Where Should I Build A Self Storage Unit In Waco, Texas?

Waco sits right between Dallas and Austin along the I-35 corridor, making it one of the fastest-growing mid-sized cities in Texas. Its population has surpassed 140,000 and continues to rise steadily. That growth includes not just families and retirees, but students, small business owners, and remote workers relocating to affordable, central communities. This influx is driving housing demand, which in turn increases the need for off-site storage. From college students needing summer storage to new residents downsizing before their next home purchase, the market demand is broad and stable.

Top Market Drivers for Storage Demand

Waco benefits from several consistent drivers of self-storage demand. Baylor University draws thousands of students every year, many of whom move in and out of dorms and apartments seasonally. Additionally, Waco's booming tourism and short-term rental economy create fluctuating demand from investors and property managers storing furniture and supplies. The housing market itself is strong, with new construction and remodeling projects on the rise, creating short-term storage needs during transitions. Finally, the region's mix of rural and urban environments means many residents need extra space for equipment, recreational vehicles, and more.

Zoning and Regulatory Factors in Waco

One of the most important factors in selecting a location is zoning. In Waco, self-storage developments are generally allowed in areas zoned C-3 (General Commercial) and sometimes in M-2 (Light Industrial). In some cases, you may need a special permit, particularly if the storage facility is climate-controlled, multi-level, or situated near residential neighborhoods. It’s essential to consult Waco’s zoning map and engage the city’s Planning Services early to avoid delays and red tape. You’ll also need to factor in access points, stormwater plans, utility easements, and fire access road requirements before site selection.

Analyzing the Competition

The Waco self-storage market is active but still has room for growth. Many existing facilities are clustered near major highways or older parts of town. While some areas like Woodway and China Spring are well-served, other growing zones are still underserved. For example, North Waco and areas south of Loop 340 have residential growth and limited storage options, offering prime opportunity for new builds. Before you choose a site, we recommend performing a radius analysis of nearby storage facilities, their occupancy rates, pricing tiers, and Google reviews. This gives you a strong pulse on unmet demand.

Top Areas to Consider Building a Self-Storage Facility in Waco

North Waco (Lake Shore Drive & 19th Street) – Residential growth is booming in this area, especially with affordable housing developments. There are fewer storage facilities here compared to other zones, and its proximity to Lake Waco adds seasonal demand from boat and RV owners.East Waco (Elm Avenue Corridor) – This revitalizing neighborhood is seeing community-focused investment, housing redevelopment, and increased foot traffic. There’s strong future potential, and competition is still low.South Waco (near Loop 340 and Bagby Ave) – Close to I-35 access and newer commercial development, this region is ideal for mixed-use storage, with room for drive-up and climate-controlled units.China Spring & Speegleville – Rapid growth and residential sprawl north and west of Waco create strong demand in these underserved suburban areas. Space is more plentiful, and land prices are often lower, giving you more flexibility in design.Downtown Waco (near Baylor University and Magnolia Market) – Ideal for a high-end, climate-controlled facility targeting students, tourists, and Airbnb hosts. The footprint may be smaller, but demand is steady year-round.

Land Cost vs. ROI

Land prices in Waco vary widely by area, so it’s important to calculate ROI before committing. Premium locations near downtown or I-35 command higher prices, but higher rental rates and occupancy can balance that. In contrast, outlying areas like Robinson or Lacy Lakeview offer lower land costs, but you’ll need to weigh that against slower leasing velocity or limited drive-by traffic. Make sure your pro forma includes lease-up period assumptions, marketing costs, property taxes, and build-to-suit construction timing. Our team at Merck General Contracting can assist in aligning budget with build timelines to ensure you break even faster.

Design Tips That Improve Profitability

The design of your self-storage facility can have a direct impact on profitability. A good layout includes wide drive aisles, intuitive navigation, high-security fencing, gated access, LED lighting, and climate-controlled options. Consider adding smart keyless entry systems and 24-hour video monitoring to command higher rates. Don’t overlook curb appeal—clean landscaping, modern colors, and branded signage increase tenant trust and online conversion rates. Depending on your site, a two-story layout or mixed-use space (storage + office/flex units) may increase density without additional land costs.

Choosing a Construction Partner

The quality of your build will affect long-term maintenance, insurance costs, and customer satisfaction. At Merck General Contracting, we’ve completed dozens of commercial construction projects in the Waco area. We understand permitting processes, utility coordination, foundation planning, and metal building customization specific to self-storage. Our team can help you from design through final inspection, ensuring code compliance, budget control, and long-term ROI.

Conclusion

Waco, Texas, offers outstanding potential for self-storage development, but not all locations are created equal. By targeting areas with population growth, underserved demand, and proper zoning, you increase your chances of long-term success. Whether you’re building a standard drive-up facility or a modern, climate-controlled structure, the right partner makes all the difference. With years of experience as Waco’s trusted commercial general contractor, Merck General Contracting is ready to bring your self-storage project to life—from dirt to done.

Ready to break ground? Contact us today to start planning your next self-storage facility in Waco.