Location is the key ingredient for S3 Storage Solutions to fulfill the vision of providing modern Class-A self-storage facilities that will become the top choice for residents and businesses in their surrounding neighborhoods. Even as the Internet helps to expand the market and make self-storage more of a retail center destination, visibility and being near a customer base is still critical.
Another ingredient necessary for S3 Storage Solutions to be successful is People. The partnerships we form with individuals that are experts in their field of work will be extremely important. Each of these partners brings their expertise and specialized services to assist in the development of the best facilities.
The market analysis process that S3 Storage Solutions has implemented, uses a global mapping algorithm to identify concentrations of homes and populations, and identifies existing self-storage facilities. From this data we can determine the storage supply-demand gap. This will help us to identify local markets that have a need for self-storage so that we can focus our property search. This tool also allows us to identify potential property for development within these areas.
BROKERS & REALTORS
In addition to our global mapping analysis and real estate search engines, personal relationships with commercial real estate brokers will also be important for assistance with locating property. Using a real estate professional does have a cost that is incorporated into the purchase price of most properties. However, this cost will likely be offset by the resulting time savings that allows us to begin development sooner.
S3 Storage Solutions has implemented a conservative approach to underwriting properties. We look for market areas with high unmet demand, rental rates, occupancy, and population growths as a basis for selecting a property. The future market conditions are estimated and stress tested to determine the financial viability for a particular property. We will require a third party feasibility study to be executed by a market research company specializing in self-storage prior to closing on a property. This study provides a level of assurance that our underwriting was correct and the facility will be successful.
S3 Storage Solutions will partner with a general contractor that specializes in self-storage design and construction. This resource will help us to efficiently design new facilities that incorporate lessons learned from previous projects. The use of a self-storage general contractor will provide additional assurance to any banks providing financing; ensuring construction budgets are sufficient and can be maintained. The associated costs of hiring a general contractor will be reconciled by the reduced construction schedule, allowing the facility to begin leasing units on time or earlier. Additional benefits will be recognized when quality sub-contractors, who have been vetted though the contractor’s previous experiences with them, are used.
S3 Storage Solutions will identify and prioritize all internal and external risks associated with the development of our self-storage facilities. We plan to mitigate these risks using the tools and partnerships outlined above. Through this we can ensure, with a high level of confidence, that the design and development processes will be efficiently executed. All risks and mitigation strategies will be shared with our investors so that they can be equally confident that any S3 Storage Solutions development project will be a safe and profitable investment.