How much does it cost to build 100 storage units

Do you know many US-based storage facilities make around $4 million yearly?

Your self-storage operation can make more money the more storage units it has. Therefore, most business owners entering the recession-proof self-storage sector create massive storage structures with many units inside.

Suppose you want to create a self-storage business with 100 units, and your plan is in a high-demand area. Two primary price drivers for your self-storage building are material and construction expenses. Numerous other aspects also play a role, such as the complexity of the building and the quantity and kind of doors and windows.

In this post, we’ll outline the factors you should consider in 100-unit self storage facility cost immediately.

How Much Does Building a Self-Storage Facility Cost?

Land and construction costs are the main costs of constructing a storage facility. Therefore, the average startup costs for storage unit business will vary depending on the type of units you plan to use, the price of the land you choose, and whether you plan to build a single-story or multi-story facility.
Considering an average size of 10′ x 10′ for each unit, let’s say you wish to begin with 100 single-story apartments.

It means that you will have 10,000 square feet of space overall. However, driveways, common areas, and parking will often require an additional startup costs for storage unit business of the property, increasing the total land size to 14,000 square feet.

Depending on the area, buying property costs $8 to $25 per square foot, while land costs anywhere from $112,000 to $350,000. Renting land is a less expensive option.
The price of the website you select will be determined by:

Its Location

You will pay extra if you pick a spot in a busy or desirable region.
Purpose-Built, Conversion, Or Empty Land

The price of your site will vary depending on whether you’re purchasing an existing facility, turning a warehouse into units, or purchasing an empty site to start your own business.
According to ProEst, building self-storage facilities on vacant property typically costs between $4.25 and $8 per square foot. This means
that getting your site ready for construction will cost between $59,500 and $112,000.
Buying or Renting

In the short run, renting a location for your storage facility will be less expensive than buying a new plot. To secure longevity, our CEO, Gavin Shields, signed a 20-year lease when he began his first storage company because he discovered that renting a space was more affordable than purchasing one.
Additionally, the cost of your property and location will determine whether you choose to create a single-story or multi-story storage
facility.

100 Storage Units Costs According to Their Size

Here is the detail of building cost per storage unit size:

Storage facilities With a Single-Story

Building a single-story storage facility costs $50to $65 per square foot. This does not include land and site improvement expenses. You must choose a single-story storage facility if local rules prohibit multi-story structures.
Self-storage Facilities With Multi-Story

Building a multi-story storage facility will increase the cost of construction per unit. Nevertheless, consider choosing a multi-story building if you only purchase a tiny plot or want
to make the most of your layout.
When land and site development expenditures are not included, constructing a multi-story storage facility cost to build storage units per square foot is $85 to $110 for two levels.

Material Costs According To Storage Size Units

The following table shows the average cost to build mini storage units, producing 100 of each.

Storage Unit Size	Number of Units	Total Area in Sq Ft	Material Cost Range
10’ x 20’	10	20,000	$170,000-$280,000
10’ x 10	10	10,000	$85,000-$140,000
5’ x 10’	10	5,000	$42,500-$70,000

How To Calculate The Cost Of Self Storage Units

Adding everything up, the cost of constructing 100 10′ by 10′ single-story homes would be as follows:

Activity	Cost Range
14,000 square feet of land	$112,000 to $350,000
Site development	$59,500 to $112,000
Materials required	$85,000 to $140,000
Construction	$500,000 and $650,000

Therefore, the total 100 self-storage facility development costs from the ground up will range from $756,500 to $1,252,000.

Types of Self-Storage Units

You must choose which units to include in your storage facility before you begin construction:

Purpose-Built

To launch your own business, you can frequently purchase or rent pre-existing, purpose-built storage facilities from a developer or operator, but this can be somewhat costly—unless the firm is having financial difficulties, in which case you might be able to negotiate a reasonable price.
Drive-Up Access Storage Units

You have many options of storage containers available in the market.

First comes the drive-up storage unit. It is an exterior access unit with enough room that support the car pulling to the entrance. As a result, customers can load or unload products more efficiently. Another name for these facilities is “outdoor storage units.” However, it’s crucial to remember that there are ways to have indoor drive-up units.

Climate control may or may not be available in these storage units. In this situation, pulling a car up to the unit is crucial.
Roll-up doors and enough aisle space for a moving vehicle are features of the most practical drive-up units.
Garages or Containers

Shipping containers placed in a safe location make container storage facilities. A container storage space can be rented between 40 and 120 square feet. A single 20-foot dry container costs $1,500 to $3,500.

