We’ve just closed a deal on a $1.3 million self-storage facility in Shippenville, Pennsylvania. This facility features a whopping 31,400 square feet of storage space and is currently generating around $14,000 in monthly revenue. The previous owner wasn’t utilizing technology, with no online payments or software, and was working too hard. Our plan is to bring in some much-needed efficiency by implementing online payment systems, modern leases, and better record-keeping. With a 90% occupancy rate and potential for expansion on the four-acre site, we’re excited about the future prospects of this investment. Stay tuned for updates on our progress and how we plan to optimize this facility for success in the self-storage market. Happy New Year and thanks for following along!
Today is closing day, and we’re elated to announce that we’ve acquired an incredible self-storage facility in Clarion County, western Pennsylvania. This facility boasts an impressive 31,400 square feet of storage space and features unique amenities such as an in-concrete heating element that melts snow, courtesy of a hot water boiler system. The current monthly revenue stands at approximately $14,000, and with our technology-driven approach, including online payments and streamlined operations, we’re confident in our ability to maximize the facility’s potential. With room for expansion and a great location near a local college, we believe this investment will pave the way for a thriving business in this town. Stay tuned for updates on our progress and the exciting plans we have in store for this property. Happy New Year and thank you for joining us on this journey!
The Purchase
Size and Location of the Facility
Congratulations on your recent purchase of a $1.3MM self-storage facility in western PA! This facility boasts an impressive 31,400 square feet of storage space. Situated in Shippenville, Pennsylvania, in Clarion County, the facility is in a prime location. Its accessibility and proximity to major roads make it a convenient option for customers seeking storage solutions.
Previous Owner’s Situation
The previous owner of the facility was not making use of modern technological advancements in the self-storage industry. They did not accept online payments, didn’t utilize software to streamline operations, and were working tirelessly to manage the facility. With their retirement on the horizon, it was the perfect opportunity for you to step in and transform the facility into a modern and efficient operation.
Current State of the Facility
Current Revenue
At present, the facility generates approximately $14,000 in monthly revenue. Considering the potential that exists for growth and improvement, this figure demonstrates the facility’s underlying profitability. By implementing strategic changes and improvements, you can aim to significantly increase the facility’s revenue in the coming months.
Outdated Practices
The facility currently operates with outdated practices. The use of paper leases, lack of email addresses on file, and absence of online payment options are all areas that need immediate attention. By updating these practices, you can streamline operations, provide convenience to customers, and optimize revenue generation.
Plans for Improvement
Implementing Technology
One of the first steps in your plan for improvement is the implementation of technology. By introducing an online payment system and creating a digital database of leases and customer information, you can streamline the rental process and enhance the overall customer experience. Additionally, by embracing software specifically designed for self-storage facilities, you can effectively manage operations, monitor occupancy rates, and maximize revenue potential.
Updating Leasing Practices
Transitioning from paper leases to electronic contracts is a vital part of modernizing the facility. By utilizing digital leases, you can save time and reduce administrative tasks. This transition will also enable you to collect and store email addresses for future communications and marketing efforts. Furthermore, offering online payment options and accepting credit cards will enhance customer convenience, leading to increased occupancy rates.
Facility Features
Heating System
The facility boasts an innovative and efficient heating system, which is a significant advantage, particularly in the winter months. The in-concrete heating element utilizes a snow melt system that circulates hot water through a boiler. This advanced system runs the hot water through the ground, effectively melting snow and ensuring hassle-free access to units.
Office Space
The facility includes a functional office space where the previous owner conducted their operations. However, as part of your improvement plans, this office space will be repurposed or shuttered to optimize the use of the facility’s available square footage. This reconfiguring of space will allow for more storage units, enabling further revenue generation.
Security
Ensuring the security of customers’ stored belongings is of utmost importance. The facility is equipped with a robust security system, including a fenced perimeter, an operational gate controlled by a smooth keypad, and a surveillance system. These security measures provide peace of mind to customers and contribute to a safe storage environment.
