With the rapidly growing market for boats, RVs, classic cars, and other “toys,” developing or Investing in Storage Condominiums can be lucrative for both the investor and buyer of the individual units. These types of storage units appreciate in value due to the low supply and high demand, allowing owners to capture a full return on investment and more. Plus, there are many tax breaks because it is commercial real estate.1
A storage condo, like it sounds, is much like a residential condo except it is a storage unit that you own. These units are designed primarily for the rapidly growing market for boats and RVs (see our blog https://forgebuildings.com/where-is-boat-rv-storage-headed/), but can also be used to store items like classic cars, business inventory, and more. Each storage condo unit is part of a storage complex that has some shared amenities for which owners typically pay monthly dues to maintain in a similar manner as a traditional Homeowners Association.
While these types of condos share the same basic purpose as other storage units, condo-style vehicle storage differs in significant ways from the standard rental model. First, vehicle-storage condos share many characteristics with office-warehouse or flex condos, including high and wide doors, high ceilings, wide aisles between buildings, climate control, and security features. They may also be in an industrial park or on land zoned for light industry. A big difference is that the storage condo complexes usually offer services specific to boats and RVs, such as dump stations, wash stations, maintenance, and repair.
Irrespective of market conditions, storage condos appeal to buyers and developers for a variety of reasons:2
In today’s market, most storage condominium units range in cost from $55,000 to $200,000.4 They sell for around $125 to $150 per square foot. In addition, owners can expect to pay $30 or more each month for maintenance fees such as snow removal and lawn care. Also, like other real estate properties, the storage condo is also subject to local property taxes.3
How large are they?Storage condos are built primarily with the owners of large RVs, boats, and classic cars in mind. They typically range between 35 to 50 feet in depth and 10 to 25 feet in width. They also typically have 14-foot-high ceilings. The average storage condo covers about 600 square feet in total.
Because owners typically store their boats, RVs, and classic cars storage condos are usually very well-insulated, climate-controlled, and outfitted with electrical service. They also usually offer dump stations and wash areas for RVs, along with 24-hour access, and enhanced security features (due to the cost of the boats and RVs being stored).
There are many factors to indicate that the storage condo business is worth the investment, including local market conditions. Many areas of the country lack vehicle storage or places where boats and RVs can be stored securely. Limited inventory equals a great investment opportunity for both the developer and buyer of the individual unit.
There are currently over 25,000,000 boat and RV owners with another 9,000,000 expected to join the market in the next 3 years. Economic and social trends indicate that this is likely to continue throughout this year and beyond. As the sales of RVs and boats increase, the demand to store these vehicles is also likely to grow. Traditional self storage facilities have limited space and amenities to store RVs and boats, which means that demand for RV/boat condos will likely grow as RV and boat sales rise.
Owners of other types of vehicles, such as collectible and antique cars, motorcycles, and commercial vehicles, may also be in the market for storage condos. Owners of all these vehicle types will not only want a unit for storage, but for maintenance and light repairs as well – a secure place where they can pursue their hobby.
Want to know more about investing in storage condominiums ? Check out our latest video with LuxeLocker to learn more about the Storage Condominium market and why they chose to work with Forge Building Company. Then let’s connect.
References
1. The Storage Guy. (n.d.). Retrieved from thestorageguy-madison.com: https://thestorageguy-madison.com/storage-condominium-your-home-away-from-home/#:~:text=Storage%20condominiums%20appreciate%20in%20value,the%20value%20of%20a%20property.
2. Stratton, J. (2007, October 1). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/vehicle-storage/entering-storage-condo-market
3. Roberts, D. (2023, August 6). Guide Home Blog. Retrieved from GuideHomeBlog.com: https://guidehomeblog.com/how-much-do-storage-condos-cost/
4. Harris, A. (2020, May 26). SpareFoot Blog. Retrieved from Sparefoot.com: https://www.sparefoot.com/self-storage/blog/23966-what-are-storage-condos/
Boise, Idaho. – September 1, 2022 – Forge Building Company, a leading national building company with a strong focus on self-storage and innovative building solutions, today announced the groundbreaking on the second phase of its LuxeLocker Boat & RV Storage project, the premium luxury RV and boat storage facility in Boise. What is unique about this project is that customers own the individual storage units instead of renting them.
This project has included 107,023 square feet of facility. In the newest second phase, LuxeLocker is adding 63 new units. The facility is located at 7373 S Federal Way in Boise and will serve the areas dynamic and growing population and business community.
