To support stable occupancy rates in a self-storage facility, the population within a 3-mile radius is one of the most important market indicators. Self-storage demand is largely driven by residential proximity, and most customers use facilities located close to their homes. A strong local population base ensures steady leasing activity, high renewal rates, and resilience during slower economic cycles.
1. Minimum Population Threshold for Stability
- A 3-mile population of 25,000 to 30,000 residents is generally considered the minimum to support a single self-storage facility with stable occupancy (80%–90%).
- In urban or high-density suburban areas, where renters, multifamily housing, and mobility are higher, occupancy can be sustained with even smaller radii.
- In lower-density or rural markets, developers may require a broader 5- to 7-mile capture area to meet demand levels.
2. Optimal Population Range for Growth and Lease-Up
- A population of 35,000 to 60,000 residents within 3 miles supports stronger lease-up velocity and long-term demand for facilities sized between 60,000 to 100,000 net rentable square feet (NRSF).
- This density typically includes a healthy mix of renters, homeowners, and small businesses—ideal for diverse unit mix demand (climate-controlled, drive-up, and vehicle storage).
- High population growth trends further enhance lease-up potential and justify multiple phases or expansion capability.
3. Demographic Drivers of Storage Use Within This Radius
- Renter concentration of 40% or more often increases unit turnover and short-term rental demand.
- High rates of residential mobility, downsizing, or relocation (college towns, military bases, job hubs) boost usage frequency.
- A mix of single-family and multifamily housing indicates demand for both small (5×5, 5×10) and large (10×20, 10×30) units.
- Higher-income pockets support climate-controlled or premium interior-access units within the same trade area.
4. Competition-Adjusted Population Demand
- Industry standards suggest a demand of 6 to 8 square feet of storage per capita as a balanced supply metric.
- For a population of 30,000, that translates to 180,000 to 240,000 square feet of total demand—factoring in both existing and new facilities.
- If existing supply already meets or exceeds this figure, careful analysis is needed to avoid oversaturation.
- Markets with undersupplied ratios (e.g., 3–4 sf/capita) present development opportunities.
5. Other Local Density Indicators
- Strong occupancy is more likely when population density exceeds 3,000 people per square mile, particularly in suburban corridors.
- Traffic generators like retail centers, schools, and multifamily housing within this radius also signal dependable storage needs.
- Storage users generally prefer sites within a 5- to 10-minute drive of home, so drive-time analysis often complements population radius evaluation.
