Everything to Know About Self Storage Feasibility Study

Success is rarely accidental in commercial real estate. Thoughtful planning, meticulous analysis, and informed decision-making separate winning investments from costly missteps. This is especially true in the self storage industry. Whether you’re considering your first storage project or expanding your business, a self storage feasibility study is a must.

A feasibility study doesn’t just help you understand whether a market might support a new facility. It shows whether a project is financially smart, what risks to expect, and how to set your business up for long-term success. Skipping this step can lead to overbuilding, weak performance, or missed opportunities that could cost you thousands.

If you’re not familiar with what a self storage feasibility study is, don’t stress. We’re breaking down what it is, why it matters, how it’s conducted, the key metrics and market variables it analyzes, and who to turn to when you’re looking to get one done.

What Is a Self Storage Feasibility Study?

A self-storage feasibility study is a professional analysis that assesses whether a proposed storage project is likely to succeed in a specific location, based on current and future market conditions. In layman’s terms, it’s a more formal way to answer the question: Will this self storage facility generate enough demand to be financially viable?

Instead of guessing or relying on general trends, a feasibility study uses real data—like demographics, supply and demand, competitors, pricing, and occupancy—to predict how a project will perform. It’s both descriptive (describing the market) and predictive (estimating future performance).

All of this to say, a feasibility study uses real estate market data, industry standards, and financial modeling to determine whether a project can meet demand and provide good returns for investors or lenders.

Why a Feasibility Study Matters in Self Storage Development

Self storage development has grown rapidly, and while it has shown that it can withstand tough economic times, that does not mean every new project will be successful. Markets vary widely, and what works in one market may fail in another.

A solid feasibility study offers three main benefits:

1. It Provides Real, Localized Market Insight

A common mistake among new developers is assuming that because self storage facilities perform well nationwide, any new facility will succeed locally. That’s unfortunately not true. A feasibility study evaluates factors like:

• Local population growth

• Household turnover

• Employment trends

• Existing supply of storage space

• Planned or approved future developments

• Rental rates and occupancy trends

Without this detailed analysis, you could misjudge market saturation, overestimate what you can charge, or miss changes in demand, which can result in underperforming spaces.

2. It Improves Financing Odds and Terms

Lenders and investors don’t make decisions based on aspirations. They make decisions based on data. A thorough feasibility study shows:

• Projected occupancy curves

• Expected rental rates

• Market absorption timelines

• Competitive gaps and opportunities

• Cash flow forecasts

This data not only supports your assumptions but also boosts your credibility with banks, SBA lenders, investors, and private equity. In fact, many lenders require a feasibility study before funding construction or value-add projects. All of this to say, a feasibility study doesn’t just help you decide whether to build. It helps others decide whether your project is worth funding.

3. It Helps You Build Smarter and More Market-Responsive Facilities

A feasibility study is not just about “go/no-go.” It informs design, unit mix, pricing strategy, and marketing strategy. For example, a feasibility report might reveal that climate-controlled units are undersupplied or that certain unit sizes are oversaturated.

This insight helps developers build facilities that match real market demand, leading to quicker rentals, higher occupancy, and stronger long-term cash flow.

How a Feasibility Study Is Conducted

Market and Demographic Analysis

This part of the study examines population trends, household characteristics, income levels, and growth projections within relevant areas. For self storage, household data is especially important because trends like renting vs. owning homes, mobility rates, and household size significantly impact demand.

A feasibility study defines a “trade area” as a radius around the proposed facility site. It analyzes how many potential customers live within it, how fast those households are growing, and what their storage needs might be.

Supply Analysis

The supply analysis part of the study identifies current existing self storage facilities, the number of units and square footage per facility, occupancy levels, rent averages, and amenities like climate control, security, drive-up access, or specialty storage. Essentially, it assesses how much real competition exists and whether there are unmet needs in the market.

Demand and Absorption Forecasting

After analyzing supply and demographics, analysts estimate how much new demand the market can realistically absorb over time. They create absorption curves to predict how quickly units will lease and project future occupancy rates, using real market data, pricing trends, and the link between local economic growth and storage demand.

