Supply & Demand Analysis

This tool provides a basic way of analyzing supply and demand in a three mile radius. This tool is provided only as a basic indicator to get you thinking about the demand of self storage in a market in relation to the existing supply of self storage (i.e., competitors) and the market population. This one basic tool should not be relied upon in determining your project’s demand, as many factors can affect demand and any proposed project must be evaluated on a case by case basis. You should consider consulting an experienced self storage appraiser or consultant to assist you in assessing the supply and demand for your specific project. As always, you may contact The Parham Group as your One Resource for further assistance.

To utilize this tool, you should be prepared to enter the following items:

• The population within a three mile radius (or within whatever trade area you would like to evaluate). You may obtain this through online demographics providers or perhaps a commercial realtor may provide you with population demographics.
• The existing self storage supply in your market, in terms of square feet for person (5.44 square feet per person, for example). One way of estimating this number is by referring to trade publications such as the annual Self Storage Almanac published by MiniCo which provides the self storage supply in terms of “Square Feet Per Person” for each state.
• The names and approximate net leaseable square footage for each self storage competitor within a three mile radius. In most metropolitan areas, you may utilize the property tax appraiser’s website to research building square footage of a particular competitor.

Upon entering the above information into the Supply & Demand tool, the tool will calculate a basic estimate of net self storage demand. If you propose building a self storage project in that particular market, as a general rule, you would want to be sure that you are not building a project larger than the net demand. This tool is only as good as your assumptions on population and the supply in your market, and again, is not intended to be solely relied on without further due diligence.
If you are aware of new self storage projects that are being built in your market, or are brand new and still in lease up, or have poor occupancy for any reason, you should be VERY CAUTIOUS when considering a new project.