The term refers to storage facilities that have been taken back by a lender or property owner due to the borrower’s or renter’s failure to meet their financial obligations. These facilities, often individual storage units within a larger complex or entire storage buildings, become available for purchase or rent, usually at a discounted price compared to market value. Individuals and businesses may seek these out to secure affordable storage space or investment opportunities.
Acquiring such properties can present significant advantages, including reduced acquisition costs and the potential for generating rental income. Historically, the availability of these properties fluctuates with economic cycles, increasing during periods of financial downturn when defaults on loans and rentals are more common. Their existence offers an alternative avenue for individuals and investors seeking entry into the real estate or storage market.
