If you are planning to foray into the business of safekeeping facilities or are planning to expand your existing warehouse business, then it is probable that you may be looking at self storage for sale . It is important that you take a buying decision only after properly evaluating such properties on resale. Not all facilities would give you good profit and hence careful examination of these properties is essential.
Given here are few things that you should consider while examining a warehouse business on sale.
In cargo space facility business, the location of the site is very important. If the storehouse is strategically located close to the important commercial or residential areas, then there is high probability that it would be successful. The warehouses that are close to highways have high clientele comprising of people looking to temporarily store items while shifting from one city to another. Tourists prefer warehouses close to airports and railway stations. Hence depending upon the type of your target customers, you should choose the appropriate self storage for sale .
The next thing you should look while searching for a self storage for sale is whether the existing facilities available in the storehouse. Here you should ask yourself one questions i.e. whether you would like to use the existing facilities as it is or are you planning to refurbish the warehouse according to your tastes and requirements. If you are planning to invest some more to renovate the storehouse then examining the facilities is of little use for you except for determining the sale price. However, if you are planning to carry out the business from the existing facility without making any changes, then you should check whether it satisfies your requirements or not. The cargo space for sale should have all the facilities that you want to offer to your customers.
It is better if you could find the reason why the owner wants to sell his or her business. This would give you fair idea about the problems that you might have to face after buying a particular safekeeping facility. For example the owner may be selling the business because it is making losses or may be due to legal issues. Though you can turn a loss making business into profitable one but buying a business with legal issues would not be a good choice. Hence, you should put in some efforts to find out the history of the business and owners of the self storage for sale .
Revenues And Profits
You should get some idea about the rentals of the local storehouses and their occupancy rates. This would help you in determining the demand of safekeeping facilities in that area and would also help in cost benefit analysis. For e.g. if the average occupancy rate is 70 percent, then depending on the rentals that a store unit would fetch, you can calculate the approximate revenue that you could earn from the self storage for sale . You should compare the revenue with the cost of acquiring such facility to determine when you would reach a break even point i.e. when the facility would start earning profit.
In short, buying a resale warehouse facility is a major decision so you should take it after appropriate research and analysis. If you find this process cumbersome, then you should hire a consultant that specializes in preparing feasibility reports for these properties. A little hard work would bring you positive returns.
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