The global pandemic spurred significant residential changes that led to households downsizing to mobile residences such as RVs and 5th Wheels and a greater need for self-storage across the country. The surging performance of Specialty Asset Classes such as RV Parks and Self-Storage, coming on the heels of one of the strongest years on record for total volume sales, has drummed up considerable investment interest from private and public markets. This level of interest and positive performance has led to more aggregation as larger investment groups enter the space and pay premium prices for independently owned RV Parks and Self-Storage.

RV Parks

As home prices continue to rise all over the country, many Texas families are all turning to the same choice – RVs. For investors looking to start their first RV park or add to their portfolio, the giant state of Texas is seeing a massive influx of residents packing up their homes and moving into an RV.

First, the pandemic’s uncertainty led to a big push of Texas residents to move away from the crowded city life to full-time RVing or taking extended RV trips. With the rising cost of the housing market, the number of RVers is on the rise again as Texas homeowners move to RVing on an interim basis as they figure out their housing arrangements.

For RV park investors in Texas, this is great news! As the number of RVers grows, we see a rise in the number of park developments and expansions.

Check out the top three areas in Texas to start an RV Park: 

1. Texas Gulf Coast: The Texas Gulf Coast is an ideal place for RVers because it is not as warm as the inland terrains of Texas. Also, with its coastal front, there is access to unique wildlife and outdoor water activities.
2. Texas Hill Country: The Texas Hill country gives RVers a sense of being close to city life while still having a unique experience. The hill country is full of historical and monumental sites, antique shopping, scenic parks, natural springs, and numerous restaurant options.
3. Big Bend National Park: Big Bend National Park is a national attraction due to its size and the developmental campgrounds. The appeal to the park is mainly the incredibly diverse landscape of mountains, deserts, rivers, forests, and even waterfalls.

Self Storage

Self-storage facilities remain a solid investment for your commercial real estate portfolio. When compared to some other real estate investments (like office buildings or retail properties), self-storage properties require much less attention and upkeep. In addition, more than 12% of American households rent a self-storage unit. And each month, they spend about $90 on rent for those storage units.

In general, if you choose a good property, self-storage facilities can be profitable investments. If you are pursuing Texas self-storage commercial real estate investment opportunities, it’s important to follow market trends, understand the market, and consult who can help you make the best decisions.

Lumicre can assist you in facilitating the disposition of your asset so that you can capitalize on the cash flow and maximize your returns.