Storage Unit Business Plan

Storage Unit Business Plan-35
A unit can be a box or a locker, containers or rooms, or even an empty lot.

A unit can be a box or a locker, containers or rooms, or even an empty lot.The amount of construction of new storage unit facilities is on the low side which means there is room for new players to enter the market.” That being said, we will give some high-level answers to the self storage cost question in this article.

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Costs for Single Story Self Storage Construction typically ranges between - per square foot – not including land or site improvement costs.It often takes 18-24 months for many self-storage facilities to realize its full income potential in a competitive market. As an investment or as a new business venture, Self Storage is a winner. If you have more questions, don’t hesitate to give us a call.Without overhead in inventory, staffing, or a lot of operational equipment, Self Storage has a relatively low barrier to entry. Know your competition, occupancy potential, and the special requirements of your market such as Climate Controlled Self Storage or Boat & RV Storage, etc. Put all of your competitive, demographic information, estimated start up and operational costs on a spreadsheet and make sure that the numbers show you can generate the revenue and profit you need. Depending on where you plan to build, there may be specific requirements from your permitting department or architectural details you want to include in your building design. Work with a professional self-storage building company to develop your site plan and come up with a complete estimate. Get your website up, take out some ads, do some online marketing to get the word out. With over 20 years in the business, we are happy to share our experience and expertise.The most common "state of the art" facility will be about 60,000 - 80,000 net rentable square feet, cost -65 per square foot to construct (outside of existing land costs), and have break even operating expenses in the 40-60 percent range (not including debt service) of total stabilized income.A well designed and located facility will successfully operate in the 83-93 percent occupancy range, though we have seen successful self-storage operations with occupancy rates as low as 70%. Work with professionals in the Self Storage industry to insure your success.Ultimately, the rental rates in the market drive the cost that a self-storage developer should pay for the land.Often, the most common cost/operating ratio of self-storage is in line with apartment rental rates.Depending on the location, self-storage projects can generate the same income per square foot as medium priced apartment properties in the same market area.And they can achieve this income at roughly one half the construction and operating costs.Location, design, zoning restrictions, site improvements needed, etc., will all impact the costs to build your self-storage facility.A better question might be, “How much do I need to invest and what research do I need to do in order to ensure profitability in a new self-storage business?


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