Self Storage Feasibility Study in Louisiana

Self storage intensity against the national picture

Louisiana lends to self storage at a noticeably higher intensity than the country does. Storage borrowers in the state received 28 approvals during FY2017 to FY2026, totalling $40.9 million. A location quotient of 1.59x shows storage making up a heavier slice of what Louisiana receives than the country as a whole, and a median loan of $1.0 million is 1.10x the national figure. Louisiana ranks 30 of 50 for storage, and storage ranks 15 of 39 within the state, so the concentration is real but not dominant. The ratios and the ranks together give the scale of storage lending in the state.

Big tickets, few franchises

Half of approvals sit between $538,750 and $2.0 million, which is the range of an acquisition or a ground-up facility, not a conversion. Under 7(a) sit 25 of the loans; under 504, 3. Franchise brands appear in 7.1% of loans. FY2022 was the busiest year with 8 loans and $9.1 million, while FY2019 and FY2024 had none and FY2023 brought 4 loans for $9.9 million, the largest dollar total. Quiet years sit beside busy ones, so sponsors should not assume a smooth pipeline.

Lenders, parishes and caution

Live Oak Banking Company has 9 loans on the 7(a) list at $21.0 million, and Bank Five Nine has 6 at $6.7 million, as SBA lists the present holder of each loan. Those figures describe the holding, not any lender's appetite. East Baton Rouge and Lafayette each show 3 loans, with Caddo, Jefferson, Ouachita, Saint Tammany and West Baton Rouge at 2. Rates for cancelled and charged-off loans are not shown because of small cohorts, and not shown never means zero. One coding limit applies: Boat and RV storage lacks its own code and lands in self storage or other warehousing.

Proving out a Louisiana storage site

Storage is a supply-and-absorption business, so a study should count existing square feet within a three- to five-mile trade area, test rents per square foot against the competition, and model lease-up over several years. Flood risk deserves attention at any site: elevation, insurance cost and drainage can decide whether a site works. Construction cost must be tested against a typical ticket near $1.0 million, climate-controlled mix should be justified, and debt service coverage shown at stabilisation and at a slower fill. The appraisal normally capitalises net income, so rent growth assumptions need support.