Investing in Self Storage
Welcome to ORWISE modular and self storage solutions.
ORWISE offers state of the art, versatile and interchangeable self storage solutions to the ever lucrative and rapidly growing self storage industry. With a wealth of experience, we can offer a turn key self storage solution to meet your specific requirements and project budget.
Investing in Self Storage
Self Storage is a relatively new concept which has taken the South African commercial and real estate industry by storm. Globally, the Self Storage industry is growing rapidly and given the rationale behind the growth, its unlikely that the industry will show signs of slowing anytime soon.
Self Storage is a resilient and lucrative investment opportunity. Self Storage can be a largely passive income, as facilities are relatively affordable, require little operational or maintenance costs, they are in high demand and are flexible for almost any investor’s needs.
It is believed that 1 in 10 people will use self storage in their lifetime, giving investors ample opportunity to capitalize on this demand for the need for secure storage space.
Developed in the 1960’s in the USA and with less than only 9% of households in the USA currently making use of self storage, it is a $40 billion industry in the United States, with significant potential for growth for future development and usage. Other developed countries such as Australia, New Zealand, the UK and EU, also have a developed and fast growing self storage industries.
In comparison, the African and South African self storage industry is remarkably newer, with less of its population currently using self storage, allowing even more potential and room for growth.
Most investors are choosing to move away from the South African residential real estate market AS protection of the investors financial interests have changed in recent years. The ever-increasing shift in favour of protecting the residential tenant from the landlord/investor from non- payment of rental income, as well as the likes of eviction, land appropriation, etc., makes Self Storage a more flexible and sustainable investment opportunity.
The attractiveness of self storage lies in its resilience in times of market distress. A characteristic that is unique to self storage is that consumers are in demand of self storage units whether the economy is in both an upturn, as well as a downturn.
People tend to downsize when the economy is in a downturn. Downsizing often commands the need for rental space to store belongings that can no longer fit into the home.
In times of an economic upturn, consumers commonly purchase more items than they can keep in their homes, increasing the need for self storage.
One the largest contributing factors to the increase in demand for self storage is residential downsizing. The consumer demographic largely comprises of young families looking for a more affordable home and the Baby Boomer generation looking to downsize in their retirement.
The ROI (Return On Investment) for self storage facilities generally offer good recession resistance compared to other commercial real estate options. Another reason for the superior ROI is that other commercial markets are saturated. For example, it may be difficult to establish a particular business model such as a restaurant in a specific area, as there may already be a strong and established restaurant market.
The global trend of urbanisation to densely populated urban areas and cities where limited space is of a premium is also a contributing factor to the success of the self storage model, where customers who often live within 5km – 8km of a self storage facility, want a convenient secure solution and easy access to their valuables. Both urban and rural areas where homes are being built on smaller plots, also allow for little room for sheds and garages and ultimately storage space on one’s property.
The increase of online shopping is having a negative effect on other commercial real estate options such as shopping malls, car dealerships, warehouses, etc. often leaving some of these premises standing idle or un occupied. This provides opportunities for self storage development in often high visible and accessible prime locations.
Types of Self Storage Facilities
Self Storage facilities can consist of the traditional single story drive up units, or multi-story facilities, typically found in dense urban areas. Multi-Story facilities are becoming increasingly popular particularly in denser urban areas, as one makes the most of the available property footprint and maximises the GLA efficiencies. ORWISE products are suitable for all types of self storage options, including:
New or existing Single Story Facilities. Advantages of these types of facilities for the client includes drive up unit access, ideal for smaller business operators looking for smaller short term warehousing solutions, or clients looking to store larger items such as vehicles, trailers, boats, caravans, large items of furniture, etc. The ease of access to these ground floor units requires minimal stairwells and lift access, as well as the additional construction costs that go hand in hand with this. The disadvantages related to this option for the investor include inefficiencies in the overall GLA of large pieces of land required for such a self storage option, as well as minimal gross lettable area in rental units, as one allows for multiple wide drive up roads in excess of 5m in width.
Multi Story Self Storage Facilities:
New purpose built multi-story facilities, allows for optimal GLA efficiencies in planning a self storage facility to suit the local customer demand. Lift access makes other floor levels easily accessible to customers and passage widths can be reduced significantly to increase the overall GLA efficiency of the building – ideally increasing the potential rental income and overall ROI for the self storage operator and investor.
