The self storage industry which has experienced remarkable growth in past years and continues to evolve. Following many years of pandemic-driven demand, the self storage industry is now entering a period of adjustment1. Despite the potential obstacles, opportunities for development persist, fueled by technology, customer trends, and strategic innovation. (See our blog, “Is Self Storage a Good Investment for 2025?”)
For savvy investors, opportunities still exist. Self storage businesses must differentiate themselves through storage facility investment. This includes upgrades, improved customer service, and the use of cutting-edge technology, keeping in mind these demand drivers:
Whether building a new facility or upgrading an existing one, so many options exist to help increase profitability. These options range from traditional drive-up units and multi-story facilities to climate-controlled spaces and adaptive reuse projects, such as converting offices or big-box stores into storage units. There’s even a growing market for Pre-Engineered Metal Buildings (PEMBs), flex space, RV/boat canopies, as well as high-end storage condos designed for boats and RVs. With a variety of choices available, investors can select the right storage model and mix based on budget, location, and the needs of the surrounding community.
The traditional self storage facility typically offers outside drive-up storage. These warehouse type of units typically charge by the month and provide wide driveways for trucks to unload belongings into individual units. The interior spaces range in dimensions from 400 to 500 square feet.
This type of facility works well in communities where customers want to store and organize their belongings in a safe, clean place with easy access to their goods. These types of storage units provide the highest level of convenience and work best in a community where people want to load or unload their goods as quickly as possible. They are a great option where land is plentiful enough to create drive-up pathways.
Here is one example of a traditional drive-up facility built by Forge Building Company.
Multi-story self storage is great for when land space is limited. These are also ideal for investors who want to add climate-control options. Some may contain exterior drive-up options for first level, then climate-control options for the upper levels. For an example of a multi-story Forge project, see Kansas Self Storage Building Projects and to learn more on whether building a Multi-Story facility makes sense, see our blog: “When Building a Multi-Story Facility Makes Sense.”
Climate-controlled storage facility investment is a great option in areas of the country that experience extreme heat or cold temperatures and/or that experience high humidity. These units are great for your customers storing furniture, antiques, artwork, and other items where the climate needs to be controlled to avoid moisture buildup and mold prevention.
For more information on whether or not climate-controlled self storage is worth the investment, see our blog titled, “Is Climate-Controlled Self Storage Worth the Investment?” and see an example of a Forge Building Company climate-controlled storage facility build.
With the decline in big-box retail, there is now a significant inventory of vacant buildings out there for sale. With the current trend of office vacancy rates increasing, building owners are seeking creative ways to make that empty space generate profit again. As such, some are converting these structures into self storage facilities. These buildings can be converted into climate-controlled units or more traditional drive-up units depending upon the building, location, etc.
While this development path can be an efficient time and cost-saver, there are important considerations. These are addressed in our blog titled, “Converting Office and Big-Box Retail Buildings to Self Storage.”
In today’s rapidly evolving landscape of construction and development, the demand for efficient, durable, and cost-effective solutions continues to soar. The pre-engineered metal building (PEMB) is a game-changer in the industry. A pre-engineered metal building system is a building that is constructed with a steel frame system that supports a metal roof and wall panels. They are pre-designed to adhere to precise dimensions in a factory, then the building components are brought to the site in completely knock-down condition (CKD), and finally, they are fixed/jointed at the site and raised with the help of cranes.
PEMBs have revolutionized the construction landscape across various sectors. These include agriculture, recreational sports facilities, warehouses, aircraft hangers, community centers, storage warehouses, and more. These structures offer a plethora of benefits that make them an ideal choice for developers, investors, and owners. PEMBs are perfect as a stand alone building or as a part of a larger self storage facility.
See: U-Haul – Overland Road and Condor Barn Breeding Facility for a couple of examples of how PEMBs are being utilized.
For more information, also see “Mixing PEMBs with Standard Self Storage for Maximum Opportunity” and “Pre-Engineered Metal Buildings – An Investment Alternative.”
Flex spaces are becoming increasingly popular among business owners of both offices and storage space. As a business owner, you know exactly how much overhead costs can add up; it’s unfortunate if you don’t need all the space, but for many, that was the only option. That's why so many companies are investing in flex spaces instead of office buildings.
For flex space storage, garage condos can be constructed for commercial applications. An investor might build several garage condos within one large structure and then rent them out to multiple businesses, such as automotive repair shops or a trade workshop. Flex spaces can be used as offices, warehouses, mechanic shops, manufacturing facilities, and so much more.
Americans love to travel and have been purchasing RVs and boats for years. The RV industry alone has seen consistent growth every year since 2009, and the RV Industry Association is predicting shipments of new RVs to be in the mid 300,000s, up from 2024’s shipments2.
There are many factors to indicate that the addition of boat & RV canopies is worth the investment, including local market conditions. Many areas of the country suffer from a lack of vehicle storage or places where boats and RVs can be stored securely. As the sales of RVs and boats increase, the demand to store these vehicles is also likely to grow.
Read about one of our recent boat canopy projects built by Forge for Havasu Riviera Marina.
