Location, Location, Location! Location matters in Self-Storage too

When you are looking for the perfect self-storage facility, conversion possibility or new build, you need to make sure that you are in the right location. If you aren’t, it could result in much higher vacancy rates than you anticipated!

How visible is this location? Can people see your soon to be self-storage property easily during their commute? Or is it off the beaten path? You want a property that has good visibility. Hopefully with easy access. If you have terrible access to the property, people will go somewhere easier to get to.

Next, where is your target market? How many self-storage properties are between you and your market? Why would someone drive past other self-storage facilities to get to yours? They probably won’t unless you are offering services that they don’t have.

Do you offer RV or boat storage that goes along with the unit they are storing their Christmas decorations in? Do they get a discount for doing both? Do you have Climate-Controlled Self-Storage? Do you have better lighting or better security? Are your rates lower? Are you offering a move in special that will entice them to come to you? Don’t get out-located because someone else is more convenient than you are.

Next, what is happening with the population? Are you in an area that is growing or an area that is slowly becoming a ghost town? We are in the trauma and transition business, but we cannot do that if there is no one left to rent to.

You are looking for people who have an average income around $45,000. You don’t want an area with huge houses because they have room in their home to store. You want to be in an area that is approximately 25% multi-family housing. These are the price ranges and neighborhoods who need storage.

People like convenience. They are not going to drive past other facilities to get to yours. People usually try to stay within 3-5 miles of their home when they are looking for self-storage. Obviously in some areas, that is not feasible, but this is a good rule of thumb. In large metropolitan areas, it might be much smaller. Who else is in that 3 mile radius? Are they going to take your renters, or are you building or converting in an area that will divert their potential renters to you?

Finally, you want to make sure that you are not across a major barrier from your renters. Avoid mental barriers. For example, if there is a large river dividing the city people may not be willing to cross it to get to you. Also, if you are on the edge between two small cities, people may not be wiling to go to the other city, that tends to be a natural barrier.

Once you have found a great location, then it is time to look into whether or not your dream property will fit. We will discuss this in the next blog. As always, happy investing.