New Regulations Making Self-storage a Lucrative Prospect in the NY Metro Area
By SONNY JUMANI, President, Tulfra Real Estate
New regulations to New York City’s self-storage facility market means a big demand spike is around the corner for facilities right outside its borders.
Just two months ago, the New York City council voted to require self-storage facilities to apply for special permitting before building in most of the city’s industrial zones. New York City is already the most underserved self-storage market in the U.S., and even with 920 facilities spanning 50 million square feet, it’s still not enough for the city’s 8.5 million residents. That deficit is what sparked the development rush over the past few years, and this new ordinance de facto applied the brakes to this rapidly-growing sector of development.
Shrinking space is a growing burden on commercial and residential tenants alike, and this legislative change certainly won’t stop the demand for space. As a result, customers are simply going to turn elsewhere for self-storage. Bergen, Passaic and other New Jersey counties which border New York City, Long Island to the east of Brooklyn and Queens, and Westchester County to the north of Manhattan and the Bronx will likely see a spike in self-storage facility rentals, one which developers can capitalize on in the coming months and years.
One unique opportunity for developers is to convert existing structures instead of developing new. Converting empty buildings can save developers up to 30 percent on construction costs, while benefiting the community by transforming an empty eyesore and giving the municipality another ratable to add to its tax rolls. Best of all, your customer base isn’t just drawn from the few miles in and around your facility: millions of customers are waiting just on the other side of the Hudson River.
About Tulfra Real Estate
Tulfra Real Estate, a Rochelle Park, N.J.- based real estate and development company has evolved into a major redeveloper for municipalities and corporations throughout New Jersey. Independently and with its institutional partners, Tulfra has owned or developed more than $1 billion in commercial and industrial properties in northern and central New Jersey over four decades. Tulfra has become a leader in helping communities and businesses maximize the development and income potential of their properties. Tulfra works with municipalities to transform underutilized or non-performing assets into successful projects in all asset classes including commercial, hotels, healthcare and residential that bring jobs and tax revenue to the community. It also helps corporations by using its experience and attention to detail in redeveloping properties into sites that meet the demands of 21st-century businesses. Additional information on Tulfra Real estate is available online at www.Tulfra.com.