You have an idea and a plan. Your goal is to develop a self-storage facility, but there’s a nagging voice in your head telling you that it’s not a good idea.
This nagging voice is a good thing because it shows you’re taking this project seriously and that you want to succeed. Self-storage development is risky and complicated, but distinguishing between legitimate concerns and common misconceptions about self-storage development will guide you in the right direction. You may have heard these misconceptions from well-meaning friends, family members, or even other real estate developers. But it’s time to set the record straight.
Self-Storage Development Doesn’t Work in Rural Areas
One of the most common misconceptions is that self-storage development only works in urban or suburban areas. Many people believe that there’s not enough demand for self-storage facilities in rural areas, and therefore, it’s not a viable option for development.
While it is true that self-storage facilities tend to perform better in densely populated areas, there are plenty of opportunities for success in rural areas. In fact, the lack of competition can make a self-storage facility even more profitable in less-populated locations. With the rise of e-commerce and online businesses, more people are turning to self storage for their storage needs regardless of their location.
Small Land Is Cheaper and More Suitable for Self-Storage Development
Another false idea is that small plots of land are cheaper and more suitable for building a facility. While it’s true large plots may come with a higher price tag, they often offer more potential for long-term success.
A bigger scale allows you to build more storage units and create more revenue opportunities. You also have the ability to establish additional services such as RV and boat storage to further increase profits. It’s important to consider long-term profitability rather than just upfront costs when choosing a plot of land for self-storage development.
Self Storage Doesn’t Require a Feasibility Study
Some people believe that you don’t need to conduct a feasibility study before this business venture. However, this misconception assumes there will always be demand for self storage, making a feasibility study seem unnecessary.
Every market is unique; you must comprehend the local demographics, competition, and demand before investing in a self-storage facility. A feasibility study can provide valuable insights and help you make informed decisions about your investment.
Self-Storage Facilities Need Multiple Locations To Succeed
While expanding your reach can certainly offer benefits—such as increased brand recognition and revenue diversification—it’s not a requirement for success. With proper research, planning, and execution, a single self-storage facility can be a profitable venture. In fact, many successful self-storage developers started with just one location.
You Can Fill Your Storage Units Within 12-18 Months
Is this technically possible? Absolutely. Is it guaranteed? Not necessarily. Most people have the misconception that self-storage units will fill up within a year or less. While this may happen in some cases, it’s not the norm. It can take years for a self-storage facility to reach full occupancy.
Location, marketing strategies, and competition all influence how quickly the units will fill up. You should have realistic expectations and prepare yourself for a longer timeframe when filling your storage units.
Housing Units Nearby Guarantee Success
Many developers will assume that success is a sure thing when there is a high number of housing units nearby. While it’s true having a large residential population in the surrounding area can provide a solid customer base, it’s not the only factor that determines success.
You don’t know that those residents will need or want self storage; there may be other competitors in the area already catering to that population. Consider other factors such as local businesses, demographics, and market demand beforehand. This will help you establish realistic goals.
High Traffic in a Town Will Increase Your Customers
Just like how having a high number of housing units nearby doesn’t guarantee success, a lot of traffic in the area doesn’t automatically translate to profitability for self-storage facilities.
It might seem like more people passing by would mean more potential customers. This isn’t always the case. In fact, having a lot of traffic in the area can actually work against a self-storage facility. It can lead to higher competition, increased noise and disruption for customers, and zoning regulations that restrict the size of the facility. Carefully consider all factors when choosing a location for your development rather than solely relying on the presence of nearby traffic.
Zoning Regulations Aren’t a Big Deal
One major misconception about self-storage development is that obtaining zoning approval is a quick and easy process. In reality, zoning regulations can be one of the biggest barriers to developing a storage facility.
There may be strict guidelines in place regarding the size, design, and location of self storage. And even if your proposed site meets all zoning requirements, there may still be opposition from local residents or businesses. It’s important to understand the zoning regulations in your desired location before moving forward with your business development.
Starting any type of business, including self storage, comes with many challenges. Misconceptions can discourage you from pursuing your dream. While these myths can distort reality, don’t let them lead to missed opportunities. It’s essential to be realistic and head into the development process with a clear understanding of the potential obstacles and risks involved with this business venture.
At Box Pro, we help aspiring entrepreneurs get their self-storage projects off the ground by providing expert guidance and support. We’re self-storage consultants with years of experience in the industry.
We can run a feasibility study for your project and provide you with a detailed development plan, taking into account all the factors that could impact your success. Our studies are fast and affordable, but they will also provide you with all the information you need to decide, "Is this the right project for me?" Contact Box Pro today to learn more about how we can help you turn your self-storage development dream into a reality.