Self-Storage Drought – Create Your Own Well

In some areas, no matter how good your marketing plan is, you may not get the results you are hoping for. There are many reasons for this, but often it is because the market is undersaturated. This means that there isn’t enough self-storage available. Because there isn’t enough self-storage on the market, the current self-storage properties are rented 100% of the time, with a waiting list. This doesn’t mean that your dream of owning self-storage is over. It means that you might have to shift how you obtain that self-storage facility.

There are a lot of properties out there that can be converted into self-storage. These properties allow you the opportunity to create self-storage without having to start from the ground up. Have you ever considered what happens to that old empty bowling alley or ice skating rink? What about that big box retail store that went under a few years ago? You can get creative and look at old industrial buildings too. These old junkers are perfect opportunities for conversions. The ideal conversion is a big building that can hold a lot of self-storage units.

The first thing you need to learn is what zoning allows self-storage in your area. Most of these properties are probably already zoned in an area that will allow for self-storage. You simply need to make the conversion. Before you start talking to people in Planning and Zoning, you want to have the property under contract. You don’t want to miss out on your own opportunity because someone else got wind of what you are doing and beat you to it. Once you have verified that the zoning will allow you to put in self-storage, get the property under contract, contingent on being able to build your plans.

Once you have the property under contract, then you can go to the city and talk to them about the possibility of converting the property to self-storage. If the property is not in the right zoning, then ask about a variance. If the city is against your project, you will have a hard time getting a variance. On the other hand, if they are excited about the idea, you may have a much easier time getting your permits.

These buildings typically come with a large parking lot. That parking lot gives you the ability to either expand immediately or use the land until you are ready to expand. You can put portable self-storage containers in the parking lot for additional self-storage or you can offer RV & boat parking in addition to your self-storage. Either way this gets your land paying for itself until you can expand.

When you are evaluating the property for self-storage, you want to research why the current property went under and no one else moved into that location. Is the property in a bad location. If it is, you may have a hard time renting out your self-storage units. Is it close to your potential renters. Is there a chance of your property being out located? Once you know you are going to move forward, make sure that you have a feasibility study done. This will make sure that you aren’t blinded by the excitement.

The nice thing about a conversion is the timeline. Usually, you are able to get from current status to renting much more quickly than if you are building from scratch. The next time you see a vacant building, think about the option of converting it into self-storage. You know how to run the numbers quickly to see if the property will work for you. As always, happy investing.