Is your Market Saturated With SELF STORAGE?

By Drew Case

Storage Authority Franchise

There is always the concern in self storage that a particular market may be saturated. You see several storage facilities in an area and think, "Here comes another one!", when see a new facility break ground. Well, chances are that anybody building one has probably done their homework before spending $15mm or more. The new owner would have had a feasibility study done before undertaking such a major project and also needed bank approval to proceed. So, if you see "another one" it is most likely the community needs another one or a new one with all the bells and whistles..

Here are a five ways to determine if a particular market is saturated:

You will want to identify the number of self-storage facilities in a 3 mile radius. Numerous facilities in close proximity could be a sign of saturation, especially if new facilities are being built, despite existing competition. However, you will want to determine if the exiting facilities are offering newer features and actually meeting the demand of the customers. If not, expect a new facility to potentially rule the market.

Be sure to tour existing facilities when possible to gauge the occupancy/vacancy of the locations. A large number of vacant units may be a bad sign of saturation. Look for disc style locks or personal locks on units, versus common locks used by the management. A high occupancy is a good sign for the ability to add another facility to the area.

Unit rental rates with excessive promotional offers by facilities may indicate intense competition and oversaturation. Facilities might be competing more with each other, rather than generally serving the local population. When demand is down, locations are competing more aggressively for every customer.

Are there new development of homes or apartments in the area? Look for new facilities that will match the growth in self storage. You should identify the square foot per capita to better understand the amount of storage versus the amount of people.

Industry Analysis or feasibility study can be completed on the market you are pursuing. This can be done by utilizing a few tools available on the market, such as StorTrack, that are designed for providing data for your selected self storage market or identifying a market that has value in pursuing. You will need a more thorough feasibility study to obtain financing by a bank. Also, consider joining a Self Storage Association (SSA) to gain insights into nationwide trends and forecasts.

There are various factors that go into identifying saturation in a self storage market. Many of these you can do with limited research and minimal cost if you need to utilize apps or online tools to gain awareness. Always do your research before buying in any market. Even if you already own land in a market, you still want to research the market area.

If you would like to learn more and start your journey to self-storage ownership click the link here: Storage Authority's guidance in self-storage development underscores the intricate balance between meeting storage demands and environmental sustainability. By aligning with Storage Authority's principles and leveraging our team's expertise, along with your engineer, architect, and general contractor we can navigate the complexities of impervious coverage with confidence, ensuring the creation of self-storage facilities that are both economically viable and environmentally responsible.

Storage Authority Franchising is all about owning your own local self-storage business, supported by professional systems and expertise. We like to say, "You're in business for yourself but not by yourself." If self-storage is on your mind, don't hesitate to reach out to Drew Case at Direct: 513-582-0125 or Drew@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity. Your self-storage journey awaits!

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