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Americans’ love for travel, intensified by the 2020 pandemic, has fueled the RV industry, resulting in an ongoing surge in popularity. Industry reports indicate robust growth in RV ownership and usage, with wholesale shipments projected to reach 350,000 units by 2024. Moreover, the RV industry contributes a staggering $140 billion annually to the US economy1.
The RV industry alone has seen consistent growth every year since 2009, and with the popularity of RV life, there continues to be a spike in Gen-Z and millennial RV owners (39%) who want a place to stay and explore the outdoors while still having access to their work.
The soaring number of RVs has created a pressing need for storage space. Many RV owners face constraints in storing their vehicles at home due to space limitations or municipal regulations. As a result, there is a burgeoning demand for self-storage facilities offering RV storage solutions, prompting owners and investors to consider expanding or building new facilities.
Also see our blog, “Where is Boat & RV Storage Headed.”
RV storage generally falls into three categories:
RV storage is a self storage unit specifically designed to house your RV. Think of it like a garage or parking space that you rent or purchase (in the case of storage condos) within a self storage facility, with similar benefits depending on the storage company and unit that you choose, such as on-site security, gated access, and climate control.
RV storage facilities offer secure parking spaces tailored to accommodate RVs and boats. RV storage building plans can provide various amenities, that consist of everything from gated access and security cameras to water/air stations, dump stations, cleaning services, app site access, on-site management, and more. Potential investors are realizing that as the quality of RVs continues to increase, the demand for higher amenities is also increasing and customers are willing to pay for additional services.
Also, see our Featured Project: LuxeLocker Boat & RV Storage Condos, to view some of these amenities.
There are many benefits to adding RV storage to your facility2. These include:
However, identifying suitable sites for RV storage facilities can pose challenges due to local planning regulations.
With the growth of the RV industry, many investors may be wondering whether to build an RV storage facility and how to build one. Unlike traditional self storage facilities, RV storage building plans might be constrained by the cost of land, the amount of acreage needed to house vehicles, and the fact that the facilities are geared toward specific objects as opposed to general usage. Drive aisles will need to be larger, and the costs and timelines may differ.
The upside is that RV storage facilities may also prove to be more lucrative than traditional self-storage facilities. In 2023, the cost to store an RV was between $119.88 and $169.35, according to SpareFoot data3.
What should you keep in mind if you’re considering the construction of an RV storage facility?
Land Acquisition and Drive Aisles
A parcel of seven to ten acres is typically required for profitability, with breakeven expected within 14-16 months. Drive aisles must be wider to accommodate RV maneuvering4.
Location Analysis
Proximity to campgrounds, lakes, and rivers is ideal, but demographic analysis of the surrounding area is crucial.
Zoning Regulations
Consider the zoning regulations before selecting a site. Failure to comply may result in costly and time-consuming hurdles when you try to rezone the property.
Despite economic fluctuations, the RV industry’s growth suggests sustained demand for RV storage facilities. High occupancy rates and rental yields make RV storage an attractive investment opportunity.
Want to learn more? Check out what our customer LuxeLocker has to say about this growing market: https://www.youtube.com/watch?v=sMiaA4oM9og. Then give the Forge team a call to explore the possibilities and capitalize on this thriving market. Let the steel building experts help you plan and construct your next RV storage facility.
References
1. RV Industry Association. (2023). Retrieved from rvia.org: https://www.rvia.org/rv-roadsigns-quarterly-forecast
2. Gorman, P. (2024, February 8). Toy Storage Nation. Retrieved from toystoragenation.com: https://toystoragenation.com/2024/02/08/rv-storage-a-longtime-niche-emerging-as-an-asset-class/
3. SpareFoot Blog. (2023, July 12). Retrieved from sparefoot.com: https://www.sparefoot.com/self-storage/blog/25811-how-much-does-rv-camper-storage-cost/
4. Swingler, S. (2020, May 9). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/vehicle-storage/decision-develop-boatrv-storage-differences-traditional-self-storage
When it comes to building a self storage facility, many investors focus on location, security features, and unit sizes, often overlooking a critical element that can make or break the success of the investment—the roof. The roof may not be the most glamorous aspect of a storage facility, but it is undoubtedly one of the most crucial.
As self storage buildings grow older, maintaining the roof becomes increasingly crucial and time intensive. A regular inspection and maintenance routine is key to extending the life of the roof and avoiding hefty bills for repairs and property hassles. That’s why using the steel building experts at Forge for your commercial roofing needs ensures that your investment is protected while also adding value to your self storage facility whether it be new construction, an expansion, or renovation of your existing units.
At Forge, we always recommend standing seam roof panels to our customers. This type of roofing has concealed fasteners that eliminate the risk of many leaks, rust, and loosening screws. They also serve two other very important functions – reducing material and labor costs and increasing the sustainability of the self storage facility. In this blog, we will explore the importance of investing in a quality metal roof when developing or upgrading a self storage facility and the long-term benefits it can bring.
