Self Storage Buildings

One of my many projects lately is looking at mini-storage warehousing.  The self storage industry is starting to mature and the Chattanooga market has its fair share of providers.  There are 61 self storage facilities in Hamilton County accounting for almost 2.4 million square feet of storage.  According to the 2006 census records there are roughly 313,000 in the county, so that means we each have almost 8 square feet.  That space may not hold Grandma’s pie safe and wardrobe, but it should be a comfort to us all that we have some extra space if we need it.  A report from R. Christian Sonne, the Principal of Self Storage Economics, LLC, reported in 2003 that the demand averages just shy of 5 sq ft per person.

There are a fair number of self storage facilities on the market.  Total Storage is located at 8810 Dallas Hollow Road.  The property has over 66,000 square feet and is for sale for $4,650,000.  The facility is new and includes 4 acres of land.  The amenities include digital surveillance, fire sprinklers, climate controlled drive-up units, and covered RV parking.  The storage business is becoming more sophisticated to meet customer demand.

The largest recorded trade was Uncle Bob’s at 4121 Hixson Pike.  The 155,000 sq ft facility sold August 2004 for $6,680,000 according to tax records.  Many locals remember the building as K-Mart.  Uncle Bob views a large air-conditioned space that was once used to sell stuff as a great place to bring the stuff back and park it.  The parking lot is now used for additional storage and retail out-parcels. 

There are 15 large self storage warehouses in Hamilton County that have greater than 50,000 sq ft and more than 3 acres of land.  Eight of those are owned by REITs not from this area.  Many of the smaller storage businesses are professionally operated and owned by out of state companies.

If you are interested in investing check out the following trade organizations,  Inside Self Storage, and Self Storage Association.  There are some pretty safe bets in the storage industry.  One is that the cost of construction is not going down soon, second is that land on well traveled roads is valuable, and third is we love our stuff and do not part with it easily.