The self-storage industry provides great opportunity for entrepreneurs. Whether you have an established business portfolio or you’re just getting started, the self-storage business is a lucrative and steady option. We post a lot of statistics on our self-storage posts for a reason. Many people need storage.

  • In 2021, there were over 49,000 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

While self-storage rates increased in the first part of 2021, by the end of the year rates had dropped only slightly across the country. Demand for space is still high as people continue to work from home and need dedicated work space to do it. People are increasingly willing to store items to make their living space more functional.

So you want to start a storage business? Let’s discuss three simple steps to get you started.

  1. Assess the financial investment required.
  2. Determine if you will purchase an existing business or build a new one.
  3. Consider how the business will be run – owner/operator or hiring staff.

 

Assess the financial investment required.

The first task to tackle 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 just starting to invest in your small business portfolio, now is the time to establish relationships with a bank in order to secure small business financing.

 

Determine if you will purchase an existing business or build.

There are a lot of great self-storage properties on the market. The advantage to buying what already exists is that you have instant income from day one. This Alachua self-storage property for sale is an excellent option and has a current 90% occupancy rate.

If you prefer to build something new, there are additional costs to consider. The purchase of the land, any surveying, clearing, utilities (depending on location), and then construction are important to consider. This location in Port Charlotte provides ample space and a high-traffic location with major retailers located 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 for you. The goal of self-storage is to maintain a high rate of occupancy. The property above that is 90% occupied is an excellent example of what owners strive for. Break-even in most self-storage businesses is dependent on your initial investment and the operational costs, but generally no less than 45% occupancy.

If you’re running the business yourself, consider now how you will market the business and what tools you will use to promote it. If you’re hiring a manager, it will be essential to outline the mission and vision for the business as well as marketing expectations in advance.

 

Is it time to hire a broker?

At Weaver Realty, we are proud to be the Argus Self Storage Network Affiliate since 1999 covering the state of Florida (except the panhandle). As such, we offer exceptional self-storage brokerage service to our 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 904-733-0039.