A self storage facility’s primary purpose is to safeguard the belongings of its tenants. An investment in a high-quality, durable metal roof ensures that the stored items remain safe and protected from the elements. Whether it’s scorching sun, heavy rainfall, or snowstorms, a strong, commercial metal roof acts as the first line of defense against weather-related damage. Leaks and water ingress can wreak havoc on stored items, leading to potential financial losses and damage to the facility’s reputation. Regardless of the climate of your self storage facility, a commercial metal roof from Forge Building Company is sure to keep your facility safe and your tenants happy.
To learn more, see Doors, Roofing and Best Climate Control for Your Geographic Location and Ensuring Form, Function and Long Life: How to Properly Care for Your Self Storage Unit Doors and Roof.
Aside from new construction, as self storage buildings age, roof maintenance and repair become more important and time-consuming. An inspection and maintenance program are an important part of sustaining roof life as well as keeping costly repairs and property claims in check.
With proper inspection and maintenance, a metal roof can last for decades. The goals of a good inspection and maintenance program are to proactively locate and repair possible leaks while extending the life of the metal panels. This inspection and care will help you keep your roof in the best possible condition. The most effective examination for metal-roof systems includes four specific areas: the perimeter, the ridge, fasteners, and debris.
For more details on when it’s time to replace your metal roof, see “Forge Building Company – Metal Building Re-Roofing with Standing Seam Metal Roof Panels.”
While upfront costs for a premium metal roofing system may seem higher, it’s essential to view it as a wise long-term investment. The quality roofing materials and professional installation from Forge can result in a roof with an extended lifespan, reducing the need for frequent repairs or replacements. This, in turn, leads to significant cost savings over time, sparing facility owners from the financial burden of constant maintenance and unexpected roofing issues.
One of the best investments for your self storage facility is the installation of standing seam metal roof panels. These metal panels, installed by the experts at Forge, are built to resist corrosion and leaks and require less maintenance in the long run, which ultimately saves you more money.
To learn more about standing seam metal roof panels and watch the entire process in action, see Standing Seam Panel Roof Installation.
With 20+ years of experience, Forge Building Company, you can rest assure you that you are getting the highest quality materials for your investment that will last you for years to come.
Standing seam metal roofs are made of recycled and recyclable materials like aluminum. When the time comes to replace them, they can be reused for other projects. This eliminates the need for landfills.
In addition to being sustainable, standing seam roof panels reflect solar radiant heat coming from the sun, reducing cooling costs for your facility.
A secure roof not only protects against weather-related damage but also plays a pivotal role in maintaining a secure storage environment. An intact, well-maintained roof protects against unauthorized access, discouraging potential break-ins and vandalism. Tenants are more likely to trust a facility with a sturdy roof, knowing their belongings are safe from both natural and human threats. This, in turn, fosters a positive reputation for the facility, attracting more tenants and ensuring customer loyalty.
Investing in a high-quality roof also ensures compliance with local building codes and regulations. Regulatory bodies often mandate specific roofing standards to guarantee the safety and well-being of tenants and the surrounding community. Failure to meet these standards can lead to fines, legal troubles, and even the closure of the facility. By investing in a quality metal roof, facility owners can avoid legal complications and demonstrate their commitment to meeting or exceeding industry standards.
In the competitive landscape of self storage facilities, every detail matters, and the roof is no exception. Investing in a quality standing seam metal roof not only protects stored items but also contributes to the overall success and longevity of the facility. With enhanced durability, incredible resiliency to endure extreme weather conditions without rusting, coming loose, or allowing leaks, reduced long-term costs, increased security, and compliance with regulations, a well-built roof proves to be a critical component for any investor looking to establish a reputable and profitable self storage business. So, before you break ground on your next project, remember to look up and secure the future success of your facility by investing in a reliable and resilient roof.
In 2021, the global self storage market was valued at $54 billion. The self storage industry growth projections at a compound annual growth rate (CAGR) of 7.53% between 2022 and 2027 and expected to hit $83.6 billion by the end of 2027. The North American market is projected to contribute the most significant chunk of this figure1.
Despite the current economy, the self storage market continues to look promising. More and more people are taking advantage of self storage facilities due to the high cost of housing in densely populated areas and the increased frequency with which they must relocate. Additionally, there is a need for more storage space as families grow and acquire more possessions. Self storage software, AI (artificial intelligence), and IoT (internet of things) are also fueling market expansion to keep tabs on all storage facilities, boost marketing efficiency, increase occupancy rates, and enrich tenants’ lives.
Similarly, the self storage recession-proof nature has been further bolstered by the increased adoption of remote work policies worldwide, exacerbated by the coronavirus (COVID-19) pandemic. This trend has inadvertently led to increased demand for self storage to reduce overhead costs.
