Market & Feasibility Studies

A Feasibility Study is recommended whenever self-storage development is proposed, keeping in mind that lenders typically require one (or at least some portion of it) and that even seasoned veterans will benefit from a properly conducted, unbiased report.

Regardless of outcome, a Feasibility Study will allow you to make an informed decision about the merits of the project and will provide you with invaluable information about your property and its potential; it’s money well spent that can save you from investing in something that doesn’t make sense!

A complete Feasibility Study report would encompass/include the following (sections):

• Purpose of Assignment
• Executive Summary (conclusions & recommendations)
• Background Information About the Self-Storage Industry
• Property Evaluation
• Market Evaluation (inc. demographics & supply-demand analysis)
• Competition Survey (inc. absorption analysis & municipality search)
• Facility Model / Management Assumptions and Financial Pro Forma (inc. cash-flow analysis)
• Consultant Biography

Specifically, there are two (general) steps involved in the study, which can be completed in two phases (if desired) according to the following schedule:

Market Study

Research the Subject Property and surrounding trade area to evaluate its potential for self-storage development and the strength of the location overall, including visibility and accessibility, traffic counts (as available), signage, zoning, site plan, etc.  Define the (realistic) trade area and analyze demographic and related information (for the defined area) to determine the overall strength of the market (e.g. population, income, housing, etc.) and to estimate potential demand.  Research all of the (relevant) competitors in the trade area to determine not only how they are performing, but also what it would take to competitively operate a facility in the trade area (e.g. pricing,operations, ancillary, etc.).  Also, conduct a municipality search to determine if there is any other (known) development within the trade area, and comment on the general barriers to entry.  Then, compare the demand estimates to the existing supply to establish an opinion on market saturation and the overall strength and potential of the market.  Based upon this portion of the study, make a recommendation regarding the remainder of the study and whether it is warranted.

Facility Model/Management Assumptions & Financial Pro Forma

Use the information gathered up to this point to establish the type of facility/operations that would be appropriate for the Subject Property (including unit mix/pricing) and to project/estimate revenues and expenses.  With this information, you can decide if the projected returns would meet expectations and warrant advancing the project past the feasibility stage.  This portion of the study includes the following:

• (Rough) Estimate of Construction/Project Costs
• Unit Mix (inc. recommended rates)
• Rent-Up/Absorption Projections
• Projected Operating Expenses (Years 1-7; inc. staffing recommendations)
• Projected Net Operating Income (Years 1-3, by month)
• Projected Net Operating Income (Years 1-7; inc. cash flow analysis)

J. DiNardo Consulting has studied markets across the country, with a concentration in New England and the Northeast, and with a commitment to provide an objective, well thought out study. If you would like a proposal or have any questions, please contact Jim at 617.966.8278 or JimDinardo@comcast.net.

Facility Start-Ups

Are you about to start a self-storage project, but don’t really know what to do?  Don’t worry because you’re not alone (i.e. self-storage is a specialty that most real estate developers don’t have experience in), and because J. DiNardo Consulting is willing to teach you the business and help you get started off on the right foot, including:

Entitlement/Permitting

The city may ask questions that could require the expertise of a consultant, which J. DiNardo Consulting can provide via phone, written correspondence, or in person if needed.

Design/Construction

There are self-storage specialties like facility design/layout, unit-mix, unit system construction/vendors, and other things that someone with experience can help with and add value.  Accordingly, J. DiNardo Consulting can review plans, draft layouts with unit-mix, recommend vendors, and answer questions (as needed).

Marketing Program

Marketing efforts should begin in advance of opening and generating business initially (i.e. getting the word out) is very important, which can be challenging.  Accordingly, J. DiNardo Consulting can provide the expertise and guidance you will need to implement a marketing program with the proper mix of Internet advertising (including website, online listings, lead aggregators, Google AdWords, etc.), mailers/flyers (targeted toward local businesses and residents – if needed), and other “grassroots” efforts to create community-based awareness (i.e. low-cost, creative ways to let people know there’s a facility nearby).

Operations

Like any business operation, there are many (behind-the-scenes) things that must be done in advance of opening a self-storage facility, such as setting up (webbased) management software and access control systems, drafting a rental agreement and notices, addressing insurance needs, setting proper unit rates, promotions/discounts, and fees, ordering necessary supplies and equipment, creating policies and procedures, etc.  Accordingly, J. DiNardo Consulting can provide the expertise and guidance you will need to address all of these things and manage the start-up process so the facility is ready to operate when it’s scheduled to open.

Management Personnel (Staffing)

As the facility gets closer to officially opening (e.g. 60-90 days out), the recruitment process for any management staff should begin.  Accordingly, J. DiNardo Consulting can help you address any staffing needs and/or remote-management training.

Facility Management

Once the facility opens, J. DiNardo Consulting can provide the expertise and guidance you will need to address, and learn to self-manage, all of the core self-storage operating competencies, including:

• Marketing/Advertising
• Sales/Leads Management
• Revenue Management
• Daily Activities/Procedures
• Rent Collections
• Lien Sale Procedures
• Ancillary Operations (e.g. tenant insurance, padlocks)
• Site Maintenance (self-storage related only)
• Personnel
• Reporting

The timing and duration of the consulting agreement (before and after facility opening) varies by project/client, but J. DiNardo Consulting is willing to help as little or as much as needed, depending upon your needs. If you have any questions or would like a proposal, please contact Jim at 617.966.8278 or JimDinardo@comcast.net.

A-Z Operations Analysis

Whether you’re new to self-storage operations or you’ve been at it a long time, your selfstorage facility would benefit greatly from an A to Z (top to bottom) operations analysis by J. DiNardo Consulting.  Jim has years of hands-on management experience, including the facility he and his partners opened in 2020 that he also manages currently (www.watertownselfstorage.com), so he knows how to maximize operations. This service includes a review of your operating platform prior to a telephone/Zoom meeting with you and/or your management staff, followed up with a detailed report summarizing current performance and recommendations relating to all the core self-storage operating competencies:

• Marketing/Advertising
• Sales/Leads Management
• Revenue Management
• Daily Activities/Procedures
• Rent Collections
• Lien Sale Procedures
• Ancillary Operations (e.g. tenant insurance, padlocks)
• Site Maintenance (self-storage related only)
• Personnel
• Reporting

This analysis is performed for an affordable (flat) fee that will prove to be money well spent because it will have a direct impact on your operations. If you would like a proposal or have any questions, please contact Jim at 617.966.8278 or JimDinardo@comcast.net.

Misc. Consulting

If you need help in some other way than detailed already, J. DiNardo Consulting can help on an hourly or flat-fee basis, depending upon your needs. Jim has experience maximizing operations and solving problems at self-storage facilities, regardless of size, location, market, etc., and with a proven track record of success that could benefit your facility. So, whether you just need a few hours for Q&A, or you have a specific project to accomplish and need some help, please contact Jim at 617.966.8278 or JimDinardo@comcast.net.