Self-Storage Another Competitor For Industrial Space
NOVEMBER 22, 2016 | BY CARRIE ROSSENFELD | GlobeSt.com
Conversions of obsolete industrial space to self-storage is becoming more popular as ground-up development grows increasingly more cost-prohibitive, Wentworth Storage’s Dave King tells GlobeSt.com EXCLUSIVELY.
King: “It seems like someone is nipping at my heels for each of these deals, and it’s not another storage person.”
SAN DIEGO—Conversions of obsolete industrial space to self-storage is becoming more popular as ground-up development grows increasingly more cost-prohibitive, Wentworth Storage Co.’s VP Dave King tells GlobeSt.com. The Arizona-based development and acquisition company recently purchased two industrial properties in Southern California with plans to convert both to class-A self-storage facilities.The acquisitions include a ± 90,000-square-foot industrial building at 2391 Fenton St. in Eastlake Village and a ±81,980-square-foot industrial building at 12340 World Trade Dr. in San Diego, with plans to open both as self-storage facilities in 2017.
We spoke exclusively with King about the self-storage business, how it relates to industrial and other markets the firm is eyeing.
GlobeSt.com: Is converting industrial buildings to self-storage facilities common practice?
King: There have always been occasional conversions, mostly in pretty dense infill markets, where self-storage was created from repurposing or reusing industrial or retail, but this has surged over the last 18 months or so. You will find old furniture retail warehouses or bowling alleys or Kmarts—someone recently converted a Target supercenter in Arizona to self-storage. They make for a really good conversion because they’re large and you don’t have to put a lot into them.
It seems to me as big-box retail struggles a little bit…
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