The self storage industry continues to demonstrate exceptional performance as a prominent commercial real estate sector and emerging as one of the nation’s top investment categories. Occupancy rates remained steady at around 90% throughout the latter half of 2022, and this pattern continued with minimal variation throughout 20232.
Here's what is in store for 2024.
The self storage industry continues to attract investors and entrepreneurs more than any other real estate sector. Its tremendous growth is reflected by the number of people utilizing self-storage – 14.5 million in 2022, up by 970,000 since 2020, according to YardiMatrix3. Additionally, investors remain optimistic thanks to the resilience factor of self storage. In flourishing economies, consumers buy more goods, which leads to the need for storage. In contrast, in trying economic times, residents tend to downsize, which leads to the need for storage4.
“Over a recent nine-year span, self-storage facility owners across the United States saw an annual return on their investments of almost 17%,” -Real Estate Daily News.
Self storage properties have seen record high occupancy rates, rents, and revenue growth. With around 10.6 percent of U.S. households renting a self storage unit, according to Storable, the industry is projected to be valued at $64.71 billion by 20265.
So, what areas of the country are self storage industry growth projections for 2024? Studies have shown that the millennial population prefers residing in cities, driving the demand for self storage units. The lack of space in apartment units leads many residents to seek alternative storage options. For example, in New York, the average one-bedroom apartment is 866 square feet, and Los Angeles averages 789 square feet, according to RentCafe.
Small businesses also contribute to demand for self storage since utilizing a storage unit is less expensive than warehouse space. Many e-commerce businesses look to renting storage units to carry out their orders. Although not all kinds of companies can be run from a self-storage unit, many can utilize the space for inventory or store supplies that do not fit in a home or apartment unit. Additionally, businesses are using storage units for inventory or equipment, thereby also increasing the commercial usage of these facilities6.
For 2023 (and projected for 2024), the strongest performing markets were in high-growth metros in the South and West, led by Miami, Atlanta, Phoenix, and Tampa. Other in-demand cities for self storage include New York, Houston, San Antonio, and Los Angeles.
The Northeast also continues to experience upward trends in occupancy levels. According to SelfStorage.com, states experiencing a surge in the growth of self storage facilities include:
In 2024, the following trends are on track to reshape the market.
1. Self Storage Websites
In today’s business climate, developing a website and establishing a presence on social media is key to the success of any business. The right features on your website will increase business efficiency and provide a great customer experience.
With your self storage website, you can let customers know your location, which types of units you offer, including dimensions, features, and associated prices. You can include ways for customers to book and manage units online as well as pay for those units. This facilitates a more streamlined experience for tenants.
If you sell ancillary products or services (like offering moving trucks or moving materials), you can make that information more easily accessible to potential buyers by including it on your website.
2. Integration of Technology and Customer Convenience
Technology is playing a critical role in driving data storage trends in the self storage industry. Self storage businesses are embracing technological advancements to enhance operations and improve customer experiences. This includes adopting self storage software, which enables efficient management of billing, accounting, and customer management tasks. By leveraging technology, self storage facilities can streamline their processes and provide a seamless experience to their customers.
Many self storage facilities offer contactless access options, enabling customers to enter the premises and access their belongings without physical interaction. These conveniences enhance the overall customer experience and cater to individuals’ evolving needs and preferences.
3. Adoption of Sustainable Practices
The self storage industry is increasingly embracing sustainable practices to reduce environmental impact. To minimize energy consumption, many self storage facilities are implementing energy-efficient technologies, such as LED lighting and smart climate-control systems. Additionally, some self storage facilities are exploring renewable energy sources like solar panels to power their operations. By adopting sustainable practices, the industry is reducing its carbon footprint and attracting environmentally conscious customers.
For other ways and considerations for incorporating sustainability into your self storage facility, see our blog, “Sustainability in Self Storage Renovation & Projects to Consider” https://forgebuildings.com/self-storage-facility-renovation/.
These trends are shaping the growth and future of the self storage market. By staying ahead of these trends, self storage businesses can position themselves for success and meet the evolving needs of their customers, significantly improving the customers’ experience.
