How Much Does it Cost to Build Storage Units?
Thinking about building your first mini storage facility? Whether it’s a single building or an entire complex, every idea starts with a solid plan. Mini Storage Outlet is here to help walk you through essential cost considerations, planning steps and what to expect from your first construction project so you can build smart and construct with confidence.
Mini Storage Outlet has helped thousands of entrepreneurs turn storage dreams into thriving realities, generating steady revenue streams that help you recover upfront costs – and accrue reliable rental income for years to come.
Understanding the Costs of Opening a Self-Storage Facility
While variables like location, layout and added features help determine the final cost of your mini storage facility, most spend between about $25 – $55 per square foot to get theirs off the ground and ready for renters. Once you take into account factors like office space, driveways, setbacks, easements, drainage and snow removal areas, if applicable, you can expect to have about 40% of rentable space remaining per acre.
This equates to roughly 36,000 square feet of storage space on a typical, two-acre development, and at $25 – $55 per square foot, you can expect costs to range from about $450,000 – $990,000 per acre – or between about $900,000 and $1,980,000 for the full two-acre facility. Keep in mind, though, that some expenses, like building an office, only come into play once, regardless of the number of acres you develop.
Recognizing the Benefits of a Feasibility Study
A self-storage feasibility study is your roadmap to success. These studies provide a comprehensive analysis that help developers, investors and stakeholders understand the viability of their projects, taking into account factors like demographics, projected growth of the surrounding area, and so on.
The first step is planning your site layout, which involves determining the best use of the land after considering factors like setbacks, drainage, easements and snow removal areas. You may want to engage a design professional, like an architect or engineer, to help you navigate permitting and compliance requirements, especially if you’re building in an urban area. If you have a smaller project, Mini Storage Outlet offers affordable site layout services for $300 – $500 per acre.
A well-thought-out site layout can increase your capacity for storage units by 20% – 30%, making it well worth the initial investment.
Anticipating Foundation & Concrete Work Expenses
A strong foundation is critical for the longevity of your steel building, and Regency Steel provides custom foundation designs available upon request. You can expect to pay somewhere between about $6 – $19 per square foot for your foundation, depending on site conditions. You may also want to consider using gravel or asphalt driveways to reduce your total costs. Most people who build mini storage facilities find that foundation and concrete work accounts for about 27% of their project’s total cost.
However, prices vary widely based on factors like reinforcement types, site prep (including grading and excavation), the concrete finish, local labor costs, material costs, permits, drainage, engineering and other variables.
Predicting Material Costs
Regency’s complete metal building packages include all structural components as well as walls and roofing. These high-quality, American-made materials come with a 40-year coating warranty. Engineered drawings are also available for permitting purposes at a cost of about $10 – $20 per square foot, depending on building size and specifications.
The buildings, themselves, typically range from about $10 – $12 per square foot, with all metal building costs representing about 14% of your total project expenses.
Estimating the Cost of Mini Storage Doors
Self-storage doors are the only parts of your building that move, so maximum durability is key. Regency Steel offers customizable mini storage door solutions in a wide range of colors so you can easily match yours to your business’s existing brand identity.
Roll-up doors range in price from about $400 – $2,000 apiece, depending on size, type, features and manufacturer and represent about 3% of your total development costs.
Accounting for Office Construction
Your office may be the first place many prospective tenants see, so you want it to make a strong first impression. Offices should have retail areas stocked with items like moving boxes and packing tape, and your office should also offer parking outside of your facility’s gated areas.
While many variables can factor in to the total cost of constructing your office, most find that the office area accounts for about 6% of their total project expenses.
Incorporating Costs for Insurance During Construction
Every construction project requires Builder’s Risk Insurance to protect the structure and materials against uncertainties like fire, theft and climate risk factors during construction. While costs can vary, insurance coverage plays a key part in safeguarding your investment until your self-storage facility becomes operational.
Typically, insurance during construction represents less than 1% of your total building costs.
Assessing the Price of Landscaping, Security & Fencing
Landscaping your self-storage business boosts its curb appeal, which can help you attract high-quality tenants. It also helps you meet local requirements without sacrificing storage space. Fencing, meanwhile, secures your business’s perimeter and typically ranges in price from about $16 – $64 per linear foot. Security gate costs vary broadly, with most falling somewhere between about $7,000 to more than $15,000 depending on type, features and installation complexity.
Security is non-negotiable for a self-storage business, and we recommend investing in high-quality cameras, and, if possible, periodic security patrols to deter theft. Modern access control systems can allow customers to use their smartphones for easy entry, streamlining access while enhancing control.
In most cases, landscaping, security and fencing expenses amount to about 3% of your total project costs.
Estimating the Cost of Climate-Controlled Storage Units
Climate-controlled storage units are becoming increasingly popular, and with good reason. For starters, they generate higher income per square foot. Secondly, they lead to a host of benefits, like reduced moisture, dust and mold, higher rent rates and lower energy costs over the life of your mini storage building.
Upfront investments in climate-control features, like thicker insulation or reflective surfaces, pay off in the long run by lowering operational costs and enhancing your self-storage facility’s value.
Anticipating Delay Costs & Holding Expenses
Delay costs have the potential to have a significant impact on your project’s overall budget. These expenses might include insurance, loan interest, taxes and equipment rental delays, and many can be minimized or avoided with some smart and strategic pre-planning. Mini Storage Outlet delivers expert guidance and reliable service from start to finish to help you stay on track and on budget, maintaining steady communication over the life of your build.
When you build a mini storage facility, you want to generate a return on your investment as soon as possible, and Regency Steel’s American-made building systems come with the strength, efficiency, support and expertise you need to turn your self-storage vision into a profitable reality.
Get in touch today and see why Mini Storage Outlet continues to set the standard for quality, reliability and innovation in the industry.