Storage on the move

Opportunities in self-storage sector booming

For quite some time I have been fascinated by the self-storage business. I have kicked the tires of a few deals but mostly due to sticker shock have never taken the plunge and acquired a facility. Based on the few deals that I have looked at, it certainly appears to me that the serious upside for an investor is to develop one of these facilities from scratch.

Today, self-storage is a $15 billion business, with more than 38,000 separate facilities, according to the Self Storage Association, a trade group. But the top 10 companies, which include five REIT's, account for less than 11 percent of the market, according to the 2005 Self-Storage Almanac, published by Mini-Storage Messenger, a trade publication.

While many traditional retirees dispose of belongings before moving South to a smaller slab house, the growing number of younger families calling our area home just do not have enough room in the typical house. As I drive around and see the majority of all garages loaded with stuff, it is very believable that there is almost an unlimited demand for these types of facilities throughout SW Florida.

">Moving Into the Neighborhood [New York Times]

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