I've been wondering why so many of them are popping up in the city core where I am, instead of more far-flung light industrial areas where they typically existed.
The construction costs $/sqft must be a fraction of commercial building for Class A office or housing.
Usually city core real estate is controlled by a small cartel of owners. They usually cover their carrying costs with parking, as the class-B office space is worthless from a revenue perspective in most places.
If it's a small/mid-sized city, sometimes these property guys get squeezed enough by periodic nuking of people at the local Bank of America/etc office that they actually need to do something with the property. Storage is great because it fits with commercial zoning has overhead similar to parking.
> sometimes these property guys get squeezed enough by periodic nuking of people at the local Bank of America/etc office that they actually need to do something with the property.
Can you please explain this further? I am not sure what "nuking" here refers to.
The construction costs $/sqft must be a fraction of commercial building for Class A office or housing.