Self Storage Markets have Changed - Aftermath of 2023 | SSI Podcast
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- Опубліковано 27 лис 2023
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The Self Storage Market is now more different than ever. This is the first time we're seeing the impact of high interest rates in this industry. All the policy changes in the last year have culminated in us approaching storage in a way we have never before.
What's going on with the self storage market? In this episode, Conner and AJ break down what they're seeing in their private equity side as well as the operations side. If you're an investor, owner, or wanting to get into it - this is a time of consolidation that will impact every corner of our industry.
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Great info, thank you!
@gabeflynn1921 - glad it was useful! What other areas should we delve into in our upcoming videos?
I’ve been looking at many facilities. Most facilities have 90%-100% occupancy on the larger units ..15x25 units 10x30… I think if your going build stick to large units in urban areas.
As a buyer, what kind of Cap Rate would be a hurdle for acquisition of small properties in 2nd and 3rd tier markets, in the current market?
Great video AJ, addressing what a lot of us are feeling.
@mk2tom1 - Glad you think so! What other subjects would you like us to explore in our upcoming videos?
Great stuff! Thanks for the help!
Glad it helped! What other subjects would you like us to explore in our upcoming videos?
@@SelfStorageIncome I’m still in the basics of storage so maybe what it looks like or looked like picking up your first deal and what to look for/ plan for. Then how to operate day to day.
Definitely! We had a podcast episode about starting out with small facilities with my good friend Jeremiah. You can check that out here: ua-cam.com/video/oB9Dhz5sl60/v-deo.html
We also have a playlist on our channel called the "Self Storage Starter Pack," I'm confident that will give you a LOT of great info to get started with!
We added 10% more enclosed drive up storage this year at our facility. Also this year we have been inundated with investors or representatives for investment firms asking about our exit plans. More in the last 6 months than in the last 2 years combined. I guess everything's for sale but it's such an easy way to make money when compared to other mediums as long as you keep investing in the property and improving the value that you have to offer or value proposition to your clients.
The pressure is on for sure. But yes, the value play is a smart move!
In your discussion of large vs small facilities, what qualifies that for you? Is it the number of units? If so what is that number? I'm coming from another industry, and just learning about yours. Thanks
Typically we look at net rentable square feet, because if you have 100 units of 5x5's, that's significantly less actual space than 100 units of 10x10's (this is another topic on Unit Mix). But as far as total space goes, net rentable square feet of less than 50,000 can be considered small, 50-100K would be medium, and 100K+ would be considered large. Hope this helps!
What the ideal size facility to build. Like best dollar vs cost
@kmilesSC - thanks for the comment! There isn't a one-size-fits-all answer. To determine the best size that balances cost and revenue potential, it's crucial to conduct a detailed feasibility study that considers the local market, supply and demand, financial projections, and operational aspects to determine the ideal size for your self-storage facility.
Educate and surround yourself with experts in the space in our exclusive SSI Community: www.selfstorageincome.com/ssi-monthly-membership 💪💪
Small facilities don’t scale well as you said. Improve your service to get higher rates
Hi AJ, thank you for the insight. Where can I find info/details about your upcoming partnership program?
We'll announce it through our SSI Newsletter once it is available: selfstorageincome.com/newsletter
Love the video!
@resulmaksut7096 - Glad you enjoyed it! What other topics would you like us to discuss?
@@SelfStorageIncome only thing id like to learn more about is the investing side of things because I find that poses the biggest challenge when starting.
@@resulmaksut7096 are you looking to investing as a partner/3rd party or investing & owning properties yourself?