The self-storage industry is growing fast – and it’s not slowing down anytime soon. With steady rental income, low overhead costs, and growing demand, more people are investing in self-storage every year. If you want your facility to stand out and succeed, you need a smart plan.
Whether you’re starting from scratch or expanding your site, the process involves more than just putting up units. You need to think about your property, your customers, your competition, and the best way to build – all while keeping costs low. Here are a few questions to ask when building your facility: Where can I fit storage units? What is the best mix of storage sizes? Who are my tenants? Let’s break it down into three important steps for success.
1. How Do I Find the Perfect Property for Self-Storage?
Finding the right piece of land or the right building is one of the most important steps in building your self-storage business. Every property is unique, and the right choice depends on your location, your budget, and the type of storage you want to offer.
If you’re building from the ground-up: You have the freedom to design exactly what you want, but you’ll need to pay close attention to zoning laws, easements, and the cost of preparing the land.
If you’re expanding an existing facility: You may have limited space, but there are ways to make the most of what you have. For example, relocatable self-storage units can fit in spaces that might otherwise go unused – like areas with uneven ground, odd shapes, under powerlines, or as fence lines. These units don’t require a foundation and can be placed almost anywhere.
If you’re converting an existing building: This is where hallway systems can be a game-changer. Converting an old building, like a warehouse or retail space, into a climate-controlled, organized storage facility with a hallway system is easier and faster than ground up construction. This is a great option in cities where land is expensive, and vertical storage makes more sense.
Things to consider when choosing a site:
- Traffic flow: can large trucks and moving vans easily get in and out?
- Unit mix: Do you have room for a variety of unit sizes?
- Competition: Are there already several facilities nearby? If so, what can you do to stand out?
- Accessibility: Is it easy to find and visible from the road?
Pro Tip: Before deciding on a location, research your competition. See what sizes are popular in your area, what’s always rented, and what tends to sit empty. If no one in your market offers a certain size, it could be a great opportunity.
2. Who Is My Self-Storage Target Market?
Demographics are the facts about the people who live and work near your facility. This is a big piece of the puzzle, once you know who is living and working in your area, you can figure out your optimal unit mix.
The first big difference to understand is homeowners vs. renters:
- Homeowners usually rent larger units and keep them for longer periods.
- Renters often need smaller units and tend to move their items in and out more frequently.
Think about what people in your area are storing:
- If your community is big on outdoor activities like biking, kayaking, or skiing, you might need smaller units for sports gear.
- If you’re near a vacation area or a retirement community, larger units for RVs, boats, and seasonal toys may be in high demand.
- If your area has a lot of businesses, you might see a demand for climate-controlled units to store documents, inventory, or equipment.
Other demographic factors to consider:
Age: Younger people might want affordable, small units. Families need more space.
Income Level: Higher-income households may look for premium features like climate control, good lighting, and advanced security.
Family Size: Larger families often have more belongings to store.
Pro Tip: You can gather demographic information from the U.S. Census Bureau, local real estate agents, or online. Pair this data with your competition research to figure out the right unit mix for your site.
3. How Do I Design A Self-Storage Layout?
In designing the layout for your self-storage facility, remember that the objective is to maximize rentable space and revenue. When it comes to actually building your facility, you have three main options: permanent buildings, relocatable units, and hallway systems. Each has its own benefits.
Relocatable Self-Storage Units
Many facility owners use relocatable units to grow in phases, starting small and adding more units over time.
- Fast to install: They are delivered on site and quickly assembled with no foundation required!
- Flexible: You can place the units in underutilized spaces like fence lines, easements, setbacks, or under powerlines (depending on your city’s zoning codes).
- Cost-effective: There are no large construction crews and no need to break ground.
- Tax-friendly: Relocatables qualify for Section 179 tax benefits, as they are considered business equipment.
Hallway Systems
A hallway system lets you create indoor, climate-controlled storage inside large buildings, either existing or new buildings. This option is especially popular for:
- Urban areas where space is limited
- Conversions of old warehouses, retail stores, or industrial building.
- Premium storage for customers willing to pay higher rates for security and comfort.
Hallway systems are customizable, with roll-up doors, partitions, and layouts designed to maximize your rentable space.
Permanent Buildings
These are traditional stick-built or brick and mortar type structures. They can be great long-term investments, but they come with challenges:
- Higher cost for construction
- Longer timeline for completion
- More complex zoning and permitting
- Less flexibility to change unit sizes later
If you choose this route, it’s a good idea to work with a civil engineer to make sure your site is designed for maximum efficiency.
Why do many owners combine storage types?
The most successful facilities have a mix of building types. For example:
- Permanent buildings for the main structure
- Hallway systems inside for climate-controlled spaces
- Relocatable units outside for drive-up access or to fill unused space on the property
This approach gives you flexibility now and room to grow in the future.
Your Roadmap to a Strong Start
Building a self-storage facility isn’t just about putting up walls – it’s about making smart choices that work for your property, your customers, and your budget. Here’s a quick recap:
- Pick the right property and design it for your market’s needs.
- Understand your demographics so your unit mix matches the demand.
- Choose the right building method, or combination, for maximum flexibility and ROI.
At Boxwell, we help facility owners and operators maximize every square foot with relocatable units, hallway systems, and custom layouts designed for your market. From design to delivery, our team makes expanding your facility fast, cost-effective, and stress-free.
Boxwell designs, manufactures, and installs industry-leading storage solutions. Our lineup includes relocatable self-storage units, portable containers, hallway systems, and roll up doors. Every product is fully customizable and built to last—trusted by companies across the United States, Canada, Europe, the United Kingdom, Australia, the Middle East, Asia, and beyond.
Boxwell is Built For Your Success. From the start, our mission has been simple: create the best B2B storage products and back them with outstanding customer support. Our clients gain access to dedicated Account Managers, design and installation services, and extensive product warranties.
We are here to help. Contact Boxwell today via our email, sales@boxwell.co, or call 303-317-5850.