Buying Self-Storage Land? Don’t Skip These Steps!

Buying Land for Self-Storage: What You Need to Know

So, you're ready to buy land for your self-storage development. You’ve done your research, you’ve got a team of experts in place, and now it’s time to get serious about making an offer. But before you jump in, let’s walk through the process step by step—because buying land isn’t just about finding a good location, it’s about making sure you don’t end up with a costly mistake.

Start with a Letter of Intent (LOI)

Most buyers kick things off with a Letter of Intent (LOI)—a nonbinding document that lays out the major points of the purchase. Think of it as the initial handshake before lawyers get involved.

Here’s what an LOI typically includes: ? Purchase price – What you’re willing to pay. ? Due diligence period – The time you have to investigate the property risk-free. ? Design and approval timeframe – How long you’ll need for zoning, site plans, and other approvals. ? Closing timeline – When the deal is expected to be finalized. ? Contingencies – Conditions like site plan approvals, environmental clearance, and financing requirements.

Some aggressive buyers skip straight to a Purchase and Sale Agreement (PSA) with a deposit to show they mean business. While this can help lock down a deal faster, it’s riskier if you haven’t completed due diligence.

The Due Diligence Period: Protecting Your Investment

This is where the real work begins. The due diligence period is your opportunity to dig into every detail about the land. If something major turns up—like environmental contamination, zoning restrictions, or unbuildable soil—you can back out and get your deposit refunded.

Most deals allow 60 days for due diligence, but given everything that needs to be done, asking for 90 days is often a smart move. If you need a zoning change, plan for even more time.

Must-Do Due Diligence Items

Here’s what you (and your team) should tackle before the deadline:

? Phase I Environmental Assessment – Check for contamination. If the land has a bad history (think old gas station or industrial site), you don’t want to find out too late.

? Zoning Confirmation – Verify that self-storage is allowed. If it’s not, you’ll need a rezoning plan, which can add time and cost.

? Engineering Review – Understand the site’s topography, drainage, grading, and stormwater management. You don’t want surprises that blow up your construction costs.

? Concept Plan – Work with your architect and engineer to create a preliminary site layout. If your ideal facility won’t fit, better to find out now.

? Endangered Species Check – If protected animals or plants are on-site, expect setbacks, expensive relocation, or even a blocked project.

? Soil Borings & Geotech Report – Test for ledge, buried debris, or unstable soil. Bad ground conditions can drive up foundation costs—or make the site impossible to develop.

? Wetlands Delineation – Wetlands aren’t always obvious, and you typically can’t build on them. Know where they are and how much they’ll impact your buildable space.

? Title Report & Boundary Survey – Check for title issues, easements, or boundary disputes. You don’t want to buy land only to find out a neighbor has a claim on part of it.

? 3rd-Party Feasibility Study – Have an expert confirm the location’s strategic and financial viability for self-storage. You might love the spot, but the numbers need to work.

Timeline Considerations: How Long Will This Take?

Site design and approvals vary wildly. In some areas, you can get approvals in 6 months. In others, it can take a year or more—especially in cities with complex zoning rules.

If you’re using a bank loan to buy the land, add extra time for: ?? Finalizing building designs ?? Getting a building permit ?? Bank closing process

However, if you’re buying the land with cash, you can close months faster, which sellers love. But cash or not, you reduce your risk significantly if you get site plan approvals before you close on the land.

Do the Right Research!

Buying land for self-storage isn’t just about finding the right location—it’s about doing the right research before you commit. A great piece of land can turn into a nightmare if you don’t verify zoning, soil conditions, or hidden costs upfront.

Take the time to complete thorough due diligence, give yourself enough time in the LOI, and don’t rush into closing without approvals in place. Doing it right means fewer surprises and a project that’s set up for success from the start.

Need help navigating self-storage development? Connect with experts who’ve been there, done that, and can help you avoid costly mistakes.