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The Self Storage Way to Building Wealth
It’s no secret that over the past 25 – 30 years, the fastest growing segment in the investment real estate industry is self storage. According to the Self Storage Fact Sheet, published by the Self Storage Association (SSA), in first quarter of 2007 there were a reported 51,223 “primary” self storage facilities in the US. In 2006, the reported gross revenues for “primary” self storage facilities was in excess of $22.6 billion dollars, and the total capitalization value for the industry was north of $220 billion.
Self storage facilities have delivered constantly improving properties and services. Self Storage properties have grown to include multstory buildings including climate controlled units especially in prime locations near retail centers. These new properties are far more efficient in delivering services to consumers by locating closer to actually storage customers.
Self storage complexes are adding new services to increase profits. Some services include sales of boxes, truck rentals, self service kiosks, even pod pickup and delivery services. Selling customers unwanted goods through ebay may be worth pursuing. Pack and ship services and PU boxes are profitable uses too.
Self storage investments produce higher rates of return than many other real estate investments and are attracting huge amounts of new capital. This massive growth is beginning to slow as markets are maturing.
