You’ve spent years of hard work building your self-storage business, so selling it is a big decision. Learn more about when you should sell a storage business and how to get started.
Common Reasons to Sell Your Storage Business
Some of the most common reasons people decide to sell their self-storage business include:
- Age: If your storage facility starts showing signs of wear from age, it may be time to sell. Upgrading to a newer facility can help you attract more business.
- Overhead costs: Expensive overhead costs can reduce your profit margins and put a strain on your budget. Investing in a new property with lower overhead costs can help get your business’s finances back on track.
- Location: As the real estate market changes, your current facility location may become less desirable. Moving to a new, more in-demand location can lead to new sales opportunities.
- Retirement: If you’re ready to retire, selling your self-storage business can help fund your retirement plans.
When Is the Best Time of Year to Sell a Self-Storage Business?
Timing can make all the difference for your self-storage investment. The market changes throughout the year, so certain seasons are better for selling than others.
Sellers typically get the best returns during the spring and summer. In spring, the market builds momentum, as curb appeal is much higher than during winter. Summer is usually the busiest time of year in the self-storage market, with more active buyers than any other time of year.
Tips for Selling a Self-Storage Business
Putting your self-storage facility on the market requires careful consideration. If you’re interested in selling your self-storage business, follow these tips to maximize your chance of success.
1. Set the Right Price
The self-storage market can be extremely competitive. Listing your facility at the right price is crucial for a quick, lucrative sale. To determine the right price, you must know your facility’s market value, which varies based on your facility’s condition, the geographic market, capitalization rates and financial market fluctuations.
2. Prepare Your Facility for Sale
Making facility improvements and upgrades before you put it up for sale can help you get the best return on your property. Even simple fixes like replacing burnt-out light bulbs and faded signs can increase your chance of getting offers.
3. Work With a Self-Storage Broker
Selling a self-storage facility is a complex task. To make the process as lucrative and hassle-free as possible, consider working with a self-storage broker. An experienced broker knows the ins and outs of the market to help you get the best deal for your facility.
Contact Investment Real Estate, LLC Today
IRE is here to help you sell your self-storage business at the highest profit margins. We are a top self-storage real estate agency, selling facilities throughout the mid-Atlantic and Northeast regions. Our experienced brokers help you set the right price, time the market and manage the entire sales process.
Get in touch with us today to learn more about how we can help you sell your storage business.