What is the Cost to Build Storage Units in 2026?

Self storage facilities are an incredible investment which often produce 9-15% yearly return on investment. As opposed to buying a self-storage facility, building your first facility has many advantages like a much lower cost (see our Eternity Storage Case Study).

For example, an owner trying to build 100 storage units would expect it to cost from $750,000 to $1,250,000 which includes land, site development, security, and access systems.

To buy an existing self storage location with 100 units would likely cost $2,000,000-$5,000,000 (depending on location).

How Much Does It Cost to Build a Storage Unit?

At its most basic level, a self storage unit is just:

• Four walls (usually corrugated metal walls)
• Framing (steel)
• One door (usually swing or roll-up style)
• One latch to secure with a padlock

Optional upgrades: Insulation, Interior LED light, Electronic/automatic latch system, Climate control unit

And the cost to build self storage units comes down to three main categories:

• $11-$25/sq ft — Basic (Single Story)
• $40-$70+/sq ft — Basic (Multi Story)
• $120-$150/sq ft — Climate Controlled

The Real Cost:
Brad's Story of Building 100 Units

But material costs are only the beginning. The real cost to build storage units for a complete facility includes land, labor, security, and dozens of hidden expenses.

To understand all of these costs, here is Brad's story of building 100 units for his facility in a small town in California.

Meet Brad (he's imaginary but the numbers are real). He worked as a general contractor for 12 years. He helped one client build a large storage facility and realized it was an incredible business. At 42, he found a plot of land and used his $230,000 in savings as a down payment to get a small business loan from Live Oak Bank for $1,530,000.

His plan was to build 100 units on ground level across three sizes, fill them up, and create passive income that would help him retire.

Unit mix:

• 70 units at 10'×20' (200 sq ft each) = 14,000 sq ft
• 20 units at 10'×10' (100 sq ft each) = 2,000 sq ft
• 10 units at 10'×40' (400 sq ft each) = 4,000 sq ft
• Total rentable space: 20,000 sq ft

Step 1: Finding and Buying Land ($168,000)

Brad spent three months researching locations and found something interesting: a local town of 20,000 people just 15 miles away had no storage facilities within a 3 mile radius.

The location was great:

• Right off the highway with high visibility
• 30 minutes from his home
• Growing population of families who needed storage

Land cost: $168,000

Step 2: Site Development ($120,000)

Before any construction could start, the site needed preparation. The property required:

• Grading and leveling to ensure proper drainage
• Utility connections (water, electricity, sewer access)
• Drainage systems to prevent flooding
• Entry and exit driveways with proper paving
• Initial parking area layout for customer access

The site work came to $6/sq ft for development.

Site development cost: $120,000 (20,000 sq ft × $6/sq ft)

Step 3: Construction Begins ($484,000)

Brad chose outdoor units because his larger units would require roads in between the rows for drive-up access for the rural locals storing large machinery and equipment.

Building Construction: $23/sq ft × 20,000 sq ft = $460,000

Plus several "extras":

• Upgraded roofing materials (required by city code): $12,000
• Additional fire safety features and extinguishers: $8,000
• City permit fees and inspections: $4,000

Actual construction cost: $484,000

Step 4: Access and Security Systems ($63,950)

Photo credit: Keep It Simple Storage - ONELock Entry

When planning, Brad initially planned to use simple padlocks and keys. Then he talked to 3 other facility owners who all told him their biggest regret: physical keys create constant problems.

Problems with physical keys: Lost keys. Lockouts at 11 PM. Tenants who move out and keep the keys. Keys that get copied and shared. Having to deliver keys to new tenants.

Brad decided to invest in electronic access control to make sure his facility could be fully automated.

Access System Costs:

• Smartphone-enabled door locks: $500 × 100 units = $50,000
• Gate access system: $8,000
• Total: $58,000

Security Systems:

• 8 solar-powered security cameras: $200 × 8 = $1,600
• Chain-link perimeter fencing: $29/linear ft × 150 feet = $4,350
• Total: $5,950

Combined access and security: $63,950

Step 5: Final Touches ($35,500)

As construction progressed, Brad added features he'd initially overlooked but realized were essential for the tenant's experience and marketing.

Lighting System:

Brad chose motion-activated LED lights to reduce energy costs while providing security lighting when customers accessed their units at night.

• LED motion-sensor lights: $100 per light × 50 lights = $5,000
• Individual unit lighting (optional upgrade): $45 per unit × 100 units = $4,500
• Total lighting: $5,000

Signage and Parking:

• Large highway-visible sign with facility name: $12,000
• Unit number signs: $5 × 100 = $500
• Signage total: $12,500

Professional Fees:

Throughout the project, Brad needed help from specialists:

• Legal fees (permits, zoning, contracts): $8,000
• Engineering and architectural plans: $7,000
• Surveying and inspections: $3,000
• Professional fees: $18,000

Total additional features and fees: $35,500

Step 6: Inevitable Delays ($47,712)

Here's what nobody warned Brad about: delays.

The project was supposed to take 12 months. It took 18 months.

Why?

• City inspections took longer than expected
• Material shortages delayed delivery
• Weather delays from unexpected rain
• Electrical inspection failed initially and required rework

During these extra six months, Brad still had expenses even though the facility wasn't generating revenue:

• Mortgage payments: $7,752/month × 6 = $46,512
• Continued insurance on the partially-built facility: $200/month × 6 = $1,200

Delay costs: $47,712

Lesson learned: Always add 50% to your estimated timeline. If someone says 12 months, plan for 18.

Brad's Total Investment: The Final Numbers

Total Construction Costs:

• Land: $168,000
• Site Development: $120,000
• Construction: $484,000
• Access and Security: $63,950
• Final Touches: $35,500
• Delay Costs: $47,712
• Total Spent: $919,162

From his $1,530,000 loan, Brad had $610,838 remaining to cover mortgage payments while filling up the facility. At $7,752/month in mortgage payments, this gave him roughly 79 months (6.5 years) of runway before needing the facility to cover its own costs.

Expected Revenue (at $3/sq ft per month):

Return on Brad's $230,000 Investment:

• At 80% occupancy: 210% annual cash-on-cash return
• At 90% occupancy: 241% annual cash-on-cash return
• At 100% occupancy: 273% annual cash-on-cash return

Note: These returns are before operating expenses (insurance, property taxes, maintenance, marketing) which typically run 25-35% of gross revenue. Even accounting for these costs, Brad's facility would generate exceptional returns compared to most real estate investments.

Building Your Own Facility? Avoid This Huge Mistake

Most new facility owners make a critical error: they wait until construction is finished to start marketing. It usually takes 4-6 months for Google to start ranking a new website, and if you're spending months building your facility you might as well have the website ready when you open.

Pro Tip: Set up your website 4 months before opening.

At Landlord, on average new facilities achieve 20% occupancy in under 3 months.

Landlord storage software comes with a professional website that's ready in seconds:

• Online booking, contract signing, and payment
• Waitlist management
• Website traffic statistics
• SEO optimization to appear in local searches