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Good number for drive by traffic in assessing a new property?

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  • Good number for drive by traffic in assessing a new property?

    Hi everyone, looking to get some perspective on what a good number of cars (traffic) would be in my assessment of a potential new property for a self storage facility.

    5 mile radius population: 27,000
    1 mile from major interstate
    Waiting on more specific number from local gov't. office but I believe the drive by daily traffic is 2200 vehicles
    Number of storage units at already established facilities in the 5 mile radius: 1650

    Thanks.

  • #2
    Welcome to the forum FlyingRaven
    Dave (Woodee) Scott

    Comment


    • #3
      Welcome to the Forum. Consider that you have 1650 units available within a 5 mile radius - but are they FULL? What are their rates? If their rates are high and they are not showing a lot of units available on their website then it may be feasible to build something - have you considered the need for parking spaces as well, both covered and uncovered?

      I'm in Florida. But I don't think there is much of a difference in other states that most people want to drive up to their unit, whether it be an a/c unit or not. I worked at a property and he retrofitted 20 units with insulation, lights and electricity so the clients could put their product in directly from their moving truck or pull in their antique or treasured vehicle. There are lots of things to consider along with the traffic count.

      Are there new homes being built around the area that may not have enough space in their home for their "treasures"? Is the community an older community where everyone is pretty settled or is it an up and coming area that pricing on houses is going up?

      Good luck.
      Tall Terri

      The customer's fantasy doesn't always match with reality!

      Comment


      • #4
        Hi Flying Raven,

        Traffic counts greater than 20,000 are ideal because driving by a facility remains the number one way clients select a facility.

        However, as Tall Terri says, there are many other factors that are going to give you a thumbs up or down on whether or not to build. The number one factor is demand versus supply in the market. Are there enough potential customers to support your facility that are not already renting self storage somewhere else? In other words, is the submarket for your potential facility overbuilt, underbuilt or at equilibrium?

        If not, don't give up! Keep looking for a location that will lease-up fully in a reasonable amount of time and meet your desired rate of return for your investment.
        Katherine
        Sensei, Self-Storage Ninjas
        Black Belt Feasibility Consulting
        www.selfstorageninjas.com
        www.facebook.com/selfstorageninjas

        Comment


        • #5
          Average storage usage in the US is about 7 sq ft per person, or about 189,000 sq ft in that 5 mile area.

          I'd want to know how many sq ft of storage exist, not just how many units. But if we want to ballpark it at an average 10x15 unit size that means 150 sq ft x 1650 units = 247,500. If those assumptions are correct the area is already well over the usual usage rate.

          That said, if everyone is full there may be opportunity for more storage business. But proceed with caution because unless you can explain why there is such a need (busy tourist area with out of town boat storage for example), there may not be much unmet demand.

          Comment


          • #6
            Originally posted by Steve_hajewski View Post
            Average storage usage in the US is about 7 sq ft per person, or about 189,000 sq ft in that 5 mile area.

            I'd want to know how many sq ft of storage exist, not just how many units. But if we want to ballpark it at an average 10x15 unit size that means 150 sq ft x 1650 units = 247,500. If those assumptions are correct the area is already well over the usual usage rate.

            That said, if everyone is full there may be opportunity for more storage business. But proceed with caution because unless you can explain why there is such a need (busy tourist area with out of town boat storage for example), there may not be much unmet demand.
            And maybe, depending on the area, add a unique hook like wine storage or office warehouses?
            90% of what you're stressing about now won't even be relevant in a year. Breathe easy. ~Wesley Snipes

            WA State

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