Category : Steel Self-Storage

Posted : Thursday, December 1, 2022

Building A Self-Storage Facility


Building a Self-Storage Facility

The cost to build a self-storage facility is less than it is to build office or retail space, hotels, or multi-family dwellings. In most cases, the cost of construction, including land, and soft costs (commissions, financing, and costs for various consultants or professionals) is about one-third of the price for other real estate types. 

Compared to buildings apartments, there is limited plumbing and electrical to install at a self-storage facility. The interior space is uniform, with specific unit sizes as opposed to residential floor plans. There is little dry walled, and finishing required.

There is a customization factor to consider, since oftentimes individual tenants require that the offices, they lease be reconfigured to suit their needs. But, in general, these factors make self-storage easier to develop.

Do your homework regarding where you should build and what you should charge per unit. You can get those competitive prices by visiting many other Self-Storage facilities withing 30-40 miles of where you want to build. 

You need to build in a location with easy access and visibility. Advertising is key here. Large sign that will grab the attention of traffic.

Once a self-storage is built, it is much less labor intensive to operate and maintain. The staff is usually limited to you and an employee or two, or a manager or couple. You might also consider a part-time assistant manager.

The good news is the facility will generate the same rent per square foot as apartments. Specialty storage can bring in even higher rates. Self-storage facilities also have a lower rate of delinquency and rents can be pushed harder. When you initiate a 5 percent rate increase, the tenant would rather just pay the extra than move.

I go into much more details in my book on Amazon including Climate Control, Conversions. Plus, from the dream to opening day. 

Self-Storage The Journey

Basic Dry Storage Only• 

Climate Control• 

Basic RV and Boat• 

Condominium Style RV and Boat• 


Mobile Self-Storage • 

Chapter 2 - Should You Buy, Or Build? 21 

Multi-Story Self-Storage• 

Private Storage in Multi Family Buildings• 

Records Storage• 

Wine Storage• 

Combination Retail and Self-Storage•