You’ve likely heard at least some of the latest buzz about clutter. For example, a cluttered home impacts mental health—and not in a positive way.
You might not realize the effect of working in a disorganized and messy environment on the brain. Clutter interferes with our ability to focus and ultimately reduces productivity.
Perhaps, a desire for less stress and anxiety combined with the need for more productive employees drives both individuals and businesses to rent storage space.
With that in mind, self-storage investing is something any savvy individual looking for a tangible way to build their portfolio should examine further. Taking a minute to read today’s post will give you a key-hole view of a popular investment opportunity.
Why Is Self-Storage Investing so Popular?
The self-storage industry isn’t the new kid on the block. It’s been around for a long time and has attracted investors for several decades. It’s not a stand-alone industry—self-storage is a niche in the commercial real estate investment (CRE) arena.
It’s not uncommon for real estate investors to diversify their portfolios by getting into this part of the market. Investors find self-storage attractive for several reasons, including:
- Large income potential
- Low overhead
- Lower construction costs
- Less ongoing management
Have you visited a self-storage location recently? You’ll find one, maybe two employees. Small staff means less direct management and more profit. You may be able to get to a point where you manage your facility on a part-time basis.
Unlike your CRE tenants, self-storage customers don’t reside onsite, meaning you’ll deal less with building maintenance and all the other problems that come along with real estate investing. No tenants, no toilets!
What about profitability? How does a 41-percent profit margin sound?
Self-Storage Industry Success in 2021
Worldwide, the storage industry continues to grow, with the Asia Pacific market reflecting the fastest growth. North American reigns as the largest market.
A variety of factors, including the down-sizing of baby boomers and other groups looking to adopt a simpler lifestyle, impact self-storage growth.
Looking back at the market in 2020, the industry saw a valuation of 40.73 billion dollars. A business can’t rest on its laurels. Looking forward to the 2021-2026 forecast period, the self-storage market should enjoy a Compound Annual Growth Rate (CAGR) of 4.79 percent.
A Word About Support
Whether you’re a beginner or a seasoned investor, access to a support network can make or break your investing experience. The self-storage industry is full of success stories and people who want to share their knowledge with new investors.
It’s just another reason for the growing popularity of the industry.
Here are a few things to look for when considering whether self-storage investment is right for you:
- Mentorship programs
- Free resources
- Access to industry experts
For all the reasons we’ve discussed in this article, we know self-storage is an excellent place to invest your money and watch it grow.
Need More Information about Self-Storage Investing?
If reading an article inspires you to make an investment, imagine the fire you’ll ignite by speaking with someone who has direct experience with self-storage investing?
With more than a decade of experience in the industry, we’re in a unique place to help new investors. Why not reach out and let us help you get started with your new venture?
Contact our team today, and let’s get to know each other!