Conversions - Finding the Right Location

Often there is a property already in place that you can convert into your dream self-storage facility. When you are looking for a conversion opportunity, it is important to be creative and cautious. You want to look at all types of properties from churches to bowling alleys to see if they will work for your project. However, you need to make sure that you also have good visibility in a growing neighborhood.

One of the nice things about converting properties is that a lot of them already have the zoning in place so you are not trying to get a zoning change or variance. There are a lot of properties that might work for your self-storage facility that you may not have thought of. You are looking for something with a lot of land but not something with a lot of frontage. This way you are often able to get the property for less money.

Bowling alleys are a good example, they are long and skinny. They don’t have a lot of frontage, but they have a lot of depth for your self-storage facility which gives you the room you need without having to pay for the frontage. Other types of properties that you should keep an eye on are ice skating rinks or roller skating rinks, old movie theaters or big box retail stores. Industrial buildings and churches also are great conversion opportunities.

When you are choosing your neighborhood, make sure that you don’t choose an area that is depreciating. You don’t want to build a beautiful self-storage property in a location that is in the trauma and transition business itself. If you are in a neighborhood that is deteriorating and the homes and businesses are boarded up and vacant, who will you rent to? You want a neighborhood that is steady and growing. However, you don’t want to base everything on projections. If a neighborhood is under construction, it could be 5 to 10 years before that subdivision is completed. Roughly 10% of homes store.

You also want to be cautious targeting students. Most students haven’t had time to accumulate enough belongings to need storage. They are still storing everything with their parents. Targeting just military basis can be risky too. You have fantastic rentals when they are deployed, but what happens when they come back? Another concern is what if they start providing storage for their troops? You will have no customer base. You want a well-rounded customer base.

You want to find a building that is in a good location. You want it to be easy to see so that people are reminded that it is there on their daily commute. If the property is off the beaten path and hard to find, this is a good indication of why it went under in the first place.

Just because something is a great price, doesn’t mean it is a great opportunity, you need to make sure that it is still in a location that will work for you and your customers. When you are looking, you need to be creative, and you need to make sure that you are in a good location so that you don’t end up empty with a for sale sign like the property you are about to purchase. As always, happy investing.