Americans have more stuff than they know exactly what to do with. They need space to store their stuff in. This need is the industry’s back-bone. But because the demand is there does not mean guaranteed and that making money filling that emptiness is simple. The industry is much more complex than it seems, and there are important issues. There have been a number of types of facilities constructed over the past four decades. However, the profitable ones are among the first variety – they are known as generation one or generation 2. The component that is important is that they have all units situated on the ground floor, and in a way that a vehicle can drive right up to the doorway. Studies have found that self-storage tenants would like to be able to drive right up to their self-storage unit door, roll it up, throw their stuff to it, close the door and push off. What is not in demand are that you can reach on foot, or components which are located on another floor or higher.
No one wants to have to take an elevator or walk down a hallway with their stuff in tow. There never really was a requirement for these sorts of facilities – it was more a manufacture by self-storage developers attempting to rationalize Self Storage Units Bronx centers on more expensive property, which required a larger number of units on that footprint. Just as facilities have proven to be a flop, so have climate controlled units. It looks like the items that Americans store are not valuable enough to require air conditioning and heating. If you go to many facilities now, you will find the majority of the climate controlled space empty. In the worst end of the spectrum is the California creation of wine storage units. I had been in a facility recently that had just 20% occupancy in wine storage. The wine refrigerator available at retailers and cost has replaced this concept for most people. And remember that climate controlled areas are very expensive to operate.
It is important in self-storage to possess visibility and street frontage. All share this common trait. This is because most Americans rent space in facilities which they drive by all of the time and have awareness of – kind of a point of purchase decision. When you have got a self-storage facility with poor visibility and an out-of-the-way location, there is not any way that everyone will believe to rent from you, or perhaps find you if they wanted to. Do not forget that self-storage is extremely competitive in many markets. Given this fact, it is important that your facility have the basic gifts. All of us like the stories of underdogs who go on such as the baseball player – to success – but if you do not have a drawback from day one it is much easier to win.