Unlike the boat & RV canopies, boat & RV condos can not just be rented, but also purchased. These units are fully enclosed. 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.
For more information on where this segment of self storage is heading, see our blog, “Where is Boat and RV Storage Headed?” and then check out Luxelocker Storage Condos for an example of one of our storage condo developments.
Choosing the right self storage investment option and the right mix will depend on your location and its market demand. Many Forge customers have a mix of these different types of storage options on their premises. The steel building experts here at Forge Building Company are happy to help you through the entire process. Let’s connect today.
Contributing Editor: Phil Warchol, Forge Building Company
References
1. Dmyterko, A. (2024, November 5). Streams Development. Retrieved from streamsdev.com: https://www.streamsdev.com/post/self-storage-industry-trends-and-outlook-for-2025
2. Fedorick, L. (2025, January 21). Camper Report. Retrieved from camperreport.com: https://camperreport.com/the-year-ahead-rv-predictions-for-top-trends-in-2025
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
Americans love to travel and have been purchasing RVs and boats for years. According to numbers shown from industry trade groups and places like Statistica1, Camper FAQs2, and Go Rving3, growth in ownership and usage of RVs and boats is growing. 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.
The RV industry alone has seen consistent growth every year since 2009, and with the popularity of van life coupled with the pandemic, there was a huge spike in Gen-Z and millennial RV owners that wanted to travel and have recreational experiences without crowds. Many also found that they could work from remote locations, which meant they can live in RVs and work, not just use them for travel. This helped the outdoor recreation industry to reach close to a trillion dollars.
One other development advantageous to RV/boat exclusive storage demand is the growth in Airbnb-type online apps, which allow RV owners to rent vehicles that are parked in storage facilities. The RVIA notes that median annual usage of RVs is 25 days a year, which means that many vehicles are in storage most of the year. Renting stored vehicles can generate significant income for owners.
Recreational vehicles and boats are definitely growing as a genuine part of the American family experience, and economic and social trends indicate that this trend is likely to continue throughout 2023 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 exclusive facilities will likely grow as RV and boat sales rise.
According to Yardi Matrix, Denver leads metros in RV/boat exclusive storage in acreage with 596.8, followed by San Francisco (420.4), Dallas (345.7), Houston (302.9), and Phoenix (299.3). Denver also leads with 47 properties, followed by Houston (45), San Francisco (39), the Inland Empire (36) and Los Angeles (35)4. Currently, there are only 3,000 RV and Boat Exclusive Storage facilities in the US. If you do the math, that would equate to each facility being required to support 2,000 boats and RVs to make up for current the demand.
While boat and RV exclusive storage facilities remain relatively small compared to other niche segments of commercial real estate, the industry registered a record-high capital flow in 2021 – $157.7 million of RV/boat exclusive facilities were sold in 2021, almost triple the previous annual high. These numbers are expected to continue throughout 2023.
The key to any successful self storage project is finding the right parcel of land in the right market for the right price, and then build the right facility on that land. Given the growth of the boat and RV market, if you’re thinking about the best way to add these storage units to your existing facility or building a new boat and RV storage facility, then give the team at Forge Building Company a call. We know all the ins and outs of building these sorts of facilities. Check out our Boat & RV product page and check out our recent video for our customer, SE Boise (https://www.youtube.com/watch?v=HmAcEcb4I-E&list=PL7FdrDM_tL-wtL-oZhF6Jk4CRIXQjkCKU&index=2).
Boat and RV exclusive facilities 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.
Generally speaking, for a facility to be profitable, you would need a parcel of seven to ten acres. Full lease-up should occur within 24 months, with breakeven occurring in the mid 14-16 months5. Typically, a ratio of 50 percent coverage yields approximately 217,800 to 304,920 square feet under roof when built out. The average unit size for an enclosed RV unit is 14-by-40 feet or 560 square feet.
Another reason for the increased land requirements is because the drive aisles need to be wider to give tenants room to maneuver boats with trailers and RVs. Aisles of at least 50-55 feet wide are recommended when accessing spaces that are 40 feet deep.
Boat and RV Storage Worth the Investment?Proper due diligence will help any investor assess how much you can afford to pay for a piece of land, based on the amount of rent per square foot of space, and your anticipated construction costs. However, the growing demand from RV and boat sales combined with the limited amount of supply means the segment’s fundamentals should remain healthy, even in volatile economic times making this a very worthwhile investment.
Works Cited
1. Statista. (2022, December 9). Retrieved from Statista.com: https://www.statista.com/statistics/1155988/us-recreational-boating-vessels/
2. Camper FAQs. (2023). Retrieved from Camperfaqs.com: https://camperfaqs.com/rv-statistics-trends-facts
3. Go Rving. (2022, June 16). Retrieved from gorving.com: https://www.gorving.com/newsroom/rv-industry-association-manufacturing-statistics'
4. Fiorilla, P. (2022, March 21). Yardi Matrix. Retrieved from yardimatrix.com: https://www.yardimatrix.com/blog/demand-for-rv-boat-storage-rising-as-sales-hit-record-highs/
5. 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
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.
