{"id":16951,"date":"2023-09-05T13:52:56","date_gmt":"2023-09-05T13:52:56","guid":{"rendered":"https:\/\/isafespend.com\/personal-finance\/wealth\/self-storage-isnt-just-for-hoarders-a-primer-for-investors\/"},"modified":"2023-09-05T13:52:57","modified_gmt":"2023-09-05T13:52:57","slug":"self-storage-isnt-just-for-hoarders-a-primer-for-investors","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=16951","title":{"rendered":"Self Storage Isn\u2019t Just For Hoarders: A Primer For Investors"},"content":{"rendered":"<div>\n<p>Only one asset class has an average occupancy of 92% and outperformed other asset classes in 2021, self-storage. Self-storage can be a viable option for those looking for alternative investment opportunities. Self-storage can provide passive income, inflation protection (rates can change daily), and less tenant stress.<\/p>\n<p>Self-storage used to be associated with something that only hoarders might need to use. Today, however, 40% of Americans rent a self-storage unit. In part due to typical life events, including the 4 D\u2019s Death, Divorce, Downsizing, and Dislocation. The last 3 of these tend to increase during challenging economic times, such as a recession. Historically, homeowners with smaller homes used self-storage more, but the percentage of owners of larger homes is on the rise.<\/p>\n<p>What does self-storage look like in real life? According to the 2023 Self-storage Almanac, typically, people rent a 10&#215;10 storage unit. The rent for these units increased by 13% in 2022. In 2001-2023 the average return on self-storage was 20.87%, and in 2006-2021 it was 18.76%. With numbers like this, you can see why new self-storage (and rehabs of legacy properties) are gaining the attention of investors.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Many will select self-storage as an investment because it can be an inflation hedge. Most units are on a month-to-month rent, which can increase each month to keep up with inflation. As an owner of a self-storage center, you have different expenses than someone who owns multi-family, mobile home parks, retail, or office spaces. Furthermore, you do not need to buy and build your own! Some companies create self-storage turnaround investments that are for accredited investors. These funds tend to buy self-storage units from \u201cmom and pop\u201d operators and add economies of scale, invest in the properties, and increase the return on investment (ROI) for investors.<\/p>\n<p>How are intelligent companies providing self-storage investments for their clients? Many look for underutilized commercial properties, like a closed K-mart. Those locations tend to be centrally located near a population center but are too small to become a Walmart<fbs-ticker data-name=\"WMT\" data-href=\"https:\/\/www.forbes.com\/companies\/walmart\" data-type=\"stock\"><br \/>\n  WMT<br \/>\n <\/fbs-ticker> or Target<fbs-ticker data-name=\"TGT\" data-href=\"https:\/\/www.forbes.com\/companies\/target\" data-type=\"stock\"><br \/>\n  TGT<br \/>\n <\/fbs-ticker> and have a perfect footprint to convert to storage. It\u2019s a basic \u201cbuy low, redevelop, sell higher\u201d game plan. The smart funds also have a nationally recognized storage operator brand, a new storage location, and add the technology and economies of scale that a large operator has versus the smaller operators.<\/p>\n<p>Why should you consider investing in self-storage? Besides the inflation hedge, low maintenance, and economic durability, many self-storage locations are owned by a \u201cmom and pop\u201d operator, and they typically do not have the incentive or cash to roll out new technology, branding, or expansion that most self-storage investment funds bring to the table. In addition, the work to build a new self-storage unit and deal with permits and local municipality cares off most investors.<\/p>\n<p>Economic ups and downs are expected in 2023 and into 2024. Self-storage could be an option as an alternative to stocks and bonds, especially if you are looking for a recession-resilient opportunity with inflation protection and income.<\/p>\n<p><em>Securities offered through Arkadios Capital. Member FINRA\/SIPC. Advisory services offered through Creative Capital Wealth Management Group. Creative Capital Wealth Management Group and Arkadios are not affiliated through any ownership.<\/em><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/fredhubler\/2023\/09\/05\/self-storage-isnt-just-for-hoarders-a-primer-for-investors\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Only one asset class has an average occupancy of 92% and outperformed other asset classes in 2021, self-storage. Self-storage can be a viable option for those looking for alternative investment opportunities. Self-storage can provide passive income, inflation protection (rates can change daily), and less tenant stress. Self-storage used to be associated with something that only<\/p>\n","protected":false},"author":1,"featured_media":16952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[],"class_list":{"0":"post-16951","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-wealth"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Self Storage Isn\u2019t Just For Hoarders: A Primer For Investors | iSafeSpend<\/title>\n<meta name=\"description\" content=\"Only one asset class has an average occupancy of 92% and outperformed other asset classes in 2021, self-storage. 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