Mini Storage in Halifax, Nova Scotia
Project Reference #2825
Location: Halifax, Nova Scotia
Size: 50’W x 120’L x 18’H
Building Type: Self-Storage Facilities
Global Construction needed to expand and turned to Global Steel Buildings Canada for a steel storage building. The owner has partnered with Jim Busch on several projects citing that “Because we directly represent the factory, we control all stages of the purchasing process. From quoting, designing, engineering and manufacturing, everything is managed by Global. This ensures your building will last a lifetime. Canadian Engineer Stamped Drawings are always provided as a part of your steel building package.”
Across North America self storage is big business. In the United States there are over 50,000 storage facilities across the country. The self-storage industry was projected to generate $37 billion dollars revenue in 2019.
A self-storage facility charges monthly rent. Many individuals and small businesses rely on self-storage units to keep equipment, supplies and belongings secure. Self Storage Units are big business and typically the profit margin runs above 10%. Most small businesses see a profit margin of under 5 %.
Thinking of Starting a Self-Storage Business?
In the market for a self storage business? Before starting any business research is key. The following considerations are important:
- What are the operational costs of a self-storage business?
- What is the best way to market building storage units?
- How will you manage your self storage business?
- What are the costs to start this type of business model?
- What kind of feasibility study will you undertake to plan for starting a self storage business?
- What type of climate control will you install in your building storage units?
- Should you buy an existing business or build your self storage facility from the ground up?
- Will you charge by the square foot or unit?
- How many square feet total will your facility consist of?
Costs of Mini-Storage Buildings
Before starting any business including a self-storage unit business, you will need a business plan to give you an idea of the costs you will be incurring. What will it cost to buy an existing facility for public storage? What are the different markets you can attract. Customer base will differ in rural areas vs suburban areas. Costs will depend on location, land costs, construction costs and square footage.
Metal buildings for self storage is a great option but you need to plan where the money for start up will come from and also plan an exist strategy for when you want to leave the business. Remember, a self-storage facility is more than a structure. It’s a business. Property taxes account for the largest percentage of costs to operate a self-storage business once it is up and running.
Once you determine the square feet of your self-storage space you will be able to better calculate the potential rental income. This way you can determine and weigh your costs vs your income. With all of this information in hand you are in a good place to start building your mini-storage business. The mini-storage industry is growing in Canada. Industry standards show that in the United States there is an average of nine square feet of storage for every person. The average in Canada is two square feet per person. With smaller living spaces in urban settings and people’s attachment to belongings more space is required. The industry is also evolving with custom spaces being built.
Developing Your Steel Mini Storage Building
A great location plays a big role in the cost of building a new facility. You may be able to put up 40,000 square feet of storage space in a small town for a much smaller investment than in an urban setting.
Expect to spend between $25 to $75 per square foot on new construction. This in only an approximation, location and land cost will all factor into construction costs.
Most self-storage facilities range in size between 10,000 square feet to 100,000 square feet or more and typically covers between 2.5 to 5 acres. When building self-storage units consider the following:
- Mix of units – Depending on the local demographics will you need smaller units or larger units or a mix.
- Climate controlled units or non-climate controlled units – the local climate will be a factor in this decision, you may opt for a mix again depending on your budget.
- Access – Will your units be indoor access or drive up units. This again will depend on the demographics in the area you are building in.
- Should there be only climate-controlled units or only non-climate-controlled units? Or should there be a combination of the two? The local climate will come into play regarding this decision, as will your construction budget.
- Will you have outside storage for large vehicles – This will depend on your acerage and the area you are in. You’ll also need to do some reaseach to see what the demand for RV, boat and other types of vehicle storage would be.
- Should you look at converting an existing space? You may find a suitable unused space that you can transform into a revenue generating storage space.
- Zoning – you need to ensure the property is zoned for self-storage, rezoning a property could take years.
If you are ready to start working on your self-storage business contact the industry experts at Global Steel Buildings Canada for a consultation.