By Marc Goodin CEO of Storage Authority, the only self storage Franchise in the US.
Technically the other side of the street is 50 feet. But that 50 feet can make a world of difference.
Where I have a villa in Florida a lot of people come and rent for the winter season. One side rents for $3,500 a month and the other side rents for $6,500 a month. There is noi right side of the street. One is just 50 feet closer to (on) the beach. Both sides of the street rent out over a year in advance of the season.
The same goes for self storage. The problem is people do not spend enough time learning what side of the street is best for their budget, their time, their experience, their short and long-term goals, and how to get there.
Storage Authority is not for everyone. It is for the busy professionals who simply do not have the time for their families, their careers, and a lucrative self storage income.. Often it is for the busy professional who wants the ability to retire 5 +_ years if they choose and not have to change their lifestyle when they retire.. And to have a financial legacy to pass down to the family.
To make a substantial 6 figure income you should plan on building 80,000 sf of self storage. Here are the land options required for 80,000 sf +_
Eight general guidelines for 80,000 net rentable SF = 62,000 net rentable square feet. All single story.
Land Zoning
Yes ++: Zoned for self-storage, permitted use. Final approval by staff only.
Yes +: Zoned for self-storage, permitted use. Final approval by citizen commission/board with a public hearing.
Yes: Zoned for self-storage, permitted by special exception. Final approval by citizen commission/board with a public hearing. The commission has leeway to confirm the use fits in with the neighborhood and requires additional design requirements not specified in the regulations. Important to have the city staff support your project and design features.
No: The property requires a zone change. Typically, can cost $10,000 + and 4months of time with an extremely high likelihood of denial.
2. Usable Land Size - no wetlands, floodplain, easements, or steep slopes
Add ½ acres no sanitary sewer
Yes: 6+ acres for 60,000 net rentable square feet.
Maybe: 5 - 6 acres but could end up with less rentable square feet.
No: Less than 5 acres unless you are building multi-story.
If you are considering multi-story or partial multi-story email me at marc@StorageAuthority.com for land size requirements
Yes If available
No - maybe If not available. Need more land and research on Building codes
4 3 Mile Population
Preferred yes Greater than 30,000 people
Yes: Greater than 20,000 people
Maybe: 15,000 people - maybe if no competition in the 3-mile radius
No: Under 15,000 people – often too long of a rent-up time or will support a small facility.
5 Competition Office Rental Rates for a 10 x 10 NCC Note: Some existing facilities with a detailed site visit may be determined not to be competition.
Yes: Competition Rental rates over $160/month & you market so you can charge more
Maybe: Rental $130 -$160/month if you have done the research and have a game plan to allow you to charge $160/month plus. And the land may be purchased at an exceptional price.
No: Rental rates under $130/month
Note this is dependent on your cash investment, rate of return required, and is subject to change based on land price and loan interest rate. Not all self-storages are competition, so you need to visit each one.
6.Self-Storage Demand (note occupancy and rates a better determination of demand)
Yes: The competition is full and has great rental rates – limited pipeline facilities.
Yes: Total SF/person including existing, pipeline and your self-storage is 8 sf/person or less
Maybe: 8- 12 sf including existing + pipeline + your facility. Need to check competition rates and occupancy.
No: (unless population is very high) 12 sf/person +, including existing, pipeline and your facility
7 Land Purchase Price (assume typical site costs & no extreme interest rates and you have $1.3MM cash to invest) 80,000 gross single-story sf facility. In the end, a feasibility including a detailed P & L projection by your feasibility expert must be done.
Yes: $500,000 to $800,000 goal
Yes: $800,000 to $1,000,00 if you pre-confirm all land is usable and land is flat with no unusual or municipal roadway or utility construction is required.
Yes: Over $1,000,000 when there are very high rental rates ( $2/sf ) and facilities full, and you have over $1,500,000 cash to invest
Maybe: Slightly over $1,000,000 and do not meet the above yes items
No: Over $1,000,000 and you only have $1,300,000 to invest.
8. Traffic Note: Highway traffic should not be counted.
Yes ++: Greater than 30,000 cars a day
Yes+: Greater than 20,000 cars a day
Yes: Greater than 15,000 cars a day
Maybe: 10,000 –15,000 cars a day
No: Less than 10,000 cars a day
No: Dead-End streets or good traffic counts but not visible from the street.
9. Access/View from main street
Yes: Good view and easy access
Maybe: Almost good
No: No view from the city road
No: Difficult access
Storage Authority will help you make it happen with the time you do have. Our multiple platforms and systems Include finding land and evaluating land, design, construction, vendors, operations, sale and marketing, and more. If you want to learn more I can email you info or we can have a 10-minute call.
5 years is going to fly by. Don't get caught on the wrong side of the street.
Marc Goodin
860-830-6764