Hi,
I'm new to the site and I was wondering if anyone knew anything about lease options for commercial properties such as self storage facilities?
Are lease options possible for these types of properties?
Thank you very much for your input.

Billy T

its all up to the seller

I would be interested in what the lessee wants to lease. Is it a few units, a ground lease, the whole thing?

I could see an owner doing an option on a newly developed, vacant project to a company with a proven industry history in lieu of hiring a manager and employees. Otherwise, I don't see the point... if you explain the circumstances, it might clarify your situation.

If a Landlord already has sufficient income, he/she may just want to liquify the asset to leverage another investment or 1031 exchange. In that case, the only reason for leasing with an option would be if he/she expects a sudden drop-off in vacancy and revenue, which doesn't benefit your client (the tenant). Or a potential change in the market CAPs would potentially entice him to hold a lease while the property maintains steady income and retains its value against other investment types and the option price set above market.

Remember, any option primarily benefits the tenant/buyer, not the owner/landlord.

Self storage facilities are so susceptible to vacancy rates, and that depends on the efficiency or quality of management. I'd be cautious about doing a lease/option on such a facility, because once you got the business going good, it could be a mighty fight to force the seller to sell it to you.