Anyone build a building for storage rental?

cold1313 · May 10, 2020

Just curious if anyone has ventured down the pay of either a small business loan or something similar to build a building for storage rental?

Not a bunch of storage units but cars, boats, equipment, etc.

Starting to read some and wondering if anyone here had attempted it or was successful with it.

Thanks!

4570Man · May 11, 2020

There’s a bunch of those stupid things here so they must be profitable. There’s a lot more of storage units vs boat and RV storage.

KennyG · May 11, 2020

The ones I know of are generally former warehouses or other buildings that have been reused for long term storage, not new structures. Our local county fair uses their exhibit buildings for winter storage of RVs. Indicates to me that the economics don't quite work for new construction. However, it's probably very location specific. You would have to get a good feel for market rates, potential occupancy and do a cash flow analysis.

cold1313 · May 11, 2020

I'm right along Lake Erie, so we have a lot of boat and RV owners. I know a few smaller farmers that have some equipment they rather store indoors.

There are a lot of farm barns around here that offer storage in the winter months, etc.

Just curious if anyone had first hand experience with this process of funding, etc.

bridge4 · May 11, 2020

cold1313 said:
I'm right along Lake Erie, so we have a lot of boat and RV owners. I know a few smaller farmers that have some equipment they rather store indoors.

There are a lot of farm barns around here that offer storage in the winter months, etc.

Just curious if anyone had first hand experience with this process of funding, etc.

I'm guessing it'd be like most other businesses, with a few options:

1) Put a business plan together. How much for a nice insulated metal structure? How much can you rent each SQFT for? What would monthly costs associated be? Do you need to purchase land? Do you have 20% to put down?

2) Have good credit and finances and get a personal loan to start it up.

3) Do crime and save up until you're ready

4)home refinance?

There are ways to do it if you really want to do it. But I'd make sure the numbers are acceptable to you and a lender.