Aurora East Self Storage
Marcia C. Romero
Regis University
Executive Summary
This business plan describes a proposed self-storage facility to be established in Aurora, Colorado and involves the purchase of a parcel of land and the construction of the Aurora East Self-Storage facility east of E 470. The Aurora East Self-Storage is a service company that will provide a variety of storage units sized for both commercial and residential use.
"In the fourth quarter of 2005, reported outliers in the equity universe by the real estate investment trust (REIT), was the small self storage sector, which gained 26.6%. Private institutional investment in the self-storage sector on this scale is new, but self-storage has been part of the public institutional real estate for more than two decades." (U.S. Quarterly Market Perspective, 2006)
As shown above, the market of the self-storage industry is one of the smaller sectors of the real estate market but has continued growing over the past two decades. By making a move at the onset of a developing new community, the potential for economic growth of the facility is exceptional. As added incentive for potential clients, there will be state of the art security with cameras positioned strategically throughout the grounds and in the buildings, pass word protected gated entry, and individually owned locks on the units.
Aurora East Self-Storage is a start up business with a projected opening date of January 1, 2007. The purchase of land, paving of the recreational parking area, construction of the storage units, office, living quarters, and pre-opening expenses are estimated at $3,754,168. "Based on current and projected strong demand for self-storage units, rental revenue is expected to grow rapid ...