Self-storage investment in Valencia: a new use for an empty commercial property

A commercial property has been without a tenant for months. There is too little foot traffic for a shop, the layout does not suit a café, and an office tenant wants a different neighbourhood. The owner lowers the price, but buyers still hesitate.

For an investor, that property deserves a closer look. One alternative is to divide it into small, lockable units and rent them out for storing belongings. In Spain, these are known as trasteros; in English, the model is called self-storage. Customers use the units for furniture, bicycles, seasonal items or stock for their businesses.

A weak retail location can sometimes suit this model. The important thing is to check before buying.

A lower purchase price can create an opportunity

A shop needs a visible frontage and passing customers. Someone renting a storage unit usually chooses where to take their belongings in advance. Convenient vehicle access, distance from home and secure entry matter more.

Limited foot traffic does not necessarily rule out self-storage. A narrow entrance, awkward unloading or damp can seriously restrict the property’s potential.

The investment makes sense if:

• the purchase price leaves room in the budget for conversion;
• the layout allows enough storage units;
• there are potential customers nearby;
• costs can be covered without assuming permanent full occupancy.

You also need to understand the low price. If the current use does not suit the property, another use can be considered. If there are technical or documentary problems, resolving them may absorb the entire discount.

Valencia as an area to investigate

JLL points to the potential for Spain’s storage market beyond Madrid and Barcelona. For investors, that is a reason to examine other cities, including Valencia and its metropolitan area.

Search trends also help track interest in this format. Alongside the Valencian Community, the trend reviewed shows interest in the Balearic Islands, Madrid and Murcia. However, search interest does not tell you how many people would rent a unit at a particular address. View the Google Trends data.

In Valencia, it is worth investigating neighbourhoods where people need storage but convenient options remain limited. Some locations may have fewer competitors than the more saturated districts of the largest markets.

Check nearby storage centres: their locations, prices and available units. A lack of competitors does not, by itself, establish demand.

Several tenants instead of one

With a conventional lease, income depends on one business. If that tenant leaves, the property can remain empty for a month or longer.

Dividing it into storage units brings in different individuals and businesses. One vacant unit does not mean losing all the revenue. With a suitable layout, letting smaller units can also generate more revenue than letting the whole property.

But this is a property that needs management. Customers must be attracted, contracts signed, payments monitored and the access system maintained. Storage units can also remain vacant, particularly just after opening.

Compare the two models with vacancy and operating costs included in both.

Conversion costs can change the investment case

Two properties with the same floor area can require very different levels of investment.

One may allow you to reuse existing services and install partitions, doors and access control. Another may need damp repairs, replacement equipment or substantial changes to the layout.

Corridors and technical areas take up part of the floor space. The investor buys the whole property, but can only let its usable storage area.

Before buying, establish:

• which works are actually necessary;
• how much space will remain available to let;
• which approvals are required;
• what reserve is needed for preparation and the first months of operation.

Costs may be higher or lower than expected. A property assessment replaces rough assumptions with a defined scope of works.

Start with a property assessment through NEXEVO

NEXEVO is a real-estate investment company. If you are considering a property for self-storage in Valencia, the team can organise technical and documentary checks, identify the necessary works and determine which matters need approval.

Depending on the property, this may include project preparation, organising refurbishment and bringing in specialist legal professionals. Whether existing alterations can be regularised is assessed separately.

This information helps the investor prepare a budget and assess the purchase terms. Send NEXEVO the address, floor plan, asking price and available documents. The first step is to establish whether the property suits the intended use.

Discuss a property assessment with NEXEVO

Frequently asked questions