GreenFill Storage Blog
Learning about Self Storage – The Development Process So, you're thinking about constructing a self-storage facility. To be a financial success for you and your investors, your first self-storage property must be a financial success. A potential developer should be aware of and adhere to a few fundamental principles. You must select the best location, conduct a market feasibility analysis, and decide on the best unit mix and layout for your project. The self-storage industry got its start in the late 1960s when a few foresighted individuals recognized the growing need for residential and commercial storage. Each decade, the industry has more than doubled in size. Returns on investment have been very impressive, frequently exceeding those of other types of real estate investment. Market Analysis Your Market Analysis will determine the self-storage demand for a specific location. In most cases, the time required to complete a project from acquisition to completion ranges from 5 to 24 months, with 18 being the average amount of time required to obtain conditional use permits. This timeframe is extended for projects that require a zone change; depending on the community you are developing in, a zone change can take 9-12 months. As with any real estate-related analytical report, the markets are constantly influenced by demographics, economics, and other factors that may have a material impact on the viability of a project. It is critical to constantly monitor the market for new competitors who may enter the market so that the project can be phased if the market changes. Self-storage, on the other hand, is a sub-sector of the commercial real estate market. This industry's growth is expected to be positive during the forecast period, owing to trends of increased urbanization and improved economic outlook across countries. The performance of self-storage properties is primarily influenced by the rising demand for additional storage space as families accumulate more material possessions. Furthermore, as baby boomers begin to downsize, the demand for ...
August 16th, 2021
How incorporating self-storage in your housing budget gets you more bang for your buck. In all my time spent studying real estate investments, I have served three formidable mistresses. In my youth, my family was heavily involved in the business of entry level home building. Put plainly, this is the first house you buy when you decide it is time to be a homeowner as opposed to just a renting. My father and uncle had me do everything. My first job occurred over the summers during middle school, shoveling and moving dirt with a wheelbarrow. Progressing to my summer job in high school of swinging a hammer and helping build the houses framework. Then transitioning to working in the sales office, my college and first ‘wear a suit to work’ job. Finally, graduating to project management in my first full time career post college graduation. This was my first mistress: delivering hundreds of homes to new home buyers. Eventually, I developed a severe case of career wonder lust and several years later I left the family business. Eventually I found myself in the arms of my second mistress, multifamily property investments. I started a real estate investment firm of my own in 1991 and by the time I sold it in 2018, with the intention of retiring, it had grown just shy of a billion dollars in assets. This was my second mistress, and I still own many of these property assets today. It took me awhile to realize that I did not know how to retire. Perhaps, I did not want to retire. So, I found my third mistress, self-storage. The funny thing is, self-storage when you think about it, is kind of an extension of my other two mistresses, housing, and multifamily properties. Housing/renting is the necessity of a roof over my head and protection for the stuff in my daily life from the outer elements. Storage is just an extension of the necessity of protecting ...
July 19th, 2021
When is a Storage Unit More Than a Storage Unit? The excerpts below are from an Interview, March 23, 2021 with: Mike Howard, Managing Member, AKA Partners Adam Ibarra, CFO, AKA Partners; also co-owner of Michele Beck Accounting and Rickey Chavez with Gary Greene Better Homes and Gardens Real Estate. How GreenFill Storage Centers Create Value For Customers, Investors, and Communities We Serve In At some point every consumer asks, “What has my storage unit done for me lately outside of storing my stuff?” Mike Howard, the CEO of AKA Partners, the parent company of GreenFill Storage has some insight. Increasing Value to our Customers Mr. Howard: Asking the question “When is a storage unit more than a storage unit” is not a philosophical conundrum to wonder. It’s more of a pragmatic query. A majority of people think of a storage unit as only consisting of four walls, a garage door, a floor and a roof. This logic seems straightforward enough; however, it’s not that simple. Take the roof for example, we see the roof as much more than the covering that protects the important contents from the outside elements. The roof can be much more than this, in fact we see it as one of our greatest assets. Let me explain. When solar panels are added to the top of that roof, the generated power produced from the sunlight is available at a fraction of the cost, as opposed to purchasing it from a local utility company. We pass these savings down to those who store their possessions with us at budget-friendly rates. Our solar panels generate most, if not all, of the electrical needs of our storage facilities. This solar energy can be a tremendous benefit considering the high demand for climatized storage space. We make this temperature-controlled environment affordable, which can be a considerable cost savings when you consider the amount of electricity that type of space consumes on a daily basis. ...
July 19th, 2021