There is a huge need across the United States for more semi yard storage and parking. At STOW IT, we help hundreds of drivers and work with many yards throughout the country to match them for long-term semi storage. If you are looking to get into the industry and build and develop a semi storage yard, the steps below will guide you along the way. These are general guidelines and each city, county, and state have many of its own regulations regarding semi truck and trailer parking and storage.
Step 1: Identify the Land and Zoning
The firsts step in building a semi yard is to find the land to purchase. This is often the most time-consuming step because the land has to be low-priced, in a good location, and zoned properly. For a semi yard to work financially. Typically you will need to buy the land for under $5 per sq ft if you also have to develop the land. Most counties require semi parking and storage to be industrial or heavy industrial zoning. You will most likely not be able to get the land rezoned and we do not recommend buying a property that is not already zoned correctly. Lastly, if you are doing nightly parking you will need to be within 5 miles of a major highway and if you are doing monthly parking you will want to be within 30 minutes of a major city or transportation hub.
Here is a helpful link that shows the Types of Land Zoning.
Step 2: Calling the County or City
Once you have identified land you will want to get the county or city involved. Call the zoning department or the county accessors office before you make an offer on any land. The city or county should be able to tell you the zoning of the land and the business activity that is permitted on the land. Do not exclusively believe the previous owner or real estate agent regarding the zoning.
The city or county official should also be able to tell you the requirements for semi parking and storage. Some cities require asphalt, while others allow for crushed gravel. Many may require water throughout the storage yard and have minimum lengths on the drive aisles allowed. It is best to be very thorough at this step to see what they will require of you before you can open the yard. All of these factors should be researched before you make an offer on the land.
If you google search your county name and code compliance you can usually find the correct contact information. Here is an example of the City of Dallas Code Compliance website.
Step 3: Demand and Financials
If you find a piece of land that is zoned correctly, you still have to make sure that the area has demand. You do not want to spend millions developing a piece of land in an area where there is no renter demand. The best way to see demand in an area is to call other semi yards in the same city. They should have a waitlist or be completely full. You can also call brokers to see what the demand is for fleet storage in an area. Be sure to ask for pricing.
Once you confirm that an area has high demand, start running the numbers. The average semi parking space will be 14ft wide by 75ft long and they will need drive aisles of about 50 ft wide. Using these numbers start modeling out your monthly revenues and expenses to make sure the rates you can charge will exceed the monthly expenses. You will also want to assume that it will take you 6 months to a year to get to 90% occupancy.
Step 4: Purchasing and Permitting
This can be a long process but is pretty straightforward. Once you have identified a great investment opportunity, you can make purchase the land and start getting the necessary permits. This can take anywhere from 60 days to a year depending on how long your county or city takes to issue permits. If you need to get the land rezoned, this step will take you 3 months or more until you will even be able to reach a verdict on the rezoning.
Step 5: Development
Finally, you are ready to develop the yard. This is usually the quickest step but can also be a major headache without adequate planning. Contractors and development companies are currently in high demand and may require a few months' notice to start a new job. The cost associated with this step is also on the rise and has a high degree of variance. Budget more time and money than expected.
Once you have the crew and materials, the job is relatively easy. Usually, it is bringing in the asphalt or gravel, putting up a fence, marking spaces, putting up security cameras, and installing some type of gate system. This can be done in a month or less, but everything must be well orchestrated to ensure the development is done correctly and up to code.
After this step, you are ready for business. You should have already started the marketing by now and have the software and management systems in place.
Bonus Step: Marketing
Now that the semi yard is open for business, you need to find customers. This is going to be priority number one for the rest of the life of the yard. There are lots of ways to market a semi yard including:
- STOW IT
- Brokers
- Personal contacts
- Signage
- Craigslist
- And more…
To learn more about marketing the yard, permitting, and finding land check out our content on Developing a Semi Yard. We hope that we can be a resource and a partner for you as you start your adventure in the semi parking and storage development.
If you do develop a semi yard, please send us an email to support@stowit.com. We would love to help you market and fill up the space.