By Garrett Byrd
The term "square foot per capita" refers to the amount of self-storage space available per person in a specific area or region. It is a measure of the average storage space per individual based on the total square footage of self-storage facilities divided by the population of that area. This metric helps gauge the availability and utilization of self-storage services to the local population.
Square Foot per Capita= Total Square Footage of Self-Storage Facilities
Population of the Area
5.8 sq ft per Capita = 4 facilites with 65,000 sq ft net rentable each =260,000 sq ft of self storage
Population is 45,000 people
This measure is useful for understanding the level of self-storage provision relative to the number of people in a given area and can be indicative of the demand for self-storage services.
Sq ft. per capita has become a bit of a wooden metric to measure self-storage, although still very important to understand the current supply.
There is an art and science of truly evaluating any given location. You have to physically comp-shop every facility you would consider your competition.
Simple Facility Review
Manager Sales & Marketing Average Grade:
Facility Location Grade:
Facility Drive by View and Drive in Grade:
If you would like Storage Authority's one-page simple facility review send me an email at Garrett@StorageAuthority.com
Subject line: Simple Facility Review
Look beyond square feet per capita and examine the rental rates within a 3-mile radius. This metric provides a more accurate reflection of demand in the self-storage market, our Storage Authority franchise owners make informed decisions based on the actual drivers of success in specific locations.
The software programs I mentioned above are an excellent starting point for gathering initial rates. What is dangerous about the way most REITs are pricing their web rates, they are essentially teaser rates that you can not use to pencil out your project. Their $180 in-store 10x10 will be a $110 web rate, what the customer does not know is they will be paying $180 very fast, it could be 3 months in one swift rate increase or two rate increases over 8 months.
If you use the web rates at $1.10 per sq ft you have a 70,000 net rentable sq ft facility your gross potential is $77,000 a month, running at 90% Occupancy your gross is $69,300 per month.
If you use the in-store rates at $1.80 per sq ft you have the same 70,000 net rentable sq ft facility your gross potential is $126,000 a month, running at 90% Occupancy your gross is $113,400 per month......BIG DIFFERENCE!
What I like about Strortrack is you can purchase a market report to truly take a deep dive into the market and rates in the area. Below are just four of the sixteen additional metrics you can examine in your market.
Rate per Square Foot History Graph (12 months)
Average Rates History (12 months)
Rate Volatility History (12 months)
Inventory Availability by Unit Type History (12 months)
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 me, Garrett Byrd at Direct: 941-928-1354 or Garrett@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity.
If you would like to learn more and start your journey to self-storage ownership click the link here: http://www.storageauthorityfranchise.com/opportunity2
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