The robust and secure ORWISE system dividing walls of merely 30mm thick, allows for maximum GLA efficiency on any floor, particularly in comparison to other traditional building methods where double skin brick internal walling dividing units can be anything up to 300mm wide per unit. This can equate to up to 100m² of additional rental space one could potentially save by making use of the ORWISE hallway system.
Another attractive and cost effective option is conversion of pre-existing multi story buildings typically found in dense urban areas. This option eliminates many construction expenses and reduces construction costs and construction timeframes by up to 30%. Communities are often more receptive to the revitalization of an existing building which unlike a new purposed built constructed buildings, would have less of an impact on local transport, probable road closures, general disruption, increased noise levels and foot traffic of labourers and workers that are typical of a new construction project. The ORWISE hallway system, provides a perfect solution for such a multi-story conversion in reducing the overall weight per floor, providing a state of the art and cost effective self storage facility and enhance the overall customer experience with its clever user friendly and visual appeal.
The success of any business is its’ sustainability and the ability to remain relevant to social and economic changes, as well as their customers ever changing needs. Unlike traditional rigid, time consuming, disruptive, unsightly and costly traditional building methods, the pre-fabricated ORWISE Self Storage Product Solutions offer the most affordable, consumer friendly and aesthetically pleasing self storage solutions on the market. All products are produced in South Africa, reducing the cost, manufacturing and shipping lead times, as well as the overall costs relating to the fluctuating exchange rates and import duties one would incur by using other global self storage manufacturers.
Advantages of using ORWISE Modular & Self Storage Solutions
Whether you are a new budding entrepreneur, looking to take part in the world’s fastest developing industry, or a seasoned self storage operator looking to upgrade your facilities to become more relevant to your customers changing needs, ORWISE offers the following solutions to all your self storage needs, including:
- External Modular Unit options (ideal for open un-used external spaces, parking spaces, etc.)
- Internal Self Storage Hallway System (the most cost effective internal self storage solution which can be easily adapted to your customers changing unit size requirements, should you require unit size changes in the future)
- Locker Unit Options – Double your rental earning potential by optimizing double volume rental space. An ideal solution for urban usage, students, small businesses, etc.
- Garage Roller Shutter Doors – ideal solution for single story purpose built facilities, as well as for replacement and aesthetic improvement of existing facilities.
Why ORWISE? With a wealth of knowledge and experience, our self storage systems carefully adhere to the following criteria:
- Cost effective self-storage solutions
- State of the art flat- packed design
- Turn Key Self Storage Solutions
- Optional Architectural design layouts.
- ORWISE, the Water Wise solution
- Eco-friendly system requires no water
- Quick, hassle free turn key manufacturing, design and installation
- No building waste or rubble
- Little to no disruption to existing trading stores
- Continue trading, while we install in a designated area.
- Custom designed to your specific needs and project budget.
- Perfect solution for purposed built facilities, as well as warehouse / multi level office block conversions
With a wealth of knowledge and experience in assisting South Africa’s largest Self-Storage companies, we have a good understanding of the local self-storage market and your customers ever changing requirements. Our robust, user friendly and aesthetically pleasing ORWISE systems are specifically designed for the harsh African climate and is a fraction of the cost and project timeframe of traditional building methods. Our turn key custom designed systems are designed to your architectural drawings, unit layout and desired unit mix. Increase your bulk factor and monthly income revenue by making better use of available space such as parking bays, un-used spaces, or other dead areas in corridors, under stairwells, etc. by either installing our external modular pods, or by doubling your income potential per m² with our double locker units (ideal for dense urban usage, students or small businesses) We can provide any unit sizing you require, as well as a selection of swing or roller shutter door sizes. Apart from our modular pods and hallway system, we also offer a roller shutter door or locker unit option for new and existing facilities.
For consideration of an ORWISE self-storage system for your business, feel free to ask us for a free no obligation quote to see how we can assist you with your self-storage requirements by contacting us directly. For expert advice, custom designed self storage solutions, as well as turn key installation of our system, don’t compromise.. Choose ORWISE.