May 31, 2023
Are you looking to build storage? Unit mix can make or break your storage facility. I have heard horror stories about developers choosing the wrong mix and end up not being to lease up a majority of their facility. For instance, I have heard of a an owner deciding to build mostly 10X10 climate units as he believed these would offer the most return. Well, unfortunately when this is the case, the owner will eventually have to sell at a steep discount or spend a substantial amount of money to redo the unit mix.
So, how can you avoid this mistake and pick the best unit mix for your site. Lets take a look at some tips below:
1. Consider The Area: Urban areas with dense housing such as apartments or condos might require smaller units than those customers found in suburban areas that live in single family homes. An area with mostly renters would indicate the customers generally have less “stuff” and might store for a shorter time period as they are in transition or just getting started on their own. So, you would want to offer smaller sizes around the 100 SF mark. If you are near lakes or vacation destinations you might consider larger boat and RV units.
Additionally, pay attention to your competition. If you notice they are offering discounts for certain sizes, that may indicate that size offering is too saturated in the area or not in demand.
2. Hire An Expert: Before you build storage, find a consultant in the storage industry that will do a thorough feasibility study for you. A solid study might be expensive ($5,000+) however it will provide you with a detailed analysis of the area and a potential unit mix that might be most successful at that given location and time period.
Your civil engineer may also be able to provide some guidance with this as well since they most likely have worked on other facilities in the area.
3. Awkward Sizes: When finalizing the sizes before your build, try to stick to the standard 5X5, 5X10, 10X10 etc. sizes. Awkward sizes such as 7X8 may throw your customers off, especially as they comparison shop.
In the end, there may still be some units that are more popular than others. Especially since customer needs may change over time. You may want to consider discussing the ability to adjust the back dividing wall between units so you can adjust the sizes as needed over time.
We hope you found this short blog helpful. Please reach out to us if we can be of any assistance in your storage needs!
Check out our other related content:
- Blog: https://crdrealty.com/market-update-1st-quarter-2020/
- Blog: https://crdrealty.com/vendors/cost-segregation-services-inc-tom-brodie/
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