Why are so many self-storage facilities popping up in Michiana?

 

SOUTH BEND, Ind. -- You're not alone if you're noticing a surplus of storage in Michiana.

It's hard to miss brand-new self-storage facilities popping up, even if there's already an existing facility just down the street.

"The demand is there, as everyone can see when they're driving around, and see all the new construction throughout the area," says Senior Industrial Broker at Cressy Commercial, Roy Roelke.

Roelke sells self-storage facilities as a Senior Industrial Broker at Cressy Commerical, but he also owned nine facilities across Michiana.

He says the reason for this uptick is as simple as supply and demand.

"It kind of slows down and speeds up both in the new construction and the selling of existing facilities to groups," Roelke explains.

The old Walmart off Portage Rd., for example, as an existing facility being converted to self-storage.

Roelke says it's not a shocking snag by a storage company.

"At an upgrade or rehab, the concrete's already there, the building's there," says Roelke. "It's a lot less on a square foot basis to rehab one of those buildings most of the time than to build new."

Housing is the biggest seller though.

With an apartment complex directly across the street from that old Walmart, Roelke says especially in recent years, as the number of renters increases so will the number of places they need to store their stuff.

"That's why you see so many of these new facilities being built by apartment complexes, higher density population areas," says Roelke.

Roelke predicts the demand is only going to continue as data centers and factories make their homes here in Michiana, as so will thousands of workers.

"I think in this particular area, you're going to continue to see growth for a while, at least a few more years of facilities," Roelke predicts.

If you rent out a storage unit and are wondering if your rates might go down because of this influx, Roelke says that likely won't be the case. Rates will only go down if capacity goes down, which again is highly unlikely.