Understanding what nearby competitors exist—and how their rates and occupancy levels compare—is critical to assessing market saturation, pricing strategy, and lease-up potential for a self-storage development. A comprehensive competitive analysis helps identify service gaps, rate positioning opportunities, and unit types in highest demand. It also informs whether the market can support new supply or if differentiation is necessary to attract tenants.
1. Identification of Primary Competitors in the Trade Area
- Competitors are typically defined as self-storage facilities within a 3-mile radius for urban/suburban locations or 5–7 miles in rural areas
- Evaluate both branded operators (REITs and national chains) and independent facilities
- Include all types: climate-controlled, drive-up, vehicle storage, and mixed-use facilities
- Use Google Maps, storage aggregator platforms, and local property records to verify facility count
- Field verification helps confirm facility size, visibility, and customer access features
2. Comparison of Unit Mix and Features
- Note each competitor’s unit mix: drive-up vs. climate-controlled, and size ranges from 5×5 to 10×30
- Identify features such as 24/7 access, elevators, security systems, or covered vehicle storage
- Determine which competitors offer niche services such as RV parking or commercial units
- Facilities with a similar product mix are the most direct comparables
- A unique offering may allow a new development to enter the market even if others exist
3. Rental Rate Benchmarking by Unit Size
- Compare asking rates for common unit sizes: 5×10, 10×10, 10×15, and 10×20
- Analyze price differences for climate-controlled vs. standard units
- Look at rate promotions or discount structures (first month free, online-only pricing)
- Normalize data into price per square foot to compare across unit sizes
- Determine if market leaders are pricing aggressively or if there is room to enter at a premium
4. Occupancy Trends and Seasonal Variation
- Identify reported occupancy levels where available (REITs, listings, or market reports)
- Inferred occupancy can also be gauged from unit availability across sizes on listing platforms
- High occupancy with limited availability may signal unmet demand in specific unit types
- Seasonal fluctuations can reveal periods of peak leasing and rate increases
- Consistently full facilities suggest the market can absorb additional supply
5. Positioning Strategy for Differentiation
- Use competitor weaknesses to define a value proposition: newer construction, better access, or more secure features
- Location-specific advantages such as visibility, traffic exposure, or proximity to multifamily housing should be emphasized
- Design choices like branded interiors, wider drive aisles, or retail-style lobbies may justify premium pricing
- Digital services, customer experience, and flexible terms are key areas to outperform older competitors
