Cost of Land to Build Self Storage

[Brian Tisler]

I'm interested in potentially getting into the self storage realm.  My question in regards to that is what formula or numbers can I use to make sure it would be a sound investment.  I'm having a hard time finding commercial land at a reasonable price that would make building a storage facility a profitable venture.  I guess my main question is, if charging $60 per unit, how many units need to be built and how much per acre can I pay to make the number's workout after all the overhead?  Thank you in advanced all you self storage aficionados!

[John Lenhart]

Brian, this is a tough question to answer without ubderstanding your background. Have you done development before? Do you know anything about the storage business and how to operate it or how management works? 

The cost of land is only one component to development, does the market bear $60 per unit or will it go up to $100 per unit or less? These are some key questions that would need to be answered. 

Might I suggest looking into Scott Meyers trainings because he really understands the development side of things and can at least help answer some of your questions and point you in the right direction. I like him because he not only teaches but is also actively doing his own development deals on a regular basis, so he is the trusted expert in this arena