What Does It Cost to Build a Self-Storage Facility?

Prices are all over the place right now and it is impossible to get some of the materials that you need for months. In other words, if you are building right now, you need to be aware of the current climate. You need to know that it is going to take longer, you are going to have more in holding costs, you will have delays and it will cost more than anticipated.

Having said that, you can still use approximate formulas to determine how much it will cost to build your property. In the current climate, and it may be different in your area, especially if you live in Hawaii, you can expect to pay anywhere from $45 to $85 a square foot for a single story non-climate controlled property. This makes it very difficult to estimate without talking to a commercial builder first to get an estimate. Remember that you are not trying to build the Taj Majal. You are trying to build a self-storage facility that will let people know it is safe and secure to store there.

For our example, we are going to say that it costs $65 a square foot to build your self-storage facility. If you plan on building a single-story facility on 3 acres of land, we already determined that you can build 50,965 square feet of single story self-storage space on three acres of land. To determine what your building costs will be you would multiply 50,965 x$65. This means that it would cost $3,312,725 to build your facility. This doesn’t include your land costs.

Now you can determine if the property will cash flow by adding together the cost of the land and the anticipated building costs and dividing it by the net annual income. These quick formulas will make it easier to determine what you can offer for the land. Today is a great day to start looking at properties and determining how much you can offer. As always, happy investing.