Because the cost of land continues to rise, and its availability is limited, an alternative strategy are conversions. It’s an option that has merit because it converts a building that
was originally built for another purpose into self-storage. Former office buildings, retail stores, or warehouses convert well, and in some cases are a better decision than conventional new metal buildings. Here’s why:
- Existing buildings are usually located in urban areas, which means easy accessibilityand more potential customers.
- Since high traffic, urban locations are more densely populated, conversions often demand higher rental rates and faster lease-ups.
- Construction may take less time than conventional projects.
The only caveat to be aware of in the conversion process is to make sure the building is in decent condition and doesn’t require major renovations prior to the conversion. If you buy an older building, be sure and check the roof, HVAC and electrical systems to make sure they don’t need to be replaced or upgraded, because these can run into major expenses.
Other areas to check before purchase are the condition of the elevators, if the building is multi-story.