Self Storage Market Analysis

[Joey Stelly]

I’ve Identified several locations within my region that, based on the trends in  residential development seem to be under supplied and positioned to be great potential locations for new climate control self storage. 

My aim is to build a climate controlled facility at one of these identified locations - about 250-300 units. 

In each of these potential locations, total NRSF is below 13. Climate control NRSF is typically between 2-5 fpp; while the non climate control old outdated facilities make up the balance (7-10 fpp) and tip the scales well beyond the 7’ pp rule of thumb. 

My question is - does the 7 feet per person equilibrium rule apply to total NRSF in the 3 mile or can that be broken down by class (cc vs non cc, facility age, etc) and the 7 rule applied as a cap to each individual class? Is there a case for building climate control in the scenario where the nsrf mix is 3 for cc & 7 for non cc (10 total)? Based on the age of the surrounding facilities and lack of new, updated options, coupled with increased residential development projects in the area, my gut tells me it is a great location but don’t want to assume that if I really should be basing off of TOTAL nsrf being below or at 7. Appreciate any input here! 

Thanks 

[Zach Quick]

Don't worry about the square feet per capita rule. How full is immediate competition? Is the area growing? Are there any other developments in 1,3,5 mile radius? Those are more important things to determine than sq ft per capita.

[Henry Clark]

Use the lookup function. Read my post “Will they come?”  Then do the exercise for your location. 

[Henry Clark]

If your 10x20 market price isn’t $110 or higher don’t do the project.  Pick a higher priced market.  Building cost has almost doubled in the last 4 years taking B and definitely C markets out of the picture for new builds.  

[Henry Clark]

You had another post on this project.  You’re kind of pecking away at it.  Do a deal analysis and see if it works. Then challenge it with us asking you questions.