“Converting big-box retail into storage — now that’s sexy”

Investors eye vacant stores to convert into warehouses

TRD LOS ANGELES /
Jun.June 13, 2017 09:30 AM
Storage units (Credit: Getty Images)

From TRD New York: As the retail market continues to flounder, investors are eyeing vacant brick and mortar stores as possible future storage centers.

There are more than 50,000 storage facilities in the United States, and construction spending on mini-warehouses hit an all-time high in April, Bloomberg reported. The largest storage operator, Public Storage, took in $538 million in revenue during the first three months of this year, logging only $149 million in operating costs.

“These guys are making money hand over fist,” Chuck Gordon, chief executive at SpareFoot, a Texas-based storage startup, told Bloomberg.

Ari Rastegar, of Dallas-based Rastegar Equity Partners, said he’s looking for storage space on the outskirts of big metro areas and looking at buying space retail landlords haven’t been able to fill. “Converting big-box retail into storage — now that’s sexy,” he told Bloomberg.

The city, however, has moved to kick the self-storage industry to the curb. Mayor Bill de Blasio’s administration introduced a land use application last month that would require new self-storage facilities to acquire special permits in certain parts of manufacturing districts in the outer boroughs, a move that some view as basically a ban on the industry. [Bloomberg] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
From left: Michael Shabani, James Randall, and 8840 Beverly Boulevard (Credit: Getty Images)

Investor James Randall pays $36M for WeHo furniture showroom

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams

Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

Hudson Pacific Properties CEO Victor Coleman and the Westside Pavilion (Credit: Google Maps)

Hudson Pacific wants full control of Google-leased One Westside; not sweating WeWork

From left: A San Fernando Valley retail center and a Forever 21 near downtown LA (Credit: iStock)

Greater LA retail market struggles to recover from big box closures, bankruptcies

arrow_forward_ios
Loading...