To build or not to build!

In the beginning of self-storage there was little competition, land values were low and zoning ordinances were more flexible. Self-storage complexes were poorly planned with no thought to layout, unit mix or future expansion. Without a thorough feasibility study, costly “surprises” and construction challenges turned many “can’t loose” ventures into losing propositions.

Today’s savvy investor understands that a feasibility study can make the difference between success and failure. Below you will find an outline of what is included in a typical feasibility study. If you would like more information about having one conducted for your project call us at (800) 292-0111.

The main goals of a feasibility study are to determine whether a particular project makes sense or not. Should you build or not? If the project is a go, the study will provide valuable information that you will use to make decisions on square footage, what types and sizes of buildings you should erect, and a myriad of other considerations that go into developing a successful project.

A typical feasibility study may include some or all of the following information:

• Detailed analysis of your competition
• Consumer Demand Analysis
• Rental Projections
• Recommended Unit Mix
• Profit Projections
• Demographics
• Characteristics of a Successful Location
• Management Plan/Overview
• Analysis of the location of your land
• Security Considerations
• Building Construction Suggestions
• Customer Considerations Related to Appearance
• Visibility of the Facility
• Traffic Count
• Accessibility
• Assessment of Yellow Page advertising
• Climate Control Issues
• Pricing Research and Strategy

WHAT CAN YOU PAY FOR THE LAND? THE 66% RULE

Average the rate you receive for a 10x10 and a 10x15 storage unit. Multiply that number by .66. The result is the most you can pay (per square foot) for the ground. This is a rule of thumb that is very important for determining the cost of the land.

EXAMPLE

* Developed by Buzz Victor