I am currently researching an investment with storage units. I have read about a 30-38% rule. Does anyone have any insight on this rule? My mind is telling me that more storage is better than more driveway.
Are you referring to expense ratio? Yes, sometimes. It depends on how many units the property has, what if any onsite personnel, how old the building is, buying existing versus building.
Self storage is great, but is no cakewalk. There's plenty of pitfalls, but it's a great asset class.
@Jerry Brand It really depends on a couple factors I can think of. First, it depends on the whether it's climate controlled on non-climate controlled. If it's a climate controlled or a mix, you'll need less drive up access and be able to utilize more the land. But climate controlled is significantly more costly, so you need make sure there is market demand. Second, zoning laws may dictate how you utilize that land, particular if you're leasing land - there are likely some restrictions.
Definitely a great investment if you find the right location.