The Rise of Self-Storage Facilities: A Lucrative Investment in Industrial Real Estate

In the constantly evolving industrial real estate sector, investors and businesses are presented with a wide range of lucrative opportunities. In recent years, self-storage facilities have experienced remarkable growth and profitability.

Basis Industrial, a privately held and vertically integrated real estate owner and operator, shares its knowledge of the unique characteristics of self-storage facilities, their increasing demand, and the advantages they offer for investors.

  • Understanding Self-Storage Facilities: Self-storage facilities are purpose-built properties designed to provide individuals and businesses with secure, flexible, and accessible storage space. They consist of a range of units or lockers in various sizes that can be rented on a short-term or long-term basis. From personal belongings to business inventory, self-storage facilities cater to diverse storage needs.
  • Growing Demand for Self-Storage Facilities: In recent years, the demand for self-storage facilities has been steadily increasing. One significant driver of this is the rise of e-commerce and subsequent need for warehousing and storage space. As online shopping continues to flourish, businesses require efficient and conveniently-located storage solutions to meet customer demands for quick order fulfillment. On the flip side, consumers have acquired more “stuff” than ever before, leading to increased storage needs.
  • Advantages for Investors
    • Resilience and Steady Income: Self-storage has proven to be a resilient asset class, even during economic downturns. The consistent demand for storage space and ability to generate steady rental income make self-storage facilities an appealing investment option.
    • Low Operating Costs: Compared to other industrial real estate sectors, self-storage facilities generally have lower operating costs. They require minimal maintenance, and tenants are responsible for their unit’s upkeep, resulting in reduced expenses for property owners.
    • Scalability and Flexibility: Self-storage facilities offer scalability as investors can expand their portfolios by adding more units or acquiring additional facilities. Moreover, the flexibility of self-storage leases allows for adjustments in rental rates and terms based on market conditions, providing investors with greater adaptability.
    • Diversification: Investing in self-storage facilities can provide diversification within a real estate portfolio. It is a distinct asset class that operates independently of traditional residential or commercial properties, offering a hedge against market volatility.
  • Leveraging Expertise for Success: Navigating the self-storage market requires specialized knowledge and understanding of industry dynamics. As industry experts, our professionals at Basis Industrial, through the company’s subsidiary management company BaySpace, leverage our expertise to identify lucrative investment opportunities in the self-storage sector. We analyze market trends, rental rates, occupancy levels, and property valuations to help investors make informed decisions. With a focus on active asset management, we create value and maximize returns for our clients.

Basis Industrial, with its seasoned team and extensive experience in real estate development and management, has deep roots in the self-storage and industrial sectors. Currently, Basis owns over 2.5 million square feet of self-storage and industrial real estate, and is set to close another 1 million square feet in 2023.

The active U.S. markets where Basis Industrial operates ― including South Florida, Pennsylvania, New Jersey, New York, Boston, Los Angeles, and select urban markets ― are characterized by vibrant economies, strategic locations, and thriving industries. By actively participating in these markets, Basis Industrial drives growth and creating value for stakeholders.

To learn more about how self-storage units can be a lucrative investment, visit basisindustrial.com or email info@basisindustrial.com

About Basis Industrial

Basis Industrial is a vertically integrated real estate owner and operator formed by industry veterans and sponsors Jay Massirman, Stephen Garchik and Daniel Weinstein. Anthony Scavo, COO/president, runs day-to-day activities of the company. Together, they have over 100 years of combined real estate development and management experience. With deep roots in the self-storage and industrial sectors, Basis currently owns over 2.5 million square feet of self-storage and industrial real estate, and is scheduled to close another 1 million square feet in 2023. Active markets for Basis include South Florida, Pennsylvania, New Jersey, New York, Texas, Boston, Los Angeles, and select urban markets nationwide. In total, sponsors have developed and managed over 13.5 million square feet of real estate assets including self-storage, industrial, retail, office and residential. For more information, visit bayspace.com or basisindustrial.com/.