Boat & RV Storage Yard Designer

[Dean Chesnut]

Can anyone refer me to  someone who designs boat storage yards, I have a 4 acre site I am buying near a lake in Arizona.   Dean

[Henry Clark]

@Dean Chesnut

Post to another person.

Boat/RV Storage usually don't make sense financially relative to other storage products. Example a Self Storage location might have a payback of 8 to 12 years. Boat/RV storage could be 15 to 25 years. This is usually used for extra Self Storage ground that has not been built on yet. Here are some steps you can do before moving forward.

Revenue:
1. Price analysis. Look at Sparefoot. Type in Ft Meyers, FL. In the upper left under vehicle storage, select either Boat or RV storage, doesn't matter. Ex. 12 x 45 ft space $189; 40Ft long $136; 50 ft long $150; 10 x 44 $96. These are all open air lots and not enclosed. Enclosed would need to be double or triple these prices. Open lots, you can park at 60 degree angles which required less driveway space for turning. Enclosed will normally be a 90 degree spot which requires even more driveway space.
2. Google search under Ft Meyers, Boat/RV storage. Some of these will not be under Sparefoot. You will need to call them for pricing and drive by to check out.
3. Number of lots (revenue) is determined by your land shape. Rectangles are better than squares. Squares are better than triangles or other shapes. Next determinant is depth and width of lots. We have 20/30/40 foot lots. Their widths are 10/12/13 (?). The longer the unit the wider the lot has to be to make the turn in/out. The next determinant are the lots 90 degree, 60 degree, or other. If 90 as an example and you are pulling with a truck (25ft) and the rv/boat is 40 ft, then your driveway has to be around 65 ft wide at a minimum. Keep in mind most people don't know how to back in. So your giving up 65Ft for a 40 ft space. This is not true if you also have lots on the other side of the drive, then divide by 2. Lets assume driveway plus turnarounds and entrances that for a 40 foot space 13 ft wide, you need an additional 50 ft of driveway. For revenue assume you will achieve 40/(40 + 50)= 44% revenue coverage. At, lets use the competitor 40ft $136= $136/(40x13 sqft)= $.26 per square foot parking. Or $.26 x .44 coverage= $.12 per all around sq feet. Check on set backs. 5 acres 100% occupied at 44% revenue coverage= 43,560 sq ft to an acre x 5= 217,800 sq ft x $.12= $26,136 per month x 12 = $313,000 per year. Lets use this figure, be careful, I'm not using expenses and we are using 100% occupancy. You change the figures.

Cost: Change these numbers to fit your local
1. Land- 5 acres $750,000 in Ft Meyers, no point in doing less for RV/Boat storage, not enough room. Check your zoning, competition and customer locations. Look at Loopnet for land. Found a 31 acre lot for $2,000,000. Its in a good location. Price is low because the airport flies over, which is fine for storage. There are other properties for around 8 acres for $2mm also. Again, check zoning for RV/Boat storage. I would assume $150,000 per acre x 5 acres- $750,000 as your minimum if you can find.
2. Check road surface requirements. Rock/Gravel/Concrete/Asphalt; All of your competitors that are dual Self storage and Boat/RV have concrete or asphalt. I would recommend Concrete in Florida. With the heat, you will develop both wheel and tongue indentations in Asphalt. Our concrete runs about $152 per cubic yard with tax, free delivery. Add another 30% to grade, frame and pour. = $198 per yard poured and finished. 5 acres at 6 inch thickness (check zoning). 5 acres in Yards (since cement is sold in cubic yards)= 4,840 sq yards x 5= 24,200 sq yards. 6 inch thick concrete or 6/36 inches= .16 yards thick. 24,200 x .16= 3,872 cubic yards. 3,872 cubic yards x $198 poured per cubic yard = $766,000. That's not including the cost of rebar and laying the rebar.
3. Fence- $60,000
4. Automated gate- $25,000
5. Security system- $50,000
6. Lighting/Electrical- $50,000
7. Office/bathroom- $50,000
8. Dirt work- ????
9. Permits-????
10. Sewer/Water line hookup- ???
11. etc.

All in cost:
$1,751,000; Go with $2,000,000 since we are missing some costs.

Cash flow:

Annual revenue- 100% occupancy (change) $313,000
Depreciation- leave off, since cash only
Property Tax- $50,000 change to local
Insurance- $5,000 you have mainly just land and not buildings.
Electric- $5,000
Interest 3%- $45,000 don't know how much collateralized and over life of loan

Before taxes, w/o depr= 208,000 at 100% occupancy

Very little depreciation: assume $30,000
Net $178,000
Tax rate 30%= $53,000

Cash= $125,000 per year.

Payback $2,000,000 / $125,000= 16 years.

Again, adjust for local; review all costs; assume 80% occupancy; tax rates, etc. Check zoning, setbacks, etc.

If you decide to move forward this analysis should help you to analyze properties. To make this work, you are looking for a place that is near 5 acres or larger, has pre-existing concrete parking and preferably no building or a small one on it. Having the concrete in place will make it way more profitable.

On Loopnet there is a Truck Parking lot of 2.3 acres for $1,265,000 in Ft Meyers. Check on the open lots across from it. See if you can get the land real cheap. Then add concrete parking as you need it.


Good luck. I would do Cargo container storage also at this site if allowed. That way you have two Products and see which one grows the quickest.