“We are proud that Forge Building Company was selected for this project because of the need for a premium facility that offers numerous amenities not typically found on storage properties,” said Hamish Bell, CEO of Forge. “We are confident that we can provide the specialized expertise needed for this kind of project given our experience with building many quality commercial RV and boat storage facilities.”
LuxeLocker is a premium property, offering larger units with widths of over 14’ wide and depths of 40’-60’. The average unit is approximately 700 square feet. Accompanying the generous unit sizes are expansive driveways wider than 60 feet. The facility is designed to accommodate large recreational vehicles for easy maneuvering. They also offer amenities for RV owners that most others don’t, including RV cleanout stations, RV wash bays, and bright night lighting.
The property is leading the industry by offering fully integrated of ‘smart’ technology. Customers can acquire space at a LuxeLocker and manage their property remotely from the comfort and convenience of their computer or smartphone—at home or on the road.
Forge Building Company and LuxeLocker plan on a high quality and aesthetically pleasing building using the latest in reliable construction techniques and innovations in the steel building industry.
Development that enhances the community makes for great neighbors, boosts property values, and supports smart growth. Forge Building will be constructing a lower height building that only rises to 18 to 22 feet around the perimeter. Noise and light pollution are practically non-existent. LuxeLocker’s premium clientele of owners, along with larger size units and fewer tenants per square foot, along with the recreational vehicle enhanced space reduces traffic in and out of the site for lower impact on the neighborhood.
LuxeLocker offers storage space that customers own instead of rent. The LuxeLocker model offers customers a long-term real estate investment, along with the ultimate in storage space. Purchasing a storage unit provides customers with an active asset with the ability for future capital growth. Space can be subleased to give owners a consistent passive income stream. Mortgage payments offer a tax benefit and are often lower than the rent on comparable units.
For more information, please visit https://luxelocker.com/.
Founded in 2007 and headquartered in Boise, Idaho, Forge Building Company was created after its founders, Hamish and Hayden, spent decades working in the steel-structure industry. Using their expertise in storage and focusing on the three pillars of buildings, designing, and erecting, led the company to a more diverse portfolio and stronger strategic partnerships across the U.S.
Today, the company offers steel buildings for self storage, RV & boat storage, car washes, airplane hangars, large warehouses, fish hatcheries, and craft breweries/restaurants. Other offerings include pre-engineered metal buildings for industrial and commercial applications.
With a strong portfolio of partners and clients, the Forge team has completed over 500+ jobs, built over 50 million square feet and remains privately owned. This solid team with complimentary skills was founded on a rugby field in New Zealand over two decades ago and is now working to be the best in the industry.
Forge Building Company, "The Steel Building Experts," recently announced it landed ten new self storage building projects with a combined total of more than 600,000 square feet in six Idaho cities: Boise, Meridian, Eagle, Hailey, Twin Falls and Rupert.
Traditionally rooted in the Pacific Northwest, FORGE has demonstrated remarkable adaptability and vision in recent years by venturing into new markets across the nation. Over the past two years, the company has strategically expanded its operations, successfully penetrating diverse geographical regions throughout the USA. This expansion reflects FORGE's dedication to growth and its ability to capitalize on emerging construction opportunities in the self storage industry.
This nationwide building contractor has over 45 projects spanning multiple states, including Hawaii, New York, Florida, Idaho, Nevada, Tennessee, Arizona, Texas, and North Carolina. The company's presence in these varied markets underscores its commitment to meeting clients' evolving needs nationwide while maintaining its unwavering commitment to quality and innovation.
The surge in self-storage building projects across the USA underscores the increasing demand for secure, accessible storage solutions. Whether catering to residential, commercial, or industrial clients, FORGE's self-storage facilities are designed to meet the highest standards of quality and efficiency. From traditional storage units to climate-controlled spaces, FORGE offers a diverse range of options tailored to the unique requirements of each project and client.
What sets FORGE apart is its unwavering commitment to excellence at every stage of the construction process. The company prioritizes innovation, craftsmanship, and attention to detail from design to build. By fostering collaborative partnerships within the industry, FORGE ensures seamless project delivery and client satisfaction.
As FORGE continues to expand its footprint across the USA, its core values remain unchanged: integrity, professionalism, and a relentless pursuit of excellence. By embracing innovation, change, and new opportunities, FORGE Building Company reaffirms its position as a trusted leader in the construction industry, setting the standard for quality and innovation in self storage facility construction and beyond.
