Check out our Commercial Investing Terminology Cheat Sheet

Jan. 16, 2023

Reasons to Love the Self Storage Asset Class

Reasons to Love the Self Storage Asset Class

In today’s podcast episode we interview Lauren Brychell, Investor Relations Manager at Spartan Investment Group, LLC. Spartan offers investors to place their in Spartan Storage Fund 1 which is a $150M fund that welcomes accredited investors to invest in value-add self-storage in key markets throughout the United States. Spartan Storage Fund 1 will purchase well vetted self-storage investment opportunities. Today’s podcast is focused on the reasons to love the self storage asset class, value add strategies, why self storage asset class is recession proof. 

How Value Add Strategy Works in the Self Storage Space

Value add strategy on the self storage asset class is significantly different from that of multifamily assets. According to Lauren, most of the value add strategies in the self storage space involves rebranding the properties, free up storage, adding ancillary streams of revenue, cosmetic updates to the properties which give class differences (A - C). Furthermore adding an extra parcel and a parking lot on the property will increase the value given to customers thereby increasing rents as well.

Why Self Storage is a Recession Proof Asset Class

Lauren highlighted one of the advantages of self storage to other asset classes is being recession proof. Listed below are the reasons why:

  1. Most Americans are attached to their things and it could be for personal reasons why they are storing their things.
  2. In economic upturns, people are looking to store their extra things. In economic downturns people move to tighter living spaces thus they need to store some things until they return to their original living spaces.
  3. For businesses who have downsized, they are hoping that when things get better, they can utilize the things they have stored.

Reasons to Love the Self Storage Asset Class

Here are Lauren’s reasons to love the self storage asset class:

  1. Self storages are a recession resistant asset class.
  2. Self storages are easy to manage and maintain.
  3. Self storage tenants are easy to evict.
  4. Self storage provides great cash flow.
  5. Self storage’s overhead is lower than multifamily.
  6. Self storage has dynamic pricing. You can literally raise rents every thirty days if desired.

Who is Lauren Brychell?

Lauren Brychell is part of the Investor Relations team at Spartan Investment Group, LLC. In this role, Lauren brings her skills in marketing and project management to assist the team with investor facing collateral, communications, capital raise projects, and investor education. Lauren graduated from Belmont Abbey College with a bachelor’s degree in Business Management with a concentration in Marketing and a minor in Entrepreneurship.