|
Self storage business is a booming industry gaining more and more popularity around the world. Palo Alto Storage Unit and properties are usually single story structures that house a wide size range of individual storage units. The market area for a self-storage property is usually a degree to five mile radius around the site. Therefore, it is imperative that the location be selected with great care. Ideally, operators should situate their properties on main thoroughfares where there are not only a significant number of small businesses, but also a large residential base from which to draw. This type of location provides the operator with two different potential users: commercial and residential. The customer base of a typical self storage center is usually comprised of 75 percent residential customers and 25 percent business customers. The primary factors that dictate success among competitors within a particular market area are location, rental rates, the quality of the property, the level of security at the facility, accessibility, and the availability of suitable rental space. The ability of individual facilities to accommodate special tenant needs (i.e., climate- controlled units) can also provide a competitive advantage. Self-storage customers rent fully enclosed storage units for their exclusive use. They have the flexibility to enter their units during business hours, and control access to their units by furnishing their own locks. Most facilities are lighted, fenced, and equipped with computer-controlled gates that provide certain tenants with 24- hour access to their storage units. Development of the Business The Palo Alto Storage Unit business is highly fragmented, with facilities owned and operated by individuals, small businesses, limited partnerships, and corporations. Due to their lack of curb appeal and their relatively low cost, these assets have traditionally not held much appeal among institutions investors. Competition within this segment of the real estate industry can be substantial. That’s because entry into the business through the acquisition of existing facilities is relatively easy for parties that possess the necessary capital. Development of new storage properties is usually more difficult due to zoning and regulatory requirements. It is estimated that there are more than 23,000 self-storage facilities throughout the United States. Approximately 10 percent of these facilities are controlled by the five major public storage facilities. One of the primary challenges for self-storage companies is to become a recognized leader in their respective markets. This first requires the acquisition and/or development of a critical mass of sites, enabling the operator to become one of the top providers of storage space in a given market. The second phase of the process involves promoting the company’s name in the marketplace, thereby creating brand awareness. Author Resource: Jeson Clarke is conveying information about Palo Alto Storage
Related Articles -
Palo, Alto, Storage, Unit,
|
