How to Conduct a Self-Storage Competitive Analysis in 5 Steps
When it comes to developing or expanding a self-storage facility, one of the most critical first steps is conducting a competitive analysis. Whether you’re a first-time developer or a seasoned investor, understanding your local competition is key to evaluating a site’s potential and ensuring long-term profitability.
Performing a competitive analysis is an integral first step in self-storage development because it lays the groundwork for a data-driven, market-ready strategy. By evaluating the strengths and weaknesses of nearby facilities, developers can identify gaps in the market, anticipate demand, and avoid costly miscalculations in design, pricing, and amenities. A well-executed analysis directly supports a comprehensive self storage feasibility study and improves your chances of long-term success.
What is a Self Storage Competitive Analysis?
A self storage competitive analysis involves evaluating existing facilities in the trade area surrounding your prospective site. It helps you answer questions like: how saturated is the market? What unit sizes and types are in highest demand? What are competitors charging? Are there services or amenities missing from the local market?
This research is not just useful. It’s essential. Competitive insights allow you to validate your development plans and avoid costly missteps. At BMSGRP, it’s a foundational part of our Self Storage Feasibility Report, which guides our clients toward strategic, data-backed investments.
Step 1: Define Your Trade Area
Start by defining your site’s primary trade area, typically a 1- to 5-mile radius depending on the local population density. Urban infill sites may only need a 1- to 2-mile view, while rural locations can expand beyond 5 miles. Use mapping software or geographic information systems (GIS) to visualize the surrounding area. Tools like Radius+ can be helpful for this step, offering access to demographic overlays, existing storage facilities, and drive-time analysis.
Step 2: Identify and Catalog Nearby Competitors
Next, create a list of existing and planned self-storage facilities within your trade area. Include facility name and address, ownership or operator (REIT, independent, etc.), facility size (total square feet and number of units), unit types offered (climate-controlled, RV, drive-up, etc.), and online presence and booking capabilities. Pay attention to whether facilities are single-story or multi-level, gated, or unmanned. This helps evaluate how your facility could differentiate or compete. You can use Google Maps, SpareFoot, and SelfStorage.com to identify facilities and confirm details.
Step 3: Analyze Pricing and Occupancy Trends
Pricing data is one of the most telling indicators of market health and opportunity. Monitor what competitors are charging for various unit sizes and whether they’re running promotions. Take note of unit sizes and monthly rental rates, availability by size, discount offers or specials, and online reviews mentioning price or value. Some operators may show 100 percent occupancy on certain sizes or amenities, signaling unmet demand.
At BMSGRP, we go deeper into these trends using proprietary tools as part of our Self Storage Snap Report, which provides a high-level snapshot of your site’s opportunity.
Step 4: Evaluate Facility Features and Services
Beyond unit types, competitive advantages often lie in amenities. Assess your competitors’ security measures (cameras, keypads, lighting), customer service and staffing model, hours of operation, online reservation or payment tools, and ancillary revenue opportunities (boxes, U-Haul rental, insurance). The goal here is to identify gaps in the market. If most facilities lack climate-controlled units or offer limited gate access hours, that could present a strategic opportunity.
Step 5: Incorporate Findings Into Your Feasibility Study
Once you’ve collected and analyzed your competitive data, the next step is to put it into context. How does your proposed site compare in terms of accessibility, visibility, and unit mix? What can you offer that others don’t? At BMSGRP, our comprehensive Self Storage Feasibility Reports combine competitive insights with demand analysis, demographics, and rental rate trends to determine whether a site is viable. The goal is to help you make informed decisions that mitigate risk and increase your likelihood of long-term success.
A competitive analysis is more than just counting nearby facilities. It’s about understanding your market, identifying opportunity, and making strategic decisions based on real data. Whether you’re in the early planning stages or preparing to break ground, thorough research can be the difference between a good investment and a great one.
We’ve helped clients across the country develop successful self-storage facilities backed by over 20 years of experience and proven research methodologies.
For related reading, check out these websites: Inside Self Storage, Radius, U.S. Census Bureau
