How much does it cost to start a storage unit business?

Question

Zippia Team · Accepted Answer

The average cost to start a storage unit business is $2 million. The minimum startup is $1.4 million, and it can go up to as high as $2.4 million, depending on location and other factors. The majority of this price is construction and land prices. You also need to purchase various permits and licenses to legally run your business.

For construction, you can expect to spend $25 to $75 per square foot, depending on location. This option does allow for you to fully customize it to your demographics, but it is often more expensive than purchasing an already existing building.

The great news is unlike many other businesses, the breakeven for most storage facilities is around 40% occupancy. Self-storage rates are hitting record highs thanks in large part to baby boomer downsizing. While the initial investment is high, you can feel confident that you can get a solid return on your investment.