By Laura Gee, Content and Social Media Manager, USstoragesearch.com
For several years now the less-than-booming economy and the housing market have been a common topics of conversation that have had a significant impact in this country. Over the past several years, people have been forced to down size, sell homes at a loss, find a new job, and many businesses have gone under. Needless to say, it has been a rough time for many. One sector of the economy, however, for the most part has not had it as hard at the rest–the self storage industry. The self storage industry has remained a real estate investment option of choice throughout these difficult times.
According to a press release from Off Market Association (OMA), Terry Robinson, President of Genesis Capital and the Off Market Association said, “…self storage, which has provided commercial investors with high yields and stable performance.”
The storage industry is still dominated by smaller, mom and pop operations despite the growing interest from larger commercials investors and institutions. Generally speaking, these non-commercial owners are holding on to their businesses until the time is right in their personal lives to sell. Typically, these sellers are more motivated to make a deal because a life situation has come up inspiring, or requiring, them to do so. This leaves institutions and commercial investment groups in a prime spot to make a good investment.
“This is one commercial sector that is still dominated by smaller investors. Because these investors usually only sell if necessary, they are often motivated and will offer attractive pricing and terms. They have also been known to work off market, preferring to work through private groups rather than going public with the sale,” said Robinson.
Another way in which the storage industry has become a good real estate investment is that the market has yet to be over saturated. Instead of building new properties and expanding, already established properties are being bought and sold. The only places that are seeing expansion of the industry instead of turnover would be in major cities like Denver and Dallas.
According to OMA, 80 percent of the industry is still owned by smaller, private investors. Looking at the industry as a good investment is another way of seeing the strength of the industry. Between the pop culture status and the investment aspects, the storage industry has been put in good position recently. It is yet to be seen how these commercial investors will impact the storage industry over time.
All information gleaned from a press release on PRweb.com.