There are several factors to consider when determining the best locations to build a self-storage facility. Here are some of the top considerations:
Relevant Templates:
- Self-Storage Ramping Model (up to 6 syndication deal analysis)
- Self-Storage Facility Underwriting Model (single location)
Best Location Attributes
- High population density: Self-storage facilities tend to do well in areas with high population density, as more people means a greater need for storage. Look for areas with growing populations and limited storage options.
- Proximity to residential areas: People generally use self-storage facilities for personal belongings, so it makes sense to build in areas where people live. This also makes it convenient for customers to access their storage units.
- Access to major roads and highways: Easy accessibility is important for customers to reach the facility. Having a self-storage facility located near major roads and highways can help attract customers who need to quickly and easily access their storage units.
- Affluent neighborhoods: Self-storage facilities can do well in affluent areas, as people in these neighborhoods tend to have more belongings and may need extra storage space. Additionally, these customers may be more willing to pay higher prices for convenient and secure storage options.
- Commercial areas: Building a self-storage facility near commercial areas can be beneficial, as businesses often need additional space for inventory or equipment storage. Things like small business files, small seasonal equipment, and other odds and ends a small business may want to keep secured in a separate area are good targets.
- Zoning and regulations: It's important to check local zoning laws and regulations to ensure that the area you are considering allows for self-storage facilities.
- Competition: Research existing self-storage facilities in the area to determine if there is room for another facility. If the market is already saturated, it may be difficult to attract customers and will require a good marketing campaign. Also, if existing facilities have low occupancy rates it could be a sign that the location is not so great or that could also mean the location is not utilized enough for some reason and there is opportunity. That will take some digging around to get a better sense of.
- Affordability: Land and construction costs can vary widely depending on the location. It's important to consider the cost of land and construction when selecting a location to build a self-storage facility.
Overall, the best locations for a self-storage facility will depend on the specific needs and goals of the business, as well as the surrounding community and market demand.
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Article found in Real Estate.