Shipping container self storage
What would your competitive advantage be using shipping containers compared with the competition using aluminum buildings with garage doors, a retail office, security gates, etc.? I have not seen this type of self storage in my area.
It depends on a LOT of factors.
I've seen people do it. Generally, shipping containers are used as a way to expand an existing self storage facility with minimal capital outlay (the containers can be leased) and as a way to increase revenue without improving the property that would generate an increase in property taxes.
I would caution against just finding piece of raw land near a road and throwing up a fence and shipping containers and calling it storage. Triple check the zoning and I wouldn't proceed without paying for a feasibility study.
I agree with Neil, you should check the zoning for any land you're considering. If that passes, you'll want to check the comps for rents on the size of container you're considering offering. Realize the rents on containers might be less than rents on a traditional storage facility because of the perception of the public (it looks like crap to see a bunch of containers side by side, versus an actual storage facility). Alternatively, you could consider parking as that would be less costly than bringing in containers (as long as zoning allowed). If you sold the property with containers on it, don't expect to get the same price as a normal facility would command. Best of luck!
I used to bring my stuff to a facility in RIchmond, CA, which utilized containers. They looked nice. They painted everything gray and the inside had wood flooring. They split the units up into different sizes. There are some pics here https://www.csiministorage.com/Richmond-California/94801/275
Garrett Blanchard
Garrett: Consider investing in a $500 market study before seriously embarking on this adventure. A market study will provide detail about current occupancy in the market, rent rates, and the amount of new units the market will support.
@Garrett Blanchard
I don't own any SS yet but am working toward that goal very soon. With that said, do you have any market study company recommendations? Doing a quick search in my area didn't yield any such companies. Thank you
Ron Hemphill
@Tyler Kastelberg do you recommend any particular market study companies?
@Seth Eaton my idea is you can rent/lease/purchase land and put the containers on it and if the area doesn't work out, you can move them to a different location with very little to lose. Even if it doesn't work out at all, you can sell the containers individually or in pairs or in a large lot and make some of the money back. Taxes would be way less expensive because they are not permanent structures. A lot of positives to this...
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Originally posted by @Michaela G.:
I used to bring my stuff to a facility in RIchmond, CA, which utilized containers. They looked nice. They painted everything gray and the inside had wood flooring. They split the units up into different sizes. There are some pics here https://www.csiministorage.com/Richmond-California/94801/275
I have a lot in Richmond and my brother in law is putting a container on it to store his construction equipment..
As others have mentioned, shipping container self-storage units will not be direct competitors with traditional built self-storage. You might consider your target market. Perhaps businesses would be better served by this kind of storage as they don't care what it looks like, just whether or not it is safe and accessible.
Think of your customer: if you are Joe and Jane Smith looking for a place to park your prized 1968 Camaro-SS, do you want a traditional, climate controlled roll up door that comes with a paved parking lot, security cameras, high fences, and 24/7 access, or do you want what amounts to a metal box?
By contrast, if you're Joe the Contractor do you need all that fancy stuff, or just a place to park your Bobcat so it doesn't "wander off" between jobs?
Also, consider that Conex boxes are limited to things under 8 feet tall and less than 8 feet wide. So many RVs and some larger boats won't fit, which is a BIG market right now. Could park those on the open ground, but no climate control...also a big thing for people with extra $$$ to spend storing forever.
Know thy customer!