The self-storage industry provides strong investment opportunities for entrepreneurs. Whether you have an established business portfolio or you’re getting started, the self-storage business is a lucrative and steady option. For this reason, we post a lot of statistics on our self-storage posts. Many people need storage.
- In 2024, there are over 52,000 self-storage businesses in the United States
- Small business owners make up 52.3% of the current self-storage businesses nationwide
- There is currently 5.9 square feet of space per person available in the United States market
- More than 10% of households rent a self-storage space in the US
- The average occupancy of a self-storage is 96.5%
With current economic conditions, the demand remains steady for self-storage. People are increasingly willing to store items to make their living space more functional, and as living situations shift across the country, there is still a great need for storage.
If a self-storage business sounds good, let’s discuss three simple steps to get you started.
- Assess the financial investment required.
- Purchase existing or build new?
- Consider how the business will be run – owner/operator or hiring staff.
Assess the financial investment required.
The first task is to look at your financial picture and consider the costs of a new self-storage business. You will need to consider your location, cost of land, cost of building, and cost of operation.
You probably have a good idea of how you will finance the purchase or construction, but if not, you’ll need to look at your business finances now. If you’re a beginner investor, now is the time to establish relationships with a bank to secure small business financing.
Determine if you will purchase an existing business or build one.
There are a lot of strong self-storage properties on the market. The advantage of buying what already exists is instant income from day one. Check out one of our current Argus Self Storage Network Affiliate listings in Williston. With a 95% occupancy rate and a waitlist, this is a solid opportunity to get started.
See the details on this property here.
If you prefer to build something new, there are additional costs to consider. The land cost, surveying, clearing, utilities (depending on location), and construction are crucial to consider. This development site in Arcadia, Florida provides ample space and a high-traffic area with major retailers nearby.
Consider how you will run the business.
Finally, it’s important to know if you will act as owner/operator or hire a staff to manage your property. The goal of self-storage is to maintain a high rate of occupancy. The property above is 90% occupied and is an excellent example of what owners strive for. Break-even in most self-storage businesses is based on your initial investment and the operational costs, but generally no less than 45% occupancy.
If you’re running the business yourself, consider how you will market the self-storage and what tools you will use. If hiring a manager, it will be essential to outline the mission and vision for the business and marketing expectations in advance.
Is it time to hire a broker?
At Coastal Storage, we are proud to be the Argus Self Storage Network Affiliate since 1999 for Florida (except the panhandle). As such, we offer exceptional self-storage brokerage service to clients looking to add to their self-storage portfolio. We take pride in making the process simple and financially beneficial to you. We work with you every step of the way to position you for success in your self-storage business.
We look forward to working with you. Call us today to find out how we can work together on your next self-storage purchase at 904-591-0140.