Storage Unit Business: Cost to Build

Starting a Storage Unit Business

Popularity of the self-storage business is evident in just about every town. With over fifty thousand affordable self storage establishments in the United States, the number is still growing. People and businesses looking for a place to store their belongings can find the exact amount of space they need at an affordable price. Even though the industry has grown into a multi-billion dollar industry, it's constantly expanding to meet demand with new companies starting every day. The good news is, that no matter where you live, the storage unit industry succeeds in every part of the economy including:

• Residential neighborhoods
• Industrial parks – You may be surprised to learn that a lot of storage space is rented to businesses and industries. They use it to hold inventory, keep outdated files and archive important material that otherwise takes up valuable office space.
• Urban areas
• Rural settings

What About Competition?

However, in today’s self storage market, be sure to do your research before building or buying a franchise. As part of your preliminary work, check out how the competition is faring. To gain accurate information, it is best to hire a professional consultant to evaluate the area’s untapped potential and the need or lack of it for self storage in the area where you plan to build. Find out:

• How many other storage businesses are there in the area?
• How many units does your competition have and what services do they offer?
• What licenses are required and what other city or county requirements apply including zoning regulations?

Learn the Business

The first step in planning your business is to learn everything you can about the storage business. Research the following:

• Costs and investments it entails
• Operational considerations
• Factors that make a self storage business successful

When making your plans to start a storage unit business, seek to build facilities that meet and exceed industry standards. If you offer the best in quality, people will seek you out because they want their stored items safe, dry and accessible.

Items to Consider for Storage Unit Business: Cost to Build

Costs for building storage units vary, depending on location and what features you include. For example, if the unit is climate controlled, it will cost more to build and operate than one that is not. Climate controlled units keep temperatures from dropping below 55 degrees or rising to more than 80 degrees. Many people need climate controlled units to preserve items than can be destroyed by mold or mildew.

A ballpark figure for storage unit business cost to build:

• Including permits, rental space, construction and other incidentals, start up costs for a storage unit business will come to at least $50,000.

Resources to Get Prices and Other Information on Building Storage Units

• Olympia Steel Buildings – Self-storage Buildings Brochure
• Olympia Steel Buildings – Self-storage Buildings Online Quote
• Self Storage Associations
• 2008 Self Storage Development Handbook – more than 140 pages of detailed information covering issues faced when planning and constructing a self storage facility
• Investor/Developer Resource Kit
• Sample Self storage Business Plan
• Self Storage Training Institute – get the training you need
• Market Analysis and Valuation of Self Storage Facilities (Paperback)

If you decide to buy an existing self-storage unit business, you can check with your local realtor or search sites like:Self Storage For Sale to see what's out there. However, before purchasing an existing storage business, be sure to ask these questions:

• To see the business’s tax returns
• Ask why the owner selling
• Ask how long the owner has owned the business
• Ask what the owner plan to do after selling
• Ask whether the business is or was bankrupt or if any lawsuits have been filed against them

You don't want to inherit someone else's bad business reputation or financial problems.