in my area? Just calling and asking how many units they have available and asking to drive through and counting their units? Also curious on how you'd determine sqft per capita as well as sqft planned to be developed. Thank you very much for these invaluable resources!
You're welcome Evan! It's a pleasure! As to your questions (you're definitely on the right path) - Determining occupancy at facilities in your market is easy. Absolutely call them, ask them what units they have available, what sizes, etc. Find out what units are full (or in demand) at each facility/in your market. Go visit these facilities, secret shop them, get all the information you can. The more you build around what you know, the less risks you have. Square foot per capita - I like to use Radius+. It's a software just for this exact thing - to help analyze markets for storage. Square footage per capita is one of the metrics they provide. You can also size up the facilities like you mentioned, counting doors, square footage, number of facilities, etc. Finding out planned square footage on the market is easy, just talk to the City or County building department/permitting and they can tell you if there's any storage planned or approved, and so forth. All awesome questions! Thanks Evan!
@@SelfStorageIncome Thank you so much for the reply. This is extremely helpful! You could definitely monetize all of this expertise into a paid online course or something like it for sure, so the fact that you're giving it out for free is awesome. I've started listening to your podcast last week and got your book a couple days ago. Excellent stuff, Sir; keep it up!
Happy to help Evan! Thanks for all the awesome support!
Excellent Video!
Thanks The Watercat!
Got the book on the way!
Thanks for picking up a copy Robert! Let me know what you think!
Hey man love the content, what platform do you use to see the 3-mi occupancy and fill up rates? Appreciate the help!
This is such a good ed resource. One question, how do you come up with the accurate population for the area you are looking at? Thank you
Thanks Jordan! One way you can find population information is from census studies. If you google census info for a given area you're looking to investing in, you should be able to find population info. Some cities also have great demographic and population info.
where can you find public info on current sq ft planned/under construction in a city?
I was going to ask the same question. AJ, how
do we find this information?
Thanks Stephen and Gary, this is a great question! I'm working on upping the content game here on RUclips and will put this down as a video we need to record for you guys. Already have two new videos up and they look sooooo much better than these old ones lol.
Try yardi matrix
we are thinking about buying some land to offer outdoor storage for boats and rvs. what are some things to think through
Thanks for watching and for your question Kyle! Supply and demand are number one in storage. That said, you need to confirm demand and also evaluate current supply on the market. Evaluating future supply (facilities to be built) is also important. Just contact the City where you live and they can provide you with any info on planned developments. Outside of that, like with any storage facility, you'll want to evaluate operating costs, management, price per square foot you can charge, etc. I'll also put this topic on my list of videos to record, so keep an eye out. I've been recording videos like crazy and am trying to pump out a lot more good content here on RUclips, so thanks for the good question!
I'm interested in a facility for sale. I found out by cold calling. The town has 10,800 people and has stable employment. There are 6 total facilities, including the one in interested in. It has a competitor literally right next door. The one I'm interested in looks a bit bigger. How should I proceed?
Hey thanks for tuning in Calvin! Analyze the market, ensure population growth, identify diverse economic drivers (which sounds like you've already done), ensure demand (secret shop facilities and make sure they're full), identify how you can add value (what can you do more of or better than the current owner?), work with the seller and identify what the value of this facility is to you, put in an offer, go through due diligence, and hopefully.... you just found yourself a storage facility.
How do you research how many square feet are being built in a market?
Great question here John. You can do a couple things. There are softwares out there that can help calculate this for you (but any decent one will cost you). You can also calculate this roughly using Google maps. You can also get to know the owner/operators in that area and ask them directly how big their facilities are.
Hey brother
Is storage considered insustrial or commercial
I overheard in different markets this varies
Ideally, you want it to be considered commercial. How storage is zoned does matter on how the city views the property, so it can vary. Thanks for tuning in!
How do you determine if there’s REIT competitors in the surrounding area?
You can do this a couple ways. Search your chosen markets online and see if there are any REIT's in the market. You can also drive around and physically look at the competition and identify whether or not there are REITs there. Thanks for the comment Saelee and for tuning in!
@@SelfStorageIncome thank you! 🙏🏻
Any suggestions on building a facility
We're going to dive into building in a video here soon. We're working on upping the content game here on RUclips and we'll be sure to put this on our list of to-do's.
Thanks Ryan!
Do you invest in Canada? or just USA?
Haven't purchased any facilities in Canada yet and currently in the US only.