How to Find an Out of State Self Storage Facility
Looking for a way to create some extra cash flow and diversify your investment portfolio? Investing in the self-storage real estate industry is one great option that could be right for you. In fact, it’s one of the best asset classes in the commercial real estate industry; not only will you be able to grow your retirement nest egg and create passive income for yourself, you’ll also have peace of mind knowing that your money is in a stable, recession-resistant industry. Self-storage facilities are being used by nearly 1 in 10 Americans, and the demand only continues to rise. The industry is generating $33 billion in revenue – some of that could be yours!
So how do you get started with investing in self-storage? Once you’ve made the decision to invest, you’ll want to find a suitable storage facility to put your money towards. If you don’t know much about the industry yet, that can be a daunting process. No worries, though! We’ve got your back. Below, we’ll cover a few of the factors you should consider when finding an out-of-state storage facility in which to invest.
Prioritize visibility and demand
Just like any business in any industry, a storage facility will flourish best when it’s in a high-traffic area with great visibility. While a good amount of space is necessary to build and develop a facility, investing in one in the middle of nowhere may not get you the most bang for your buck. Research the area in which a self-storage storage facility is located: does the town have a decent population? Is there a high demand for self-storage? This could mean the area is populated with college students, there’s a high amount of rental housing, limiting living space, a lack of other storage facilities in the area etc. We’ll go into more detail about which demographics to keep an eye out for and why below.
Consider demographics
The right population and demographics of the area in which a self-storage facility is located can make all the difference in your investment opportunity. While there’s a general demand for self-storage all over, some locations will practically be gold mines.
Renting millennials
Millennials are currently the largest demographic in the United States, and trends show they’re delaying homeownership and often remaining renters well into adulthood – many times even becoming lifelong renters.
An area with a large population of renters is always a good option as frequent relocation, urbanization, and housing with limited storage space contribute to high demand for self-storage. For this reason, prioritizing an area filled with millennials is a smart move.
This is also true for the even younger generations, and college students especially – a college town is a great place to invest in a self-storage facility, as there will be a high volume of renters and even students living in dorms with very limited space in which to store their belongings.
Down-sizing baby boomers
Although it may sound contradictory to what we said above, an area populated with home-owning baby boomers can also be a great way to go. That’s because many baby boomers have been downsizing in recent years, leaving them in need of more storage space in which to store their belongings.
In that same vein, many boomers who own small and medium-sized businesses have been downsizing those as well. This means they need storage facilities not only to store their personal belongings from their homes but the goods and equipment from their businesses, too.
Trust Tymac for Your Self-Storage Investments
If you’re ready to put money in the self-storage real estate industry and want to find the best locations in which to invest, Tymac can help you find the best opportunities. As a developer and investment firm, we know both how to find and purchase the best land in the best locations and how to help you invest in the self-storage facilities we develop in those locations. We prioritize areas with promising visibility, high traffic, and a high concentration of baby boomers. Meanwhile, third-party management companies keep our rates competitive, we refinance or sell our properties, and investors are able to see outstanding returns. It’s the Tyamc promise!
So, if you’re looking to start your self-storage investment journey, let us lead the way. Fill out the investment survey on our website to get started today!
