You know self-storage is a thriving sector and you want in. You have a piece of land picked out, but before you invest, it is critical to know if the site you have picked out will be sustainable and productive in the long term. In today’s competitive market, you can no longer assume the “if you build it, they will come” philosophy.
There are many companies out there that cater to self-storage who specialize in doing feasibility studies, also known as a Market Analysis. That is their primary source of income, so naturally they want to bring in the highest prices they can – in many cases charging as much as $12K – $20k. For that investment, you will receive a nice presentation folder loaded with the same information said a dozen different ways. You will also see page after of page of photos of the property you want to build on and probably a bunch of photos of neighboring businesses. But seriously, if you want to develop this property, don’t you already know what it looks like? Do you really need all of that?
No. All you need to know at this point is:
- Is this a good place to build?
- How many units will this market support?
- Is this market already overbuilt?
- What are rates like in this market?
- Can the economic demographic support this?
- What kind of occupancy and rates do area competitors have?
These are all very important questions that you need to know, but you don’t need to spend thousands of dollars to get these answers.
At RPM, we want to help others get their businesses off to a great start. We don’t need to charge astronomical prices to accomplish that. We look at doing a Market Analysis in an entirely different way. For us, a Market Analysis is a way to build a relationship, not to profit unnecessarily by charging exorbitant prices.
No, you won’t get a fancy presentation folder and a lot of photographs, but you will get the information you need to make a wise investment decision – at a fraction of the cost. We don’t charge $12K – $20k. In fact, our feasibility study is a fraction of that amount. In Phase I, we determine if your site is viable. If the decision is made that it is, then we move on to our Phase II package which includes a recommended unit mix, Pro forma budget and other important information. We feel there is no reason for you to pay for Phase II information before the determination is made that you have found the right building site for development.
Feasibility studies are usually completed in 2 – 4 weeks. Don’t make a move on purchasing a site before you talk to RPM Storage Management LLC.