Storage condos (New niche with an edge-from the investor’s viewpoint)

I think one of the trends to consider in the commercial real estate storage facilities business is having storage condos for sale and not just for lease.

If you are building a new facility or buying an existing one, you should definitely consider the condo storage concept.

Many people like to own a safe and clean space where they can store their valuables such as boats, waver runner, jet skis and other valuable toys and equipments, including old papers and documents and they would much prefer to own the storage space than lease it.

You can differentiate yourself from other storage facility owners by providing ownership and create a fantastic niche in many upscale markets.

To accommodate such a need, you need to first conduct a basic feasibility study before building a new facility with the condo ownership concept (more on that in my next blog).

And if you are thinking of converting an existing one into condo storages to gain a competitive advantage than keep in mind a few key points in your rehab and improvement project:

• A larger space (maybe combine two or three spaces to create a large one)
• A higher ceiling (maybe by blowing the roof and combining floors). This is especially accommodating for people who want to store their boats
• Added electric power
• Units with heating and air conditioning
• Internet motion sensor cameras
• Added services such as larger trash container- Boat hauling and so on that can be accommodating to condo storage owners

You can go to a market that has plenty of privately owned or even large brand names storage facilities, you will have a hard time to compete. But if you offer a storage condo ownership concept you could position yourself as the choice location with added benefits. This is how you create your own blue ocean with no to low competition.

This will be especially successful if you sell and carry the financing or even team up with a good lender that can offer a decent interest rate and good terms.

This is how you create a niche and gain a competitive advantage in the right marketplace.

Here is to think outside the box (no pun intended)

Cherif Medawar

www.CMREI.com