Timeline to Open a Storage Facility in Two Years

Many new developers are waiting for more market certainty before getting started on their self-storage, boat and RV storage, flex warehouse or storage condo project.

At the same time, seasoned developers are continuing their process. Why? Because they know that any storage project started today realistically won’t open its doors for two years.

Starting your development project during times of economic confidence means that you are starting at the same time as the majority of other new developers; whereas experienced developers’ storage facilities will be in lease-up. These facilities are positioned to satisfy both current customer demand when they open and future demand by expanding, effectively shutting those who sat on the sidelines out of that submarket.

Working backwards from a July 2027 opening date, you need to hit the following milestones:

·      July 12, 2027: Certificate of Occupancy

·      June 21 - July 11, 2027: Final inspections and approvals

·      April 25 - June 20, 2027: Interior installations (plumbing, electrical, HVAC, security systems, finishes), exterior finishes, landscaping and paving

·      February 6 - April 24, 2027: Framing and roofing

·      December 19, 2026 – February 5, 2027: Foundation

·      November 16 – December 19, 2026: Site preparation

·      October 26 – November 15, 2026: Issue permits, procurement (order materials, hire subcontractors)

·      August 31- October 25, 2026: Loan closing and funding

·      July 6 - August 30, 2026: Evaluate lenders and secure commitments

·      June 8 - July 5, 2026: Evaluate and finalize bids

·      April 27 - June 7, 2026: Submit architectural and structural plans for final review and permit approval

·      March 1 – April 26, 2026: Architectural and structural plan review and revisions

·      January 4 – February 28, 2026: Architectural and structural plans

·      December 15, 2025 - January 3, 2026: Pre-application meetings with municipality

·      October 6 - December 14, 2025: Geographical and topographical surveys, soil samples, environmental and traffic reports, initial design concepts

·      October 5, 2025: Close on land purchase

·      August 25 - October 4, 2025: Due diligence on land including feasibility studies, initial engineering opinion, locate utilities, confirm zoning

·      August 24, 2025: Sign purchase agreement for land

·      July 8 – August 23, 2024: Review submarkets and identify and negotiate land that meets your development criteria

Obviously, I assumed in the above calendar that your project takes place in a warm climate and I did not allow extra time for winter conditions, holidays and obtaining zoning changes or variances. In many places weather will push these dates further out, as will developing a multi-story facility or storage condos and flex warehouse units with more complex amenities.

I hope this timeline helps convey that the right time to secure land and kick-off your project is right now.

The longer you wait to get started, the less likely the market you want to develop in will still be viable because other developers will have beaten you to the punch. In addition, because land and costs continue to increase year over year, the longer you wait, the more expensive the project will be to complete.

And by starting the development process now in a submarket in the path of growth and in the absence of competitors, your self-storage, boat and RV storage, storage condo or flex warehouse facility will be in the best possible position when it opens. Looking forward to your July 2027 ribbon cutting!

But Sensei, I’m hesitant –

-       because of cost uncertainty. Sensei says: work with experienced construction and materials professionals who specialize in storage and can lock in prices now to hedge against future increases.

-       because of interest rate uncertainty. Sensei says: higher interest rates also put pressure on sellers and you may be able to buy your land or building for conversion for less than you will be able to when interest rates go down. Interest rates fluctuate up and down and when you are ready to break ground, you may decide to go with a floating rate bridge loan or put down more upfront equity. Wherever interest rates are, it is crucial to stress-test the impact of higher interest rates on your storage project early in the planning process and to continue to do so as bids come in and your development progresses.

-       because of economic uncertainty. Sensei says: given that a storage facility likely takes two years to build, the market we are in now will not be the market we are in when your facility opens. By starting now, you are ahead of the curve.