Many people living in Arizona choose to invest in commercial real estate as a way to generate income and expand their portfolios. If you are among them, you may find that you have many different commercial real estate investment options available to you. Historically, some types of commercial real estate have performed better than others, and one such investment you might want to consider involves putting your money in a self-storage facility.
Per Commercial Property Advisors, self-storage buildings are those that house home goods or business assets when home or business owners lack the space to do so in their own homes or offices. Some self-storage facilities cater to traditional storage needs. Others also have space for boats, RVs and other oversized goods.
Why self-storage is a low-risk investment
The main reason self-storage is a low-risk investment is that the industry tends to stay strong even during economic downturns. In fact, a poor economy may actually increase the need for self-storage space because it forces some home and business owners to downsize, resulting in a need for more room to store goods. Running a self-storage business may also be easier than running, say, an apartment complex because there are fewer things to break or go wrong.
What to consider before investing in self-storage
It typically pays to open a self-storage facility in a high-traffic area, especially if there is a high demand for storage space in a given area. However, you need to determine the zoning within a particular area before selecting a location for a self-storage business, because some high-traffic areas may not have appropriate zoning for a commercial enterprise.
Other factors that make a particular area ideal for self-storage include a growing population and level topography.