How much does it cost to build a storage facility?
How much does it cost to build a storage facility?
$25 – $110 average cost per square foot
$715,000 – $1,250,000 average total cost (100 units)
Cost to build a storage facility
The cost to build a storage facility is $25 to $110 per square foot or $610,000 to $900,000 on average for 100 units, not including the cost of the land. The total cost to build self-storage units depends on the location, number of stories, whether it's climate-controlled, and the number and size of the units.
| Storage facility type | Average installed cost (per square foot)* |
|---|---|
| Standard non-climate-controlled | $25 – $40 |
| Climate-controlled | $50 – $75 |
| Single-story | $50 – $65 |
| Multi-story | $40 – $110 |
*Not including site improvements or land
Climate control
Climate-controlled storage facilities cost $50 to $75 per square foot, as opposed to $25 to $40 per square foot without. Climate controls allow owners to maintain consistent temperature and humidity levels, usually between 55°F and 85°F, to protect sensitive items from extreme heat, cold, and moisture.
These units safeguard valuables like electronics, furniture, documents, and collectibles, especially in regions with fluctuating weather or high humidity. While construction and rental costs are higher, climate-controlled storage delivers long-term protection and can justify the investment for customers storing delicate or valuable goods.
Multiple stories
Multi-story storage facilities cost $40 to $110 per square foot, compared to $50 to $65 per square foot for single-story buildings. Having multiple stories maximizes storage capacity in urban or high-demand locations with limited land. These facilities can accommodate more units within a smaller footprint, increasing revenue potential.
However, multi-story construction involves greater design complexity, higher costs per square foot, and longer timelines due to the need for elevators, advanced structural engineering, and specialized logistics. Developers must also navigate zoning restrictions and ensure customer accessibility with features like elevators and wide corridors.
How much does it cost to build 100 storage units?
When building a storage facility, the size of the structure and the number of units have a major impact on the cost. The table below shows the estimated construction costs for 100 storage units:
| Project factor | Average cost (single story)* |
|---|---|
| Construction materials | $50,000– $140,000 |
| Labor costs | $500,000 – $650,000 |
| Site development | $60,000 – $110,000 |
| Average total cost | $610,000 – $900,000 |
*Not including the cost of the land
What affects the cost to build storage units?
Several factors affect the cost of building a storage facility:
Land acquisition: Land prices vary dramatically by region. Urban and suburban areas command higher prices due to demand and limited availability, while rural land is more affordable but may have less customer demand. Renting a site can cost less than buying.
Site development: Site preparation includes grading, drainage, access roads, and parking. These costs are higher for challenging sites or those with strict regulatory requirements. You'll pay more for utility setup costs as well.
Unit type and size: Basic, single-story facilities are less expensive than multi-story or climate-controlled buildings. Larger units and more complex designs require more materials and labor, increasing costs.
Building materials: Steel is the primary material for storage facilities due to its durability, but costs can fluctuate based on market conditions and location. Climate-controlled units require additional insulation, HVAC, and specialized construction.
Security and amenities: Adding a security system costs $500 to $1,000+. Access controls, offices, and other amenities increase construction and operational costs.
Permits and compliance: Obtaining permits and meeting local building codes can add time and expense, especially in areas with strict zoning or environmental regulations.
Labor
Labor costs depend on local wage rates, project complexity, and construction timelines. Labor for self-storage construction averages $10 to $15 per square foot. The local rates of contractors will affect the cost of a commercial construction project:
| Professional | Average hourly rate |
|---|---|
| Architect cost | $100 – $250 |
| Structural engineer cost | $100 – $220 |
| General contractor cost | $50 – $150 |
| Electrician cost | $50 – $130 |
| Plumber cost | $75 – $150 |
Storage building process
If you decide building a storage facility is the right choice for you, the project will involve the following steps:
Site selection: Analyze demand, competition, and zoning requirements
Design and permitting: Work with architects and engineers to create facility plans and secure permits
Site preparation: Clear, grade, and install utilities and stormwater systems
Construction: Build the foundation, structure, and install systems (electrical, HVAC, security)
Finishing and inspection: Complete interiors, landscaping, and pass final inspections before opening
Funding
To fund a storage facility, most developers combine personal capital, bank loans, and specialized financing such as SBA 504 loans. These loans can cover up to 90% of the project cost, with terms of 10 to 25 years and competitive interest rates. Other options include crowdfunding, a private loan, or angel investors.
Prepare a detailed business plan and feasibility study to secure funding and explore options that offer favorable terms and interest rates for commercial real estate projects.
FAQs about building a storage facility
How long does it take to build a storage facility?
Building a storage facility takes around 6 to 16 months, depending on the size, design complexity, weather, and availability of materials and labor. The construction timeline includes site preparation, foundation, framing, interior finishes, and installing security and utility systems.
What factors should I consider before building a storage facility?
Consider market demand, location, zoning regulations, and the mix of unit types and sizes. Assess whether you need climate-controlled or drive-up units and decide if you want to build new or convert an existing structure. Thorough planning and demand studies help ensure your facility meets local needs.
Do I need special permits or zoning approval?
You must obtain permits and ensure your project complies with local zoning laws and building codes. Zoning requirements can be complex and may dictate the facility’s size, appearance, and allowed features. Work with local authorities and experienced professionals to navigate these regulations.
What construction materials should I use?
Choose materials based on durability, energy efficiency, and cost. Steel is common for its strength and quick assembly, while insulated concrete forms (ICFs) offer superior energy efficiency and long-term savings. The right materials help ensure your facility’s durability and performance.
What security features should I include?
Install security cameras, keypad entry systems, good lighting, and strong locks to protect tenants’ belongings and boost your facility’s appeal. Enhanced security increases customer trust and can set your facility apart in a competitive market.
Getting estimates from commercial construction companies
Follow these tips to find the best commercial construction contractor near you:
Request quotes from several builders so you can compare prices and the range of services offered.
Review feedback and testimonials on trusted sites like HomeGuide and Google to assess each builder’s reputation.
Provide contractors with detailed project specifications, including unit sizes and any custom features you want.
Ask for a clear cost breakdown that separates material and labor expenses for transparency.
Inquire about warranties on both materials and workmanship to understand the level of protection offered.
Questions to ask a storage facility contractor
When hiring a team to build your storage units, ask these important questions:
What experience do you have building storage facilities?
Can you provide references or photos from similar projects?
Will you give a detailed, itemized estimate and payment schedule?
What construction materials will you use?
How much do you charge for climate-controlled units?
Would building a multi-story facility be feasible in this location?
What insurance coverage do you carry for your workers and the project?
How do you handle permits, inspections, and local code compliance?
How will you communicate progress and manage the project?
What safety measures do you use on the construction site?
How do you deal with changes or unexpected issues during construction?
What warranties do you offer on materials and workmanship?
Can you provide a clear timeline with key milestones for completion?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.