Cost to Build a Self Storage Facility: What Goes Into the Budget
The cost to build a self storage facility varies widely by region, building type and site. We have not found a primary source that publishes reliable per-square-foot costs for self storage. So this guide does not print market numbers. It breaks the budget into categories, explains what drives each one, lists what to ask contractors, and shows a worked example with clearly labeled example inputs.
How to build a budget you can trust
Get bids from local contractors for your actual site and design. National averages hide large regional differences in labor, materials and code requirements. [SOURCE NEEDED: authoritative construction cost data for self storage]
Organize the budget into the categories below. Ask each bidder to price the same scope, so you can compare line by line.
Your lender will review this budget. An SBA 504 loan can fund the purchase, construction or renovation of buildings or land. See financing a self storage facility for loan options.
Land
Land cost depends on location, zoning and lot size. Price comparable sales with a local broker or appraiser.
Budget for more than the purchase price. Include closing costs, a survey, title insurance and a Phase I environmental site assessment.
The EPA explains that buyers generally must complete All Appropriate Inquiries before acquiring property to claim certain liability protections. A Phase I under ASTM E1527-21 can satisfy that requirement.
Zoning approval can also add cost and time. The SBA notes that zoning is set locally. See our self storage zoning guide.
Site work and utilities
Site work is often the most variable line. Two lots at the same price can have very different site costs.
- Grading, clearing and soil work, based on a geotechnical report
- Paving for drive aisles wide enough for trucks
- Stormwater detention, if required locally
- Water, sewer, power and data connections, and utility tap fees
- Fencing, landscaping and lighting required by code
Ask the civil engineer for a site cost estimate before you close on the land.
Ask the utility providers early how far the nearest lines are and who pays to extend them. A long extension can change the whole budget. Get the answers in writing, with dates, and attach them to your land contract review.
Building type: single-story, multi-story and conversions
Single-story drive-up buildings need more land but simpler construction. Multi-story buildings use less land but add elevators, stairs, fire protection and structural cost.
Conversions reuse an existing shell. Savings depend on the building's condition and how much code upgrade it needs. See converting a building to self storage.
Any new or altered building must meet accessibility rules. The Justice Department says businesses that build or alter facilities must make them accessible under the ADA Standards. Ask your architect how this affects your office, parking and units.
Climate control
Climate-controlled space costs more to build and run than drive-up space. It needs insulation, HVAC equipment, ductwork and interior corridors.
Price the HVAC system and its energy use together. Ask your mechanical engineer for an estimate of annual operating cost, not just installation cost.
Your feasibility study should tell you how much climate-controlled space the market will rent.
Doors, security and gate access
Roll-up doors, hallway systems and partitions are usually priced by the unit mix. Change the mix and this line changes. See self storage unit mix.
Security includes the gate, keypads, cameras, door alarms, lighting and the wiring between them. Run conduit during construction. Adding it later costs more.
- Gate operator and keypads at entry and exit
- Camera coverage of the gate, office and drive aisles
- Conduit and power to every planned device
- Door alarms or smart locks, if you plan to use them
- Network connection for the office and access system
Soft costs: design, permits, fees and financing
Soft costs are everything that is not materials or labor on site. They are easy to underestimate.
- Architecture, civil, structural and mechanical engineering
- Feasibility study, appraisal and environmental reports
- Building permits, impact fees and plan review fees
- Legal, accounting and entity setup
- Loan fees and interest during construction
- Builder's risk and liability insurance
- Pre-opening marketing, software setup and staff training
The SBA notes that 504 loan fees total roughly 3% of the debt and can be financed into the loan. Other lenders charge different fees, so ask.
Comparing contractor bids
Bids that look different often price different scopes. Put them side by side before you compare totals.
| Item | What to ask |
|---|---|
| Scope | Is site work, paving and utility work included, or excluded? |
| Building system | Which building manufacturer and wall and roof system is priced? |
| Doors and partitions | Are doors, hallways and hardware included, and from which supplier? |
| Allowances | Which items are allowances, and how much is each one? |
| Exclusions | What is listed as excluded, such as permits, fees or testing? |
| Schedule | How many months from permit to certificate of occupancy? |
| Price changes | Does the price adjust if material costs rise? |
Ask each bidder for references from storage projects they finished. Call those owners and ask about change orders.
Low allowances make a bid look cheaper than it is. If one bidder allows far less for an item than the others, ask why.
Keep a written log of every change order after you sign. Small changes add up, and they come out of your contingency.
Contingency
A contingency covers costs you cannot predict, such as bad soil, price changes or design changes. Lenders usually expect one. Ask your lender what percentage they require. [SOURCE NEEDED: lender documentation on contingency]
Frequently asked questions
How much does it cost to build a self storage facility?
It depends on region, building type and site. We have not found a primary source for reliable figures. Get local bids. [SOURCE NEEDED]
Is multi-story cheaper than single-story?
Multi-story uses less land but costs more to build per square foot of structure. Compare total cost per rentable square foot for your site.
Can an SBA loan cover construction?
SBA 504 loans can fund construction of buildings. Eligibility rules apply, so ask an SBA lender.
What soft costs do first-time builders miss most?
Interest during construction, impact fees and pre-opening costs. Interest builds every month the loan is drawn, and lease-up adds more months. Impact and tap fees are set locally, so ask the city early. Pre-opening costs include marketing, software setup, signage, insurance and staff training before the first rental.
How big should my contingency be?
Ask your lender what they require. Complex sites and conversions usually need more.
Do I need a Phase I environmental assessment?
It is how buyers usually complete All Appropriate Inquiries. Most lenders also ask for one.