Storage Building Central – Build Your Own Storage Facility
On paper, self-storage development seems like an easy and profitable way for people to get into business for themselves. The buildings can be the most basic construction available, and there just doesn’t seem to be a downside. In reality, once you get into the process, it’s much more complicated than it looks. A new self-storage developer must make many choices today that will impact him for decades to come.
The bad news: In the last five years I’ve seen more people go bankrupt building self-storage than in the previous 20 years. In most cases, factors leading to failure include building in a poor location, building too many units, or construction costs that couldn’t be supported by the area’s rental rates.
The good news: In the last four years, there has been limited new development, allowing time for existing facilities to fill and stabilize. As a result, there are more opportunities for a new developer to locate a building site where demand exists. Here’s an in-depth look at the key areas every new owner or developer needs to understand when building a new facility.