WHY SELF-STORAGE?
According to the NAREIT the self-storage asset class has achieved an average annual return of 16.85% over the past 25 years. Self-storage has outperformed Apartments (12.93%), Retail (12.04%), Office (12.15%), and the S&P 500 (7.06%) over that same time period.
Through 2007-2009 Self-Storage lost -3.86% in value versus Apartments which lost (-6.72%,) Retail (-12.32%), Office (- 8.16%), and the S&P 500 (-21.10%) During the last recession, even when downsizing, Americans do not seem to lose their appetite for storage.
According to the 2019 self-storage Almanac the public traded companies own less than 25% of the self-storage market. There is a consolidation opportunity for Greenwood Self-Storage Funds to acquire facilities owned by mom and pop operators and generate revenue enhancements by deploying a professional management strategy.
10% of American households rent storage space. While this might seem like a small percentage, it’s still a large sum of people who need alternative storage methods. That’s 10% of 333,287,557 Americans.
Even with enough storage for every person in the United States to have several feet, the occupancy of self-storage facilities remains over 90%.
Self-storage investment margins run around 41% with the average price to rent a unit just shy of $90/month - and the average lease lasting 14-months.
39.5 billion annual industry revenue - and one of real-estates fastest growing property types over the last 15-years.
92% average occupancy. Resilient occupancy, in-spite the market shocks and events - like Covid19.
71% independent ownership. Most self-storage is “mom-and-pop” owned. This is a big investment opportunity.
4 in 10 Americans rent self-storage units. 38% of Americans declare themselves self-storage renters in a recent survey.
Strong financial benefits. Value appreciation and tax depreciation. Recession-resilient and inflation hedge.
Good governance. High bankability and easy evictions with lien law governance.
Streamlined management. Not labor intensive. Low break-even opportunity. Cash-flowing since the first day.
Tech opportunities. Dynamic rent analytics, kiosk automation, remote keyless entry.
Self-storage investors have enjoyed a nearly 50% increase in revenue since 2010. Don’t be left behind.
Interested in learning more about how to become a self-storage investor? Contact us.
