Building and developing semi-parking and semi-storage yards can be a lucrative business venture if you take the necessary steps to plan your investment and develop the right real estate. The Semi-Truck Industry in America employs nearly 6% of the overall workforce. There is also a massive shortage of drivers with high demand for at least 60,000 more truck drivers needed in the next few years, according to one study done by the American Trucking Associations. The massive shift to e-commerce and spending in 2020 is leading to more hiring and more drivers which means the need for semi-parking and long-term semi-storage is growing and will continue to grow for the next 5 years.
Here are some basic pointers to consider if you are thinking about developing a semi-parking and storage yard.
Finding Land for Semi-Storage
Real estate will be the most costly part of the development of building a semi-truck yard, but it is a long-term investment. Traditional storage yards sell for 8 to 12x multiples of their top-line revenues.
When looking for a semi yard you want to gauge the following criteria:
- Proximity to Highways
- Competition within 20 miles
- Distance from Industrial Area
- Price per square foot
Semi Drivers will travel up to 20 miles for a nice yard space, but the location needs to be close to their routes. Once you get outside of 20 miles from highways or the area they service, the commute may become too long for the yard to be an attractive option.
This doesn’t mean you have to buy land in the industrial area. The best options are usually 10 to 15 minutes from industrial centers and close to at least one major roadway. Here you will find a reduced price for the land, but the land will still be close enough for the drivers.
Here is a great article on how to value your storage facility that may be worth checking out before you take the leap.
Getting the Permits
Once you have the land you will need to do the most painful part of the process: Permitting. This involves working with the city and/or county to receive proper permits.
Each county and city will have different requirements but as a baseline, you will need the land to be Industrially Zoned and need to have property roadways with drainage. You will also need to present a site plan that will have to be approved before construction in most cases.
This process moves slowly and if you get denied here, the chances of making a large profit will disappear. Before you purchase the land, you can check with the local authorities on the zoning and if there are specified uses for the property.
The Layout of Semi Parking
It’s now time to actually build the yard and there are lots of considerations when thinking about maximizing value and income.
The layout will be the most important thing to consider when striving to maximize income. The typical semi-trailer space dimensions are 55 x 14ft. The space dimensions for a truck and trailer combo will be 75x14ft. Drivers also want a place to leave their cars if they are on the road. They will typically leave their personal vehicles in their designated space in the yard.
Angled spaces allow you to fit more drivers, but you will want at least 2 gates or roadways on the property as well. These drivers need about 100ft to back into a space so the middle area must remain clear. According to this article, you can expect to fit 34-40 trailers per acre. This measurement was estimated for semi-tractors without the cab. Trying to squeeze too many semi-trucks into one storage and parking area can result in accidents or drivers becoming blocked in. Here are some parking layout tips to consider when you're building a semi-truck yard.
Once the layout is set, you will need to put down either a road base or asphalt throughout the property. Drivers usually will not park their trucks on grass or dirt. They will become stuck if there is heavy rain or snow. The investment in high-quality asphalt is worth the price and will lead to more business.
Amenities for Truck Drivers
As a baseline your semi-yard needs:
- 24/7 Access
- Security or security cameras
- Fence
The number one concern for drivers is safety. The truck is their livelihood, so they want to ensure that their asset is protected in your parking area. Most drivers judge facilities on their security measures to ensure the safety of their equipment, making investing in high-quality security amenities extremely important when building a semi-yard.
Other Amenities can be offered, and some can be additional revenue streams. Many established semi-storage facilities also offer the following:
- On-site maintenance shop
- Fuel
- Lights
- Showers
- Food
- Restrooms
If your yard is going to be used for overnight parking or other temporary purposes, you will need more amenities compared to a semi-yard built for long-term semi-truck and trailer storage.
Pricing Your Semi-Storage and Parking Spaces
Many factors play into pricing such as the mortgage payments, amount of space, and amenities offered. Semi drivers are paying for their business assets, so you can charge a premium if you are giving them a safe and secure environment to protect their truck and trailer.
We see prices throughout the country ranging from $100 to $500 per month and $10 to $75 per night. Your location will matter. The further you are from the industrial area, the lower your price will need to be to attract drivers. Check out the pricing at Pilot’s Truck stops to get a good idea of the daily rates in your area. To get a good ballpark monthly price, take the daily rate and multiply it somewhere between 7 to 10 times the daily rate.
The best recommendation is to test multiple price points and to market your space through signs, referrals, and sites like STOW IT and Craigslist. By trying a variety of prices, you can let the market determine the correct pricing and get top dollar for your square feet.
Summary
Creating a semi-yard can be a great way to make consistent income through storage and real estate. It may take hundreds of thousands of millions to get started but often the yearly return can exceed 15% on the investment. The land also continues to accumulate equity and value as the business grows and improvements are made.
If you are considering starting a new semi-yard, feel free to reach out to us here at STOW IT for a free consultation. We help new yards and existing semi-storage yards fill their spaces fast.