In a perfect world, everyone would be crowing about how business is booming. Sadly, our world is far from perfect. With the economy being what it is pretty much worldwide, too many people have seen their business do poorly or go under. The self storage industry, however, is one that has managed to do good during these tough economic times.
With the way the economy is banks are no as willing and eager to approve new construction, but they have been open to businesses renovating existing structures.
That is exactly what the Self Storage Company in the UK recently did. The company opened up a new facility in Waltham Abbey in a building that used to be occupied by OEP office furniture. Now it is home to a 600 unit self storage facility.
A Member of Parliament, Eleanor Laing, participated in the ribbon cutting ceremony, and commented in the importance of the Self Storage Company opening the first of 15 planned facilities.
“Not only is this a great new business providing opportunities for local employment, but it will also provide business units for new businesses.”
Banks in the United States are just as reluctant when it comes to new construction, but that has not stopped them from approving loans for companies to buy existing structures. It is not uncommon on any given day to find a number of stories on the internet about facilities selling for hundreds of thousands if not millions of dollars.
The Argus Self Storage Sales Network was able to sell three facilities in the month of October. One in Colorado, Federal Heights Self Storage, sold for just over $1 million. They also sold A Plus Western Center Self Storage in Fort Worth, TX, and Bellevue Self Storage in Belevue, WI, but did not publish the selling price.
A number of individual sales have been approved in recent weeks. Casino Self Storage, a 85,430 square foot facility in California sold for $10.5 million. StorageVault Canada Inc. opted out of one potential deal in British Columbia to take one in Calgary; a $3 million deal for a facility with 400 units.
While the many individual sales can be encouraging to investors, when a company is willing to invest a significant amount of capital the industry can’t be doing too poorly. Towards the end of October CubeSmart did just that when they spent $560 million to buy 21 self storage facilities in the greater New York City area.
Of course it would be ideal to be able to say that business is booming and that the self storage industry is the go to investment world-wide, but in this economy there really isn't a business that is booming. However, there are some like the self storage industry that are doing well, and there is nothing wrong with that!
Souces Used:
“MP cites new self-storage company as jobs boost.” HertfordShireMercury.co.uk; 03 November 2011.
“Argus Self Storage Sales Network Broker Affiliates Close Multiple Deals in October.” PR.com; 03 November 2011.
“StorageVault buys Calgary storage business but scraps Kelowna deal.” Winnipeg Free Press; 02 November 2011.
“Foreclosed Self Storage Facility Goes for $10.5 Million.” BusinessNewsExpress.com; 01 November 2011.
“CubeSmart Announces $560 Million Acquisition of Industry Leading Self-Storage Portfolio in the Greater New York City Area.” Marketwire; 24 October 2011.