Self-storage can be a great option if you are looking to invest in commercial real estate. Storage properties are popular amongst commercial real estate investors for many reasons.
Potential for Steady Income One benefit of storage properties, according to INCO Commercial, is that they have a great ROI. Storage properties have many units that fill up quickly and are rented at high prices. Self-storage is usually in high demand, and outperforms other types of real estate, even during hard times. Recession Resistant The only type of real estate asset that continued to generate earnings for investors during the 2008 recession was self-storage. This industry stayed strong during Covid as well. Small businesses that had to close temporarily used storage units until the economy picked back up. Taxes There are tax benefits for those that invest in self-storage. Deductions on property tax, depreciation, and interest expenses are all available on these types of property. Because the IRS lets investors depreciate commercial real estate over 39 years, they have a larger amount of depreciation to reduce their taxable income. Easy to Maintain Self-storage is one of the easiest property types to maintain. Since they aren't lived in and don't have large production or manufacturing inside, they don't need repairs as often. With a good security system, fire sprinklers, and lighting, you can have a functional, profitable self-storage operation. Finding Storage Properties The best way to find storage property to buy is to work with a real estate agent or broker, like INCO Commercial, specializing in commercial and storage properties. Working with a professional can help you make a better investment.
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AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
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