We have developed Business Plans with Operating Pro formas for many different kinds of businesses over the past 20 years. When combined with Sterlingâ's hands-on management expertise, pro forma results were realized within the time specified in Sterling's projections.
Various conditions other than statistics on population, density, housing types and economic conditions of the area can and do affect the potential for a successful self-storage location. There is no magic formula to determine absolute success.
Simply having a great location will no more assure a developer of success, just as having a poor location will not necessarily prohibit a location from being successful. When a developer weighs the good and bad aspects of their site, they make their decision after analyzing all of the factors separately and together. The Feasibility Study gives the developer the necessary tools to make such an analysis.
Our market analysis & feasibility study ensures that the location and market of your proposed self-storage acquisition or development site is consistent with your investment goals. As an objective third party, our detailed, yet concise study validates to your investors and financial institutions that your vision and proposal are congruent with the self-storage market needs. The completed Feasibility Study includes:
Introduction to Self-Storage (intended to acquaint lenders unfamiliar with the industry).
Location: Specific conditions affecting the proposed site
Competition Analysis - Information collected in the study includes specific data pertaining to competitive facilities within the market area, for example:
Also provides a summary analysis of overall competition and scores the subject siteâ€™s probability of success against the market.
Demographics - Compares the subject site to other successful facilities. Evaluates 14 specific common traits shared by successful facilities throughout the country to determine the common traits of the subject site and, thus, its probability of success.
Market Demand for Space - Analyzes total square footage leased in the subject market and extrapolates future growth of the area to determine amount of additional square footage the market can absorb.
Unit Mix - Sterling will recommend an optimum unit mix for the subject site, including a division of units between climate controlled versus non-climate and/or upstairs versus downstairs, if applicable.
Pricing - The study will include a complete rate survey along with an average rate by unit size in the subject market. Sterling will then recommend pricing for the subject site to create a Gross Potential Income for the site. This information can then be used to create pro forma projections by the developer and/or will become the basis of the pro forma created in the Business Plan.
Summary of Findings - The study will be summarized by scoring the probability of success for the subject site.
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