Not for us…
I wouldn’t want to be a landlord of retail space. This is another bullish point for warehouse space. I can’t find a REIT that specializes in last-mile warehouses. Those will be the cash cows, since there’s very limited space to add new ones. It’s easy to add warehouses in the middle of nowhere.
I thought I had posted this back in the day…
I’ve seen that. The one with the high percent is SoCal only, and the other one is only 62%. I think warehouse space is mostly locally owned by large landlords in each area. It’s hard to invest in it.
Convert retail to warehouses.
Retail is in denser areas. The rent per sq ft is way too high for warehouse. We should convert it to residential.
Mini storage gets the same rents as residential and costs one tenth to build. Plus tenants have no rights and there are no toilets to maintain…
There can’t be that much growing demand for storage though. If there was, PSA would be growing much faster than it is. Their profits are amazing, so there’s no reason to not expand of there was demand.
They have plenty of competition. It is hard to find the land. You need a retail location with at least 20k cars going by a day. I have been involved in a few. A retail location is key. PSA yields 4% dividends. I get a cash on cash return of 10% on my Ventura self storage investment. I figure PSA just buyers competitors. Doesn’t build like we do.
PSA has a lot of old wooden crappy structures. Better know as Woody Walkups
They definitely have an image problem. Need to change their color scheme
Uh oh, what am I going to do with that stack of 20% off postcards???