Financial Modeling and Pricing Assumptions

A feasibility study then uses demand and pricing data to estimate how much money a project could make and spend. Analysts look at yearly rent, how quickly units will fill, costs, and cash flow over time. This helps show potential profits and key metrics such as return on investment, cap rate, and break-even point.

Who Provides Self Storage Feasibility Studies?

Not all feasibility studies are created equal. Some providers focus purely on data and numbers, while others combine market analysis with strategic consulting and planning. Below are some of the well-known names in the industry for when you’re ready to get started.

Storage Study 

Storage Study is one of the most recognized sources for self storage market studies, led by Ben Burkhart. They look at the local market, site rules, competition, and finances to give clear advice you can act on. Whether you’re experienced or new to the industry, their expertise helps you make smart, strategic decisions. With years of hands-on experience (over 2,000 clients, to be exact), they provide a full picture that considers market trends, risks, and upcoming competition, so your investment has the best chance of succeeding.

Self Storage 101 

Self Storage 101, led by Bob Cooper, offers feasibility studies, management consulting, strategic planning, competitive analysis, and more with a strong focus on practical, actionable insight. Bob has worked with hundreds of independent owners and operators to help them make informed, profitable decisions. 

Self Storage Ninjas 

Self Storage Ninjas, founded by Katherine D’Agostino, provides feasibility studies and broader consulting services tailored to self storage investors and operators. Katherine provides clients with the guidance and insights they need to make confident, informed decisions about their storage business by combining thorough analysis with strategic advice to identify opportunities and plan effectively for growth.

Self Storage Consulting Group

The Self Storage Consulting Group provides feasibility studies, storage development, self storage management, and competitive market research with an emphasis on helping owners and developers understand not just whether a project “works,” but how it can succeed once built. They offer multiple options, including a preliminary site analysis, a market study, or a full feasibility study, making them the perfect choice if you are looking for options for different budgets. 

SkilCheck 

SkilCheck, led by Carol Mixon, offers feasibility studies that focus on market dynamics and risk assessment. Carol started her self-storage career in 1984 as a trainer for National Self Storage, one of the largest operations in the country at the time. She has worked under some of the biggest industry names and developed National’s curriculum for the first training school in the self-storage industry, which trained more than 200 managers. With years of experience under her belt, she’s now sharing her expertise and insights with the broader self-storage community.

StorageFeasibility

Storage Feasibility, led by Jo Beth White, has completed an analysis of over $4.6 billion in self-storage assets, making it one of the most sought-after companies in the industry. They include economic, developmental, physical, operational, and market viability conclusions, ensuring that all bases are covered. 

How to Use a Feasibility Study in Your Self Storage Project

Site Selection and Competitive Positioning

A feasibility study helps you pick the best piece of land by showing not just what looks good, but where there’s real demand for storage. Developers use this information to choose locations likely to fill quickly and stay highly occupied.

Unit Mix and Facility Design

A feasibility study shows which unit sizes are most popular, whether climate-controlled units make sense, and if higher prices for certain types are realistic. Using this information to guide your design (like how many drive-up versus climate-controlled units to include, for example) can significantly impact your revenue.

Pricing Strategy and Revenue Forecasts

Feasibility reports don’t just show demand. They also suggest pricing based on current rents and competitors. Using these recommendations helps create realistic revenue forecasts that lenders trust and investors appreciate.

Approach to Lenders and Investors

Commercial lenders, such as local banks, SBA lenders, or large investors, often require a feasibility study before approving a loan. A thorough report shows you understand your market and its risks and opportunities. Investors and equity partners also use this information to see that a project is well-researched and credible.

What Makes a Good Feasibility Study?

When evaluating providers or reviewing a study, make sure it includes:

• Clear trade area definition

• Demand predictions (using real numbers)

• Supply review (what currently exists nearby and/or future developments planned)

• Leasing pace

• Competitive pricing

• Financial outlook

• Market scenarios

Why You Should Never Skip a Feasibility Study

Whether you’re a first-time self storage developer or a professional operator expanding your business, a feasibility study is a must. It reduces risk, helps you develop your design and pricing, strengthens your financing options, and ultimately increases your chances of developing a profitable facility that will last you for years to come.