Converting another property is a great way to create Self-Storage

With the market being the way that it is, there can be a lot of competition for existing self-storage properties. When this happens, instead of giving up, get creative. There are a lot of other types of properties out there that are in the same type of zoning as self-storage that can be converted into a self-storage facility.

When you are evaluating a property for a conversion, start by looking at the location. Is this property in an area that is close to your customer base? How many other self-storage facilities are within the 3-5 mile radius. If you are in a bigger city, you may want to narrow that radius. If you are in a rural area, you may want to make it a little larger. The point is that you want to see how much competition there is in that area.

Now you want to look at the property itself. Is there enough square footage to make it worth your time. If the property is too small, is there enough parking to expand? When you are looking at retail properties, the prior owners were required to have a minimum number of parking spaces for their square footage. You do not need a large parking lot. This opens up more possibilities for that large parking area. You can turn the parking lot into something more profitable.

Another advantage to buying a property that can be converted is that you don’t have to convert the entire property at once. You can convert the property in phases. This is a way to spread out the costs while getting cash flow as soon as possible.

You can also avoid lengthy zoning changes if you are able to find a property that is already zoned for self-storage. There are a lot of properties that have the potential to be turned into self-storage that share the same type of zoning requirements.

If you have been having problems finding a perfect existing self-storage property, then start looking for the perfect conversion opportunity. This may be a better fit in this market. As always, happy investing.