Market analysis of a small town for self storage

[Courtney Glass]

I am looking to buy an existing self-storage facility in the Southeast TN/North GA area and just found one for sale.  I am mostly just working on learning how to properly analyze these deals.  I am struggling to figure out how to evaluate this particular market because it is a small, rural town.  Any tips on how to evaluate these types of markets?  I would like to do at least a little bit of my own market analysis to determine if it is worth paying Bob Copper or Chiswell & Associates for their market analysis.  Maybe the answer is to stay away from the smaller, rural markets completely, at least until I get more experience?  Thanks in advance for any insight/tips.

[Michael Wagner]

I actually gravitate TOWARDS the small towns/markets because the analysis is less cumbersome. As a starting point, use a census mapping tool like the "missouri.edu circular area profiles" to get a population in a  3,4 and 5 mile radius around the property. Then count up the square footage of self storage currently in the market. These two numbers will allow you to calculate square foot per person. 

You'll also want to get rates from each competitor as well as feel them out for how full they are. Once you've done that, you will have enough to decide if further investigation of this deal is worth your time.

Happy to answer other questions that come up.

Mike