Off-Market Self Storage: How to Find the Best Deals in 2024

You know self storage can be a great investment if you find the right deal, but sifting through all those online listings to find a diamond in the rough is a pain. What if we told you the best deals aren’t even listed?

It’s true — off-market self storage facilities are where the real bargains lie. In this article, we’ll show you how to tap into your local network and use some savvy negotiating tactics to score an off-market self storage facility for an absolute steal. With the right approach, you can snag that perfect investment property without ever having to wade through outdated online listings.

What Is Off-Market Self Storage?

Off-market self storage deals are storage facilities that are not publicly listed or advertised. Typically, self storage investors find these deals through private channels, like networking, referrals, or direct outreach to owners. Off-market opportunities are appealing to investors because there may be less competition, allowing you to potentially get a better price.

Since owners don’t list self storage for sale, there are usually fewer potential buyers. With less competition, self storage owners may be willing to sell at a lower price. They’re also more likely to accept non-traditional terms that can benefit you — the buyer.

Off-market self storage investments do come with risks, though, like the possibility of overpaying or missing out on better deals that are openly marketed. However, for investors willing to put in the work to build relationships and source deals, off-market opportunities can be rewarding. Let’s dive into how to find self storage properties at the best deal.

Finding Off Market Self Storage Deals

As an investor looking for the best self storage deals, you need to tap into resources beyond just the major commercial real estate listing services.

Here are our recommendations to help you find self storage facilities at the best deal:

1. Networking

Get out there and start networking. Attend industry events like self storage conferences, networking mixers, and trade shows. Strike up conversations, express your interest in buying, and see if anyone knows of owners looking to sell off-market. Some may say, “I know a guy…” and make an introduction. These lead-generation tactics can result in exclusive deals.

2. Commercial Brokers

Self storage brokers of America and other regions often have access to off-market listings before they go public. Send direct mail to brokers in your target markets and let them know you’re looking for off-market self storage deals. They may bring you pre-listing opportunities to consider, especially if you’ve worked with them before and have a track record of closing deals.

3. Online Resources

Although off-market deals are not officially listed on major commercial listing services, you may find clues to opportunities on platforms like LoopNet, Crexi, and Brevitas. If you’re looking to invest in storage units, check related listings in your target areas and reach out to their owners.

For example, a self storage facility owner may list boxes and moving materials, or even their locks and security products, for sale as part of a winding-up process. They may not directly list their facility but may welcome an off-market offer to avoid the associated fees and hassles.

You can also set up saved searches on these sites to receive notifications as soon as any self storage-related listings appear. Be ready to act fast, as the best opportunities get snapped up quickly. Continue reading for expert tips on getting the best off-market self storage deal.

3 Tips for Getting the Best Price on Off-Market Self Storage

Here are some recommended tips for getting the best deal for an off-market self storage for sale:

1. Negotiate the Best Deal.

Don’t be afraid to haggle with storage facility managers and owners for the best deal. Come prepared with details on pricing for comparable facilities so you can make a strong case for why they should lower their prices to win your business.

2. Check Multiple Locations.

Storage facilities can vary dramatically between different locations. Do some research on similar self storage businesses within a few miles of where you want to buy. You can enquire about their renting rates and monthly customers/income to determine the business’s worth and guide your pricing decisions. You can also send a third party to get this information from the facility you’re interested in buying.

3. Consider Less Desirable Facilities.

Storage facilities that have been in business for longer but pay little attention to maintenance may be less desirable. However, if it’s in a good location, and you’re willing to spend extra to give it a facelift, then go for it. The owner may be willing to sell at a lower price, and by the time you renovate it and customers start coming to rent, you could make good profits. That’s one major approach if you’re looking for how to buy storage units for profit!

Purchasing an off-market self storage at a lower price can be highly rewarding. Still, ensure you do your due diligence by comparing your choice with a similar facility, negotiating a good bargain, and going for less desirable but well-located facilities. With the right approach, you’ll become a successful self storage facility manager.

Conclusion

Off-market self storage deals can be an awesome way to find hidden gems and buy properties for less. It takes some hustle and networking, but with the right strategies, you can uncover opportunities that aren’t available to the general public.

Stay persistent, build relationships with brokers and owners, and don’t get discouraged. With the insider knowledge presented in this article, you’re ready to hunt for those rare off-market self storage deals. And when you finally land a good deal, don’t miss out on the chance to streamline your business operations with a self storage management software like Storeganise.