Conversions with Large Parking Lots Have Great Potential!

When you are working with a conversion that has a large parking lot, that isn’t a waste of space. Instead, this is actually a great opportunity. The previous owner was required to have enough parking for their customers to come all at the same time. We don’t have that problem. We can be creative in where we place our parking spots, they don’t all have to be together in a big open space. This means that you can take the big open space that you have and turn it into something profitable.

If you leave the giant parking lot just sitting there, you are going to look like you are a big empty vacant building. No one is going to know that you are a brand-new self-storage facility and so they are not going to rent from you. This is a problem. But if you utilize the space then you will not only increase your income potential, but you also won’t look like a big vacant building.

One of the first options that you can consider for that extra space is portable storage units. Portable storage is an interesting work around with city zoning regulations. They are portable and so often the city zoning laws don’t apply to them. The fact that you are never going to move them, so in your mind they are permanent, doesn’t matter. This allows you to expand your facility into the parking lot quickly and without a lot of construction. You are also able to depreciate portable storage containers faster than a normal building which is a plus.

Another option to consider with that big parking lot is to see if you can subdivide it into another lot. This way you can put another business on it. A word of caution, you don’t want to make your self-storage facility invisible. If someone puts in a small strip mall in front of your self-storage facility, no one will be able to see you or find you. But you might add exposure to your facility by putting in a fast-food place or a pharmacy. You want to sell off enough land to bring in traffic but not so much that your self-storage facility is obstructed. Find a happy balance here.

RV storage and Boat storage is always a good option if you are in an area that needs that type of storage. When someone stores their boat with you, they are likely going to store their Christmas decorations with you too. There are some things that you need to know about RV & Boat storage that we will cover in the next blog.

Conversions are a great way to get an excellent location without having to pay as much for the land. By selling off some of the land, you decrease your land costs even more. Talk to your city prior to purchasing your property to see if you can outparcel the parking lot or add portable storage or even convert the parking lot into RV & Boat storage. Be creative and as always, happy investing.