By Ed Clement
One of the many models Storage Authority deploys is designing 60,000 -100,000 sq ft of self-storage and developing in phases.
Phasing self-storage construction minimizes the initial investment and allows for unit-mix alterations.
Going to a bank with a loan request for a smaller amount in the first phase can sometimes be better than asking for the whole project upfront. Most banks will approve a loan with a statement that a second phase will be constructed when the occupancy reaches 65-70 percent.
Phasing is a familiar process with lenders in the self-storage industry. It offers flexibility to market changes, minimizes capital exposure, and reduces risk.
Here is an example of Phase1 37,890 Net Rentable Square Feet followed by Phase 2 at 44,300 NRSF for a total of 82,170 NRSF. Sketch by Marc Goodin.
The Storage Authority team is excited to guide you on your journey to becoming self-storage owners. Call or email me today at firstname.lastname@example.org, 727 946 0745.
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Ed Clement is a franchise director at Storage Authority. One of his passions and responsibilities is helping franchisees find land by sharing how to find land both online and offline. Ed has a strong background in real estate, investment banking, and management consulting. He is available at Ed@StorageAuthority.com or 727 946 0745 to answer your questions and share the Storage Authority Franchise opportunity.