The number of hotels, restaurants, strip plazas, apartments, malls, self-storage, etc. has drastically dropped since the start of covid. And now the threat of a recession and higher interest rates is slowing new development even more. In fact, over the last 3 years, the percentage of new self-storage compared to the existing sf has dropped significantly from 3% to 1%. Many people have given in to fears and given up development plans.
Your reason why is big enough that the timing is not important. You have a financial goal that is so important to you it that it provides the driving force, passion, and commitment to be consistent. For many, it is the ability to retire in 5 years (early) or at least have the ability to.
They have held on as long as they can. Their development income, commercial rental income or even regular income has been reduced.
Or maybe they have taken a hit in the stock market. And worried about a second one on 2023?
Have you noticed how many properties have been for sale for 1 year, 2 years, and even 3 years? Many were listed just before covid at premium prices as the market was rising. If a property has not sold in 6 months it is overpriced. Remember you do not have to pay the asking price.
There are 4 ways of finding land. You need to use all four of them and the many ways you can supersize each one. Here they are:
It must be written and you must keep track. Consistency is the key. And again knowing why you are willing to work an extra hour or two to become wealthy is not on your mind every day the timing is not right for you. If you are not willing to skip 1/2 of sleep, 1/2 hour on social sites, and 1 hour of tv a day the timing is not right for you.
Don't waste your time and hours researching parcels that do not meet the basics hoping you can fit a square peg in a round hole. Pass on land swiftly so you have more time to look for a great property. If you want a copy of the parameters I use email me at firstname.lastname@example.org
You have decided not to be most people.
Most people are going to work their 9 - 5 jobs until they are 65 and then lower their living standards.
Bonus Round – It is important to understand how much land you need. This is often 6 acres for a good six-figure income. It is often based on how much cash you have to invest.
Here are some land sizes and options.
Multiple Single Story Buildings on a single site with both non-climate control and climate control.
Can be built in 1 or more phases.
Many 6 acres sites may not have usable 6 acres without restrictive regulations and why many 80,000 gross sf facilities will be located on 7 plus acres.
One zoning regulation that can have a significant impact on the land area required is the Impervious lot coverage. If the impervious lot coverage (max percentage of building and paving lot coverage) is 25 percent for example you may need closer to 10 acres for an 80,000 sf facility.)
Restrictive stormwater renovation and detention requirements can add 0.5 to 0.75 acres to the land acreage required. Or if the detention is regional and you do not need to provide on your site you can reduce the acreage by 0.75 acres.
One single-story building, mostly climate control.
Can be built in 1 or 2 phases but there will be an extra cost for 2 phases because often pavement in phase 1 will need to be removed in phase 2
3 story facility single phase
May be 1.5 acres if no side yards and or no storm drainage detention is required.
If you want to have a 15-minute call to learn how Storage Authority helps insure the above items and more are accomplished at your facility and how we help you find land and get your facility built please send me an email or call me – no appointment needed: marc@StorageAuthorityFranchise.com or 860-830-6764
Get more information on Storage Authority Franchise at www.storageauthorityfranchise.com
This article was orginally posted on the Storage Authority Franchise Blog
Marc Goodin is President of Storage Authority Franchising. www.storageauthorityfranchise.com He owns 3 self storages he designed, built and manages. He has been helping others in the self storage industry for over 25 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales and operations questions. His best selling self storage books are available at amazon.