Pros and Cons of Operating a Self-Storage Unmanned Warehouse for 1 Year

Hello, this is self-storage ‘Mini Storage Darak.’

Today, we’d like to share a partner’s review after 1 year of directly operating a shared storage business. This was a post that became a hot topic in an unmanned startup café, and many people found it relatable.

A Basement Shopping Mall Vacant for 4 Years, and the Result of Turning It into Self-Storage

The shopping mall the partner operates is located underground, and it had been vacant for nearly 4 years before being converted into a shared storage business. Because there wasn’t much foot traffic, regular leasing was practically impossible in that location.

During the consultation, they were told that the location doesn’t matter much, but honestly, they were skeptical.

"Once we actually started operating, it was surprising to see customers really come in. Most of them said they found us through internet searches or by looking up information."

They personally confirmed that self-storage is a business where demand is driven more by search than by foot traffic, so the location requirements are not very strict.

How Much Did the Facility Investment Cost?

Based on a shopping mall space of about 30 to 40 pyeong, the facility investment cost was about KRW 1.6 million per pyeong. Compared with unmanned laundromats, which can cost over KRW 100 million even for around 10 pyeong, they said this was relatively less burdensome.

Aside from the initial facility cost, there are no additional ongoing expenses, and afterward it is simply a settlement-based structure. However, because the condition of the shopping mall floor was not good, they separately had decorative tile flooring installed. That added about KRW 50,000 per pyeong.

They also said part of the facility cost could be paid in installments, which helped reduce the initial financial burden.

What Was the Actual Occupancy Rate?

Six months after opening, the occupancy rate was around 60%, and in the first year it has been maintained at about 80%.

"This is really a matter of time. It didn’t seem like something that could be solved by rushing. If there’s even a certain amount of residential demand nearby, it naturally fills up over time."

They said that during the period when the initial occupancy rate was not rising, there was a structure in place that covered the rent for a certain period, so there was no situation where they had to take a loss.

Is There Anything You Need to Pay Attention to While Operating?

Since it is a consignment operation structure, they only check the sales from time to time. When they are busy, they sometimes check it once a week.

It is different from unmanned laundromats or unmanned cafés, where you have to handle customer service, cleaning, and inventory management yourself. Inquiries and complaints are handled by headquarters, and headquarters also visits the site regularly for management.

"The operating stress is almost nonexistent. In fact, there’s practically no need to visit and manage it in person."

There Are Honest Downsides Too

The partner clearly pointed out the downsides of self-storage shared warehouses as well.

Unlike restaurants or cafés, it is not a structure where sales can increase without limit. Because the number of storage units itself is limited, the maximum sales are also somewhat fixed.

"Still, if you look at it from a different perspective—where a shopping mall that couldn’t be leased starts generating steady income—I think it is definitely worth it. It feels like a completely different kind of business from a food franchise, where you pour in a large investment, keep burning labor costs, and calculate the payback period."

If you’re considering making use of an idle commercial space, or if you’re looking for a stable income structure without worrying about vacancies, I hope this was helpful. If you’re curious about the structure, feel free to ask through the consultation application below. We’ll answer in detail.