There is a lot that goes on in a self-storage business, but not for the one looking for passive investment

A lot of asset classes like multi family, industrial, medical office, office, retail whatever it might be the difference between that and self-storage is that self-storage is comparatively a high touch business. It is an operator’s business, it is business where one deals with cost basis.  

Cost basis does not mean that one might have millions of dollars self-storage asset but with a few tenants, but cost basis means other owner with the same asset value has hundreds of tenants for storage rental in Dubai. This means that the one with many tenants has operations heavy business.

When the bottle neck of the business is discussed then it means finding deals with anybody, financing is easy to come by LP capital somewhat easy to come by now that one has a little bit of track record of delivering returns and operations for the same is blocking & tackling.

The things that make self-storage different

Self-Storage is very similar to things like RV Parks and Mobile Homes. It is high touch if there are many tenants and they are all on the month to month leases, which means there is an operations company. A company that runs the business with handful of employees focused on the operational side of business, to manage million dollars in assets. Contact for Storage unit in Al Quoz.

That is operations heavy as the team answers many phone calls and emails a day. There are the vendors hire for lawn care, cleaning companies, overhead door companies and gate companies. There is a lot that goes on in a self-storage business, so the one who is looking for the passive investment then self-storage business is not for him.

If one zooms out then he will find that Self-Storage business is an asset class which is really gotten hot. In the year 2016 it was a record as far as value of self-storage facilities, popularity of them as an investment class, the amount of capital that is earmarked that wants self-storage. It is really been nothing but growing taking off since 2015 and 2016, and obviously all the way to 2020 due to pandemic this business set new standards. Get short term storage Dubai now.

There different types, inside of self-storage there is the big box class A institutional facilities that see in your major cities that is Cube Smart Public Storage, Extra Space Storage, Life Storage and U haul are the five big players, and they acquire the twenty percent of total US market. They own institutional assets and an Institutional Asset means what behind those big players are, the publicly traded companies follows the same.   


Location: Al Quoz - Al Quoz 4 - Dubai - United Arab Emirates

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