You’ve decided to invest in self storage units – a smart move. Now comes the tricky part: finding the perfect location. Location is everything in this business. Get it right, and your self storage facility will be primed for success. Get it wrong, and you’ll be struggling to fill those units. The stakes are high but don’t worry. We’re here to guide you through the key factors to consider when scouting locations. By the end, you’ll be a pro at spotting ideal real estate for your new venture. Ready to unlock the secrets to self storage location scouting? Let’s dive in.
Analyze the Local Population and Demographics
To find the perfect location for your self-storage investment, you need to become an expert in your local population and demographics. Analyzing key factors like age, income, employment status, and ethnicity of residents in the area will help determine if there’s demand for storage units and how much people can afford to pay.
Check out the US Census Bureau website to uncover details on income levels, ethnicities, ages, and other social stats by ZIP code. See if the median income is on the rise, if more young professionals are moving in, or if the population is aging. All good signs there may be a need for storage.
- Higher incomes often mean more disposable cash to spend on storage units.
- Young professionals in transition may need storage during moves.
- Retirees looking to downsize will need space for extra belongings.
Also, look at the employment rates and types of jobs in the area. Places with more stable employment and jobs that provide essential services tend to have a lower risk for storage operators. Think of healthcare, education, government, and technology sectors.
Consider the racial and ethnic mix too. Some groups tend to use self-storage at higher rates, especially those with larger families or who have recently immigrated. Do some research on storage usage trends for different demographics to determine the best locations.
With the right data on your local population, you’ll find an area primed for a successful self-storage business. Analyze all the details and look for spots with a balanced mix of the factors that drive storage demand. Your ideal location is out there, you just have to uncover it!
Assess the Competition in the Area
To succeed in the self-storage game, you need to know your competition inside and out. Do some digging to find out who else is offering storage units in your target area. Check out their websites and visit a few locations in person if possible. See what they’re charging for different-sized units and what amenities they offer. Are their facilities modern and secure? How full do they seem to be?
- Look at online reviews from their customers. See what people like and don’t like. Then make sure you do it better! Offer lower prices, newer and safer units, longer gate hours, whatever will give you a competitive edge.
- Search for them on Google and see how they rank in local search results. The higher up they are, the more established they probably are. You’ll need an excellent SEO strategy to outrank them. Study what they’re doing right and find ways to improve.
- Drive by their locations at different times to get a feel for how much traffic and interest they generate. Lots of customers coming and going is a sign they’ve cornered the market in that area. You may need to look elsewhere.
- Check if they seem to cater to any particular niche, like RV, boat, or business storage. If not, that could be an opportunity for you to specialize in an underserved segment.
Doing your homework on the competition is one of the smartest moves you can make as a self-storage investor. Know what they offer, how successful they are, and where they’re vulnerable. Then craft a business plan that will allow you to gain a competitive advantage and win over customers in your target location. The more you understand your competitors, the better positioned you’ll be to outperform them!
Choose a Site With Strong Visibility and Accessibility
Visibility Is Key
When scouting locations for your self-storage investment, visibility and accessibility should be at the top of your checklist. A site located on a major road with high traffic volume will give your facility the exposure it needs to attract customers. Think of it this way: if people can’t see your storage units, how will they know to rent from you?
- Look for sites along well-traveled roads and highways, especially near intersections or exits.
- Consider locations near residential and commercial areas where the need for extra storage space will be in demand.
- Check traffic patterns to determine the number of potential customers passing by each day. Higher traffic means more eyes on your facility.
Easy In, Easy Out
In addition to visibility, accessibility is equally important. Customers need to be able to easily get in and out of your facility. An accessible site will make renting a storage unit convenient and hassle-free.
- Choose a location with few obstacles like medians or concrete barriers that make turning in and out difficult.
- Look for a site with multiple access points, like more than one entrance and exit. This also allows for better traffic flow through the facility.
- Consider proximity to public transit options like bus stops. Not all your customers may have their own vehicle to access their unit.
