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
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/
In an unpredictable world where natural disasters can strike with little warning, such as the recent fire in Lahaina, Hawaii, safeguarding valuable possessions has become an essential concern. As individuals and businesses increasingly turn to self storage units to store their belongings, the imperative to ensure the preparedness of self storage facilities for natural disasters has grown exponentially. The significance of incorporating resilient infrastructure and developing comprehensive disaster preparedness plans cannot be overstated. This blog delves into the crucial measures necessary to fortify self storage units, guaranteeing the safety of stored items and providing peace of mind to your customers in the face of nature's unpredictability.
Some natural disasters that you should be prepared for are:
In the United States, where you live is the largest risk factor for determining the type of natural disaster to be most prepared for. For example, large hilly areas are at risk for landslides, whereas coastal areas are most at risk for hurricanes. It is always a good idea to check with your local Emergency Management Agency for a complete listing from the Hazard Vulnerability Analyses Plan.
One of the key considerations in constructing self storage units that can withstand natural disasters is the choice of materials used. Concrete has long been lauded for its durability and ability to withstand various forces of nature. Reinforced concrete, in particular, proves to be a formidable option for disaster-resilient construction. Its combination of high compressive strength and flexibility makes it a suitable material for enduring earthquakes, while also offering resistance against fire. Additionally, concrete's resistance to water damage is crucial in flood-prone areas. When reinforced with steel bars or mesh, it gains the ability to absorb and distribute stresses, rendering the structure more resistant to impacts and vibrations caused by seismic events. Moreover, concrete's low maintenance requirements and longevity contribute to the long-term sustainability of the facility, further solidifying its position as a top choice for self storage construction.
In combination with concrete, the strategic use of steel can significantly enhance the disaster resilience of self storage facilities. Steel’s innate strength, flexibility, and ductility make it an ideal material for framing and structural components. As Forge, your steel building experts always recommend, incorporating steel framing in the construction not only provides the necessary support to withstand seismic forces but also enables a quicker construction process. Additionally, steel’s non-combustible nature safeguards the facility against fire hazards, reducing the risk of extensive damage in case of an inferno. For areas prone to hurricanes and strong winds, steel can be employed to create impact-resistant roofs and doors, bolstering the facility’s capacity to endure even the most aggressive weather conditions. The combination of concrete and steel provides the self storage facility with a robust structural foundation capable of withstanding a diverse array of natural disasters.
Creating a disaster preparedness plan tailored specifically for a self storage facility is important. Such a plan serves as a proactive blueprint for managing potential crises, ranging from earthquakes and floods to wildfires and severe storms. The team at Forge helps its customers identify vulnerable points within the facility’s design that might exacerbate the impact of a disaster. By addressing these vulnerabilities early on, our team can implement structural enhancements, reinforce critical infrastructure, and strategically position emergency resources to minimize damage and ensure the safety of both stored items and occupants. Furthermore, a well-documented disaster preparedness plan enhances the facility’s credibility, attracting customers who prioritize safety and are more likely to entrust their belongings to a space equipped to weather unexpected challenges.
The advantages of a disaster preparedness plan extend beyond immediate safety concerns, encompassing economic, legal, and ethical dimensions. Self storage facilities who establish robust disaster mitigation strategies demonstrate their commitment to responsible stewardship of their clients' possessions. This not only cultivates trust but also fosters a positive reputation that can translate into long-term success. From a legal perspective, having a clearly defined and regularly updated disaster plan can shield facility owners from potential liability in the aftermath of a natural disaster, ensuring compliance with safety regulations and obligations. Moreover, a well-prepared facility is more likely to recover swiftly from the aftermath of a disaster, thereby minimizing disruption to business operations and ensuring ongoing revenue generation. Ultimately, investing time and resources into crafting a thorough disaster preparedness plan is an investment in the facility’s sustainability, reputation, and the well-being of everybody involved.
In the realm of self storage construction, material selection plays a pivotal role in establishing the resilience of self storage units. The fusion of reinforced concrete and steel emerges as a potent combination to withstand a spectrum of natural catastrophes. Reinforced concrete’s durability, flexibility, and resistance to fire and water make it a cornerstone of disaster-resilient construction. Complemented by steel’s strength, ductility, and non-combustible nature, these materials together furnish the self storage facility with a robust structural foundation capable of standing up to the most severe elements.
However, materials alone cannot ensure preparedness. Crafting a tailored disaster preparedness plan is indispensable for self storage owners. Providing customers with reference documents for Personal Preparedness using FEMA and Red Cross Materials will show a sincere commitment to customer safety. Beyond immediate safety, such plans elevate a facility’s credibility, attract safety-conscious customers, shield self storage facility owners from potential legal ramifications, and bolster overall sustainability and reputation.
