September commercial real estate transactions remained steady and accounted for roughly 325,000 sq. ft. in sold or leased, office, investment, industrial, and retail properties in our office.
One of our largest sales was 485 Lee Street in Belpre, Ohio. The self-storage facility featured nearly 78,000 sq. ft. of rentable space and an astounding 465 units.
Self-storage continues to be a desired investment sector, and has gained significant interest recently for several reasons. To begin, explained Investment Team Broker, Tyler Watkins, self-storage properties tend to be easier to manage and have significantly lower operating costs than traditional multi-family investment properties.
Multi-family properties have tenants who are occupying and using the residence on a daily basis, because of this, there is more maintenance as opposed to storage units, he explained. Consider, for example, a tenant who needs after-hours assistance because they are experiencing a plumbing issue. That’s just not the case with self-storage, he said.
Watkins added that another driving force behind this surge is the emergence of software that can automate processes for owners, further reducing operating costs.
Lastly, these properties are attractive because they have traditionally proven to be nearly recession-proof, he explained. People will always need storage, whether it be baby boomers who are looking to downsize or millennials in apartments, the need is always there.
The market for these investment properties is highly competitive right now due to the scarcity of available properties. Watkins explained that for the property in Belpre, it closed in under 30 days – a personal record.
Though the Central Ohio market recently has seen an increase in the construction of these facilities, there is a limit to how much more the market can bear, he said.
For a complete list of all of September’s sold or leased properties, please download our monthly transaction sheet.