There are numerous advantages to consider when investing in self-storage, ranging from its resilience during economic downturns to its ability to add diversity to your portfolio. Self-storage is an expanding industry that presents lower risks compared to other real estate investment options.
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According to the 2023 self-storage Almanac, public traded companies currently hold a 21.9% share of the self-storage market. There is a potential for consolidation where Prestige can look to acquire 65.3% of facilities owned by individual, small-scale operators. By implementing a professional management approach and establishing a clear exit strategy, Prestige can maximize revenue and position itself for a future acquisition by a larger private equity company or real estate investment trust (REIT).
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In the 2007-2009 recession, self-storage only lost its value by 3.9% compared to Apartments losing 6.7%, Office 8.2%, Retail 12.3%, and the S&P 500 21.1%. Through 2021 to 2022 Self-Storage gained 2.77% in value versus the S&P 500 losing 11.92%. Even during hard economic times Self-Storage remains resilient.
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Self-storage facilities generate rental income from tenants who lease storage units. Unlike other types of real estate investments, self-storage tends to have a lower tenant turnover rate. Self-storage is often used during transitions such as moving, downsizing, or renovating their homes. This creates a consistent demand for storage units; according to the 2023 self-storage Almanac, more than 10% of US households use self-storage.
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Prestige Storage presents accredited investors with a compelling opportunity to diversify their investment portfolio through private real estate offerings. These offerings provide an effective method to enter the real estate market with a lower minimum investment compared to purchasing an entire commercial property. With multiple opportunities each year, investors can access a diverse asset class of real estate, thereby enhancing and strengthening their overall investment portfolio.
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Cost Segregation studies allow us to maximize bonus depreciation in the first year of operations. By using the accelerated depreciation expense to write off your taxable income, you will be able to use the cash (that should’ve been paid to the IRS) to invest in other properties and increase your cash flow.
Self-storage presents an attractive investment opportunity due to its high returns, minimal risk factors, and rapid industry expansion. It serves as a valuable addition to your portfolio, capable of delivering solid returns even during a recession. Working with a company with a strong track record is one of the key factors that make an investment worthwhile. Above all, you must feel comfortable in the hands of the partners you’re entrusting your investment with.
Participation in our storage deals is open to Accredited Investors. If you’re interested in investing with Prestige Storage’s next opportunity, fill out the contact form on our investment page and we will reach out with more information.
Monthly updates will be sent via email. You are able to view details on your investment at anytime through our online portal.
For questions on an investment, please submit a request on the contact us tab through our website. Additionally, you are always welcome to contact Prestige directly at investors@prestigestoreit.com.
Prestige Storage requires a minimum investment of $50,000-$100,000 depending on the deal.
Cost Segregation studies will maximize the tax benefits through accelerated depreciation in the first year of operations. This is a non-cash deduction that reduces taxable income.
