The self-storage industry continues to thrive in the U.S. and globally, driven by demand from homeowners, renters, businesses, and students alike. If you’re considering entering this lucrative sector, one of the first questions that comes to mind is: how much does it cost to build 100 storage units?
The answer isn’t as straightforward as a single dollar amount. Costs vary widely based on factors such as location, land costs, facility type (climate-controlled or not), construction materials, local labor rates, and site development needs. That said, let’s break it down thoroughly to help you estimate what it might take financially to build 100 storage units.
1. Key Cost Components of Building a Storage Facility
To estimate the total cost, you need to understand the main components:
A. Land Acquisition
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Cost Range: $1 to $10 per square foot (rural); $10 to $50+ per square foot (urban or suburban)
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For 100 units, a typical facility may require 1.5 to 3 acres depending on unit sizes and layout.
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Estimated Land Cost: $65,000 – $500,000+
B. Design and Permits
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Architectural Plans, Engineering, Permitting
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Cost Range: $2 – $8 per square foot
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Estimated Total: $15,000 – $60,000
C. Site Preparation
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Clearing, grading, utilities, drainage, paving
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Cost Range: $4 – $10 per square foot of developed area
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Estimated Total: $40,000 – $150,000
D. Construction Costs
This is the core expense, and it varies based on construction type:
1. Traditional Single-Story Storage Units (non-climate controlled)
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Cost Range: $25 – $45 per square foot
2. Climate-Controlled Units
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Cost Range: $60 – $85 per square foot
For 100 units, assuming an average size of 100 square feet per unit:
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Total area = 100 units × 100 sq. ft. = 10,000 sq. ft.
So construction costs are:
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Non-Climate Controlled: $250,000 – $450,000
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Climate-Controlled: $600,000 – $850,000
E. Security Systems and Technology
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Gates, cameras, keypad access, software
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Estimated Total: $25,000 – $60,000
F. Office and Miscellaneous
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Office buildout, furniture, signage
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Estimated Total: $20,000 – $50,000
2. Total Estimated Cost for 100 Storage Units
Low-End (Rural, Non-Climate-Controlled)
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Land: $75,000
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Permits & Design: $15,000
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Site Prep: $40,000
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Construction: $250,000
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Security: $25,000
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Office & Other: $20,000
➡️ Total: ~$425,000
Mid-Range (Suburban, Mixed Units)
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Land: $150,000
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Permits & Design: $30,000
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Site Prep: $75,000
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Construction: $400,000
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Security: $40,000
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Office & Other: $35,000
➡️ Total: ~$730,000
High-End (Urban, Climate-Controlled, Premium Features)
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Land: $400,000
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Permits & Design: $60,000
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Site Prep: $125,000
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Construction: $850,000
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Security: $60,000
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Office & Other: $50,000
➡️ Total: ~$1.5 million
3. Factors That Affect Costs Significantly
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Location: The biggest cost variable; land and labor rates can double or triple the budget.
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Unit Size Mix: Larger or climate-controlled units increase cost per square foot.
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Zoning and Permitting: Difficult permitting areas may require more planning and money.
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Materials and Labor Prices: Construction inflation can significantly affect costs.
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Amenities: Drive-up access, covered loading areas, or elevators (in multi-story builds) add expense.
4. Ongoing Operational Considerations
Even after construction, you’ll need to budget for:
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Property management or staffing
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Utilities and maintenance
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Marketing and leasing expenses
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Property taxes and insurance
5. Is It Worth It? Potential ROI
While the upfront cost of $500K to $1.5M+ might seem steep, a well-located and well-managed self-storage facility can generate substantial income.
Let’s say you rent 100 units at $100/month:
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Gross Monthly Income: $10,000
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Gross Annual Income: $120,000
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If operating expenses are ~$30,000/year, net income = ~$90,000
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This gives you a potential cash-on-cash return of 6% to 18%, depending on the total investment and loan structure.
Conclusion
To build 100 storage units, expect to invest between $425,000 and $1.5 million or more, depending on land prices, construction type, unit features, and location. While this is a significant capital investment, the self-storage industry offers a stable and scalable income stream if executed properly.
Careful feasibility analysis, cost estimation, and location scouting are crucial before committing to such a project. With the right planning and management, 100 storage units can be a profitable long-term investment.
