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Why New Construction vs. Buying Existing Facilities

By Ed Clement


"Your Self Storage Planning - Site Selection - Design-Build" by Marc Goodin


Chapter 4


1. Be closer to home. There are very limited quality facilities presently for sale.


2. Better locations. Build it and they will come is a thing of the past, now: build it in the

right location, market it, and they will come.


3. Many existing facilities are overpriced due to bidding wars and REITs paying new

record prices every month. As a facility owner, I get unsolicited requests at least twice a

month to see if I want to sell from buyers who have the cash to buy now.


3. Build for 40% to 50% less than buying existing, which means more equity and more

profits.


4. New facilities can be developed for 1/3 of the owners' cash equity requirements of

buying.


5. You reap the rewards of your efforts vs. paying a premium for others' efforts.


6. You can build in phases so you can start off with lower equity requirements.


7. You will have state-of-the-art design and technology putting you far ahead of many

second-generation facilities.


For a free copy of Marc's book, "Your Self Storage Planning - Site Selection - Design-Build"



Ed Clement is a franchise director at Storage Authority. One of his passions and responsibilities is helping franchisees find land by sharing how to find land both online and offline. Ed has a strong background in real estate, investment banking, and management consulting. He is available at Ed@StorageAuthority.com or 727 946 0745 to answer your questions and share the Storage Authority Franchise opportunity and advantages with you.


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