According to an estimate, more than 14.6 million American households rent a storage facility. As the storage unit sector performs well, many investors want to get into this business and enjoy this as a piece of cake.
Now it’s up to the Investors. They can either buy an existing storage unit or build a new one. However, investors who choose to build a storage unit from scratch need to understand the costs first.
So, the question of what are the costs of building storage units arises in almost every investor’s mind when they want to start a new facility. Unfortunately, the answer to this question is not easy. The cost of building a storage unit depends on several factors.
Today we will document the costs to build a storage facility and help you understand whether it’s worth your investment or not.
Cost to Build 100 Storage Units
Here is a breakdown of the costs to build 100 storage units:
- Size and Layout:
First, you need to analyze the size and layout of the building. The cost to build 100 storage units can range from $1.2 million to $2.5 million, depending on the size and layout of the units. Smaller units cost less to build, while larger units and climate-controlled options can increase the overall expenses.
- Construction Materials:
Deciding on materials, such as metal or concrete is more costly. Metal buildings are generally less costly but they may have higher maintenance costs over time.
More Estimates About Cost to Build Storage Units
- Basic Construction Costs:
Basic units with no climate control can cost between $25 and $45 per square foot to construct.
- Additional Features:
Adding features like climate control, security systems, and automated access can increase costs to $60 to $90 per square foot.
If you are worried about evaluating costs, Cedar Creek Capital assists you in his regard as they evaluate the costs versus benefits of additional features, ensuring that your investment will yield the highest possible returns.
What is the Average Cost to Build Storage Units?
Have a look below and understand the average cost to build storage units.
- Per Square Foot Costs:
On average, the cost per square foot for building storage units ranges from $25 to $75, depending on the level of amenities and the local market.
- As Compared to Other Investments:
Compared to other real estate investments, self-storage facilities can offer a relatively low entry cost with high potential returns.
Cedar Creek Capital helps you compare costs and assess potential returns, ensuring that your investment aligns with market conditions and your financial objectives.
Moreover, their investment strategy is quite solid focusing on maximizing profitability through detailed market analysis, strategic site selection, and expert management. This approach not only mitigates risks but also enhances long-term growth, making your investment in self-storage facilities both secure and lucrative.
What Includes in Building Storage Units?
- Site Preparation:
First, it’s important to prepare the site and analyze costs including land clearing, grading, and infrastructure installation, which can add several hundred thousand dollars to the project.
- Design and Layout:
Efficient design can optimize space and reduce costs.
Cedar Creek Capital offers expert guidance in site selection and preparation, helping you choose a location that maximizes your investment potential. We also assist in designing an efficient layout that optimizes space and functionality.
Costs and Timeline of Building a Self-Storage Facility
- Land Acquisition:
The cost of land varies and mainly depends on the location, ranging from $3 to $10 per square foot. Urban areas tend to be more expensive but can offer higher occupancy rates and rental prices.
- Construction Timeline:
Building a self-storage facility typically takes 6 to 12 months, depending on the complexity of the project.
Cedar Creek Capital helps investors navigate the complexities of land acquisition and ensures that construction timelines are met, reducing the risk of costly delays.
Self-Storage Construction Cost Per Square Foot
- Climate-Controlled Units:
These units typically cost more to build, with prices ranging from $60 to $90 per square foot, but they can command higher rental rates.
- Standard Units:
Non-climate-controlled units are less expensive to build, with costs ranging from $25 to $45 per square foot.
Cedar Creek Capital helps you decide between climate-controlled and standard units, analyzing the market demand to recommend the most profitable option for your investment.
How Cedar Creek Capital Can Help
Cedar Creek Capital provides comprehensive support for investors looking to build storage facilities. From site selection and acquisition to design construction management and financial planning, we offer the expertise needed to ensure your investment is profitable. Our team works with you to understand your goals and create a customized plan that maximizes your returns while minimizing risks.
Conclusion – Cost to Build Storage Facility
Building a storage facility is a substantial investment with many variables that can impact the overall cost.
By understanding these factors and working with experts like Cedar Creek Capital, you can make informed decisions that enhance the profitability of your investment. Whether you’re looking to build a small facility or a large-scale operation, Cedar Creek Capital is here to guide you every step of the way. Visit our portfolio page to understand how we helped these 400+ happy investors in their investment journey.
