Opening a self storage facility is a rewarding opportunity, but selecting the right location is key to long-term success. In this blog, we guide you through the process of selecting a suitable site for your facility.
From initial considerations to actionable steps, the insights shared here are intended to equip operators with the knowledge and confidence needed to successfully plan a new development or strategically expand their current portfolio.
Whether you're launching your first location or scaling up operations, this resource aims to support informed, effective decision-making every step of the way.
1. Selecting a Target Market
The first step in the site selection process is identifying potential markets that are likely to sustain a profitable self storage business. Focus on towns or cities with a population of at least 20,000. This threshold helps ensure there's a sufficient customer base to generate steady demand.
Tools like ChatGPT or demographic databases from the Office for National Statistics (ONS) can assist in generating a list of suitable locations. Aim to target areas with growing populations, as these tend to create additional housing, business activity, and consequently, more demand for storage.
Beyond just population size, consider economic factors. Are property values rising? Is the town seeing commercial or residential development? These signs often indicate robust local economies that are conducive to new business ventures.
2. Assessing Market Demand By Utilising Analytical Tools
Once you've identified a town, it's time to determine if there is enough market demand for another self storage facility. In the UK, the average supply of self storage is approximately 0.8 square feet per capita. Using this benchmark, you can estimate the demand in any given location.
For example, Bury St Edmunds, with a population of about 40,000, would support roughly 28,000 square feet of self storage based on the national average. Compare this number with the actual supply in the area. If existing facilities already exceed this benchmark, it might signal market saturation.
However, averages don’t tell the full story. Urban areas or affluent towns often support higher levels of storage use, particularly if there's a large base of homeowners, renters, or small businesses. Dig deeper by considering the socioeconomic profile and storage habits of the local population.
Advanced market analysis tools can offer powerful insights into local demand, competitor presence, and development trends, making them invaluable for self storage operators planning their next move. Platforms like StorTrack, originally developed in the U.S. and now active in the UK, are examples of how data can drive smarter site selection.
These tools typically allow operators to view competitor locations, facility sizes, pricing, and occupancy levels, as well as identify new developments in the pipeline. Radius-based search features (e.g. 1, 3, or 5 miles) help gauge local market saturation, while access to historical data makes it easier to assess growth trends and shifting demand.
Whether you're assessing a new town or refining your pricing strategy, these platforms give you the visibility needed to make informed, confident decisions.
3. Exploring Nearby Towns
If your first-choice town appears saturated or too competitive, it’s wise to look slightly further afield. Evaluate adjacent towns within a 15 to 30 minute drive. These might be underserved and still benefit from regional demand spillover.
In the case study, nearby towns like Newmarket, Mildenhall, and Thetford were considered as alternatives to Bury St Edmunds. These locations had fewer facilities but still maintained decent populations and infrastructure.
Tools like Google Maps and StorTrack allow you to zoom out and visually assess the distribution of facilities across a region. Combine this with local council development plans and real estate trends to pinpoint emerging opportunities.
4. Conducting On-the-Ground Research
No amount of desktop research can replace the insights gained from physically visiting a potential site. Touring the area allows you to assess visibility, traffic levels, access routes, and proximity to residential and commercial zones.
High-visibility locations near retail parks, industrial estates, or arterial roads are especially desirable. Signage plays a crucial role in attracting walk-in customers and building brand awareness. Pay attention to surrounding businesses, as they can offer insights into foot traffic and target demographics.
Speak to local business owners, property managers, and residents. They may provide valuable information about demand, competition, or community concerns. This qualitative research can help validate or challenge assumptions made during the desktop phase.
5. Evaluating Property Options
When evaluating properties, determine whether to lease or buy. While purchasing provides long-term stability and equity, leasing can reduce upfront costs and offer more flexibility.
Self storage operators typically consider two types of properties: existing warehouses or undeveloped commercial land. Warehouses can be converted into indoor storage facilities, often with the addition of mezzanine floors to maximise rentable space. Commercial land offers a blank slate for container storage, which has lower setup costs and shorter development times.
Review listings on property platforms like Rightmove, Zoopla, or commercial agents’ websites. Compare asking prices per square foot and assess the viability of adding features like security fencing, lighting, and electronic gates.
Also, ensure the zoning regulations support self storage usage. Contact the local council for planning advice before committing to any property.
6. Developing a Financial Model
Before making any commitments, build a detailed financial model. This should include:
Property acquisition or rental costs
Fit-out and construction expenses
Marketing and advertising
Operational costs (staffing, utilities, insurance)
Estimated rental income based on local rates and occupancy assumptions
The model should cover multiple scenarios, including conservative, expected, and optimistic cases. Include break-even analysis and ROI projections.
Dig deeper with our free financial model and explainer video to help you plan your new self storage facility.
Alternatively, you can hire a consultant familiar with the industry. Some property platforms also offer basic calculators to estimate ROI based on rental rates and property size.
This financial analysis not only validates your business plan but is also essential if you're seeking financing from banks or investors.
7. Finalising Your Decision
With research completed and numbers crunched, you're ready to make a decision. Choose the location that offers the best mix of:
Strong and underserved demand
Reasonable property costs
Accessibility and visibility
Potential for long-term growth
Before finalising, revisit your shortlisted properties and ensure all due diligence is complete. Confirm that planning permissions are in place or attainable. Verify that competitors haven’t announced new developments that could shift market dynamics.
Finally, create a phased implementation plan. Begin with a smaller setup to test the market, and scale up as occupancy grows. Stay flexible and prepared to adapt to changing market conditions.
By following these expanded steps, you can confidently identify and develop a successful self storage facility. The combination of desktop research, advanced tools, on-site visits, and financial planning ensures that your investment is based on strategy rather than guesswork. Whether you’re an experienced operator or new to the industry, thoughtful preparation will set you up for long-term success.
8. Branding Your Self Storage Business
If you’re launching your first site or just getting started in self storage, you’ll need a strong, professional brand. We offer ready-made branding kits that include everything you need to get noticed, including a memorable brand name, a premium domain name, and a high-quality self storage logo you can use anywhere.
Find the perfect brand to kickstart your self storage business today.
Get Set for Success with Stora
Once you’ve secured a new site, keep things simple and set yourself up for growth from day one. Stora is built to get you up and running fast, with everything you need in one place, online bookings, automated payments, and smart pricing tools, all ready out of the box.
Whether you’re starting your first facility or you’re ready to expand, Stora gives you the technology you need to manage your business and deliver an exceptional customer experience.
Schedule a free demo to learn about how Stora gives you all the tools you need for efficiency, business growth, and customer satisfaction.
