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FWIW I've heard storage units are not necessarily a super profitable business, instead they are a low overhead operation to cover the property tax on land in th
by ip26 7y ago
FWIW I've heard storage units are not necessarily a super profitable business, instead they are a low overhead operation to cover the property tax on land in the outskirts that you're sitting on waiting for appreciation as the city grows. So they only have make up the cost of the cinderblocks to be worthwhile.
- TylerE 7y agoI don't really believe that as in many places you're starting to see multi-level facilities with as many as 5-6 layers of units. That ain't cinderblocks.
- ip26 7y agoAlright, then perhaps I am wrong (or out of date). I'd not seen nor heard of these six story high facilities, my lord.
- Nasrudith 7y agoI have seen those only heading into cities near the outskirts. I also didn't get why they weren't apartments.
- bikezen 7y agoIn California at least, prop 13 lets them operate without having to worry about rising property taxes in areas where otherwise there could (and probably should) be housing.
- mathgladiator 7y agoI helped cofound a marketing vertical in this space, and they are extremely profitable if managed and marketed well.
- Broken_Hippo 7y agoI knew of a dude that had a couple of the storage facilities. I guess the facilities themselves had a slim profit margin, but he could auction off the contents when folks didn't pay - which partially made up for the margin. Granted, this was mid-size midwestern city, so the land cost wasn't as high.
- maxerickson 7y agoAround here there are storage units that are miles away from everything. (A county with a population of ~40,000, there's no short term time frame where growth will reach the spots where they are built)