/biz/ - Business & Finance

>>50034724
ENTER STORAGE REITS
These people, rich and poor alike, will all buy storage units for their crap.
>Surely this down turn is temporary, right?! I gotta save all my junk for when the good times are back and I can put it in my new home.
But the good times won't come back. They'll keep paying that monthly fee to house their stuff that they're so attatched to. And that monthly fee will go straight to your pocket! Due to the tax nature of REITs they must pay out excess profit as dividends. FAT dividends, all while their stock prices go up and up due to the influx of business. Storage units tend to be in junky parts of cities. On the outskirts, industrial districts, and the middle of nowhere fields. This keeps costs generally low as they don't have to pay out the ass for prime locations.
>But anon, the land valuations on those areas won't go up. That means storage REITs will depreciate faster than other REITs.
True, the land storage units go on sucks. But who cares? They aren't trying to sell the land or be accessible. If you're hauling stuff out to a unit you need a car (often a truck) anyways. Metal storage sheds don't need much to thrive. Just a solid foundation and some sheet metal to keep those downtrotten posession safe.