” That being said, we will give some high-level answers to the self storage cost question in this article.
The current rule of thumb for land cost is approximately 25-30 percent of total development cost.
Depending on the location, self-storage projects can generate the same income per square foot as medium priced apartment properties in the same market area.
And they can achieve this income at roughly one half the construction and operating costs.
Due to the fact that demand has been outstripping supply in this market, Westbury Storage may well be able to rent out all of its new units within the first year of operation. per month and the upper floors, served by an over-sized elevator will rent for $1.20/sq. The second half of 1999 will see a further 25% of the total space rented, leaving the final 25% to be reached in the year 2000.
Prices paid for self-storage units reflect this strong market demand. Within these time spans, the growth, for projection purposes, will be assumed to be straight line, i.e. Westbury Storage will simply have to inform the public of its existence by advertising in local newspapers, and by placing Yellow Pages ads. on the ground floor would rent for ,000 monthly and each of the other floors would rent for ,000 each on a monthly basis.Although the current local demand exceeds the supply and Westbury Storage will have no problems fully utilizing its capacity, the market situation may change in the future. Many self-storage companies charge administration fees to first-time customers. In addition to these sources of income, the sale of certain related items such as cardboard boxes, tape, packing materials, storage containers, plastic mattress covers, etc. However, for projection purposes, it is assumed that income from these sources will wash out any credit losses.The architectural details and finishes can significantly impact cost.Land costs and site improvements will also impact your initial investment.To give you even ballpark costs, we will need to know if you are planning to build a single story or a multi-story facility.Costs for Single Story Self Storage Construction typically ranges between - per square foot – not including land or site improvement costs.Location, design, zoning restrictions, site improvements needed, etc., will all impact the costs to build your self-storage facility.A better question might be, “How much do I need to invest and what research do I need to do in order to ensure profitability in a new self-storage business?Follow the steps outlined below and you will be able to access the potential for your market and plan for your new venture. The sales and marketing strategy is fairly simple by virtue of the fact that self-storage facilities are in short supply.