Kevin Bell

Self Storage Markets 101 & Deal Breakdown

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The market that you’re storage facility is in, is everything. You can change the facility, but you can’t change the market.

It could be the difference between a home run and strike out regardless of how great of an operator you are.

Here’s an example of what a great market and deal in general looks like:

First, some other variables that make this even sweeter.

  1. The husband and wife are recently divorced. The wife is trying to operate now and doesn’t know what she’s doing
  2. Most of the negative google reviews say “no one is answering the phones”
  3. Room to expand

This pic attached shows the market breakdown and the main things we look at.

Kevin Bell

What we’re looking at here is some good stuff.

Side note: saturation is referring to the amount of storage square feet per capita

  1. 1 mile saturation is low
  2. 3 mile saturation is low
  3. 5 mile is saturation is low
  4. Lots of renters in the 3 mile radius
  5. Positive pop growth
  6. Moderately high median HH income
  7. LOTS of homes in the area (based on the rentable sf).

Further diving in, there’s about 20% late on payments and they’re past due on property taxes.

THIS is a deal worth seriously looking at.

Even though there are some sweet other variables, it’s the market that I love. Very little competition and a large demand.

Market > Everything