How much does it cost to build a climate-controlled self-storage facility in 2023

Introduction to the Self-Storage Business

The self-storage industry has seen remarkable growth over the past decade, establishing itself as a reliable and resilient sector even during economic downturns. As more individuals and businesses seek flexible storage solutions, self-storage facilities have become a popular investment choice for those looking to generate steady, passive income through rental rates on storage units. Whether you’re considering purchasing an existing facility or embarking on new self-storage development, the self storage business offers a range of opportunities for both seasoned investors and newcomers.

One of the key attractions of the self storage business is its adaptability. Storage facilities come in many forms, from traditional mini storage and warehouse storage facilities to modern, climate controlled self storage buildings designed to protect sensitive items. This diversity allows facility owners to tailor their offerings to meet local demand, whether that means providing vehicle storage, climate controlled units, or a mix of storage unit sizes.

However, entering the self storage sector requires more than just identifying a promising location. Careful planning is essential to ensure your self storage facility is both cost effective and competitive. Understanding the full scope of construction costs—including land costs, site improvement costs, and the expenses associated with building storage units—is crucial for setting a realistic construction budget. Factors such as the type of facility, the number of storage units, and the inclusion of features like climate control can significantly impact cost per square foot and overall project expenses.

By taking the time to research the self storage industry, analyze potential rental rates, and plan for all aspects of construction and site improvements, investors can position themselves for success in this dynamic and growing market. The following sections will guide you through the key considerations and estimated costs involved in building a climate-controlled self storage facility, helping you make informed decisions as you enter or expand within the self storage business.

What do I need to include in my budget for the construction of a self-storage facility?

Building costs, construction cost, and site development costs should be included in the budget to ensure a comprehensive estimate.

This includes materials, labor, permits and licenses, taxes, insurance, installation of equipment such as HVAC systems, flooring, elevators, and lighting fixtures, as well as land purchase and land or site improvement.

In addition to these hard costs, there are also soft costs that need to be taken into consideration such as design fees and marketing expenses. Operating expenses should also be considered when planning the budget.

How much does a structural steel package cost?

Structural steel is a type of metal that is used in the construction of large structures such as buildings, bridges, and stadiums.

Its strong and durable characteristics make it ideal for projects that require a high level of strength.

Structural steel is typically composed of rectangular or square shapes that form beams and columns to support the structure’s weight. It can also be fabricated into custom shapes for specific applications.

Steel buildings are a popular choice for self-storage construction because they offer durability and cost-effectiveness, making them a preferred solution for building storage unit facilities.

Structural steel is an essential component for self-storage facilities due to its ability to withstand extreme weather conditions and provide efficient assembly times. It also provides stability and security for your tenants’ belongings.

The cost of a structural steel package for self-storage facilities will vary depending on the size and complexity of your project.

Generally, you can expect to pay between $16-$19 per square foot.

This price usually includes all materials, labor, permits and licenses, taxes and insurance. However, depending on the building type, materials, and features, total construction costs for self-storage facilities can reach as high as $70 per square foot.

How much do self-storage doors and hallways cost?

The cost of self-storage doors and hallways varies, depending on your unit mix, number of storage units, and the type of door you select for your units.

Roller-style doors typically range between $200-$400 per door.

Hallway construction costs depend on the length and width of your facility, but can generally range from $6-$12 per square foot.

In addition to material costs, installation fees will also need to be factored in for both doors and hallways.

Installation fees for roll-up style doors average around $125 per door.

For hallway installation, expect to pay an additional $3 -$7 per square foot for labor.

Overall, you can expect to pay about $350-$600 per opening for self-storage construction which includes a door, hallway, and installation fees.

What should you plan to pay for exterior wall panels?

The cost of exterior wall panels for your self-storage project will vary depending on the size and complexity of your project. Architectural details, such as panel design and finishes, can also influence the overall cost of exterior wall panels.

Generally, you can expect to pay between $25-$36 per square foot, including materials, labor, permits and licenses, taxes and insurance.

In addition to the material costs of the wall panels themselves, you'll also need to consider any additional expenses such as insulation and installation fees.

These extra costs will typically add an additional $5 -$10 per square foot.

Combined with all other associated costs, plan to pay anywhere from $25-$36 per square foot for complete exterior wall panel construction for your self-storage project.

Overall, budgeting for a climate-controlled self-storage

What is the average cost to build a climate-controlled self-storage facility?

The cost to build a climate controlled facility can vary based on whether it is a single story, multi story, or mini storage facility, as well as the total storage space and number of square feet. Multi story facilities typically involve higher costs but can generate higher rental rates and improve occupancy rates by maximizing storage space. A smaller facility may have lower storage building costs and labor costs, but may also limit revenue potential. There are almost unlimited options for architectural details, finishes, and features, all of which can impact storage building costs. Storage building costs and overall construction cost can also vary based on location, facility type, and labor costs.

Generally, you can expect to pay between $65-$100 per square foot for the entire construction process, including materials, labor, permits and licenses, taxes and insurance.

In addition to these hard costs, there are also soft costs such as design fees and marketing expenses that need to be taken into consideration.

How long does the construction of a self-storage building take?

The construction of a self-storage development will usually take between 6-12 months to complete, depending on the size and complexity of the project.

During this period, you can expect to see an array of different tasks taking place such as excavation, foundation work, wall installation, flooring and roof installation.

The final step is typically the interior build out which includes cabinetry, lighting and other fixtures.

Once all building components have been installed and inspected by local authorities for compliance with applicable regulations then your facility can officially open for business. The facility owner is responsible for overseeing the construction process and ensuring all aspects are completed to standard.

It’s important to plan ahead and factor in additional time for any unexpected delays or issues that may arise during the building process.

This will ensure that your facility is completed in a timely manner without compromising quality and safety.

What are common mistakes made in self-storage construction?

One of the most common mistakes made in self-storage construction is underestimating the cost of materials and labor.

It's important to factor in all associated costs such as permits, taxes and insurance before starting a project so that you don't get stuck with any unexpected expenses.

Another mistake is not leaving enough time for design and planning. Planning ahead can prevent potential problems down the line that can end up costing both time and money.

Getting started in self storage construction

This article has outlined the average cost to construct a self-storage facility, how long it typically takes, and some common mistakes made during construction.

Building a self-storage facility requires careful planning and budgeting due to the costs of materials and labor.

If you are looking to get started in self-storage construction, the best thing to do to get started is find a qualified contractor, like Storage Building Company, that is experienced in self-storage construction to ensure your facility is built according to all applicable regulations.

When you partner with construction professionals that have immense experience in the self-storage business, you get the right preparation and execution, a successful climate-controlled self-storage facility can be constructed and open for business in no time.