Self Storage Feasibility Study in Missouri

High concentration, smaller loans

Missouri leans on self storage more than most states. The cell holds 78 SBA loans from FY2017 to FY2026 worth $103.3 million, ranks 11 of 50 states for the class, and places 10 of 39 among Missouri's asset classes. The location quotient of 1.88x means self storage is nearly double its national weight in the state's approvals. Loans run smaller than elsewhere: the median of $792,500 is 0.85x the national class median. No median, cancellation or charge-off metric separates this cell from both the state and storage nationally, so its value lies in the concentration and in the lender map below.

A 504 development company in the lead

The 504 program carries a large share here, with 23 loans against 55 under 7(a), with Rural Missouri, Inc. holding 21 of them for $21.3 million. Live Oak Banking Company matches that count on the 7(a) side with 21 loans but $51.3 million, so its tickets are far larger. OakStar Bank and Bank Five Nine each hold 6 loans, at $9.4 million and $2.6 million. Franchising is minor at 2.6% of loans. The middle half of approvals spans $441,750 to $1.5 million. Greene and Saint Louis counties lead with 7 loans each, and Jackson and Saint Charles follow with 5.

Timing and fallout

Approvals peaked at 20 loans and $24.0 million in FY2021 and held at 13 in FY2022 before sliding to 3 loans in FY2024 and 3 in FY2026. Cancellations are the weak point: 18.2% of approvals in the FY2017 to FY2024 vintages, at minimum, never funded, and the undisbursed-inclusive ceiling is also 18.2%. That is a high floor, and it tells a lender that storage projects stall between approval and funding, often over site work, zoning or construction cost. Charge-offs are absent so far: the 34 loans that funded early stand at 0.00% charged off so far, with an identical 0.00% on the five-year view, floors that open loans may still raise.

What the study has to test

The Missouri evidence points to one question first: is there room for more storage in the chosen trade area? A study should count existing square footage per household within a short drive, check how much was built recently, and test whether rents can hold against nearby facilities. Build cost for a project near $792,500 must be checked against land, site work and the unit mix, including climate control. Debt service coverage depends on a lease up period that for new storage is slow, so the study should show coverage at stabilised occupancy and in the interim. The appraisal will rest on stabilised net income, which makes a conservative absorption schedule the most important input.

A coding limit

The industry code cannot split recreational vehicle and boat storage from ordinary self storage; that business is filed under either self storage or other warehousing, so a vehicle storage project should also read the warehouse page.