Expert: Peter Liebert, SIOR - 7/28/2008

Question
Hello Peter,
I am currently investigating the possibility of building my first Storage Unit facility as an investment and was wondering if you had any first hand experience or advice in regards to making it profitable.  Unfortunately I will be financing the land as well but after reading one of your responses was curious if you had an insight. Thank you for your time.
Justin

Answer
You should check the demographics (population, population growth projections, income, type of residences, etc.) for the location, 1/2 mile out to 5 mile. Student or military population is also important.
Competing units and their pricing structure as well as occupancy percentage are factors. RV, truck parking spots are also revenue. There are facilities that are not manned, but use a card key gate.
Remote video cam's are important with recording capability. The less labor that you have to pay for the better. The higher end facilities in this market are fully climate controlled and they charge a premium for that.

If your lender has financed other projects, you should discuss what data they have. Best of luck. / Peter