Storage unit vacancy rate

[Luke Bloxham]

Crunching numbers on a possible storage unit build. Anyone have experience managing storage units that could tell me what they have experienced as a annual vacancy rate?

[Henry Clark]

For financing purposes I always use 90% occupancy.  Get interest only payment to 65% occupancy or 18 months.

Need to analyze your market before you use 90%.  Idaho Falls should have about 3,400 unit market based on population.  Metro 7,800.  I would go count units and sizes for a couple weekends.  Or more specifically check your specific area out.

I always use Sparefoot when analyzing a market to start with.  Do Sparefoot, Idaho Falls.  Select the 10 x15 size.  Then switch to map setting.  Look for the "holes" in the market compared to the population.  

I note two things.  Either most of the facilities up there don't use Sparefoot, or you have a big underserved market.  Also I don't note any of the big REITS.  If this is the case, you need to push hard the next 5 years and build about 10 locations of 300 each.  Not a mega one.  Check all of this with your feet on the ground.  It looks like unusually fresh territory.