Self Storage- How many acres or lot size?

[Henry Clark]

Follow up to @MM on another post.

Here are the major considerations in sizing "Drive up" storage locations.  Climate controlled is not part of this conversation, stay away from this, if you are a first time owner/developer.

1.  Are you in a major Metro area, or small community?  Zoning rules as far as the following requirements.

2.  Set back rules- obvious impact.  Impacts your rentable ground/units.

3.  Storm retention pond required?- This will offset your revenue projections, available units and also cost estimates.

4.  Shape of property; - Ranked:  Rectangle, square, all others.  I'm still learning 1st grade-  A triangle 3 acres doesn't come close to a Square in units.  Try for Rectangles.  You have to give up turnarounds.  A rectangle is your most efficient shape.

5.  Are hard surfaced roads needed;  Concrete or asphalt-  Cost of entrances must be offset by units.  The shape and layout, you want one road to service two sets of buildings on each side, to lower the road cost per unit.

6.  Security- secured gate, security system, fencing, etc.-  Your unit revenue and quantity has to be sufficient to offset the "costs" your putting in.  If your in small town USA, no security systems- fences, gates, or cameras can be the norm.  Example:  A $25,000 gate system you need XXX units to offset.

7.  Obvious.  In drive up storage, you never want to build all of your units at once.  I always use the following for my Phase 1;  Enough units at 65% economic occupancy to cover all costs (land, fence, security, roads, dirt work, (bank note P/I on 20 year amort), plus Property Tax, Insurance, maintenance, electric, etc.  Example:  If I bought just enough ground, to assume 90% occupancy gets me to breakeven cashflow, then I would not do the project or that size of property at that land price.

Your Phase 2 will only take a 35% occupancy to get you to cash flow break even.  This is the real money and also less exposure.

8. Do you plan to do Uhaul or other outside storage needs.

I generally will never touch a rectangle/square property unless it is at least 2 acres.  Just not worth the effort.  If I was starting off and wanting to "Learn" the business, I would do a smaller lot.

Any questions or expansions needed, please ask.  This is the fun part.  Later it is just $12 per hour work.