Can anyone help me with determining self storage market saturation from a distance?
I am looking at facilities in several places around the country, all of them are out of state and I am trying to get a better handle on market saturation. I have found some information on the internet but I can not get a clear handle on when to pass and when to proceed further.
One of the facilities has a 10 cap with 75% occupancy. I called one of the "big boys"and aksed if they had any facilities in this town. The girl told me that they have 8 facilities in this town of 20,000 (population found on internet).
How do I determine, from a distance, if this town is overbuilt, (it is an older established area) or if there truly is some potential to fill the vacant units and increase occupancy?
Expense to income ratio shows that it is being operated at 35% so I don’t know if anything can be trimmed off management expenses to increase the CAP rate.
I am reading the Self Storage Course and any additional input would be appreciated.