Guidance

We guide you through the entire process

Right from the start, CSC will guide you through the entire process, and for every possible self-storage concept. Our numerous years of experience have given us the expertise needed to support you with essential advice for defining your concept in more detail and developing the technical design.

1

What is self-storage renting?

You own or long term rent a building in which you let install steel units with roller or swing doors. These can be rented out to private people or professionals.

The art of self-storage is to maximize rentable space of a building. Think about building in height. Another important factor is to get the highest occupation rate possible.

Both combined give you a return on investment which is the highest or second highest in real estate management.

Market trend

  • Number of facilities: In 2021 there were 5.173 self-storage facilities in Europe, which is only one tenth of the 50.000 facilities in the US. It shows the growth opportunities for Europe.
  • Average rent: €250 per m² per year
  • Average occupancy rate: 81,5% in 2021 compared to 79,8 in 2020.
  • Manpower: The average full time staff per facility decreased from 1.8 in 2018 to 1.4 in 2020. Nearly no manpower is needed to operate a self-storage facility and can be even lower with an unmanned operational system.

What is the return on investment?

  • The average ROI is between 10% and 16% and in some cases even 20% ROI is achieved. This number is higher than office, industrial, retail or apartment. Huge investment funds and pension funds invest in this small real estate niche, due to high ROI.
  • Investing in self-storage is very dependent on cash in the first 2-3 years. But this investment will later translate into a cash-generating facility.
  • Another important factor that makes the self-storage industry so lucrative: it is very crisis resistant. During the 2008 crisis self-storage REITs (Real Estate Investment Trust) was the only real estate asset type that was positive.

Different exit strategies

This is an industry where there are various options regarding exit strategies and running the facility

  • Side activity which requires not much attention (next to main activity)
  • Can be as a pension investment with low labour time required
  • As an investment to resell later to huge self storage groups or investment funds
  • To become a full independent self-storage group
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2

Before the first drawing

A building:

In case you already have a building, based on the location, we will provide you with a budget proposal that can be used in your business plan to be presented to the bank for financing.

In case you don’t have a building yet, location is key. You can either buy or rent an existing building or build a new one. It is important to know that a building is not required to be specifically designed for self-storage. It can even be an old bakery, warehouse…

Once you found a location, we will evaluate with you the feasibility of a self-storage site at that location (important: accessibility, size, close to city center, residential or industrial area, close to high traffic road…)                                        

Based on found location we can give a budget proposal of the investment which can be used in your business plan to be presented to the bank for financing.

Fire department:

You have to check with the local fire department about specific requirements for self-storage in the area (these differ per location). We have solutions ready in case the fire department puts in place specific rules.

Permitting process

Based on all the information above, a first draft drawing is made by us. This drawing can be used for the permitting process that is done by you. Once you have received the permit and bank has agreed on financing, we go to step 3: project drawing.

3

Project drawing

Based on the draft drawing and the remarks from the permitting government, we make a new, detailed drawing (including entrances, toilets, corridors, chimneys, mezzanine, stairs…) This drawing will be discussed with you and this loop will happen 2 or 3 times to have a final drawing with all details.

Once the final drawing has been approved by you, we will make a detailed proposal and will determine a timeframe (start installation – who does what in detail – payment conditions – warranties…)

We conclude in mutual, beneficial agreement which will induce step 4: construction & installation

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4

construction & installation process

The drawer who made your drawings will be assigned as your project manager throughout the whole process to assure a smooth realization of the project.

We come to your site, anywhere in Europe, to check whether the building meets the requirements to be able to start the installation on the basis of the agreed drawing. Minor modifications have to be discussed before starting the production. We do this step to reach full satisfaction of the client. Based on this final drawing, production is launched.

To make sure that the startup of the installation goes smoothly from day 1, a communication tool will be created and shared between you, the installation team leader, the project manager and CSC supervision and will be used for all detailed communication in every step of the process.

At the start of installation you will be there to receive the installation team and explain the housekeeping rules and safety rules. Afterwards the team can manage on their own.

At the end of installation you are invited to make an inspection tour with the team leader to evaluate the work done. Every remark made by you or the team leader will be put on a snag list platform from which you receive the report. This concludes the installation process and we start working on the snag list which we normally try to finish within 3 weeks time.

5

The facility is finished

Our sales manager will visit your facility to evaluate the project and company performance. We will also use this visit to evaluate the commercial performance of your site, the number of units rented, check whether the website can be optimized, different advertisement strategies… All with the goal to be able to optimize your investment. We will also use this opportunity to make further arrangements on your future developments.