Recession Proof Real Estate
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Free Download - Myths and Investment Opportunities in Self Storage By Scott Meyers |
They’re often called recession-proof – steady investments that are inexpensive and easy to maintain with consistent profit margins.
Not to mention, they’re one area of real estate that seems mostly unaffected, if not helped, by current rough market conditions.
They’re storage units and people always need them. And all across the country, with a growing population that provides a constant supply of people in transit and in need of storage, they’re shooting up everywhere. Storage facilities require relatively low building and management costs.
Storage facility operators are capitalizing on a constant of modern culture: Americans own a lot of stuff. According to the Self Storage Association (SSA), self storage has been the fastest-growing sector of the U.S. commercial real estate market for the last 30 years, growing into a $220 billion industry. The rate of growth, however, has slowed somewhat over the past two years.
A slow housing market can actually help storage facilities, according to industry analysts and local facility operators. As the housing market slumps, people downsize their house sizes and some are even foreclosed upon. People like to hold on to their possessions, and with the same amount of things but less space to put them, they look to storage facilities. Also, hesitant homebuyers store their possessions as they watch what happens to the housing market.
By looking at demographic and growth trends, it’s clear why storage units are in such high demand. Population is growing and while people wait for their homes to be built or are searching for homes, they store away their belongings. Also, people with second homes here often store their large possessions like snowmobiles and RVs in units while they’re away. Wealthier people have more belongings and often rent out more spaces. Some just the basic concrete and metal sheds and others with climate-controlled heating systems. The climate-controlled units maintain a constant temperature of 58 degrees and are used for items vulnerable to the elements like wood and antiques.
Also, high fuel prices and economic slowdowns don’t generally deter wealthy people from enjoying their recreation and second homes.
Businesses use storage units too. Companies like the Old World Cabinet Company use the spaces as warehouses. With the high price of real estate in offices, sometimes it’s more economical to rent storage units than to buy up more space.
One concern for storage operators, though, is the potential for a flooded market. Overbuilding has been a problem for storage facilities across the nation, but most areas have avoided this trend.
Recession Proof Real Estate - To learn more about this author, visit Scott Meyers's Website.
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| Article Tags: commercial real estate, investing, real estate, self storage |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained 4000+ students worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular home staging guides made up of a Design Guide, Color Guide, Portfolio Guide and Twitter Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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