Self Storage Expansion - Market Study

[Weina Shi]

Dear fellow investors,

I am purchasing a self storage facility. It has a 250+ units of existing facility and expansion opportunity on the same parcel for an additional 500+ units. The supply in the area is very limited and the rates are 20-30% below competitors (but competitors are in a bigger town). How do I assess the market to see if there is enough demand for the additional 500 units? Ideally, I would like to raise rates to be closer to competitors and at the same time maximize the expansion and income as well?

Alternatives I can raise rates first and once close to competitors' rates consider the expansion. However, the plan is already approved for expansion (pending permits) so it might be good to utilize the plan and avoid future zoning change.

Anyone had done this type of assessment?

Thanks.