Real estate has long been viewed as an excellent investment because there is a limited supply, and it typically increases in value over time, even without added improvements. When evaluating commercial real estate investment opportunities, self-storage facilities might not be at the top of your list. But they really should be, as this is one of the fastest and most steadily increasing categories in the commercial real estate market. In 2021, the self-storage facilities market had a value of $54B. The compounded annual growth rate of this commercial real estate industry segment is over 7.5%. According to industry experts, by the end of 2027, this market is expected to have an overall value of more than $83B. The team at Legacy Built recognized the potential of this industry in the late 1970s and has been delivering up to 6x returns for investors for over half a century.
Self-Storage Facilities Are Savvy Recession Proof Investments
When the economy is strong, and consumers are spending money freely, they need to add space to store their newfound possessions or the old family treasures they are unwilling to sell or toss into the trash. When the economy takes a downward turn, those same people are not looking to reduce the cost of living in a massive house, so they downsize. But that only means they are searching for more cost-effective means of storage. They save a few thousand a month on their mortgage by purchasing a smaller house and investing a few hundred a month in a climate-controlled storage unit to protect their treasures and valuables that are not needed in the smaller home. Regardless of the economy and financial climate, self-storage is in demand.
Strong Cash Flow In Self-Storage
A single self-storage facility could have hundreds or even thousands of spaces and tenants. Each month, those spaces generate income while also having a relatively low operating cost thanks to automation processes, computer monitoring and security, and low maintenance requirements. And while there might be monthly turnover in the storage spaces, there is always demand that allows the rent to routinely increase and deliver increased cash flow and value for investors. Finally, the operators of SpareFoot, who track self-storage stats in the United States, report that over 85% of all available storage units are rented at any given time, making it about 5% better than the average for general commercial spaces across the country.
Why Choose Legacy Built?
When investing your hard-earned money, you want to only entrust it to the best in the business. In the case of self-storage construction and management, Legacy Built is the industry expert who has worked in the arena for over 45 years and has never defaulted on a loan or had an investment underperform their expectations. Rarely will you find an investment company or an investment opportunity with a perfect track record. But that is what Legacy Built offers investors. While no investment can genuinely be labeled a sure thing, Legacy Built can honestly claim that they have never failed to deliver in over four decades in the self-storage industry.