Pricing and Occupancy
Price Per Square Foot
With an average price of $58 for a 10×10 unit, the facility is competitively priced within the local market. However, there may be room for adjustment and optimization to attract more customers and increase revenue. Conducting a market analysis and evaluating competitors’ pricing strategies will allow you to determine the most appropriate price per square foot that balances profitability and competitiveness.
Occupancy Rates
The facility currently boasts an impressive occupancy rate of 90%. This high level of usage reflects the demand for self-storage in the area. However, with your plans for improvement, online marketing campaigns, and enhanced leasing practices, you can aim to increase occupancy rates even further. Through effective marketing strategies and customer-centric offerings, you can attract new clients and retain existing ones.
Future Expansion
Available Space for Growth
The facility’s current layout includes ample space for potential growth and expansion. By optimizing the existing land and storage buildings, you have the opportunity to increase the total storage capacity, attract more customers, and generate additional revenue. It is important to leverage these expansion opportunities strategically and in line with market demand.
Additional Storage Options
To further cater to the diverse storage needs of customers, you are considering the addition of small containers and another building on the premises. These additions will provide alternative storage options and maximize the utilization of available space. By offering a range of storage solutions, you can appeal to a broader customer base and increase revenue.
Marketing Strategy
Online Marketing
Embracing online marketing strategies will be crucial to reaching a wider audience and attracting new customers. Creating a professional website for your facility and optimizing it for search engines will ensure your online presence is prominent. Additionally, utilizing social media platforms and online directories will help raise awareness and attract potential clients. Offering online promotions and discounts will further incentivize customers to choose your facility.
Targeting Local Customers
While online marketing is essential, targeting local customers who are specifically seeking storage solutions in your area is equally important. Implementing targeted advertising campaigns, such as direct mailers and local publications, will enable you to capture the attention of individuals who reside in the vicinity of the facility. By highlighting the convenience, security, and competitive pricing you offer, you can attract customers who prefer localized storage solutions.
Operational Efficiency
Low-Touch Management
Efficiency in facility management is crucial for success. By leveraging the advanced technology and software solutions mentioned earlier, you can achieve low-touch management. Streamlining processes, automating tasks, and utilizing the software’s reporting capabilities will reduce administrative burdens and allow you to focus on strategic decision-making and revenue optimization.
Revenue Optimization
Optimizing revenue goes hand in hand with operational efficiency. By closely monitoring occupancy rates, studying market trends, and regularly reviewing pricing strategies, you can identify opportunities to increase revenue without compromising customer satisfaction. Conducting regular audits of expenses and exploring cost-saving measures will also contribute to revenue optimization.
Town and Community
Location Advantage
Shippenville, Pennsylvania, in Clarion County, offers a favorable location for your self-storage facility. Situated in a thriving community, the facility benefits from proximity to major roads, making it easily accessible to customers. This advantageous location contributes to the potential for increased demand and customer traffic.
Positive Business Outlook
The town of Shippenville and the surrounding community exhibit a positive business outlook, which bodes well for the success of your self-storage facility. Economic growth, a growing population, and a diverse range of businesses contribute to a thriving local economy. Building strong relationships with local businesses and community organizations will aid in marketing efforts and further enhance the facility’s reputation within the community.
Conclusion
Excitement for the Property’s Potential
As you embark on this new venture as the proud owner of a $1.3MM self-storage facility, the future looks promising. With your plans for improvement, implementation of technology, and strategic marketing strategies, you have the opportunity to transform this facility into a modern, efficient, and highly profitable business. The available space for growth, favorable location, and positive community outlook create a foundation for success.
Wishing a Happy New Year
As we bid farewell to the past year and welcome the new one, we wish you a Happy New Year filled with prosperity, success, and growth for your new investment. May your journey as the owner of this self-storage facility be rewarding and fulfilling. Here’s to a year of exciting developments and accomplishments in the world of real estate!