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.
- The husband and wife are recently divorced. The wife is trying to operate now and doesn’t know what she’s doing
- Most of the negative google reviews say “no one is answering the phones”
- Room to expand
This pic attached shows the market breakdown and the main things we look at.
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 mile saturation is low
- 3 mile saturation is low
- 5 mile is saturation is low
- Lots of renters in the 3 mile radius
- Positive pop growth
- Moderately high median HH income
- 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
