3 Strategies To Add Big Profit Centers For Storage Buildings
723 Strategies To Add Big Profit Centers For Storage Buildings
Self storage buildings are a fantastic real estate investment and hasn’t everyone at some time or another needed to store their stuff? If you are a real estate developer who is seeking new business prospects or a self-storage owner looking to expand your operations there are many different vehicles that can take your business to a whole new level of profits. Today I want to discuss just 3 ways that can increase the use of the facility as well as the land. They are:
1. Boat and RV
2. Car Washes
3. Wine
1. Location, location, location are still the 3 most important factors in storage development. However, people who need boat and RV storage buildings want hassle-free amenities, security and conveniences. They will drive up to 15 miles for their storage need instead of the average 5-mile radius for conventional storage. Boaters and RVers love a wash bay complete with a moveable stairway so RVers can access the top of their rigs. Also, add electrical outlets which allow for a “trickle charge”. This is for those long periods of inactivity when the batteries run down and must be recharged. Also adding a dump station that is free doesn’t sound glamorous but it is a real plus. If you have a facility that has 10-by-25 and 10-by-30 empty storage spaces these can easily be marketed as covered boat/RV spaces. Make sure “No Smoking” signs are posted through out the property because of potential fumes from thousands of gallons of gasoline in stored vehicles.
Click here to learn more about finding storage buildings
2. Carwashes are a tremendous opportunity for owners of storage buildings to expand their businesses. Each region of the country has its own carwash association which is a great place to start when considering this profit center. There are 3 styles that can compliment storage buildings. It depends on the demographic profile and traffic conditions, as well as, what your investment objectives and management preferences are.
a. In-Bay automatic carwashes are the most commonly installed secondary profit center. These are the ones that many gas stations have. It requires minimal labor and is easy to manage and install.
b. Self-service carwashes require more land for installation but is attractive to tenants because they can use it to wash items they are storing in addition to their cars.
c. Conveyor tunnels can serve more customers at a faster rate. Although it can take longer to construct and needs more management, it offers the highest profit potential.
3. Wine storage is a trend that is growing at a steady pace. Storage building owners are increasing their construction budgets to build upscale wine-storage facilities to attract renters such as retailers, collectors and restaurants. Facilities located in upper-income, high-density areas are typically most successful in this type of rental. Adding wine storage is an easy build and can often allow you to use small, cumbersome spaces that wouldn’t be rentable as storage units. Wine storage gives owners yet another means in which to serve a niche market. Wine is a delicate commodity and conditions need to be maintained. When you let your tenants know you care enough to provide the best home for their prized possessions, it’s a sure win for long term-clients. Along with building relationships with local wineries, breweries, restaurants, spas, hotels also partner with local wine retailers who can refer customers to you. Savvy owners of storage buildings can enjoy the profits of a successful wine-storage business, as well.
Along with the above mentioned strategies the list goes on and on. Think about this. Storage for art, cell-tower sites, portable storage services, commercial records centers with scheduled shredding services, and condominium storage buildings. Retail mix is quickly becoming a valued addition and can add thousands of dollars in revenue monthly.
Self-storage has changed dramatically over the years and has grown from metal garages to multi-story buildings. Storage is no longer a long row of metal buildings with overhead doors and chain linked fences. They have become storage buildings worth millions with state-of-the-art security located in high-traffic locations for convenience and a very profitable investment for savvy owners who embrace this industry.
Click here to learn more about finding storage buildings
CommentsLoading...
What a cash cow these are.
I've heard that storage facilities can be a great investment because you rent out space to almost anyone and people and businesses are always looking for storage. I'm really looking into this now and this article was a great help in what some things to consider are. Thank you.
Donna,
Another good article. As always, good ideas and suggestions. I know I make use of self storage myself on a regular bases. Sounds like a lots of possibilities in making other streams of income in self storage.
Chas
I own a boat. Whenever I take it out I always stop at a car wash to clean it before putting it away. I think you have struck upon a great idea here. You can probably even charge a little more than the competition for your boat/RV spaces simply by having a facility to clean the boats and RV's. Great idea!!
RV storage is huge in some areas. So many housing/condos have restrictions so you are forced to find a place to store the RV while home. Some facilities will wash it for you for a nominal fee.
One of my husband's clients built a storage building that included wine storage. I have never seen such a beautiful lobby. It was so inviting, clean and pleasant. This upscale facility opened my eyes as to what you can include in self-storage. I thought it was brilliant.
I have always heard that self storage facilities were a great investment. It makes sense to add ammenities to attract more customers. I will be looking into adding some of these to my portfolio.
Donna.
WOW is all I can say! When I moved recently, I used a self storage facility. The manager told us that the average tenant is only there 6 to 9 months. And this facility is between two different lakes, so he was actually happy that many of the units were being turned back in...more places for the boat renters...and LOTS more money for him and the owner! Seems like a win-win-win for all concerned!
Taryn
3 Strategies To Add Big Profit Centers For Storage Buildings
Dale 2 years ago
Nice article Doona. My wife and I travel in an RV up to 9 months a year. When we are home our homeowners association won't allow us to park it at our home. We have to use a storage facility, and they aren't cheap, but don't really have an alternative. I know the owner is bringing huge money every month and there relly aren't any expensives for him. Great investment op.