Car Wash & Self Storage Development – Slowed, But Not Stopped

Tampa, FL-January 27th, 2025Written By Chris Bowers

Recent headlines have painted a grim picture for the car wash and self-storage development sectors, suggesting overdevelopment and a market cooldown. While it’s true that activity has slowed, claims of the industry’s demise are far from accurate. At Eshenbaugh Land Company, we’ve witnessed the reality firsthand: deals are still happening.

In just the past month, we’ve closed sales to car wash and self-storage developers, and we currently have properties under contract for similar projects. Developer inquiries for new opportunities continue to come in, proving that demand remains robust in the right markets. So, is the market overbuilt? In certain areas, perhaps. However, strategic, well-located projects are still moving forward, and the industry’s foundation remains strong.

From Rapid Growth to Sustainable Pace

Over the past few years, both sectors experienced a surge, driven by low interest rates and favorable market conditions. Developers quickly seized the moment, resulting in a wave of new construction. But as borrowing costs rose and construction expenses increased, the frenetic pace of development naturally slowed. This isn’t a sign of vanishing demand but rather a shift toward a more sustainable, balanced market. Thoughtful, well-planned projects are now more likely to succeed.

Navigating Municipal Challenges

One significant hurdle developers face today is resistance from municipalities. Local governments are increasingly imposing building moratoriums and tightening approval processes for new projects. Despite these challenges, developers who adapt and remain diligent are finding opportunities to move forward.

At Eshenbaugh Land Company, we’ve been instrumental in helping clients navigate these obstacles. By identifying markets where demand is still strong, we’ve continued to close deals even in this more tempered environment. This ability to adapt highlights that the industry isn’t collapsing – it’s recalibrating.

A Healthier Future for Development

In the long term, this slowdown could prove beneficial. The days of unchecked, rapid development may be behind us, but this transition to a healthier market pace ensures that new projects are better aligned with demand. Developers who take a strategic approach will continue to thrive, and land transactions will persist.

The car wash and self-storage sectors are far from stagnant. They are evolving, and the current shift is paving the way for smarter, more sustainable growth. If you’re considering opportunities in these sectors, now is the time to partner with a team that understands the landscape and can guide you to success.

Reach out to Chris at Eshenbaugh Land Company: Chris@TheDirtDog.com or (813) 468-9292. Let’s turn today’s challenges into tomorrow’s opportunities.