Questions Owner/Operators May Be Asking this Year

Posted by msmessenger on Apr 7, 2021 12:00:00 AM

This past year has been tough on the commercial real estate sector. Between the growth in e-commerce, the shift away from in-person office space, and a large number of store closures and bankruptcies, revenue generated by commercial real estate fell an estimated 12.1% in 2020, according to IBISWorld.

However, the self-storage industry was one of the few areas of the sector that performed at or above pre-pandemic levels. The number of households in the U.S. renting storage units rose from 9.4% in 2017 to 10.6% in 2020, and there’s no indication the trend will slow down anytime soon.

As self-storage becomes an even greater necessity for an increasing number of Americans, it might seem like a prime opportunity for entering the marketplace, upgrading existing properties or taking advantage of the potential to profit from the sale of a property.

But even as the future continues to remain bright for the self-storage industry, there are still several questions the owners/operators may have to face in the coming months.

Can I keep up with the competition? Is third-party management a good option? Can I get the capital I need? Is it the right time to cash out?

Can I keep up with the competition?

In 2020, the top six publicly traded self-storage companies generated revenue in excess of $6 billion in the United States (based on company earnings reports). For reference, those same six companies own about 19% of the market, giving a glimpse into the revenue potential across the self-storage industry.

With that kind of revenue on the table, large REITs have the ability to leverage cheap capital to achieve their goals, whether it’s through marketing, advertising, technology, capital expenditures or even recruiting.

The ability to outspend the competition continues to garner the largest companies an increasing market share while making it more difficult for local owner/operators to function in the black. Instead of fighting an uphill battle, it might be time to consider an ally with industry experience and a wide array of offerings to help you reach your goals.

Is third-party management a good option?

Maybe. Third-party management offers a great solution for owners to step away from the day-to-day operations while still taking advantage of the revenue stream their location produces.

There are many factors to consider when choosing a third-party manager. For example, a publicly traded company has a fiduciary responsibility to its shareholders and must divert marketing or other resources to its owned and operated stores, rather than the stores that represent less revenue potential, if forced to choose.

Also, it is important to understand the pricing model a third party manager is offering. Some companies offer low rates, but then tack on lots of extra costs to cut into your potential profit. A flat-fee model means that you know exactly what you are paying up front.

Finally, make sure the company you are partnering with has all facets of the industry covered. This includes advanced technology to both enhance the customer experience as well as simplify revenue management; professionally trained management and support teams; a well-recognized brand; and a proven path to profitability.


Store Space’s third-party management program leverages the company’s proprietary Storage360 Platform for a competitive edge. In the battle against the top REITs, Storage360 is a powerful weapon with a wide range of features that include:


  • Integrated platform — combines marketing, operations and business intelligence for enhanced usability
  • Proprietary revenue management suite — incorporates automation to allow an operator to competitively price inventory without needing a Ph.D.
  • Total Facility Management — facility maintenance and customer interactions supported by trained, in-house professionals
  • Kiosks & Point-of-Sale Tablets — enhanced flexibility for on-site managers and customers to check inventory, complete rentals and accept payments
  • Flat-Fee Pricing — Unique to the industry feature includes built-in savings without itemized fees
  • Customer-focused Website — designed for real-time usability to expedite rentals, payments, and account management




Can I get the capital I need?

Have you been considering opening your own self-storage facility? Do you need capital to upgrade your existing property? Are you hoping to refinance your current loans to reduce your debt?

Even with historically low interest rates, getting the money you need to help realize your self-storage dreams can be a challenge.

With so many things to consider—from securing loans through banks, the SBA or private lending companies, to the different type of loans for every phase of the self-storage life cycle, from construction, refinancing, improvements, or purchase—it can be overwhelming to try and find the perfect financing option.

If you are struggling to secure the capital you need to move forward, it might be time to consider an independent financier.

Make sure the company you are considering is fully financed. It is also important to find a company with self-storage industry experience. Finally, pick a private lender who can customize your loan options to help you reach your goals on your terms.



Contact Store Space for a streamlined application process and quick turn-around on a full range of self-storage financing options. As a fully funded, non-traditional lender, Store Space offers low rates and favorable terms for private, direct lending to help you realize our goals within the self-storage industry. From construction to opening and beyond, Store Space offers a full slate of financing offerings:

  • Construction Loans – financing to build a new facility or refurbish existing properties
  • Bridge Loans – fills the gap between development and permanent financing, including mezzanine debt and recapitalization of existing loans
  • Purchase/Permanent Loans – financing post-construction or as bridge loan matures
  • Equity Investments – preferred equity, joint ventures, co-general partnerships and more


Is it the right time to cash out?

Are you looking to cash in on inflated valuations in the market? Has your self-storage property become run-down and you lack the capital to re-invest in repairs? Is the day-to-day maintenance and operation more demanding than you anticipated? Do you require an immediate influx of capital to cover shortfalls in other investment vehicles?

First, the time is right to monetize your assets. It is no secret that many investors are looking to get into self-storage. While many investment firms have been traditionally rooted in commercial real estate, self-storage has become even more attractive as a “recession-proof” way to diversify.

Second, we understand there are often mitigating circumstances that require fast action. Using a commercial real estate agent to sell through normal channels can be a lengthy process, and you will likely be faced with up-front capital expenditures to get your facility up to par.

Whatever your course of action, ensure that you are partnering with a company with industry experience that will pay you top-dollar and make the process as fast and easy as possible.


How can Store Space help? Store Space will purchase your self-storage property. As national self-storage operator located in Winter Garden, FL, Store Space brings decades of industry knowledge and experience to correctly evaluate your property and make a cash offer, so you get the most out of your sale. Store Space will come to you anywhere nationwide and make a fair-market offer, allowing you to sell your storage facility easily and quickly, without commissions, hidden fees, risking bank action or re-investing in property improvements.

The Store Space Advantage:

  • Fast Quote, Fair Offer — get an offer on the spot from knowledgeable industry professionals
  • Store Space Comes to You Nationwide — schedule an in-person meeting at your facility
  • No Cleaning or Repairs — no costly expenses or labor before sale
  • No Hidden Costs — no commissions or additional hidden fees
  • Get Paid Cash — quick turnaround for closing and payment


Is a New Type of Partner Right for You?

As a small owner/operator, competing with the publicly traded REITs, or even the guy down the street with a fatter wallet, can be a challenge. So why not put the power of a large, capitalized company with a broad reach of expertise on your side?

It is becoming more and more imperative to find a partner who can help you achieve your goals. As a privately held company with more than 60 years’ combined management experience, Store Space has the knowledge and expertise to help you reach your goals through a variety of offerings: third-party management partnership; access to fast, easy financing; or divesting yourself of one or more facilities.

If any of these will ease your path to reaching your financial goals, contact us today.

Store Space is a self-storage owner and third-party management company. Located in Winter Garden, FL, the Company currently owns, operates or has purchase agreements for more than 54 properties in 16 states. The Company fuels growth and value with their experience driven operations, state-of-the-art Storage360 proprietary platform and strategic digital marketing programs. Contact us at or visit us at

For information regarding our self-storage financing options via Self Storage Capital, reach out to us at 844-966-0003.

For more information about selling your storage facility for cash via, call us at 844-990-1555.