By Marc Goodin, CEO Storage Authority Franchise wwwStorageAuthorityFranchise.com
Choosing 1 state vs another for your first ground-up self-storage *1
Item Florida CT Winner Notes below
State income tax Zero 6% FL *2
Distance to home Live here Friends/family/plane FL *3
Land costs $1M+ $1M + Tie
Time to Find land 6 – 10 months 6-12 months plus. FL *4
Labor/construction costs 10% higher in CT FL
Ave. rental rates use 10 x 10 non cc average /100 sf
$135/Month $145/month CT *5
Property Taxes for a
65,000 NRSF $40,000/yr. $50,000/yr. FL *6
Sf self-storage/person 6.5sf/person 6sf/person CT
Willing to travel to the
Facility weekly? Yes NO FL *7
Winner: Florida *8
*1 Numbers provided are examples only not necessarily correct.
*2 If the profit was $600,000/yr. you could lose .06 x $600,000 = -$36,000/yr.
*3 if you are planning on moving it would change the status.
*4 5 Finding land far away typically takes much longer than finding land nearby. Also, some states are easier to finding land, because of fewer flood plains, steep slopes, wetlands etc.
*5 For a 65,000 nrsf at 90% occupancy = 0.9 x 65,000 ( $145-$135)/100sf = $58,500 additional income
*6 This can be a substantial delta from one state to another, even $50,000 plus. property tax maps are available by state but best to call your local assessor.
*7 Besides being more work it typically means more expenses and less profits.
*8 If I lived in CT Not sure FL would win. If I lived the same distance from both states say NC, FL may be the winner (love the warm weather ha-ha)
This blog shares where to find alot of the data you need to complete the worksheet:
Need help completing the form I can help marc@storageauthority.com
Want to learn more about franchising: www.StorageAuthorityFranchise.com
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