How Do I Invest in Self Storage? – Self-Storage Feasibility Study and Site Selection

Before investing in the self-storage industry, there are many factors to consider for a successful venture. From market research and competitive analysis to population growth and real estate trends, it’s essential for investors to make informed decisions based on concrete data rather than guesswork. That’s why it’s crucial to reach out to experts for a self-storage feasibility study.

Sure, your up-front cost might be around $10K, but considering the insurance and peace of mind it creates, it’s a smart move – especially with total investments approaching $15M.

So if you’re a developer, investment group, or high net-worth individual and you’re asking yourself, “How do I invest in self storage?” You start with an industry-leading feasibility analysis, our 20 years of industry mastery, and this guide on how to invest in self-storage.

Feasibility First

You wouldn’t get as driver’s license without the proper training.

You wouldn’t buy a home without doing a pre-inspection.

And you sure as anything wouldn’t invest up to $15M in a self storage facility if you didn’t know that the investment was sound, right?

Right?!

Assessing self-storage feasibility can save you from potential financial losses and help you identify gaps you can capitalize on. A feasibility analysis needs to have detailed business and demographic information for a defined region to accurately evaluate its potential success. The study will have everything from financial projections and operating expenses to potential revenue streams and the initial investment required. Conducting this study empowers investors to make strategic decisions and increase their chances of success.

Understand the Right Success Indicators

Square foot per capita has been used as a success indicator in this investment type for decades. But it isn’t the only factor that contributes to success and in fact, here at StorageStudy, we strongly believe that’s a worthless metric when considering an investment. Studying the metrics below can help you gain a better understanding of self storage demand.

Rental Rate and Occupancy

Consistent rental rates and high occupancy are positive indicators of a healthy market. This means that the area is more likely to support a new self-storage venture. When there are high vacancy levels, this may signal oversaturation and a lack of demand. This would point to potential challenges for investors.

Competitive Analysis

In addition to rental rates and occupancy, competitive analysis is also vital for assessing the feasibility of a self-storage business. It’s important to identify existing competitors to find opportunities for differentiation in the market. A detailed self-storage feasibility study can determine the potential profitability by examining market positioning amongst other competitors.

Site Selection

Location is everything when it comes to self-storage. The right site determines viability for construction and compliance with zoning regulations. Careful analysis will also include proximity to residential and commercial zones, key transportation routes, and big-box shopping centers, to name a few.

Financial Feasibility

This portion of the study calculates the potential return on investment. It includes estimating costs for construction, land acquisition, operational expenses, and marketing. There are also projections for revenue based on rental rates and occupancy included to determine customer retention for the self-storage venture.

Once you’ve obtained all of this information, you can decide whether the project is a worthy investment. Ultimately, by identifying whether it’s a feasible opportunity, you’ll be able to make an informed decision and potentially yield long-term returns.

Working With a Trusted Partner – The Industry’s Best – StorageStudy.com

Nobody handles self storage development better than us.

Nobody.

At StorageStudy, with our 20 years of self storage industry leadership, we provide a peerless analysis with a comprehensive evaluation of a potential project’s economic, technical, legal, and operational aspects.

And if your investment is an ugly baby, we respect you enough to tell you.

The answer to “How do I invest in self storage” is multi-layered. But we’ll tell you something right now, and investment is one thing.

A successful investment is something that only comes from having the right team at your side.

Our study provides actual estimates of projected expenses and costs for the initial business plan. We’ll provide investors with a realistic picture of the local competition and also provide insights into the market.

If you’re entering a market with multiple competitors, it’s important to obtain a full self-storage feasibility study to collect high-quality data. StorageStudy’s objective is to provide you with the best analysis so that you can make the best decisions when you invest. Reach out and make our team of feasibility experts your first call. You’ll be glad you did.