Feasibility Study Costs

Box Pro Consulting is an industry-leading feasibility study company that specializes in providing comprehensive analysis and insights for self-storage investment and development. Our experts have years of experience helping developers and investors make informed decisions and achieve their goals with our self-storage feasibility studies.

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The Importance of a Feasibility Study

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Our self-storage feasibility studies are most frequently ordered by the following:

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• First-time developers looking to get into self-storage; 

• Experienced developers needing another set of eyes on their project; and, 

• Developers in need of a third-party report for financing purposes.

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Before making a major investment decision, a feasibility study is necessary to validate your idea and make the most of your investment. A feasibility study evaluates the viability and profitability of a project by analyzing various factors, such as market demand, competition, financial projections, and more. In the self-storage industry, where competition is fierce, a feasibility study can be the difference between success and failure.

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Why Choose Box Pro Consulting?

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At Box Pro Consulting, we bring real-world development, finance, and operational experience to each of our consulting engagements.

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Our principal, Derek Walker, has more than a decade of experience in self-storage development and operations, having developed and operated a self-storage portfolio of more than 3 million square feet nationwide. He has personally secured $250 million of financing for the 25+ property portfolio. Mr. Walker has consulted on hundreds of self-storage and RV/boat storage developments and serves as a third-party consultant for a nationally recognized economic development firm.

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A Box Pro self-storage feasibility study is both an art and a science. Our studies are heavily data-driven, drawing data from multiple industry sources and cross-referenced with each other to ensure maximum accuracy. Additionally, we use our extensive real-world experience to give honest feedback and advice.

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While a feasibility study requires investment upfront, its insight and recommendations could boost the value of your project by millions of dollars.

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Our Feasibility Study Process

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Our feasibility study process is thorough and comprehensive. It includes the following offerings:

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• Site Analysis: We evaluate your self-storage location based on factors such as accessibility, visibility, zoning regulations, and more. 

• Demographic Analysis: We establish where your tenants will come from and analyze critical demographic information and trends to determine the strength of your tenant base. 

• Supply/Demand Analysis: We calculate the current and future self-storage square feet per capita in your market and project current and future demand to determine how over/undersupplied your market is with self-storage. 

• Competitor Analysis: We do a deep dive into your closest competitors to assess their site features, rental rates, and occupancy. 

• Rental Rate Analysis: Based on our competitor analysis and using historic rental rate data in the market, we project what rental rates your site will be able to attract for a variety of unit types and sizes. 

• Unit Mix Recommendation: Based on our findings, we will make a unit mix recommendation that best suits your market. 

• Self-Storage Construction Budget: How much does a self-storage project cost? Using our recommended unit mix, we will prepare a preliminary cost budget for your self-storage development. 

• Operating Expense Analysis: We will estimate ongoing operating expenses for your project and make recommendations for operating your site as efficiently as possible. 

• Pro Forma and Financial Analysis: We conduct a full financial analysis, which includes a 7-year pro forma and generally covers all financial metrics that lenders and investors like to see, including Unlevered/Levered Internal Rate of Return (IRR), Debt Service Coverage Ratio (DSCR), Debt Yield, Cash-on-Cash, and stabilized value. You will walk away with an understanding of how much your project will cost, how much cash out of your pocket will be required (if using a construction loan), how quickly your project will lease up, what cash flow you will expect, and what your stabilized value will be. 

• Best Practices: We will share best practices for developing and operating a self-storage facility based on our years of direct experience.

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The Cost of a Feasibility Study

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How much does a feasibility study cost? At Box Pro Consulting, we offer different study options to fit your needs as a self-storage developer.

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• Self-Storage Feasibility Study: This is the most commonly ordered study. It includes everything listed above, and we can complete it either remotely or with a site visit. A self-storage feasibility study costs $5,700 if done remotely or $7,700 with a site visit. Make sure to ask about our monthly specials for potential discounts. Delivery time is generally 7–10 days for the remote study or 3–4 weeks if including a site visit. 

• Abbreviated Market Study: This study aims to establish the overall demand for self-storage in your market but does not include any project-specific analysis or projections. The Abbreviated Market Study includes a demographic analysis, supply/demand analysis, competitor analysis, and rental rate analysis. The abbreviated self-storage market study costs $3,500. 

• Market Identification Study: Where is the best place to build a self-storage project? If you don’t have a site picked out, we can conduct a reverse market analysis to help you identify markets best suited for new self-storage development. The cost ranges between $3,000 and $7,000, depending on the geographic scope of the study. 

• RV/Boat Storage Feasibility Study: We can replicate all of our studies for RV/boat storage and include an analysis of RV/boat storage market dynamics, such as RV/boat sales and ownership statistics, tourism statistics, marina capacity, and others.

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The Cost of a Feasibility Study

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While a self-storage feasibility study cost may seem like a significant cost up-front, it is a small investment compared to the potential losses and risks of proceeding with a project without proper analysis. A feasibility study from Box Pro Consulting can help you achieve the following:

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• Save money in the long run by identifying potential risks and challenges before they arise. 

• Make informed decisions based on accurate data and insights. 

• Increase your chances of success by having a thorough understanding of the market and competition. 

• Improve your cash flow and stabilized value by following our market-optimized unit mix and operations recommendations.

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Below is current pricing for Self-Storage (and RV/Boat Storage) market studies and feasibility study costs.

 

Note: we can also do Market Identification Studies and other customized studies. Don't forget to ask about our monthly specials.