Developing a self storage facility requires careful planning, thorough research, and strategic execution. Here are the key steps to get started:

Conduct Market Research

Before diving into development, it’s critical to understand the demand for self storage in your target area. Analyse the local market to determine:

• Existing and New Self Storage Competition: Identify existing facilities and seek to understand their occupancy rates, pricing, and amenities. Research approved new facilities as it can be very difficult to compete against a new facility targeting the same customers.
• Current and Future Self Storage Demand: It’s important to research what is driving demand in your market. This can be done with a demographic study. Is the population growing or declining? What is the demographic profile of the customer catchment and are they likely to need storage?

Tools such as feasibility / catchment studies and market analysis reports can provide valuable insights into potential opportunities and risks.

Secure Financing

Developing a self storage facility involves significant capital investment. Create a detailed business plan to present to potential lenders or investors. This plan should include:

• Projected costs: Land acquisition, construction, permits, and operational expenses.
• Revenue estimates: Based on rental rates and anticipated occupancy.
• ROI analysis: Demonstrate the profitability of your venture.

Common financing options include commercial property loans, private equity, or partnerships with investors.

Choose the Right Location

Location is a critical factor in the success of a self storage facility. Look for properties with:

• Exposure: High traffic areas with good road access.
• Zoning: Ensure the site complies with local zoning regulations for self storage use.
• Proximity to target customers: Residential neighbourhoods, commercial precincts, hospitals and universities.

Consult with local council and real estate professionals to confirm the suitability of your chosen site.

Design and Plan Your Facility

The design of your self storage facility should balance functionality and cost-effectiveness. Key considerations include:

• Unit mix: Offer a variety of unit sizes to cater to different customer needs.
• Scale: Understanding the supply and demand fundamentals of the customer catchment will help you decide on the appropriate facility scale.
• Security features: Install robust security systems, such as surveillance cameras (CCTV), access controls, and proper lighting.
• Site layout: Optimise for ease of navigation and accessibility, including wide driveways and loading areas.
• Council requirements: Seek early engagement from local council on their access and building requirements to avoid unnecessary delays for approval.

Hiring experienced contractors who specialise in self storage facilities can help streamline this process.

Build and Equip the Facility

Once council permits are secured, construction can begin. Monitor progress closely to ensure timelines and budgets are met. Equip your facility with:

• Storage units: Modern facilities typically have purpose built self storage fit-outs.
• Management tools: Software for revenue management, rental agreements, payments, and customer management.
• Customer amenities: Trollies, walkie stackers, trailer/van hire and on-site amenities.
• Develop a Marketing and Management Strategy

Effective marketing is essential to attract customers and maintain strong revenue. Strategies include:

• Online presence: Build a website with online booking capabilities and leverage social media.
• Local advertising: Partner with businesses, consider local sponsorships and consider localised signage.
• Promotions: Offer discounts for new customers or referrals.

Additionally, decide whether to manage the facility yourself or engage a professional management company to leverage their experience.

Think of Your End Goal

It’s always wise to have the end goal in mind when commencing a new project. Will you work in the facility? Are you seeking to create a long-term income stream? Perhaps you aspire to build, grow and sell? Considering your long term options will help you make the right decisions now, and support a fruitful reward to the investment if planned correctly.