Investing in Self Storage Lockers

One strategy that some developers and investors are beginning to consider

during this Recession is investing in Class C Self Storage Lockers, as they are called in

some areas or simply Class C Self Storage Facilities. Class C Self Storage Facilities are

generally defined as older properties in need of repair or updating, often first

generation, single-level sites that may be unfenced, and they typically lack in security

features and amenities commonly found in Class B or Class A Properties. They may

also possess a less desirable unit max and orientation with regard to door operation,

upper levels, and lack of temperature control. They may also suffer from having poor

access and limited visibility and subsequently, rental rates are lower than Class A or

Class B Properties.

Which leads us to the question of how to go about finding these diamonds in the

rough? For This blog Post–I’ll just focus on my favorite way–which is to buya

comprehensive listing of all Self Storage Lockers in a given market by purchasing directly

from the numerous list brokers who have the names and addresses of all the facilities in

a geographic area and then contact the owners directly with a mailing campaign, or just

by cold calling the facilities in person or by phone after “Googling” all the facilities in

your targeted market(s) for acquisition.

The laws for success in the self storage industry are always changing and buying

Class C Self Storage Facilities or investing in Class C Self Storage Lockers has

quickly become a very viable addition to a successful investing strategy – especially in this time where development has slowed to a crawl. The merits of this strategy have proven to

be very profitable to many operators who have chosen this path rather than focusing

solely on development. And being one of those investors myself, I couldn’t agree more.