The Next Step
By now you have probably decided self storage is worth investigating further. If you are wondering if now is a good time, consider the following:
- Exceeds Stock Market
Self storage offers an excellent return on the money invested. Both short term and long term, it exceeds stock market returns.
- Capture Market Share
Building now, when others are apprehensive, is a smart strategic move to capture market share. Proceeding now may delay others from pursuing, or altogether deterring, them from developing a competitive project.
- Opportune Time to Build Net Worth
Building net worth early in life can make planning for retirement easier. Even if interest rates climb, it is still an opportune time to build net worth since commercial loans are typically short term and interest rates will fluctuate. This allows for refinancing when interest rates come down. It is better to get started now with self storage to build your business along with market growth.
- Build a Solid Business
Self storage demand is driven by life events: downsizing homes, job transfers, divorce. Additionally many businesses opt to outsource storage needs. The time is now to develop a facility and build a solid business.
- Contractors are More Competitive
When commercial construction is down, contractors are more competitive with bids.
- Need for commercial use is growing.
More people are also becoming at-home entrepreneurs and seek alternative storage other than their home or garage.
- Easily Managed
As a low cost investment, self storage can easily be managed by individuals with little or no development experience. The initial investment is much smaller and operating expenses are much lower than other types of real estate investments. The management task, unlike many other businesses, is not labor intensive.
- Higher Return on Investment
Self storage offers a higher return on investment with a comparably lower failure rate than many other real estate ventures or new businesses.
- Start Small and Grow Over Time
Self storage allows you to start small and grow over time.