bookoocash t1_izr3964 wrote
I see these fucking things being built all over. What a waste of space. People need to stop holding onto to so much shit.
kDubya410 t1_izrcw26 wrote
Yeah, that’s the main problem. People holding onto too much shit. Otherwise these monstrosities wouldn’t be popping up everywhere like they are.
planetarylaw t1_izriair wrote
I have a pet theory that storage units, mattress stores, and psychics are all money laundering operations in Baltimore. I have never seen so many in my entire life as I have in Baltimore. Especially the psychics like what? Along with all the trash liquor stores and abandoned buildings it's just a sad look.
czervick212 t1_izs56ay wrote
Commercial real estate broker here. Self storage is one of the hottest asset classes in the entire country right now. Things absolutely print money. Think about it, pretty minimal investment cost since you're effectively building a concrete box with some cages in it. Minimal payroll costs since you don't need more than two people max to keep the thing running. High rents per storage unit and they're pretty much guaranteed to fill up. Once one is stabilized (like 90% full) the developer sells it at a ~5% cap rate (cap rate is Net Operating Income/property value). The higher the NOI and the lower the purchase price when you bought the property, the more you can sell it for. Developers are making a killing on these things and have been for a few years now.
Mattresses cost like 50-100 bucks to make, the profit margins on them are insane.
I have no idea how psychics make money. Preying on the insecure I guess but I've never seen someone go into one.
planetarylaw t1_izs5zsv wrote
Thanks for sharing your insights. What your saying makes sense except for one thing. I can't wrap my head around the demand for storage units or mattresses. Are there really that many people renting and using storage units? And do people buy mattresses that often? I've kept the same one for 15 years and it's fine.
Forkmore t1_izs8hd3 wrote
Right now I’m paying for a storage unit because I was priced out of my apartment and moved in with family in the interim. I’m not sure that selling/trashing everything and then rebuying when I move again would have saved money over the cost of a storage unit. I guess it all depends on how long I’m bleeding money for the unit.
planetarylaw t1_izsgrvy wrote
Oh yeah, I hadn't thought about that. The state of the housing market and economy right now is probably putting a lot of folks in position to use a storage unit. A while back I lived with family and used one of those little sheds to store all of my stuff in. Depending on how long you intend to love with your family, one of those little sheds might be cheaper. Worth looking into!
czervick212 t1_izs79ud wrote
Storage units are definitely getting filled up at a wild rate or developers would stop building them. They do a lot of research on the market and look at average household income and determine if there's a market for it. Americans buy a lot of stuff, gotta put it somewhere. The way I see it, small houses can't hold a lot of stuff, where are you going to keep your Christmas decorations? Where does your lawnmower go in the winter if you don't have a garage? Snowblower in the warmer months? We buy big things that we don't need for portions of the year, gotta put them somewhere.
On the mattress front, mattresses are super expensive. A store needs to sell between 5-10 a month to pay rent. That's some pretty low pressure sales considering when someone needs a mattress they really need a mattress. Landlords also love mattress stores (chain ones like mattress warehouse and mattress firm, local ones are typically for shittier centers, think something like Cromwell Field out in Glen Burnie) since they have great credit and require very little parking meaning the shopping center can focus it's parking on grocery store parking etc. It's a great business model so long as you don't get greedy like mattress firm did a few years back. Interesting story if you want to read about it look up mattress firm corruption or something like that.
scartonbot t1_izuogfu wrote
According to these folks, in 2021 Self-Storage REITs returned 79.43%! Looks like 2022 isn't going so well, however.
spage6 t1_izs4dcv wrote
You should see how many there are by m&t. I think I’ve counted five in a three block radius.
kDubya410 t1_izsqxtk wrote
Your theory isn’t completely off. The trash liquor stores are usually fronts for drug dealing operations.
DogFishHead17 t1_izv5gkr wrote
Its False news. The site plan shows a Car Wash.
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