Month: May 2023

Self-storage investing has been a popular investment option for many passive investors in recent years. As a result, understanding the major market trends in self-storage investing has become crucial for investors who want to maximize their returns. In this blog, we will discuss some of the major market trends in self-storage investing that passive investors should know. Market Trends in Self-Storage Investing  Market trends in self-storage investing that passive investors should be aware of. Increased Demand for Self-Storage Units The demand for self-storage units has increased in recent years. One of the reasons for this increased demand is the rise in housing prices, which has made it difficult for many people to afford larger homes. As a result, people are looking for affordable storage solutions for their belongings. Another reason for the increased demand for self-storage units is the trend toward minimalism. Many people choose to live in smaller homes and are looking for storage solutions for their belongings. This trend is expected to continue, which makes self-storage investing an attractive option for passive investors. Technological Advancements Technology has also had a significant impact on the self-storage industry. For example, many self-storage facilities have advanced security features like biometric access control, 24/7 surveillance, and alarm systems. These features help increase the storage unit’s safety and security and provide peace of mind to tenants. Additionally, technology has made it easier for tenants to rent self-storage units. Many self-storage facilities now offer online rental services, which allows tenants to reserve and pay for a team from the comfort of their home. This convenience has led to increased demand for self-storage units, making self-storage investing a promising investment option for passive investors. Consolidation of the Industry The self-storage industry has undergone significant consolidation in recent years. As a result, larger companies are acquiring smaller facilities, which has led to increased competition and the need for facilities to improve their services to stay competitive. This trend can provide passive investors an opportunity to invest in more extensive self-storage facilities backed by established companies. These facilities often have a proven track record and may provide a more stable investment opportunity. Increasing Focus on Climate-Controlled Units In recent years, there has been an increasing focus on climate-controlled self-storage units. These units are designed to maintain a consistent temperature and humidity level, which makes them suitable for storing sensitive items such as artwork, electronics, and furniture. The demand for climate-controlled units is expected to increase as more people become aware of their benefits. This trend makes investing in self-storage facilities with climate-controlled units an intelligent investment decision for passive investors. Changing Customer Needs Another major trend in self-storage investing is the changing needs of customers. As the demand for self-storage units grows, customers seek facilities that provide more than storage space. They are looking for facilities that offer additional services, such as climate control, 24-hour access, and on-site management. Investors who can provide these other services will likely attract more customers and generate higher returns. Impact of Economic Conditions Finally, economic conditions can have a significant impact on the self-storage industry. During economic growth, demand for self-storage units tends to increase as people have more disposable income and are more likely to move to new homes. However, during economic downturns, demand for self-storage units may decrease as people look to cut costs and downsize. Also read: What to look for when investing passively in self-storage In conclusion Self-storage investing is a promising option for passive investors looking to invest in the real estate market. The trends mentioned above highlight this industry’s potential for growth and profitability. As with any investment, conducting thorough research and due diligence is essential before investing in self-storage. By doing so, investors can identify profitable investments and make informed decisions about their self-storage investments.  Want to learn more about self-storage investing? schedule a free 1-on -1 strategy session with us. 

As a passive investor with $100,000 to invest, there are many options available when it comes to choosing an investment vehicle. One of the ways to invest $100,000 is in a self-storage fund. Self-storage is a growing industry that is experiencing explosive growth in demand, and it’s an investment that can provide a stable and consistent income stream. Why Invest in Self-Storage? Self-storage is a niche real estate market that has seen continued growth over the past few years. With the rise of e-commerce and changing consumer behavior, the need for storage space has continued to increase. Self-storage investments have historically shown low volatility, are resistant to downturns, and offer investors a healthy return on their investment. Investing In a Self-Storage Fund Investing passively in a self-storage fund allows investors to benefit from the favorable real estate market dynamics without the pressure of managing the facility themselves. Passive investments provide investors with a hands-off experience, with the possibility of a stable rate of return without needing to actively manage or have real estate knowledge. Before investing in a self-storage fund, there are several things that passive investors should consider the following: Factors to Consider Market conditions: Passive investors should consider the market demand for self-storage facilities in the area where the fund is investing. A market with high demand for self-storage facilities is likely to generate higher returns on investment. The experience of the fund manager: It is important to invest with an experienced fund manager with a track record of success in the self-storage industry. Investors should research the fund manager’s experience, past performance, and investment strategy. Investment structure: Investors should consider the structure of the investment, whether it is a private placement, a limited partnership, or a publicly-traded REIT. Each structure has its advantages and disadvantages, and investors should choose one that suits their investment goals and risk tolerance. Diversification: Passive investors should consider investing in multiple self-storage funds to diversify their real estate portfolio and minimize risk. Consider tax implications: Consult with your financial advisor to understand the tax implications of your investment. Self-storage funds can offer tax benefits when you decide to invest with retirement accounts. About Self-Storage Equity Income Fund Storage Units Equity Income Fund is a vertically integrated self-storage investment fund, specifically designed for emerging markets in the Southeast. The fund properties have top-of-the-line onsite management teams, electronic gate access, digital security monitoring, and well-lit corridors. The fund combines real estate expertise and investment management to offer investors a unique and potentially profitable opportunity in the self-storage market.   If you are interested in learning more about our self-storage fund and how it can add to your financial portfolio, schedule a quick 15-minute call with us through Calendly. Conclusion Investing $100,000 in self-storage is a smart move for passive investors. The self-storage industry is expanding, and investing passively offers stability and profitability. By doing thorough research, analyzing the market, and choosing a reputable management team, self-storage investment can provide a stable and consistent income stream.