Self Storage Feasibility Study in Connecticut

Connecticut is close to a national average for self storage on almost every measure SBA records. The state's 32 approvals between FY2017 and FY2026 total $50.5 million, rank 28 of 50 among states, and place storage 18 of 39 among Connecticut asset classes. The location quotient is 1.01x, which means storage takes essentially the same share of the state's SBA lending as it does nationally, and the median loan of $864,150 is 0.93x what storage borrowers get nationally. Unlike its neighbor to the north, where tickets run heavy, Connecticut offers a borrower little that is unusual in loan size or share; its character lies in the lender mix and the geography.

Who lends and where

The two programs are nearly even, 18 loans under 7(a) against 14 under 504, and the central half of notes stretches from $388,000 to $2.2 million. Franchise participation is 3.1%. Bank Five Nine holds 6 of the 7(a) loans, worth $8.0 million, and on the 504 side the leader is New England Certified Development Corporation, 6 loans and $4.4 million. Connecticut's SBA regions are shown rather than counties: WESTERN CT leads with 7 loans, CAPITOL and SOUTH CENTRAL CT follow with 4 each, and NORTHEASTERN CT has 3, so lending is spread across the state instead of concentrated in one corridor.

Steady rather than spiky

The approval series is smoother than in many small cells. FY2017 and FY2018 had a single loan each, FY2019 reached 5 loans and $6.4 million, FY2023 brought 4 loans and $10.4 million, and FY2024 posted 5 loans and $8.0 million. FY2026 shows 3 loans and $6.3 million. Cancellation and charge-off floors do not appear: the sample is under 30 loans, so neither can be quoted, and the blank is not a rate of zero.

Reading the class and testing a project

The code set cannot distinguish RV and boat storage from conventional self storage, so a Connecticut study should state which product is proposed. With the state close to parity on share and size, the case for a new facility cannot lean on a scarcity story the SBA data does not tell. The study should instead count existing climate-controlled and drive-up space across the relevant towns, compare asking rents with those the pro forma assumes, and show how fast a new building leases up in comparable submarkets. Cost has to be tested against the typical ticket and against the cost of land in towns where zoning is tight. Debt service coverage should hold in a slower lease-up, and the appraisal should be able to support the loan from stabilized income rather than from a sale to an end user.