How to Identify a Great Market for Self Storage

Welcome back everybody to the Self Storage Income podcast! This is your host AJ Osborne and I’m geared up and ready to dive into today’s topic with you all. As you all know, or as you might be learning, there are a lot of variables to consider when performing your due diligence on a potential storage facility whether that be an existing facility or a potential ground up build. Today though, we’re going to be talking mostly about ground up builds and a critical variable that you need to be paying attention to. Failing to account for the variables could lead to an investment disaster. So what is this critical variable? This key component we need to keep in mind and account for is square footage of storage in relation to the market. If you’re just getting into self storage investing, one of the metrics used to help measure supply and demand in the market is square feet of storage per capita (which is a fancy way of saying - how many square feet of storage is on the market in a specified area per person). You need to be able to identify whether there’s too much storage on the market, or too little. So how much is too much and how much is too little? Drum roll please for everyone’s favorite answer in the world…. it depends. All square footage is not created equal and there’s no unwavering, one size fits all solution or number that can immediately provide you with this answer. We also need to consider not only what’s currently on the market TODAY, but any additional square footage of storage in our 3 to 5 mile radius that has been approved to be built and is in the works. This can have a huge effect on the supply and demand in your chosen market. These are the topics today that we’re going to dissect and explain so that you can be better prepared to identify a good market when you find one, and help you leave the bad markets behind. As always, thanks for listening everybody! AJ Be sure to go to Selfstorageincome.com to get your free copy of my Self Storage Playbook. This step by step playbook walks you through from start to finish - how to identify a self storage market, how to perform due diligence, how contact a current owner, and ultimately how to land a storage facility deal. You can also find the Self Storage Income Podcast on: iTunes Spotify Stitcher The Self Storage Income Podcast is Sponsored by: Janus International - https://www.janusintl.com/ Store Local - https://www.selfstorage.coop/aws/SL/pt/sp/home_page Live Oak Bank - liveoakbank.com/incomepodcast