Institutional vs. Private Self Storage Investors

Institutional vs. Private Self Storage Investors

Self storage facilities are a top competitor in the current commercial real estate market. Storage properties proved their stability as they showed consistent occupancy and revenue during the 2020 lockdown. Now, as new units are being built, the question is how the investment opportunities of these facilities may change. 

Institutional and private self storage investors each have different goals and target sectors of the market. With new institutional investors projected to increase competition for storage facilities, it’s important to know your business’s value. As a facility owner, you can prepare for new growth and know what to expect with the right team on your side.

Do Institutional Investors Invest in Self Storage?

Although private investors and mom-and-pop buyers dominate the self storage market, institutional investors are a significant part of the equation. Institutional investors refer to REITs or entities that invest on behalf of their shareholders. Institutional real estate investors are typically interested in a large sum of properties since they have access to more funding. 

Institutional investors represent many clients and look for risk-free investments, which means they may be more likely to trade in and out of properties. More and more institutional investors have their eyes on self storage facilities due to their reliability and low risk.

Are Private or Institutional Investors Better for Self Storage?

What’s best for your self storage facility is unique to your business needs and goals. There are pros and cons to both private and institutional investors. Here are some advantages of private investors:

  • Best for a single storage facility
  • Personal portfolio
  • Interested in the long game for retirement
  • Flexibility and personal investment

Because institutional investors look for larger portfolios, multi-facility owners appreciate their unique advantages, including:

  • Best for multi-million dollar assets
  • Diverse portfolio
  • Unique opportunities and no middle man
  • New construction for a network of facilities 

If you want to know how to gain institutional investment in your self storage facility, get started with the professionals at Investment Real Estate. If your property meets the criteria, we can help you present a low-risk, high-reward opportunity for potential institutional investors. After our complimentary property valuation, we’ll help you manage the entire selling process so you get what you deserve.

Choose Investment Real Estate for Expert Advice

Whether you’re interested in private or institutional investors, your self storage facility is a valuable asset. With Investment Real Estate, you can be confident that your price tag reflects your property’s value. Trust our selling process and feel good about your investors with our skilled team. Reach out to us to learn more about our vast buyer network!

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