Conversions Are a Great Way to Create Self-Storage Opportunities!

Self-storage is an amazing investment. Because of that, competition for these existing properties can be tough. In some markets, sellers can demand high prices that won’t work for your investment model. However, that is no reason to think that you can’t invest in self-storage in that market. Your self-storage property may currently be an abandoned bowling alley. Your job is to make sure that you are keeping yourself open to the idea that maybe your property is currently shaped as something else and go out there and find it.

Conversions are a great way to get into self-storage. They are faster than new construction. They are often easier to get approved than new construction and they get you from design to money in your pocket in a faster timeline. The first step in finding the perfect conversion is to talk to planning and zoning and find out what areas allow for self-storage. If you are looking in residential areas, it will be much more difficult to get something approved than if you are looking in commercial or warehouse districts. Find out what zoning codes allow you to build self-storage. Now you are going to identify where those areas are.

Once you know where you can look, you can have your Realtor start looking for any type of property that is large enough. You can start networking with property owners in those same areas. You can start looking for abandoned or vacant properties in those areas. These are all great places to begin a possible conversion.

When you are talking to planning and zoning, ask them if they have any properties in mind that might make a good self-storage facility. Sometimes, there are properties that are giving the city grief. They would love for someone to come in and get rid of that vacant warehouse where the teenagers go to hang out. If they have a property in mind, it will make it that much easier to get that property approved for the conversion.

Don’t be turned off by properties with large parking lots. You are looking for properties with a minimum of 3 to 5 acres. If they have a large parking lot, this gives you the ability to expand or to add boat & RV Parking. You could even bring in portable storage containers and use them as self-storage until you are ready to build.

You don’t need a property that has a lot of frontage either. You don’t need the same kind of exposure that a grocery store does. You just need enough frontage that a U-Haul can easily get in and out of your property. You don’t want to be lost behind a bunch of other buildings, but you don’t need to have a lot of frontage.

Start looking at grocery stores, bowling alleys, old churches, warehouses, anything that fits your minimum criteria. These properties are a great way to create your own self-storage facility. You don’t have to wait for an existing property to come on the market. As always, happy investing.