Financial reports from the real estate industry for 2013 show that storage facilities and shopping malls are the most profitable types of real estate investments. In fact, the growth of storage facilities exceeded the expectations of The Wall Street Journal.
In the U.S., there are four primary storage facility real estate investment companies: CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.
These companies are responsible for building the majority of the storage facilities around the country, although some companies are independently owned and built.
The reason for the value of self-storage properties is simple: Self-storage facilities are in high demand. Why the demand for storage facilities should increase in recent years is less clear.
It’s possible that many people undergoing financial trouble find themselves needing storage space to deal with belongings during times of home foreclosure or other hardships. It’s also possible that the sudden surge in popularity of storage lien auctions may have brought more customers to storage facilities.
Whatever the case may be, the continued growth of self-storage facilities as real estate investments is good news for everyone in the business. Not only will additional facilities provide jobs for those working in them, they will also attract more customers.
Wherever a large customer base is found, delinquent tenants are inevitable. This ensures that public self-storage auctions will continue and perhaps even gain in frequency, creating job security for those full-time auction hunters.
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