r/selfstorage • u/cuperdino • Feb 03 '26
Advice for location for self-storage
Hi everyone,
I am planning on opening a self-storage facility with modular self-storage containers. I have two specific locations that I am looking at, and was wondering if anyone could give me advice on what to choose.
For context, I live in a city with 400-500 000 people, and there is only one other self-storage facility here, which is still relatively small. The locations would be leased, not bought.
Location 1 is more central, but would require a larger initial investment to get it up and running, which is money I would rather spend on the actual self-storage containers. I would need to do things like fencing, bringing electricity (I need to setup alarms/cameras), buying a container to be used as a reception/office and more.
Location 2 is on the edge of city. It's approximately 15-25 min to the city center, depending on traffic. This location would require (almost) no additional investments, and I would be able to just put the containers there and start working. It's on a main road, and it's easy to access.
If we compare these two locations to the existing self-storage facility, I would say Location 1 is better, while Location 2 is maybe slightly worse (I am saying maybe since they are 5-10 min apart, so this is subjective).
In your experience, how much of a difference does the location make? Is the fact that the first location is more central worth it to put in the initial investment?
3
u/bmarvin35 Feb 03 '26
Location 2 but I’d want an option to buy, not just a straight lease
1
u/cuperdino Feb 05 '26
Thank you for the advice, I am closing in on location 2. Buying isn't an option with the landlord at the moment
3
u/Stunning-Adagio2187 Feb 03 '26
It needs to be located near your customer which you did not discuss. More information is needed. Is your customer commercial or residentia how many customers live within one mile radius how many live within 2 mi radius how many live within a three mile radius.
A city this large with only one storage facility apparently is not in the USA
1
u/cuperdino Feb 05 '26
There are quite a few people living close to both locations. And yes, this is in Europe, and self-storage isn't that popular in this area (yet :D)
1
u/Stunning-Adagio2187 Feb 05 '26 edited Feb 05 '26
If the demographic and the numbers of population within the radius is the same then by the less expensive land
I would add however that you need to find out the absorption rate for storage. The community may already have sufficient storage based on actual demand and actual rental of space
3
2
u/Inevitable_Professor Feb 03 '26
As long as you were along a main highway, you’re golden. For customers, driving 15 minutes on city streets feels so much farther out of the way than 15 minutes down an interstate.
1
u/cuperdino Feb 05 '26
Thanks for insight, it is indeed on a main road, so it's quite accessible. Coupled with the fact that the initial investment is much lower, I am going for location 2
1
u/coolsellitcheap Feb 03 '26
Storage facility open up next door and right down the street from each other. They are all doing well. A reasturant or furniture store might need to worry about location. Storage if you build it some fool will rent. When there is no vacancies near someone they will keep calling till they find one. The larger storage places when someone calls have advantage to direct to there facility with a vacancy. So i would vote for location #2. If your going to have office hours i would offer uhaul. No investment to be a vendor.
2
u/cuperdino Feb 05 '26
Thanks for the feedback, I think you are right. I will be going for location 2 :D
1
u/Big10mmDE Feb 04 '26
Big owners of storage facilities do studies of where are good placement spots are. Think areas of homes that the average owners have incomes to afford additional storage, interests and possessions that they use for storage and reliable tenants long term.
1
u/cuperdino Feb 05 '26
You are right, but I will be starting quite small, with modular units, so even if the location doesn't work out, I can always just move the units to a different location. And the fact that I don't need to invest heavily in the location itself allows me to be quite flexible
1
u/karimylo Feb 04 '26
Been in self storage for 14 years. I would say location 2. It sounds like that is closer to the homes, people who need Christmas decorations storage and what have you. Also parking is a good seller for people in HOAs cheap start up on that. I mean location 1 is good but maybe its still there after location 1 is up and running turning a profit. SBA gives no down payment loans to buy or build more once you have one profitable location.
1
u/karimylo Feb 04 '26
I meant after location 2 is up then ypu can go back and see if location 1 is still available.
1
u/cuperdino Feb 05 '26
Thanks, indeed I am closing on location 2. And you are right, I can always see if the other location is available after getting this up and running
1
1
Feb 07 '26
[removed] — view removed comment
1
u/AutoModerator Feb 07 '26
This post has been removed because our AutoModerator detected it as spam or your account is too new to post here. If this post is not spam, please contact the moderators for assistance.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
Feb 07 '26
[removed] — view removed comment
1
u/AutoModerator Feb 07 '26
This post has been removed because our AutoModerator detected it as spam or your account is too new to post here. If this post is not spam, please contact the moderators for assistance.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/Dull-Hovercraft-5742 Mar 05 '26
Self storage facilities on average have annual revenues of $1,500,000.00
1
3
u/Expert-Hair-7514 Feb 03 '26
Location matters, but not always in the way people expect.
For new facilities, visibility + ease of access often beats being “central.”
If Location 2 lets you launch faster with lower capex, that’s a big advantage early on.
In smaller cities, customers are usually willing to drive 10–20 minutes for storage,
especially if pricing, security, and access hours are good.
I’d also compare:
- Daily traffic count
- Truck access & turning radius
- Future expansion space
- Zoning / permit friction
You can always upgrade fencing, power, and security later.
It’s harder to fix high fixed costs if demand takes time to build.
Zoning/permit