Buying or developing a self-storage facility can be a strong investment opportunity, but success depends on understanding the property, the market, and the risks before moving forward.
In this episode of Outside the Box, Terry Campbell of Johnson Insurance sits down with Bob Copper of Copper Storage Management to discuss acquisition audits, feasibility studies, insurance costs, and current opportunities in the self-storage industry.
Bob shares practical insight from decades of experience in self-storage ownership, management, consulting, and due diligence. One of his most important reminders is:
“At the end of the day, when you’re buying a self-storage property, you’re buying the income stream.”
Terry and Bob discuss what buyers should verify before closing, including unit counts and sizes, leases, rental rates, discounts, cash flow, bank deposits, deferred maintenance, permits, and the physical condition of the property. Bob notes that acquisition audits often uncover more issues on the physical side than in the financial records.
They also explain why an underperforming facility may or may not be a value-add opportunity. Poor management, below-market rents, weak marketing, or an unsuitable unit mix may be fixable. Oversupply, low market rates, and declining demand are much harder to overcome.
Insurance is another key part of the conversation. A new owner may face higher premiums because of updated replacement costs, lender requirements, flood exposure, or coverage the previous owner did not carry. Terry shares that he has seen insurance costs triple after a property changed ownership.
For developers, Bob explains the difference between a market study and a feasibility study. A market study evaluates demand, competition, demographics, occupancy, and rental rates. A feasibility study goes further by determining whether the full financial plan, including construction, operating expenses, lease-up, and cash flow, actually works.
The episode closes with a look at emerging opportunities in flex space and boat and RV storage, particularly in markets where traditional self-storage development has slowed.
For self-storage investors, the goal is not simply to complete a deal. It is to verify the opportunity, understand the risks, and avoid costly surprises.
In this video, you’ll learn:
- Why acquisitions may be more practical than new development
- What a self-storage acquisition audit should include
- Why occupancy does not always reflect financial performance
- How unit mix and management can create value-add opportunities
- Why permits and environmental reviews matter
- How insurance costs can change after an acquisition
- The difference between a market study and a feasibility study
- Why realistic rental rates and lease-up assumptions are critical
- Where flex space and boat and RV storage may offer growth opportunities
At Johnson Insurance, we help self-storage owners, investors, and commercial property owners understand risk, review coverage, and make informed decisions that support long-term protection. Terry brings nearly 30 years of self-storage experience across construction, lending, facility management, ownership, and insurance.
???? Have questions or want help reviewing your self-storage insurance coverage?
Call us at 800-255-7777.
