subject: Self Storage: Second Class Investment? Not Anymore! [print this page] Investments are investments, especially in real estate. The rules haven't changed and the name of the game is still "Return." Then, perhaps, it should not be so surprising that a niche in the broad spectrum of real estate investing that was once considered to be an alternative, is fast becoming the new trend-setter.
Scott Meyers, President of Alcatraz Storage, sees a movement developing that indicates good things in the future for the self-storage industry. Investors are always looking for properties that will increase in value over time, of course, but they are also looking for a reliable and steady source of rental income. This is indeed becoming the case with self-storage facilities. Being in the business, Scott has noticed that when such properties become available, offers from seasoned investors from across the country often begin to pour in. He says that this is a powerful testament to the growing popularity of commercial, income producing properties in general.
The trend is readily observable in heavily populated regions of the Midwest like Chicago and its suburbs, for example, but there are numerous reasons for the rapid increase in the number of self-storage facilities in almost every part of the country. A perfect example is Florida, which has experienced a tremendous influx of people relocating from other parts of the country where homes are usually built with basements that afford additional storage space. In Florida, that is not the case. Whatever the reasons, the growth is significant and the interest in these properties keeps strengthening.
Many well-respected representatives of the world of finance and investment have been touting the potential of this scenario for years. Among them, Warren Buffett is a proponent of this type of investment. In addition to the built-in need for the services that self-storage units provide, and the attendant demand; the process of purchase and especially maintenance of these properties is basic and streamlined. The requirements for operation are relatively simple as well. Air conditioning, cleanliness and ease of access are the fundamentals. Space can be easily shared or subdivided into warehousing or other uses to maximize utility and revenue. Even the location, although a factor of course, is not the primary consideration as it is with other real estate investments.
The facts are clear according to Meyers, who owns several of these facilities throughout the Midwest. He is also an industry spokesman and conducts seminars on real estate investing and property management at the University of Indianapolis. In his spare time he addresses investor groups around the country. For him, there is no doubt that this is a sound and savvy investment option.
Self Storage: Second Class Investment? Not Anymore!
