Feasibility Studies

A feasibility study is one of the most essential steps in developing, acquiring, expanding or converting a self-storage facility. Not only is it beneficial for any owner/developer for personal use, but many lenders and investors will require one. The feasibility study is the most comprehensive study available. Some of the major factors and points of consideration you will find in each study include an in-depth survey of the market area and competition and analytical approach to determining the property’s specific primary and secondary market areas. A full supply and demand analysis will be completed to determine your property’s current and future demand. Demand is one of the most important factors in the study. Without demand, the project can not be concluded feasible. If demand is concluded to exist, then specific conclusions will be researched and presented including a full rental rate survey, occupancy rate survey with stabilized occupancy rate conclusion presented, absorption rate examples and conclusions and other market norms. Some other factors considered include proposed projects, barriers to entry and local zoning requirements. Physical feasibility will be analyzed to determine typical development trends in your market, with a specific conclusion presented with recommended facility size and sample unit mix. Finally, financial feasibility will be analyzed and presented in a 7-year proforma with monthly cash flow analysis. Market financing terms, sales and cap rates, income and expenses will all be included to determine overall financial feasibility of the project. Call today for a customized proposal that includes a scope of work, timing and fee.