For any business to succeed—self storage and otherwise—being it helps to be responsible with finances. Yes, sometime you need to spend, but for the most part if you can save money by doing something than you should do it. One of the most common ways self storage companies save few dollars is by converting existing structures to self storage rather than buy new.
It’s a pretty common practice actually. When the economy went south a few years back lending institutions were not very eager to approve loans for new construction. The risk involved was considered too great. Many were okay with approving loans to convert existing structures in to self storage facilities.
For example, Metro Storage announced in early April that it had purchased an old Sears Parts and Repair Center that it planned to convert in to a self storage facility.
“We’re excited to expand our presence in Chicago’s North Shore suburbs,” said Matthew Nagel, Chairman of Metro Storage LLC. “This is an outstanding location in an exceptional community. The property has great visibility from a major thoroughfare and the building is well suited for conversion to self storage.”
Over the years companies have converted everything from abandoned building, apartment buildings, former department stores, and even an old Coke factory.
A company in Los Angeles, The Magellan Group, has purchased a building that was once used for constructing floats for the Tournament of Roses parade. A company called Fiesta Parade Floats called the building home until 2007 when it relocated.
“We found the storage market fundamentals on both a macro- and micro-market level highly appealing,” saidKevin Staley, principal and co-founder of The Magellan Group.
The company bought the building in March last year for $2.15 million and expects to spend $10.6 million in converting it in to a nice, new self storage facility.
Sometimes converting the old in to a new facility is not an option though and a company has to build new. This is often the case when a developer finds what he/she believes is the perfect location.
“Storage is a localized market, and we were able to find a couple of locations that are in growth areas; one is in more of an infill location,” Cisarik told The SpareFoot Storage Beat. “We feel like the demand is there and, of course, San Antonio in general is growing rapidly.”
“Group building 3 storage facilities in San Antonio market.” Sparefoot Storage Beat; 30 April 2014.
“Developer plans conversion for parade-float facility.” Sparefoot Storage Beat; 25 April 2014.
“Metro Storage LLC to Convert Former Sears to Self Storage Facility in Bannockburn, IL.” PRWeb; 06 April 2014.