5000sft self storage?

[bigbuildingaco]

Hi,

What do people think of Self Storage,

I currently have a 5000sqft Industrial Building.

From my own research the cost of conversion per square foot could vary from £7 to £14 per square foot, would that be accurate?

Effectively dividing the space up into 40 units 10 x 8 giving 7.43sqm per unit pricing £40 per week aiming for 65% occupancy to begin with & I would have space to expand if there were potential.

I have read some forums on here & people seem to be of the opinion that if it is done right it can be a tidy operation...

Finally, would any know how such an enterprise is treated with regards to tax code for example is it accepted that it is Trading income & not passive given that it would require a day to day manager.

Any help or referrals would be helpful.

Thanks

 

[MBE2017]

Self storage, I think it’s great, have used it a lot over the years.

I think you need to do plenty of detailed research on your local competitors, rates, offers and most importantly their amount of space sold and generally available. So much can depend on location, opening hours, security, ease of access, it’s impossible to give a simple answer.

Hopefully someone with more relevant info can offer better insights.

 

[BubbaWY]

Hi,

What do people think of Self Storage,

I currently have a 5000sqft Industrial Building.

From my own research the cost of conversion per square foot could vary from £7 to £14 per square foot, would that be accurate?

Effectively dividing the space up into 40 units 10 x 8 giving 7.43sqm per unit pricing £40 per week aiming for 65% occupancy to begin with & I would have space to expand if there were potential.

I have read some forums on here & people seem to be of the opinion that if it is done right it can be a tidy operation...

Finally, would any know how such an enterprise is treated with regards to tax code for example is it accepted that it is Trading income & not passive given that it would require a day to day manager.

Any help or referrals would be helpful.

Thanks

There seems to have been a bit of a boom in recent years of self storage facilities so I assume there is demand, but do your market research to make sure the market hasnt been saturated.

As MBE says, two of the biggest things to be mindful of is ease of access and security. People will want to know there belongings are secure. Some people will also want quick access to their unit. On the flip side some people may only want access once a year.

 

[Mark T Jones]

To add to the above - you need to be clear on what type/range of facility you are offering

Secure (IE how secure)
Temperature/climate controlled
Long term or permanent access
Fully racked or space only

Etc etc

All of these will directly impact your fit out costs & marketing strategy

 

[HFE Signs]

The problem is the initial set up and security cost