What is a self-storage feasibility study?

A self-storage feasibility study is an analysis of a particular market to determine if there is sufficient unmet demand to support additional self-storage supply.

If there is sufficient demand, the analyst recommends the most profitable type of facility to build by researching the location and potential self-storage customers that live there. A good study uses current data to project the facility’s operating budget and realistic financial model and the marketing tactics it will take to achieve the projections.

Demand drivers for self-storage include:

• Type and amount of current supply

• Rental rate trajectories of self storage units

• New self-storage supply poised to enter the market

• Facilities that have just opened are still in lease-up

• Consumer demographic and psychographic profiles

• Labor force flows and nonfarm payrolls of the market

• Self-storage square feet demanded per capita in this particular market

• Self-storage square feet demanded per household in this particular market