SITE SELECTION AND UNIT MIX
Finding Success with Your Unit Mix
Determining the site layout and unit mix of a self-storage project is the most important decision. This decision will affect the initial lease-up of a facility which affects your bottom line. This is crucial to your long-term occupancy and your overall success. Keep your objective of designing a unit mix that will maximize your income and will also lease up quickly.
Some facilities have opted to make all their storage units one size. For instance, one facility in New Jersey with over 500 units has built all 5-by-10s; another in Texas has built all their 400 units 10-by-20s. Both have since modified their mixes by expansion. This has come because of many requests from potential customers requesting a different size. So, as you can see it is not a good idea to have all units one size.
You need to first analyze your area’s demographics. Do this by calling on many facilities and finding out just what the demand for what size is.
A good guide is to build 20 percent 5-by-10s; 10 percent 10-by-20s; 25 percent 10-by-15s; 40 percent 10-by-20s; and 5 percent 10-by-25. You can use some 5-by-5s for leaders at a low cost. On average, your unit size should range from 90 and 130 square feet.
Don’t load your facility with too many large units as this is a mistake. It may take a little longer to rent smaller units, your income on the same square footage is more than double than on the single large one.
This mix will also work well for any climate-controlled units. And yes, you should have some climate-controlled units.
If you construct your project in phases, you have the advantage of just what size is most popular and you can design you unfinished part of your project accordingly.