Who's afraid of the big bad interest rates?

by Kevin Harless

With the Federal Reserve deciding to keep interest rates at their current level for at least a while longer. Everyday, I encounter the same question from investors. "Is now a bad time to build a self-storage facility?" It's a great question, but one that can only be answered by the investor themselves. It's true interest rates can drive up the expense of any loans you will need to take on to build your facility. However, interest rates are just a part of the equation when it comes to being a success with self-storage and certainly should not be the key deciding factor in one's decision to build. Self-storage in itself has many key elements that can still make for a thriving business within a period of high interest rates, and some will have you asking the question, "Who's afraid of the big bad interest rates?"

• Demand is Evergreen: Let's face it, people will always need storage space. So, even in a high-interest rate environment, there's a built-in market waiting for you to tap into.
  

• Stability in Uncertainty: Self-storage has proven to be a resilient industry, even in times of economic turbulence, other investments may fluctuate, but self-storage tends to perform with stability and dependability.

• Cash Flow Champions: Self-storage facilities boast impressive cash flow potential, with low operating expenses self storage even in times of high interest rates can bring in a tidy profit.

• Distinguish Yourself: Many investors will back away from self-storage investments during times of high interest rates. This could give you the opportunity to boldly jump into the market and make a mark in areas that otherwise might be flooded with self-storage investors.

• Investment in the Future: Building a self-storage facility isn't just about the here and now; it's an investment in the future. As interest rates ebb and flow, your storage facility will continue to appreciate in value, providing a solid foundation for long-term wealth accumulation.

The choice of course is yours, but don't let high-interest rates rain on your parade. Embrace the challenge, seize the opportunity, and embark on your journey to self-storage success. Remember, where there's demand, there's potential, and with a bit of perseverance and strategic planning, you can turn those high-interest rate hurdles into stepping stones towards your entrepreneurial dreams. Build that self-storage empire, and let the cash flow in!

Kevin Harless is Development Director with Storage Authority Franchise, he is a resident of Dallas, Texas where he has spent the last fifteen years of his career in self-storage construction, management, and acquisition. Contact Kevin at kevin@storageauthority.com or on Linkedin at www.linkedin.com/in/kevinharless, or read more of Kevin’s articles and blogs at www.storageauthorityfranchise.com.