When it comes to startup costs for a self-storage business, the most significant factors are usually:
- Property size, age, and condition
- Geographic location
- Staffing and security needs
- Registration, licensing, and legal fees
- Equipment and finishing costs
- Surrounding infrastructure
How Much Does it Cost to Construct a Storage Unit Facility?
Experts in self-storage construction say to anticipate self-storage construction costs of $25 to $70 per square foot. The average size storage unit facility in the U.S. is 56,900 square feet, so building a facility of this size from the ground up will likely cost between $1,422,500 and $3,983,000. Keep in mind that these figures don't include land or site improvement costs.
How Much Does It Cost to Buy a Storage Unit Facility Property?
The cost of purchasing a property for a self-storage business depends heavily on the variables mentioned above. Unless the property was previously used in the same way, you'd also need to account for the costs of converting it into a storage unit facility.
In many cases, it can be more cost-effective in the long run to have a new facility constructed to meet your specific needs. Although if luck is on your side, you might be able to find an existing property that needs little to no conversion.
How Much Does It Cost to Acquire an Existing Storage Unit Business?
Buying an existing self-storage business is usually the quickest way to generate positive cash flow. This can be a great way for those with limited time to enter the market, although even an existing facility will likely require some modification. The cost of acquiring an existing storage business can range widely from tens of thousands to millions of dollars.
How to Start a Storage Unit Business Without Money
A lack of capital doesn't have to stop you from achieving your dreams. The most common methods of funding businesses without existing funds are taking out a business loan or finding investors. As mentioned above, the storage industry is highly regarded by financial institutions and private investors — financing your venture is more achievable than you might think.