Self-storage units are becoming increasingly popular among developers. In fact, the self-storage market was valued at $54,067,320 in 2021 and is projected to reach $83,572,520 by 2027.
As a developer or builder of commercial projects, you may wonder if building self-storage units on your property are worth the investment. In this blog, we'll discuss the importance of building self-storage units and why it's smart for developers and builders to incorporate them into their projects.
Lower Initial Investment
Compared to other types of rental investments, self-storage units are generally cheaper to set up and run. Once you've built your storage facility or repurposed a building and equipped it with all the necessary amenities like security features, proper lighting, and climate control, you're ready to welcome your first tenants.
To make rental apartments or commercial properties attractive and competitive, you must plan on upgrading landscaping and amenities. These added expenses make self-storage units a more financially savvy investment choice.
Faster Customer Turn-Around
Storage units can be ready for new customers within a few hours after it is vacated. This is quite convenient compared to commercial properties that require deep cleaning, painting, and/or repairs. Furthermore, the cost of preparing a self-storage unit for a new tenant is also relatively low.
Building self-storage units is a low-risk investment for developers. Self-storage units have a low failure rate compared to other businesses, as they have a high demand in most markets, regardless of economic conditions, with families downsizing their homes and businesses needing extra storage space.
Also, self-storage units are relatively easy to maintain and require minimal upkeep, reducing the risk of unexpected costs.
Another advantage of building self-storage units is their low turnover rate compared to other types of businesses. Once tenants rent a unit, they typically stay for an extended period, resulting in a steady income stream for property owners.
Self-storage units can be a useful addition to any commercial project. From storing personal belongings to business inventory, self-storage units have endless possibilities. They can be rented by homeowners, college students, small businesses, or even large corporations.
The flexibility of self-storage units also allows property owners to adapt to changing market demands. For example, if a particular industry experiences a boom, property owners can cater to that industry by providing storage space that suits their inventory or equipment.
Building self-storage units can also be an environmentally sustainable business decision, as self-storage units can be an excellent way to promote recycling and reuse. Customers will be encouraged to hold on to furniture and other belongings that they may have otherwise thrown away.
Often, self-storage units are built on underutilized lands, such as vacant lots or industrial areas. Property owners can help revitalize these areas and prevent the need for new construction on greenfield sites by repurposing these areas for self-storage.
Building self-storage facilities is a smart investment. So, if you're a developer looking to increase profitability, consider including self-storage units in your plans. Consulting with a professional commercial construction company, such as Reliable Commercial Construction, will assist you in achieving success in the self-storage industry. We will collaborate with you at every stage to ensure that all your projects are completed flawlessly. Contact us today to learn more.