Adding Storage Units to Apartment Complex?

Question

I thought that there would be zoning issues, but I came across this property where it looks like the owner is building some in the back yard of some multi-family units: http://www.zillow.com/homedetails/602-Perceful-St-Roland-OK-74954/2114548342_zpid/

This 6-unit apartment complex includes the empty lot next to it: http://www.zillow.com/homedetails/218-N-Market-Ave-Shawnee-OK-74801/2113968842_zpid/

Is it possible / legal/a good idea to build self-storage units on the same property as your apartment complex?

Account Closed · Answer

Thanks for the helpful info!

Michael Wagner · Answer

Derence W.,

It is entirely possible to build storage units IF the zoning allows it.  Assuming it either allows it or that you can get a variance to do so, the build out cost should be about $20 per square foot.  Whether it is a good idea will depend entirely on your market.  Do you plan to rent them to the tenants or to other individuals?  What are the rates per square foot for storage in your area?  If you can get somewhere around $0.50 per square foot per month in rent and you have the funds or credit to build, I would say it is indeed a good idea.  This, of course, is only true if the area is not over-saturated.  A good rule of thumb is that demand for storage is roughly 7 sq. feet of storage per person within the market (market is 1 mile in urban areas, 3 miles in suburban areas and 5 miles in very rural areas).....these are just general rules but hopefully you will find them a useful starting point as you explore this exciting opportunity.  I am VERY pleased with the results of my storage endeavors.  Feel free to contact me with specific questions.