Self storage in small towns?

[Johnny Horner]

Self storage popping up everywhere, what is the BP community thoughts on self storage in small towns? The town with less then 2000 people. Currently 62% occupied.

[Michael Wagner]

Originally posted by @Johnny Horner:

Self storage popping up everywhere, what is the BP community thoughts on self storage in small towns? The town with less then 2000 people. Currently 62% occupied.

As a self storage investor, Small towns don't scare me at all! In fact, I seek them out. The merits of a self storage facility are dependent on a lot of things but size of town is not one of them. A better measure is supply and demand...square foot of storage per person. VERY generally speaking, the national average is 7 sq. Ft. Per person so if your small town has less than that, you might be into something. How large is the property? Rather than look at the population of the town though, you will want to look at the population within a radius...probably 5-7 miles for a rural small town like this one Can you ascertain why it is 62% occupied? If the "problem" causing the low occupancy can be fixed and the property offers an acceptable ROI, it very well could be a deal. I bought a property in one of the smallest towns in the least populated county in Florida in April of 2018 for $465k....it's now worth over $1 Million!