What Are The Different Types of Feasibility Studies for Storage Facilities?
Q: Why is conducting a feasibility study important for developing a storage facility?
A: A good feasibility study gives the developer clear advice on whether or not the market will support more self-storage, boat and RV storage, storage condos, flex warehouse space or contractor yards.
Conducting a feasibility study is crucial because it provides valuable insights into the viability and potential success of the storage facility project. It helps in understanding factors such as market demand, competition, pricing strategies, and financial projections, which are essential for making informed decisions and securing financing.
A storage feasibility consultant should not have a financial incentive to green light your project (such as additional potential fees from property or construction management). Feasibility studies take the emotion out of multi-million dollar decisions and provide development opinions backed by hard data.
Q: What factors are considered in self-storage feasibility studies?
A: Self-storage feasibility studies primarily assess the financial viability of developing and operating a self-storage facility. Factors considered include location, market demand, competition, pricing strategies, unit sizes, local demographics, population density, income levels, and housing trends.
Feasibility studies assessing the viability of boat and RV storage, storage condos, flex warehouse space or contractor yards also consider these factors and others specific to their tenant audience.
Q: What is the main goal of self-storage feasibility studies?
A: The main goal is to determine if there is sufficient demand for self-storage in the target area to support more supply and if the project can generate an acceptable profit based on the identified market factors.
Q: What does a boat and RV feasibility study aim to determine?
A: A boat and RV feasibility study aims to assess the financial sustainability of a facility designed to store and service boats and RVs. It considers factors such as location, proximity to water or recreational areas, market demand from boat and RV owners, competition, pricing structures, and facility features.
Q: What factors are analyzed in boat and RV feasibility studies?
A: Boat and RV feasibility studies involve analyzing recreational activities, tourism trends, the number of boat and RV owners in the region, and their willingness to pay for storage and related services.
Q: What does a storage condos feasibility study include?
A: Storage condos offer unique storage solutions for cars, boats, and RVs that range from “man caves” furnished with mezzanine levels and bathrooms to more utilitarian options that are just like extra-large storage units.
Storage garage condos feasibility studies include the data collected for a boat and RV feasibility study as well as any development or operational regulations that would apply to the storage condos. Storage condos attract unique clientele who can often customize their spaces as much as they want or need.
Q: What does a flex warehouse feasibility study cover?
A: Flex warehouse spaces are also known as light industrial spaces, contractor bays and contractor garages.
Flex industrial space is a subcategory of industrial development, and primary tenant audiences are transportation and logistics companies and construction businesses. Depending on the needs of a given market, flex warehouse units can double as premium boat and RV storage units. The research in a flex warehouse feasibility study is used to help developers identify their core tenant base and its amenity requirements and project lease-up and return on investment.
Q: What is the purpose of a contractor yards feasibility study?
A: Contractor yards or industrial outdoor storage, sometimes called industrial service facilities, are land sites that are zoned for industrial use where tenants can store vehicles, construction equipment, building materials or containers. Contractor yards typically have long-term leases and they are often found near seaports, airports, and highways. Similar to flex warehouse feasibility studies, these reports help developers determine their most profitable target audience and its development requirements.
Q: What do self-storage, boat and RV storage, storage condos, flex warehouse space or contractor yards feasibility studies have in common?
A: All types of feasibility studies include information needed for a facility’s site layout such as unit mix and phasing recommendations, as well as financial projections estimating development and operating costs, revenue, and potential return on investment.
Of course, studies also consider the property location, market demand, competition, pricing strategies, unit sizes, local demographics, population density, income levels, and housing and business trends.
Q: What is the primary focus of self-storage feasibility studies compared to boat and RV feasibility studies?
A: Self-storage feasibility studies focus on storage units for personal and business use, while boat and RV feasibility studies focus on facilities and services for boat and RV owners. These tenants store for different reasons and their needs are not the same.
Q: What is the overall purpose of conducting feasibility studies for storage facility development?
A: The purpose is to gain a comprehensive understanding of the potential risks and rewards associated with the project. Additionally, feasibility studies help in securing financing and supporting the design and development process from concept to completion.