
Property Overview
This case study examines a state-of-the-art RV and boat storage facility situated in Florida—a rapidly growing region with increasing demand for premium storage solutions. Constructed in 2019, the facility boasts a gross rentable area (GRA) of 144,250 square feet (SF) on a 7.49-acre lot. This modern, 3-star suburban storage facility was built for $9.91 million, achieving a loan-to-cost (LTC) ratio of 59%, showcasing a well-structured financial strategy.
Financial Analysis: Performance Metrics
Income Performance
Base Rent
2023: $1,070,635 ($7.42 PSF)
2024 (6 months): $508,700 ($3.53 PSF)
Insight: The facility maintains a consistent income stream, with the 2024 six-month performance on track to meet annualized 2023 levels.
Other Income
2023: $25,793 ($0.18 PSF)
2024 (6 months): $16,960 ($0.12 PSF)
Insight: Ancillary income sources such as additional services contribute steadily to the revenue.
Effective Gross Income (EGI)
2023: $1,096,428 ($7.60 PSF)
2024 (6 months): $525,660 ($3.64 PSF)
Insight: The EGI reflects strong tenant demand, underscoring the market’s appetite for high-quality storage facilities.
Operating Expenses
Key Expense Categories
Category | 2023 Total ($) | 2023 PSF ($) | 2024 Total (6 Months) ($) | 2024 PSF (6 Months) ($) |
Real Estate Taxes | 116,245 | 0.81 | 58,122 | 0.40 |
Property Insurance | 66,289 | 0.46 | 33,145 | 0.23 |
Utilities | 53,762 | 0.37 | 24,683 | 0.17 |
Repairs & Maintenance | 33,553 | 0.23 | 20,874 | 0.14 |
General & Administrative | 58,476 | 0.41 | 40,147 | 0.28 |
Insight: Expenses remain stable, reflecting effective cost management. Slight fluctuations, such as higher maintenance costs in 2024, are attributed to periodic upkeep.

Analyzed property, located in Florida.
Operating Expense Ratio
2023: 40.98%
2024 (6 months): 45.58%
Insight: The slight increase in the 2024 expense ratio highlights timing discrepancies rather than structural inefficiencies.
Profitability Metrics
Net Operating Income (NOI)
2023: $647,125 ($4.49 PSF)
2024 (6 months): $286,040 ($1.98 PSF)
Insight: Strong NOI figures confirm the facility’s profitability, even with evolving operational dynamics.
Net Cash Flow (NCF)
2023: $642,025 ($4.45 PSF)
2024 (6 months): $283,490 ($1.96 PSF)
Insight: Robust cash flow solidifies the facility’s status as a lucrative and reliable investment.
Capital Expenditures (CapEx)
2023: $5,100 ($0.04 PSF)
2024 (6 months): $2,550 ($0.02 PSF)
Insight: Minimal CapEx reflects the modern construction and excellent condition of the facility.
Strategic Insights: Key Takeaways for Developing RV Storage in Florida
Demand-Driven Growth: Placed on a thriving market (south of Florida) with a growing need for RV and boat storage, fueled by increasing tourism, population growth, and rising RV ownership trends.
Financial Stability: Maintaining a balanced LTC ratio of 59% minimized risk during development, creating a foundation for sustained profitability.
Operational Efficiency: Effective cost management keeps expenses stable, while high tenant demand ensures consistent income generation.
Market Positioning: Offering premium features at competitive rates enhances tenant retention and maximizes revenue potential.
Conclusion: A Blueprint for Success in RV & Boat Storage
This case study underscores the potential of developing RV and boat storage facilities in Florida’s burgeoning markets. By combining prudent financial planning, operational excellence, and strategic location selection, this facility serves as a model for maximizing returns.
Expert Guidance for Your Next Project
MMCG Consulting specializes in helping investors capitalize on opportunities in the RV and boat storage sector. Our proven methodologies and in-depth market analysis ensure optimal facility performance. Contact us today to turn your vision into a profitable reality.
January 14, 2025 by Michal Mohelsky, J.D., principal of MMCG Invest, LLC, RV & Boat Storage Feasibility Study Consultant
Sources: CMBS, STDB, Reis (Moodys)
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