Stay Ahead of the Curve: Build Before the Boom
Audentes fortuna iuvat
Fortune favors the bold
-Virgil
Fortunes are made in downtimes when everyone else is sitting on the sideline. Development has slowed in the past year as interest rates have remained high, but as you've heard, they are finally starting to come down. Now is the time to buy land or that conversion you've been eyeballing and get started before everyone else.
According to Yardi Matrix, self-storage investor interest remains high and there is an abundance of capital waiting to start or expand self-storage portfolios. Per the Matrix National Self Storage Report published in September 2024, the impending interest rate cuts could help bring cap rates back down from 5.5–6%+.
In the longer term, new self-storage supply is expected to decelerate according to the Yardi Matrix Q3 2024 forecast update. The planned pipeline and prospective pipeline continued to contract, and the number of abandoned storage projects continues to decrease. This is good news for you as a developer and owner, as a it indicates less future new supply for you to compete against!
The 2025 forecast has been increased by 5.4% to a projected total of 50,130,807 square feet. Still, the development pipeline data continues to indicate a slowdown in new development interest as construction starts declined in Q4 2023 and Q1 2024. An increasing number of monthly abandoned projects is driving the contraction in the planned and prospective pipelines which show a 14.4% decline year-over-year.
With the lower number of active projects, contractors are available and hungry for new developments. Plus, land sellers are more willing to negotiate since fewer people are looking for land to buy. If you start the process now, you can get ahead and have your facility ready to open in late 2025 or 2026 and start lease up while others begin to think about building.
Book a Preliminary Report
If you’re ready to get ahead to start building your dream facility, be sure to find land or a building to convert in an area that will support your development. Increasing rates and limited availability are signs that the market could be undersupplied.
Land sites that are highly visible on a street with strong traffic counts are preferred. Make sure you have enough usable land for development, whether you’re wanting to build multi- or single-story self-storage, flex warehouse, boat and RV storage, or storage condos.
Once you have found a parcel that seems to fit your needs, have Sensei run a preliminary report to do a quick overview of the parcel location’s viability and let you know of any red flags. Your first prelim is free and successive reports are $100.
Simply reply to this email to set up a call or schedule your free preliminary report here!
Expand Your Portfolio with Bon Voyage Storage
Sensei and her business partner just listed Bon Voyage Storage, located at 525 West Walnut Street in Oglesby, Illinois, for sale. The boat and RV storage facility was renovated over the past year to include a new façade, signage and a holding lot. Upgraded features include an automatic gate, security cameras, a new perimeter fence, and a paved entry to better serve boat and RV owners in the area.
Bon Voyage Storage consists of 70,000+ NLSF of fully enclosed warehouse storage, canopy, and outdoor storage. At this valet-style facility, tenants drop off their vehicles in the holding lot and our boots on the ground moves them inside with a new skid steer. Tenants can then pick-up their vehicles from the holding lot at their convenience with 24-hours notice, allowing the facility to be run remotely without an onsite manager.
Bon Voyage Storage is the premier option for Boat and RV storage along the Illinois River. Situated in downtown Oglesby, just a few miles south of the Illinois River, and near the entrance of Starved Rock State Park, the newly renovated facility offers safe, secure storage for the 2.3 million tourists that come to the area each year. Bon Voyage is a valet-style facility that utilizes all of the square footage of the facility to store its vehicles.
Find more details in the Offering Memorandum here.
If You're Feeling Stuck, It Might Be Time for a Development Coach
I've had a coach for multiple businesses, and lean on my coach to this day for my own storage acquisitions and developments. I can't imagine navigating the minefield of professional and personal challenges I've been through along the way without my coaches.
Whether you are developing self-storage, boat and RV storage, flex warehouse or industrial outdoor storage, If you are struggling to get your project to the finish line or if you just want to be sure you act as quickly and efficiently as possible, you need a coach! Overall, as a development coach I act as a mentor and partner, offering support, guidance, and expertise to help you navigate challenges, capitalize on opportunities, and achieve your storage goals more effectively.
The Top Three Things a Development Coach Helps You With:
Expertise in Project Management: A development coach brings extensive experience and expertise in project management specifically tailored to construction projects. They understand the intricacies of planning, scheduling, budgeting, and coordinating various aspects of the construction process. This expertise ensures that your storage construction project is efficiently managed, minimizing delays, cost overruns, and other potential issues.
Risk Management and Mitigation: Construction projects inherently involve risks related to safety, compliance, design changes, and unexpected challenges. A development coach helps identify potential risks early on and develops strategies to mitigate them. Their proactive approach reduces the likelihood of setbacks and ensures that your project stays on track and within budget.
Objective Perspective and Guidance: A development coach provides an external, unbiased perspective on your storage project. They can offer insights and advice based on their experience and expertise, helping you see blind spots or opportunities you might have overlooked. This objectivity is crucial for making informed decisions and avoiding tunnel vision.
Build Storage Like a Ninja
As a development coach, I help you set clear, achievable goals and hold you accountable for them. As a feasibility consultant with exposure to projects nationwide who is also currently developing storage. I have the deep knowledge needed to provide structure and focus, ensuring that you stay on track and take the necessary actions to build your facility on time and within budget.
Sharpen your shuriken and join forces with me as your Sensei. Reply to this email or click the link below to schedule a call at your convenience. Together, we’ll turn your goals into victories.