The trend of commercial and residential public storage business started in the 1960s, and real estate developers are considered as pioneers of this business. The extremely high potential for investment in the public storage business, it became one of the leading business in the United States of America in the year 1978.
Public Storage Business
The concept of public storage business is no different than the supply and demand concept of economics. As the demand for commercial and residential storage kept growing over the years, the public storage business picked up the pace. This business offers its customers to store their possessions in containers or units of a warehouse.
More and more people are now trusting the public storage services for their things. The storage units are well lit and clean. Some public storage business companies also offer some different sizes and features of storage units. For instance, public storage San Diego offers climate-controlled units. Moreover, the only person who has the keys and access to this unit is you.
Cost of Building Public Storage Units
It is not at all an easy task to build a public storage unit. It costs a huge amount of money and consistent efforts. Here are the three main areas of investment that one has to make to build public storage units.
1. Cost of Land
The most important variables that must be considered to calculate the cost of developing a public storage unit are the cost of land and the cost of construction. These factors determine how much amount of money you would need to build your public storage warehouse. According to a survey, the average cost of land is around $6 per square foot. However, the net cost depends on the net coverage of the site for storage units.
2. Cost of Site Work and Utilities
Another cost variable is the site work and utilities. Normally, the development of site require around $8 per square foot, but again this variable also depends on the physical features of the site area. Along with this, the cost of clearing that area, excavation, etc are all the factors that add cost to the site work. The engineer working on the site area can minimize these costs if work with responsibility. Also make sure that you when you buy land, do not merely focus on the low cost but also look into the features of the land to ensure that it does not require much development.
3. Cost of Construction The cost of construction of public storage depends solely on the type of unit you want to make. It takes away almost around 70% of the development budget of your storage units. Including the cost of site work and utilities, it accounts for almost $28 per square foot.
These are the main cost variables that you need to consider before you start building your public storage unit. This is important because you will get a clear idea about how much you need for construction and how much you have in your pocket. You can then make a strategy to minimize the costs by making rational decisions about storage unit construction.