Hi there! looking to potentially start a storage facility from the ground up. I am posting here to hopefully gain some knowledge and understanding of RV/Trailer storage facilities as a business. What barriers to entry and other obstacles I would generally come accross in this business and specifically in the North Texas (DFW) market? Any insight would be appreciated.
Real Estate Agent · Austin, TX · Member since 2017 · 229 posts · 259 votes
7y
I only know one person who successfully entered the storage business. Took him two years to convince the owner of the storage buildings to sell. It came with 5 acres of undeveloped land and 4 buildings at 75% occupancy. He practically lived there for a year to get the buildings up to 98% occupancy and added many metric tons of gravel to the unimproved land to facilitate RV/boat/semi/vehicle storage. After two years he had enough money to purchase a similar facility a few counties away and started over again.
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
7y
There was a facility for sale up in Commerce, sounds like potential if you're willing to live nearby. I always hear that development land is huge for self storage. Buy existing for cash flow while you build out the back half.
Specialist · Victor, NY · Member since 2013 · 823 posts · 844 votes
7y
Ground up storage development has its upside but my unsolicited recommendation would be to look hard for an existing facility that you can expand. This way you get the benefits of development when you expand but also mitigate much of the risk and negative cash flow associated with ground up development. I always subscribe to this model but would emphasize it for others given our position in the current economic cycle.
North of Houston · Member since 2018 · 349 posts · 181 votes
7y
Thinking about doing the same. We got 5 acres free and clear. Its in a really good spot in south Texas. The only thing stopping us is that its 350 miles away. I was wondering what a manager living on the site would need and would be paid? and is 5 acres big enough revenue to support a manager? I would not build multi-level climate control, just one level buildings and lots of covered Boat and RV storage so its going to have some limited returns.