subject: Self Storage Feasibility Study Lays The Foundation For Success [print this page] Whether you have decided to start a new self-storage project or have an existing self storage unit, it is imperative to perform self storage feasibility study. Many investors find it difficult to locate an adequate site and thus selection should be done with the help of an independent third party. A well-performed and detailed study done by unbiased third party will tell you if your project has the attributes it needs to success. The feasibility study ensures that the location and market of the development site is in consistent with your investment goals.
Location is one such factor affecting the success of any project that it cannot be ignored by any developer. When you consider the positive and negative aspects of your site with the help of feasibility study, you are in a position to take better business decisions. Self storage feasibility study covers analysis of self-storage market needs and identifying competitors in your target trade area. It includes study of the type of amenities offered by rivals. Competition analysis also includes specific data pertaining to competitive facilities such as type of construction, type of management, rate survey, number of units and many others.
Self storage feasibility study is a summary of all information and advises the client whether to move forward or abandon the site. The statistics on population, density, housing types and economic conditions of the area along with several other factors are considered which can affect the potential for a successful self-storage location. An independent study gives the project more credibility with potential investors as well as lenders. If the feasibility study reveals a sound investment opportunity, the self storage management company creates business plans. They can be used for presentation to investors and financial institutions to finance the project. The comprehensive services include developing storage facility business plans with operating pro forma. Pro forma is a future estimate of expected expenses, revenues, development costs and other expenditures. A storage facility business plan provides detailed operating projections monthly for first two years and thereafter on an annual basis.
