In the world of commercial property, purchasing a self storage facility does not seem as glamorous as owning a brand new office building, or a fun shopping mall. Though owning a self storage establishment does not seem like a fantastic and fun commercial investment, it is actually quite a solid way to invest your real estate dollars.
For many years the investment trends of the most savvy of real estate property investors went in the direction of apartment properties. Over the last several months there has been a change in trends and more of these investing greats have turned there sights on the ho hum, seemingly boring world of self storage facilities.
Why would a smart commercial real estate investor want to put money into a self- storage facility? The answer is in stability. The world of self storage is recession resistant. In 2008 during the middle of the recession self storage was the only REIT sector to post a positive total return of 5% including dividends.
In both times of a thriving economy and a tight one there is still need for a convenient place for people to store their belongings, be it because someone is having to move and needs a place to keep extra belongings while selling and buying a home or someone can't bare to let go of certain things. Last year the self storage REIT sector was up a whopping 40% and this year is currently in third place.
Another positive aspect to self storage is there is very minimal upkeep compared to office spaces. When an occupant of a storage space moves out there is no need to repaint or have a professional cleaning service come in. A quick sweep out and you are ready for the next tenant. Also the break even point is usually only 45% occupancy which is well below other commercial real estate sectors.
Of course no business venture is ever guaranteed and real estate is not a solid 100% predictable market. There are always unforeseen things that happen with any real estate investment opportunity commercial or private. But it is good to know that the commercial property you are putting your hard earned dollars into has a more stable chance.
If you are looking for a commercial property in North Dakota we are happy to help. We can help find you any type of commercial property in the Minot area. Give us a call today!
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We are seeing a lot of those types of investments around here and it keeps getting better and better as more people need to store their stuff.