Feasibility Studies

Location Over​​​view

This involves an analysis of the subject location in relation to the “key factors for success”:

  • Is the size, shape and  topography of the site conducive to self-storage?
  • What is the proximity of the site to residential, commercial/ industrial and student client population bases?
  • Does the roadway, upon  which the property is located, provide good traffic counts, visibility and access to the site?

Demographic O​​verview

This involves a demographic analysis of the primary and secondary trade areas - typically within a 1, 3 and 5 mile radius of the subject, with specific consideration being given to  the following statistics:

  • Population
  • Number of households
  • Average household income
  • Employment
  • Housing mix

​​Competitive Supply Review

This involves a survey of competition within the primary and secondary trade areas of the subject property. Each facility is analysed in terms of the following factors to determine whether or not it provides direct,  indirect or no competition to the subject. 

  • Facility size and type​
  • Facility age and condition
  • Facility amenities
  • Proximity to subject
  • Accessibility

Self-Storage Demand​ Estimate

Demand for self-storage space within the local market is estimated on both macro and micro levels . On a micro level,  economic and real estate fundamentals in the community are reviewed in terms of their impact upon self-storage demand. This review  includes such variables as employment rates , GDP, household income, overall investment demand, mortgage rates, housing sales and capitalization rates. On a micro level, self-storage demand is estimated based on population, average disposable income and housing type within the primary and secondary trade areas of the subject property. 

Specific square footage demand for the subject property is then projected based upon expected residential and commercial tenant mix and upon demand multiples which are drawn from US and Canadian research statistics and in-house CBRE data.

Feasibility Conclusi​​on

Based upon the forgoing analysis, CBRE will project  the amount of excess supply or excess demand (in square feet), as the case may be,  for self-storage space within the primary and secondary trade areas of the subject property. This information can then be used by the client to determine whether or not to build or expand their facility. Alternatively this type of study can be used by the owner-client to “see” where their facility stands in the market relative to the competition and overall self-storage demand  – so the owner can be better prepared to compete against potential new entrants into the local market.​