Do Your Homework
Evaluating the local population and competition in the area will help determine if a site has strong potential for your self-storage investment. Some key factors to consider:
- Population density and growth. Areas with a large, growing population typically have greater storage needs.
- Median income. Higher-income neighborhoods may have more disposable income to spend on extra storage.
- Existing storage facilities. Too much direct competition can make it difficult to attract renters. Look for underserved areas lacking adequate storage options.
By choosing a location with excellent visibility, easy accessibility, and strong market potential, you’ll set your self-storage investment up for success and maximum profitability. Location really is everything!
Consider Future Growth Potential
When considering locations for your self-storage investment, think about future growth potential. Areas experiencing population booms and new residential or commercial development are ideal spots for storage facilities.
Growing populations
Look for cities and towns with population growth above the national average. More people means more stuff and more need for storage. Target younger populations and families in particular, as they tend to have greater storage needs during life transitions.
New housing developments
New housing communities, whether single-family homes, apartments, or condos, create demand for storage. As people move into new places, they need somewhere to keep their belongings during the transition. And once they’re settled in, many still need storage for recreational equipment, holiday decorations, and more.
Commercial growth
New businesses also drive the need for storage. When companies move or expand into new spaces, they often require temporary storage solutions. Once operational, businesses frequently rent storage units for files, equipment, materials, and inventory overflow.
Infrastructure improvements
Road enhancements like new highways or improved public transit increase accessibility and visibility for storage facilities. Better access means more potential customers will discover your location, and current renters will find it even more convenient.
Zoning and permits
Carefully analyze local zoning laws and permitting processes to ensure the location you’re considering allows self-storage facilities. Some municipalities restrict or ban certain property uses. It’s best to verify before investing in a site that may not actually permit your intended purpose.
By choosing an area poised for population, housing, and commercial growth, with solid infrastructure and zoning allowances for self storage, you’ll position your investment property to capitalize on increasing demand for storage units both now and into the future. With some savvy location scouting, you can find a spot primed to deliver long-term profits.
FAQs: How Do I Get Started With Self Storage Investing?
So you want to get started with self storage investing but aren’t sure where to begin. Don’t worry, many successful self storage investors were once in your shoes. The key is doing your homework and starting with the basics.
Find the Right Location
Location is the single most important factor for a profitable self storage facility. Look for areas with a dense population, preferably in a 3-5 mile radius of the potential site. Target middle-income neighborhoods and communities with a mix of residential and commercial properties. Check if there are any competitors nearby and see if the area can support another self storage facility.
Determine the Facility Type
Decide whether you want to invest in an existing facility or build your own. Purchasing an existing facility is often easier for new investors, while developing your own site from the ground up may have higher returns. Consider the pros and cons of indoor vs outdoor, single-story vs multi-story. Think about the unit sizes and features that will appeal to your target customers.
Secure Financing
You’ll need capital to get your self storage venture off the ground. Look into small business loans, crowdfunding, private investors, or self storage REITs. The SBA 7(a) and 504 loan programs offer affordable financing for commercial real estate. Make sure you understand the loan terms and have a solid business plan to present to potential lenders.
Find an Experienced Partner (Optional)
If you’re new to the self storage industry, consider teaming up with a partner who has experience developing or operating self storage facilities. They can help guide you through the process and avoid costly mistakes. Look for partners through your local real estate investment association or online at sites like BiggerPockets.
The keys to getting started with self storage investing are: do your research, find a prime spot, determine the right facility type for your needs, secure financing, and possibly find an experienced partner to work with. Follow these steps and you’ll be well on your way to success in the self storage market.
Conclusion
So there you have it, the keys to finding the perfect location for your self-storage investment. Do your homework, analyze the numbers, check out the competition, and find that ideal spot with high visibility and easy access. Location really is everything in this business. Choose wisely and you’ll be well on your way to building a successful self-storage operation. What are you waiting for? Get out there and start scouting locations. Your future customers and your bottom line will thank you.
