What Does the Perfect Self-Storage Property Look Like?

Actually, it can look like a lot of different things. There are so many different types of properties out there that there isn’t a one-size-fits-all answer. However, there are a few criteria that are important to make sure you have in every property.

There are a lot of opportunities that are going to cross your path. Some of them will actually be opportunities and some of them will be sellers who are trying to milk the property for every last penny. Your job is to figure out which is which.

You are not looking for turnkey properties. Those properties are going to sell for top dollar. You are not looking for properties that have amazing occupancy rates. They are going to sell for top dollar. You are looking for distressed properties. You are looking for something that has an upside potential. Because the upside potential is what your investors are paying you to find. By purchasing a property at a discount and knowing what you can change to make it even more valuable you are able to get the maximum profit out of the property.

In addition to having an upside potential, you want a property that has around 3 to 5 acres of land. This gives you enough acreage that you can expand or build a property that is big enough that one of the bigger chains will be interested in purchasing the property from you once you have turned it around. Then you can sell it at a turnkey price.

You also want to make sure that the property is zoned for self-storage. You don’t want to take the time to go through the hassle of fighting the city to get your zoning changed. Find out what zoning classes allow for self-storage and then look for properties in those zoning areas. You may be able to convert a property into self-storage.

You are looking for something that is at least 50,000 square feet. This is the low end of where you want to be.

If the property has high enough ceilings, you may be able to put in a second floor which will double your square footage. Remember that it isn’t that much more expensive to maintain a larger unit than it is to maintain a smaller unit. However, the income is much higher from a larger property.

When you are considering conversions, look for old grocery stores or warehouses or retail stores that are no longer in business. These large buildings are usually already in zones that will allow for self-storage. You can also look for old bowling alleys. Remember that parking isn’t important to us, neither is frontage. We are interested in space for our storage facility, enough frontage that people can find us and 2-3 places for people to park. This allows us to take properties that are not attractive to other buyers.