Why are so many self storage facilities popping up lately?
Asked by
curious_bystander
I'm noticing a surge in self storage businesses being built in my small southern town, with three new ones going up at the same time. It makes me wonder if this is a trend happening elsewhere. What could be driving this sudden increase in self storage facilities?
Answers
One reason for this trend might be the number of foreclosures happening that aren't getting much media attention. As people lose their homes, they need somewhere to keep their belongings, which could be fueling the demand for storage units.
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There are a lot of unemployed folks right now due to layoffs, so many people might struggle to afford rent or mortgages. This might lead them to seek out storage solutions, whether for transitioning between homes or downsizing.
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A friend of mine has been in the storage business for decades. He always targets lower-income areas with vacant land since renters are likely to need storage as they come and go. He handles everything himself, which keeps costs low and profits high. If managed smartly, there's definitely good money in storage units.
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Building self storage is a low-cost venture. It requires minimal staff and ongoing maintenance, mostly just lights and air conditioning. Owners can hike up rates regularly until a tenant either leaves or continues to pay those inflated prices.
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