Garages, sometimes called lockups, can also be constructed as storage units. Each garage may cost between $7,500 and $15,000. They can be incorporated into residential buildings and are often smaller than other facilities.

It’s crucial to remember that garages and storage containers may experience wetness and temperature fluctuations, which makes them inappropriate for keeping some items, like clothes.
Warehouse Storage

There are two warehouse spaces: extra big storage units and big warehouses.
When advertising warehouse space, it’s a good idea to be explicit. For instance, list dimensions to reduce visitors’ inquiries at your website.

Customers looking for warehouses typically plan to store many products or massive equipment.
The following are a few facilities that can be very beneficial for warehouse storage:
1. Lighting within the warehouse to brighten the spacious area
2. Due in significant part to the size of the doors that must be operated, remote-operated doors
3. Bonus points for shelving that may be added or removed in response to requests
4. Businesses use attached restrooms as a marketing point.
Climate-Controlled Storage Units

Building a climate-controlled storage container costs slightly more, but the monthly rental is also typically higher.
The definition of a climate-controlled storage container is a topic of much discussion. For a further explanation, see this post regarding climate-controlled storage and how people discuss it.
For the sake of this post, be aware that your customers often anticipate a climate-controlled storage facility to shield their belongings from high and low temperatures.

Alsor Read :How Much Does It Really Cost to Build a Storage Unit Building?
Self-Built

It involves creating a self-storage facility from the ground up, which is the most costly option because everything will need to be built from the ground up.
However, because you have fewer overheads, it can yield higher profits. Additionally, you can sell the website for much more than you paid.
Temperature-Controlled Units

A climate-controlled unit and a temperature-controlled storage unit are similar.
Some operators even refer to them by the same name.
We’re keeping the two distinct for the sake of this list. Temperature-controlled storage containers should only maintain controlled temperatures, but your clients may want climate control to cover heat and humidity.
Smart Units

In recent years, innovative self-storage units have become increasingly popular.
The definition of a bright unit is much more subjective than climate control! An innovative storage unit could include the following features:
1. Electronic locks
2. Motion sensors inside the unit
3. Internal cameras
4. Personal alarms
5. Alerts on mobile devices
Lockups

It is common for innovative units to include more sophisticated security features that safeguard a particular unit (rather than the entire complex).
The “smarter” a security system is, the more in-unit security it has and the more networked it is, especially since it can notify the facility manager or renter of activities!

The Most Important Factors Before Building 100 Storage Units

Some essential expenses must be considered to arrive at a reasonable storage units construction cost estimate of the overall development costs for self-storage.

The Price of Land

To construct a self-storage facility, you need a plot of land in a prime location. The land cost is an integral part of the cost of the self-storage structure. Numerous factors, such as location, market rate, and economic conditions, affect land cost. The self-storage marketing outreach and internet presence of storage facilities constructed in rural locations are typically limited. As a result, more self-storage facilities are built in suburban and metropolitan regions.
What impact does that have on the price? Use the following example to understand it:
1. Compared to rural areas, metropolitan areas have less land.
2. In cities, storage firms compete fiercely with one another.
3. The land cost would be far higher in cities than in rural areas.
It is a straightforward illustration of how several elements might impact land prices. In real-world situations, several additional factors also influence land prices.
Cost of Materials

Steel is typically the most crucial component utilized in building storage facilities. It is also among the most expensive materials. The price of these materials can differ considerably in other markets. Certain materials, for example, might cost more in urban markets but less in rural ones, or the opposite may be true.
Labor Cost

Several variables may affect the labor costs associated with constructing a self-storage facility. A few of them may be
- Labor regulations in a particular area
- Absence or surplus of labor
- The maximum pay determined by trade unions
You must recognize this vital part of the overall setup expenses. To estimate labor costs for your construction and development budget, conduct a market study or seek expert advice.
Cost of Site Preparation

You may need to adjust your location for your storage facility. To make the site usable, you must invest in site preparation. Some examples of site preparation are clearing the soil, removing vegetation, or setting up drainage systems.

If you invest in these projects, the value of your property can increase. In other words, determining the budget for self-storage buildings, which cost between $5 and $8 per square foot, plays a significant role.
Extra Expenses

The initial costs of operating a self-storage business include several additional expenses. These include operating costs, marketing costs, packing and moving supplies, and other ancillary costs. These expenses occasionally account for a sizable portion of the cost of building storage unit facility.

