Self storage is an extremely useful facility, and many homeowners and businesses alike choose self storage solutions to look after their possessions. Different facilities for self storage will each have their own strengths. In some cases, it will be the central location. For others, security will be a particular advantage. In others, it comes down to the cost of the space. Because self storage is often a long-term commitment, you need to be sure you are getting the best price above all. Otherwise, you’ll end up paying over the odds time and time again. But what factors determine the price of self storage space across different facilities?
You will find self storage is priced according to a range of factors. None are more pronounced than the value of the real estate it occupies. You need to understand that when you look for storage space, you are effectively shopping for real estate, albeit on a smaller scale. If you choose a self storage unit that is in the center of town, you can and should expect to pay more than for a space out in the industrial fringes of the city. This is a simple case of real estate economics. Property that is more expensive will end up charging a higher rate for storage, because they have to pass these costs on to their customers. As a result, think about where you would look to find low cost real estate, if you are looking to find low-cost storage options.
Self storage also has to be a cheaper option than moving home. This might sound like a strange comparison, but consider for a second the alternative between moving home for $10,000 or taking out a storage space at $2,000 a year. You would be better in this situation to move home. Obviously this is not an option for everyone, but it has to be part of the calculus for those weighing up whether they should find a self-storage unit or try to make room for their possessions at home.
When real estate prices move, so do the prices paid for storage space. Storage space is a choice for providers, and they are only interested in what makes the best return on their real estate costs. When these costs increase, you can expect one of two things. Either you pay more as a customer, or the facility transforms into some other purpose. Self storage is generally a commercial venture, and real estate prices have to make sense for this to be feasible. As a result, you tend not to find storage space in those areas where property costs are very high.
Self storage space responds rather directly to underlying real estate prices when determining its value. The primary reason for this is the fluctuating cost that comes from location. If you are looking to choose an accessible, central facility, you should expect to pay more for that. If, on the other hand, you can afford to move slightly further out, and to take a less central option, you can save significantly on the costs of your trading activity.