How To Sell A Self Storage Facility In Massachusetts

Published on June 18th, 2023

Wondering how to sell your self storage property? Selling a self-storage facility is no different than selling any other piece of commercial property. Storage units and storage unit businesses have been in use for hundreds of years and are profitable pieces of real estate. A storage business is a great investment for anybody, including casual buyers and real estate investors that purchase apartments and bigger complexes. No matter the condition of your self-storage facility, there are five ways that you can sell it.

Throughout the course of this article, we will discuss everything you'll need to prepare your storage unit or storage facility for sale, whether or not you should use a real estate broker, and what the commercial real estate market looks like for a self-storage owner and prospective buyers. By the end, you'll know the best options for selling self storage facilities. Now let's get ready to sell your storage facility!

Learning How To Sell My Storage Facility In Massachusetts

While owning a business is a great thing, things don't always pan out the way you may have originally thought. You may have entered the self-storage industry with the idea that it would become a quick return on investment. There are a number of factors that may not have been considered when purchasing your facility, like overhead costs, the location and area of the facility, competitors, and what types of businesses and surrounding activities may help or hinder being successful. If you're facing foreclosure and need cash, selling may be your best option.

Finding People Who Want to Buy My Storage Space In Massachusetts

The commercial market fluctuates, but there are many places to advertise when selling self storage facilities. Potential buyers are always looking for commercial properties that can add value to their existing portfolio. A real estate agent or real estate investor can help direct you to individuals ready to capitalize on the opportunity and buy your property. They are looking for a good sales price and the best price on the market. These types of people are ready and able to make a written cash offer, especially if you already have rented units.

Selling To A Real Estate Investor That Specializes In Self Storage Businesses In Massachusetts

There are all different types of real estate investors, and some of them specialize in self-storage facility businesses.

At Fire Cash Buyers we specialize in buying self storage facilities as is for cash. Connecting with a real estate investor that specializes in purchasing a property like yours will help you get a fair sales price and someone who already knows about running a storage property and the storage industry. A real estate investor might ask for financial records, your net operating income, cash flow, and other pertinent information regarding your operating expenses.

A real estate investor is a type of very qualified buyer who will probably offer you a cash offer making this a hassle-free experience. Connecting with a real estate investor is possible through self-storage brokers who specialize in selling self-storage properties. To find a broker in your area that specializes in connecting people with real estate Investors in your specific market, do a quick Google search.

We even purchase fire damaged self storage buildings. We dont shy away from anything.

Selling Through A Real Estate Agent On The MLS In Massachusetts

When I want to sell my self storage business, I immediately consider looking at the MLS system. In fact, the MLS system isn't just for houses in the real estate market. Most MLS systems include a commercial section allowing brokers to list commercial properties, which would include storage units and a self storage property. Targeting prospective buyers through a commercial real estate can be a little bit different than attracting qualified buyers for a home.

Most qualified buyers for a self-storage unit property or Self Storage property will have a written cash offer. A good broker will ask you as many questions beforehand as possible to alleviate stress during the real estate transaction, such as whether you will be willing to pay closing costs, who is the management company and what are your capital expenditures. Also, be aware that if you do sell your property through a real estate agent on the MLS, you will have to pay commissions based on the final closing price of the deal. You'll also be able to just sell the property, or you could sell the entire self storage business.

Selling Directly To Private Buyers In Massachusetts

Finding a private buyer to buy a self-storage facility or business might be a bit of a challenge, although if you have contacts in the self-storage industry or extremely well-maintained storage units, it will prove to be less challenging. Be sure that when you're trying to sell directly to a private buyer, you up the curb appeal of your property and try to reduce vacancy rates as much as possible; this will only do more for upping the value of your property and making a deal that much sweeter for you.

Make sure that when you are trying to sell your storage facility directly to a private buyer, you hire a good title company to handle the paperwork at the closing and consult with a real estate attorney, if necessary, with interested parties. This is key, especially if it's a cash offer and you want to negotiate closing costs.

Selling Your Self Storage Space At An Auction In Massachusetts

Selling a property at auction is a great way to draw in a huge crowd of potential buyers. Selling at an auction isn't just for properties facing foreclosure; it can be helpful for businesses to speed up the closing process and for you to get a good value for your property with minimal effort. this is a popular option for people who buy storage facilities. Believe it or not, self storage units are very popular. You could get market rates when the facility's condition is good. This can add immense value to the sale price and quickly increase your cash flow.

 Be aware, though, that before an option, potential buyers are allowed to walk around your property looking for issues. To get the best price for your self-storage units, make sure to have them as clean as possible and have any information regarding rental rates and the rented units available in case anybody has any questions.

• To have a successful auction, please follow the steps below:

• Hire a professional auctioneer

• Ask how the auctioneer gets paid

• Choose between an absolute auction or an auction with a reserve.

• Find out how the bidders will be qualified

• Determine how you will accept bids
  

Selling To A Local Company In Massachusetts

If you have competition in the area and you are looking to sell your business, another great exit strategy is to try and sell your self-storage business or self-storage property to a competitor. Your competitors are always looking to expand their facilities and get more ground within the industry.

The owner of the company may be willing to speed up the process and pay cash at market rate for the sale of the storage facility. People in the industry already recognize this is a hot market item and will work with you to get things wrapped up.

These experienced potential buyers will ensure a smooth selling process for the right price, and they already know about the business. To find a list of your competitors, all you need to do is do a quick search on the internet or ask some others in your industry if they might be willing to buy your property. The bottom line is, if you need cash and want to sell your mini storage facility or are interested in selling storage facility units, these tips will point you in the right direction.

Consider A Self Storage Owner In Massachusetts

One of the best things you can do is consider who the prospective buyers are. While you need to make sure the property has curb appeal for qualified buyers, your best bet would be to work with an experienced self storage broker who understands the market and can get someone who is familiar with cap rates and can see the potential based on existing financial records. The cap rate is the rate of return on the investment property based on expected income.

A good owner makes sure their facilities are well taken care of. This makes it easier to set a competitive price, have a smooth process, and seal the deal.

For more information on selling all types of property, from homes to self-storage businesses, check out our blog for helpful tips and tricks.