Building Costs for Self-Storage: Return on Investment

If you can produce sizable profits, your investment in a self-storage business will be worthwhile. The company must make more money than you could have from other investments. At the very least, it should be comparable to the anticipated return of another investment project.

How can you tell if your company can make consistent profits? A few key elements are necessary for a self-storage business to succeed. Additionally, a well-run self-storage facility can provide an assertive and comparatively passive income stream for people considering investing in real estate, making it a desirable choice for a diversified investment portfolio. These are the main factors:

Find the Right Area

Your enterprise’s success depends on the location of your self-storage facility. Undoubtedly, finding a suitable spot is challenging, but it is essential in all conditions. What does “the right location” mean, then? It alludes to a location that has the following:
- The right cost
- Proper zoning
- Appropriate demographic
- Select a prominent spot to draw clients while staying within your budget.
Limit your land purchase budget to 25% to 30% of the entire cost of the self-storage structure. This will ensure that you have the money to build and develop the storage facility.
Identify Your Target Market

You must specify which audience segment you are aiming for. Selecting the kind of storage solution you offer is crucial to optimizing your company’s operations. Generally speaking, storage facilities provide the following storage services.
Personal Storage

The most prevalent kind is self-storage facilities that provide personal storage services. These facilities facilitate renting storage space to people who are renovating, moving, or decluttering.
Storage for Businesses

Companies of all sizes may require storage space for their supplies and inventory. Business self-storage facilities are properly maintained and provide clients with round-the-clock access.
Student Storage

Students require storage units to keep their possessions safe over the holidays and semester vacations. These facilities are often security lockups and are not particularly large. They also have lower rent than other kinds of facilities.
Vehicle Storage

Those without garages at home rent units. Companies also keep whole fleets of cars in these storage facilities. Larger storage spaces are typically available for rent, and the cost of renting them is likewise higher.
Military Storage

Members of the armed forces often relocate with their families and require a safe place to keep their possessions. Military storage facilities close to military bases serve military families.
Make the Correct Technology Investment

If a large storage facility is not valuable to clients, there will be no actual returns on investment. It would help if you made the appropriate technological investments to create an unmanned administration system. To remotely administer the facility, you will require reliable self-storage software.

Similarly, you require sophisticated locks, automated gates, and effective monitoring systems to provide a safe atmosphere for your clients. Effective cash use necessitates meticulous preparation and in-depth investigation.
Provide Appealing Amenities

Why would someone pick your recently built storage facility over rivals? To get your business to break even quickly, give your clients reasons to choose you. Provide perks that are within your means and that your rivals do not.

Climate-controlled systems, round-the-clock access, cutting-edge security systems, and virtual monitoring are desirable qualities that draw clients. Although providing these facilities may raise your overall expenses, it aids in achieving your desired return on storage investment.

Is It Worth It to Build a Self-Storage Facility?

In the following circumstances, it makes sense to construct a self-storage facility:

There is competition in the market.
You have enough money to cover the expense of constructing a self-storage facility.
You intend to provide users with facilities that set you apart.

Building a self-storage facility for specific organizations can have some incredible benefits, but it might only be feasible for some. Every self-storage company is different in several ways, such as its goals and plans for the future. To make your choice, you need to conduct the study.

Also Read : How to Bid on Construction Projects in NYC

Final Thought

There are many things to consider when beginning a self-storage facility, and setting up the first 100 units can be costly. The self-storage industry has performed well, making it a great investment. If you want to create a self-storage facility from the ground up rather than purchasing an existing one, you need to consider many aspects of the cost of establishing one. By performing a critical cost-benefit analysis, you can determine whether developing a self-storage facility is practical for you.

FAQs

What is a storage facility’s average size?

A storage facility is typically between 45,000 and 50,000 square feet and often includes rentable storage units ranging from 10,000 to 100,000 square feet.

Is owning a storage facility advantageous?

Is it profitable to own a storage facility? You can make money by renting storage spaces to those in need and collecting rental payments. A self-storage company can handle a small workforce or elaborate upkeep. Even after subtracting running expenses, you can still make a sizable profit.

Which four types of storage facilities are there?

Lockups, removal depositories, warehouse storage, and container storage are the four primary categories of storage facilities.

How much does it cost to build 100 storage units