Conducting a Demand Analysis for Self-Storage Facilities

Once you decide to build a self-storage facility, the next step is to figure out where the property should be located. To do this, you must create a demand analysis. If you're not working with a design-builder, we recommend using a spreadsheet to conduct the following operations. 

Step 1: Determine Market Supply

• List all the competitors, from closest to farthest.
• Add the square footage of each competitor in the column representing the radius the competitor is found within.
• Total all the competitors by each radius and the three combined.

The result is the actual square footage supply that exists in the market area.

Step 2: Determine the Market’s Potential Demand

• Determine the footage/person “Forecast Demand” included in the last Self-Storage Almanac. 
• Determine the population within each radius.
• Multiply the “Forecast Demand” by the population of each radius to determine “Demand Based on Population.”

Step 3: Determine the Market’s Net Demand 

Subtract the existing square foot supply in Step 1 for each radius from the “Total Combined Demand” for each radius. The result is the “Net Demand.”

Your “Demand Analysis” is now finished. If there’s a negative demand, you can stop here. If your demand is positive, you’ll need to conduct a rental demand analysis. 

Of course, you can help dramatically simplify this process by working with a quality design-builder, like Metrolina Builders. You can check out our self-storage portfolio here.