why won't iOS update 9.2.1 install on iPad?

This is a new iPad and I'm setting it up. Everything went smooth and quick. The iPad checked for software updates and found the iOS 9.2.1 update and downloaded it. When I pressed the install button, it starts to verify the update, and then throws an error dialog that says "Unable to install update", an error occurred installing iOS 9.2.1. When I press the Close button, it throws another dialog that says "Storage Almost Full. You can manage your storage in Settings." I haven't put anything else on the iPad yet!! its got 12.3GB of storage available. Please help?!