If you’ve got a lot of land, a good location by water and good timing, then building a RV/boat storage facility might be a good business move. Today’s economy has made land costs cheap, steel prices low and concrete readily available and low-cost. Construction crews are also itching to find work. All of these factors combine to create a good time to construct a profitable RV/boat storage.
But RV/boat storage requires a lot of land. That’s what made Ted Lamb’s decision to convert his shuttered car dealership in Prescott, Ariz., into a RV/boat storage facility an easy one. He already had a sprawling supply of empty land. The previous site of a Chevrolet, Cadillac and Nissan dealership will now be home to parked RVs and boats. Construction began last week for 150 spaces to be completed by June 1.
“My anticipation is that we will attract quite a few of the people that are now storing their RVs in Chino Valley or Paulden or Dewey, to store them a little closer to their home,” he said. “I mean there is no paved RV storage to my knowledge of any consequence in Prescott. It’s filling a void.”
Location is one of the biggest factors as to whether a boat and RV storage business will be successful. Facilities near water or recreational areas attract more tenants. And if no competition is present in surrounding towns, that is an added plus. A drawback to this niche storage market is that it doesn’t have the same financial return per square foot as a regular self storage facility. So the decision to build a new facility or add-on to an existing facility should be made carefully. The following factors should be considered before adding boat/RV storage to your facility:
• How many calls or visits do you receive from visitors looking for this type of storage?
• People who can afford class-A recreational vehicles likely also have the expendable cash for storage and are less likely to be affected by the recession.
• Can your facility act as a destination drop off/ pick up site for these vehicles?
• Is your facility near or on the way to a body of water, campground or other popular attraction for boat/RV users?
The demand for such niche storage needs to be present. Self storage owners and operators should track the number of calls and visits they get regarding boat and RV storage. And although the economy is in a downturn, it should be noted that people who can afford class-A recreational vehicles and large boats are not as hard hit during the recession. They will be willing to pay for a secure and reliable place to store their expensive vehicles and boats.
Sources Used:
“Shuttered Car Dealership Now RV Storage Lot.” RVBusiness.com. May 10, 2011.
“The Right Time to Build Boat/RV Storage? Understanding the Market Before Taking on the Challenge.” Inside Self-Storage. April 29, 2011.
Robinson, Holly. “With Thoughts of Expansion, Many Self Storage Operators Look to Boat/RV Market.” Self Storage Industry News. April 15, 2011.