self storage units in St. PeteMany self storage units in St. Pete are owned by mom-and-pop style individuals; however the number of self storage units owned by companies for investment properties is growing, especially in this weakened economy because people always need storage space.

 

Why have self storage facilities as investments?  Numerous investors are drawn to the economics of self storage.  The 10 biggest self storage companies own less than 20 percent of the industry’s asset, which means that mom-and-pop owners still have a lot of property left to sell to investors.  Many facilities break even financially approximately between 60 and 70 percent of their capacity, which most will achieve shortly after their grand openings. Unfortunately real profits begin around 85 percent of capacity and the national average is closer to 88 percent.

 

In the 1990s, transactions were arranged at 10 percent annual return on a buyer’s investment; today, deals are made running at a close 6 percent with few in the industry believing prices will go much higher.  On the other hand, there is still room for new construction with many research surveys showing that several of the metro markets are still underserved as more and more Americans collect more items they neither really want or need but society tells them they must have.  They collect more items than they have room for in their homes and this makes a good business for self storage units.

 

Personal storage units in St. Pete, as well as those across the country, has become approximately 50 percent larger than just a few years ago.  They are also built in high traffic areas as glass and brick construction rather than the eyesore tin buildings that were hidden in industrial parks or other the way factory areas.

 

Many of the new self storage units are climate control with heating and air-conditioning in every unit so that things like candles and old record albums do not melt in the scorching summer heat.  People store all types of items in their personal self storage units from beach blankets in the winter to snow plows in the summer, storage units are a great extension of a homeowner’s cargo area.

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