References
1 Insights, P. M. (2022, October 7). GlobeNewswire. Retrieved from Globenewswire.com: https://www.globenewswire.com/en/news-release/2022/10/07/2530200/0/en/Self-Storage-Market-Size-2022-to-2027-Market-Share-predictable-to-grow-at-a-CAGR-of-7-53-during-the-forecast-period-Top-Companies-report-covers-Global-Industry-Trends-Statistics-De.html
2 Matthews Real Estate Investment Services. (2023, September 18). Retrieved from matthews.com: https://www.matthews.com/self-storage-market-report-northeast/
3 Adler, J. (2023, February 21). Yardi Matrix. Retrieved from Yardimatrix.com: https://www.yardimatrix.com/blog/demand-holds-steady-for-us-self-storage-sector/
4 Matthews Real Estate Investment Services. (2023, September 15). Retrieved from Matthews.com: https://www.matthews.com/insights-thought-leadership-self-storage-update-2023/
5 McLeod, A. (2022, June 23). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/market-conditions/can-self-storage-performance-strength-last-here-s-an-outlook-for-the-rest-of-2022
6. imarc. (2023). Retrieved from Imarcgroup.com: https://www.imarcgroup.com/self-storage-market
As 2023 comes to a close, the team at Forge likes to reflect on the past year and make our customers aware of new laws in store for 2024. Overall, the self storage industry continues to demonstrate exceptional performance as a prominent commercial real estate sector and emerging as one of the nation’s top investment categories. Occupancy rates have remained steady at around 90% throughout the latter half of 2022, and this pattern continued with minimal variation throughout 20231. More and more people are taking advantage of self storage facilities due to the high cost of housing in densely populated areas of the country coupled with the increased frequency with which they must relocate.
So, what laws should self storage investors and owners be aware of?
One bipartisan group of House members is set to finalize a bill to upgrade and expand access to outdoor recreation areas across the nation. If signed, the bill would add more fuel to the fire for developing RV and boat storage facilities. Currently, there is still a large demand for this form of storage.
The EXPLORE Act is comprehensive in its efforts to improve Americans’ outdoor experiences. It will direct a variety of government agencies, like the Forest Service, the Interior Department, and the Bureau of Land Management to produce meaningful changes to our outdoor areas. One such improvement is modernizing campgrounds through better broadband connectivity and digital park passes, bolstered by private-public partnerships. These improvements will bolster our country’s recreation industry, which produced nearly $1.1 trillion in economic activity and supported roughly 5 million jobs in 2022. It will also bolster RV and boat storage growth 2.
The Self Storage Association is also tackling several initiatives including addressing two common concerns for storage operators. First, what to do when paying tenants are told to move out but fail to do so; and second, how to ensure that a tenant is bound by a rental agreement that he refuses to sign.
Several states already address these concerns in laws applicable to residential or commercial landlords. The SSA is pursuing legislation to address one or both concerns in Georgia, Kansas, Maine, Utah, and Virginia.
They are also looking at reforms to provide greater clarity on how to deal with trespassers who store personal items or vehicles without permission, towing of vehicles for non-monetary violations of the rental agreement, and disposal of low-value property without a lien sale (as is already permitted by a handful of states) 3.
In the state of California, Governor Newsom signed a bill that becomes effective January 1, 2024, which might be able to reduce the number of newspaper advertisements you have to run before a lien sale.
Specifically, a new option has been added to allow you to run an advertisement “once in a newspaper of general circulation published in the public notice district where the sale is to be held or in the county where the self-storage facility is located, and once on any publicly accessible internet website that customarily conducts or advertises online auctions or sales.” The online advertisement must remain online for Seven (7) days before the sale 4.”
There are several important implications to this change, not the least of which is you must choose the right place to post this “alternative second advertisement.” Further, please note the requirement to include a listing of the contents of the unit in your advertisement has been removed. There are many other changes made and nuances to AB-542. It is always advisable to consult with your California legal counsel to review and understand how you can potentially enjoy the benefits of reducing your physical newspaper advertising to one time per sale.
The need for self storage is expected to continue to rise as individuals choose to rent for more extended periods or opt not to sell their current homes, resulting in a shortage of space. Additionally, self storage construction has also notably increased over the past several years and is expected to continue as the demand for personal and business storage continues to grow. With these new laws and new initiatives, 2024 is predicted to be another growth year for self storage. Cheers to the new year!
References
1. Matthews Real Estate Investment Services. (2023, September 18). Retrieved from matthews.com: https://www.matthews.com/self-storage-market-report-northeast/
2. Stern, B. (2023, December 11). Toy Storage Nation. Retrieved from toystoragenation.com: https://toystoragenation.com/2023/12/11/new-bill-would-improve-outdoor-experience-across-america-bolster-rv-and-boat-storage-development/
3. Doherty, J. (2023, December). SSA Magazine. Retrieved from SSA Magazine: https://cloud.3dissue.com/132457/132608/155202/2023-December-SSAMagazine/index.html?page=10&_ga=2.185880489.1264725417.1701897973-44071511.1701897973
4. Self Storage Legal. (2023, December 6). Retrieved from selfstoragelegal.com: http://www.selfstoragelegal.com/2023/12/06/california-self-storage-statute-updated/
5. McLeod, A. (2022, June 23). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/market-conditions/can-self-storage-performance-strength-last-here-s-an-outlook-for-the-rest-of-2022
