I would not build in SF unless the city gave me a guarantee of no rent control, suspension or rent reduction. And the right to eviction at will.
When you Build to sell, Why need to worry about rent control?
Why not build self storage. Best profits I ever made. No rent control, easy eviction. Same rent/SF as apartments and cost of construction one third the price.
Vacancy rate?
And no service call in the middle of the night.
Mine in Ventura is full with very little vacancy. Industry standard is anything above 85% full is good. Apartment vacancy of 5% is considered full.
I notice self storage asking rent varies widely throughout the year. During slow season, reduced rent is quite often accompanied with free 1 month rent.
This business is good only in housing tight areas where extra storage comes at a premium. I do not think much business exists for self-storage in rural areas.
The key to success in selfstorage is location. You want a high traffic retail location. At least 30k per day traffic count. Put in next to a MacDonalds or HD. Need to be at least 60k SF and be newer steel modular construction. No woody walkups. The other key is competitive comparison and market survey to measure the saturation count. To much competition and you will have high vacancy.
Rents follow apartment rent in your area. They range from $0.5 to $3/sf per month
Ideal renter is middle class makes $40 to $80k
Do it yourselfer. Small businesses are users to. In urban areas they are often 3 stories and climate controlled
Tahoe has an extreme shortage of space. Even Carson City has low vacancy due to Tahoe renters. There is also a lot to made from outdoor storage and indoor for boats and RVs. Uhaul recently built a storage facility near McDonalds on highway 50 in South Lake Tahoe. Rents are over $2/SF
Lately pods in warehouses has become big also
Data released Thursday from real estate company Zillow show the number of deals entering escrow has fallen off a cliff since mid-March. But so too has the number of owners who are listing their house or condo for sale.
Because the market isn’t being flooded yet with listings, lower demand is being met with lower supply, and prices are holding relatively steady.
I recently came across a web site that is something like an AirBnb for storage. You can rent your unused shed/ garage/ bedroom to a stranger for storage. No occupancy. No problems with rent control either.
This is interesting. I read about a website that searches driveways to park for few hours. This is another area that can be shared.
@manch In HK, people rent out parking lot right? Do HK houses have garages? Singapore bungalows don’t have garages, only driveways.
House like SFH? I am sure Superman Li’s house has a garage.