Posted by Brian (No CA) on December 30, 2004 at 13:40:34:
I appraise mini storage facilities, among other things. Never actually owned one though, maybe someday when the cap rates creep back up and everyone starts looking to unload their inventory because the market is saturated. Seems to be the way things are headed, at least in these parts.
Good luck!
Storage facility HELP (semi-long post) - Posted by John TX
Posted by John TX on December 29, 2004 at 16:53:52:
hello everyone,
This is a first class community, may I say,thanks so much to everyone here for you contributions.
I’m not new to creonline but I am fairly new to commercial RE. I have been an “S” since highschool and have bought built and sold several small businesses for decent returns. In the last two years, I have , become a “B” ,delved into residential RE and have done some pretty good deals in that time, but I need some advise on a storage facility I am involved with.
(Our population just hit 200k and the growth is finally expanding on three sides of our city. Lots of new residential units and storage facilities coming online, as well as many inferstructure projects)
Our plan is to expand with climate control units starting with phase 1 : 60x 200 building with storefront, mailboxes ups, fed ex and or Dhl drop, and possibly RV storage. we will still have apx 3 acres left to build on for future growth. The location is just on the outskirts of town on a Planned Halfsection. this is now a two lane highway with a 50’ easment along the frontage.
Anyone experienced, willing to input will be greatly appreciated.
Also open to HML’s
The money’s split 5 ways now, so the cashflow will not be extremely profitable, but has excellent potential for appreciation, especially after fully improved. Thanks again for all input.
BTW any Ideas on getting the existing units rented fast. Thy’re not rentet now because marketing has been neglected and clean up needed to be done first. I just became involved with this project, and i know that a little marketing will do the trick, but I thought I’d get a little bit of input from some pros. 
Re: Storage facility HELP (semi-long post) - Posted by Mike
Posted by Mike on December 30, 2004 at 17:59:05:
I am looking at similar in my area. I think the feasibility and marketing are the key. If you can’t rent it you have a fundamental problem; one that you will take a loss to get out of. Feasibility, Feasibility and Feasibility. This includes market research until it makes you sick, but will make or break you. Check out the previous posts using the search feature on the site… I have found invaluable info there.
Re: Storage facility HELP (semi-long post) - Posted by Carlos
Posted by Carlos on December 30, 2004 at 14:23:39:
Hi John,
Basically, I agree with Brian. You might want to review the following thread (dates from July), where we discussed this same subject:
http://www.creonline.com/commercial-real-estate/wwwboard5/messages/12537.html
And if you did a search, you may find some other posts here on the same subject. One of my replies in the thread above has a good web site to go to for more info.
Good luck,
=Carlos=
Re: Storage facility HELP (semi-long post) - Posted by Brian (No CA)
Posted by Brian (No CA) on December 30, 2004 at 10:51:59:
Get a handle on the competing mini storage facilities within a 10-15 min drive. Find out their rates, unit mix, specials offered and occupancy. If they are all operating over 90% then there is obviously good demand. If there are newer facilities inthe area call and ask how they have leased up. You mentioned 200k population; what does that equate to in terms of square feet per capita? 5 and lower is generally good, over 5 is approaching saturation.
Get good management. I’ve seen facilities turn right around by a buyer simply coming in and putting someone copentent and friendly as the manager. Word of mouth will generate larger leads than most think.
Most facilities in lease-up discount their units to bring people in. As far as climate control, see what % are climate controlled in your market and what their occupancies are vs. non-climate controlled. Here in northern CA there is litte need for it, but your area may be totally different. Same goes for RV. Communities are cracking down on where and how you can park an RV, and this demand is good in this area. Again, call the facilities with RV parking and see how they are faring.
It all boils down to knowing your market rates, vacancies, and demand. Hope that will get you started.
Re: Storage facility HELP (semi-long post) - Posted by John TX
Posted by John TX on December 30, 2004 at 11:25:46:
Thanks Brian,
the per capita ratio is helpful I was looking for kind of a “rule of thumb” to start my analysis with, it helps to know what people in the industry are looking at. I had actually planned to do the per capita only on a 5 mile radius or so, but it makes sense to use the whole area.
We are going to need a new office/store front, so we will probably do that with the climate control bldg, (we have huge amounts of dust here and frequent 100 degree days in summer.,) But before phase 2 I have thought long and hard about RV because on investment vs return is great, and while everyone else is saturating the market with climate control,( if it is indeed approaching saturation) I think they are neglecting the RV crowd a bit around here.
BTW I agree with the management/word of mouth statement 100%.
Thanks again for your input. BTW are you in the biz?
-John