Working with a company, such as the steel building experts at Forge Building Company will ensure that your facility is built with the highest quality materials that will endure even the most aggressive weather conditions, providing peace of mind for your customers should a natural disaster occur.
FOR IMMEDIATE RELEASE
Boise, Idaho – September 6, 2023 – Forge Building Company, a renowned nationwide storage builder, proudly announces its nationwide expansion with projects in eleven additional states. This significant milestone solidifies Forge Building Company as the leading expert in the self storage industry.
The nationwide expansion includes projects in Delaware, Michigan, Ohio, Kansas, Missouri, Maryland, Tennessee, Pennsylvania, Hawaii, New York, and Florida. With a focus on providing tailored and up-to-date solutions, Forge Building Company offers a diverse range of designs, including single-story and multi-level self-storage facilities, boat and RV canopies, storage condos, flex buildings, and conversions of large-scale retail spaces into self-storage facilities.
“We are excited to contribute to the development of local economies as we expand our company towards the East Coast and Hawaii,” said Hamish Bell, President of Forge Building Company. “Our transition from primarily operating west of the Mississippi to becoming a nationwide developer demonstrates our expertise in the self storage industry regardless of the location.”
Forge Building Company's commitment to customer satisfaction and close collaboration sets it apart from competitors. With 100+ projects already in the pipeline for the remainder of 2023 and throughout 2024, the company is well-positioned for continued growth and success on a national scale.
In the growing self storage industry, choosing the right builder is crucial to your success. With the Forge team, you’re not just hiring a storage unit builder; you are partnering with dedicated professionals committed to excellence in planning, design, engineering, construction, and project management.
About Forge Building Company
Founded in 2007 by veterans Hamish Bell and Hayden Farrell, Forge Building Company has become a comprehensive steel building expert and provider. With over two decades of experience as a nationwide storage builder and a portfolio of over 500 projects spanning 50 million square feet of construction, Forge Building Company, the self storage experts, remains privately owned and operated in Boise, Idaho.
In the changing landscape of the self storage industry, the integration of cutting-edge smart technology has emerged as a transformative force, redefining the experience for both operators and builders. With the advent of smart locks and smart-security systems, robotics and AI, intuitive kiosks for seamless check-in/out processes, and user-friendly software and apps, HVAC control systems, and more, benefits abound on multiple fronts. For operators, these advancements provide a competitive edge and greater profitability with heightened security, streamlined operations, and increased customer satisfaction. Developers, such as Forge Building Company, who fully understand the importance of these technologies and know how to implement them into the facilities they are building, gain a competitive advantage in creating state-of-the-art facilities for their customers. Embracing this era of technology empowers self storage businesses to stay ahead in an increasingly digital world providing its customers with unparalleled convenience and peace of mind.
Smart TechnologyThe integration of smart technology, including smart locks, smart security-systems, robotics, AI, and self-service kiosks for check-in/out, offers many advantages for both operators and builders of self storage facilities.
One of the most significant pieces of technology for a self storage business is security and location intelligence software. This software can also provide valuable insights into how foot and vehicle traffic flows at their facilities.
Many self storage software products also offer integrated security systems such as access control and video surveillance. This is key for protecting the owner’s investment.
Smart LocksWhen you combine smart locks with advanced security systems, operators have the ability for real-time monitoring and control over access points, minimizing the risk of unauthorized entry and potential theft. Smart locks and security systems also reduce the time that the building operator spends on tedious tasks such as checking and cutting locks. With the implementation of smart systems, operators can spend more time focusing on the needs of their customers and less time on “time consuming manual tasks”1.
Another trend driving the self storage market is the use of robotic/AI-driven surveillance systems. These types of systems can efficiently monitor large areas, identifying suspicious activities and alerting operators promptly, further fortifying the facility's security measures.
One major cost saving use of technology for self storage facilities is the implementation of intelligent kiosks. Instead of maintaining a physical presence on-premise round-the-clock, self storage facilities can now leverage intelligent kiosks to replicate the interactions a manager would typically have with customers. “These kiosks efficiently handle approximately 60% of the frequently asked questions, relieving the burden on staff and improving customer service”2.
Automated systems like smart kiosks offer numerous benefits by streamlining self storage operations. They play a crucial role in guiding tenants through the onboarding or move-in process. They can assist customers in choosing the appropriate storage size, facilitating unit access, accepting payments, and addressing lease-related inquiries. Embracing this technology empowers facilities to optimize resources and provide a more seamless and efficient experience for all parties involved3.
By incorporating smart locks and automated rental systems, operators have the opportunity to offer upgraded smart units at a premium price point. Tenants are willing to pay extra for the enhanced benefits. These benefits may include improved security, convenience, and the superior quality that these smart units provide. Additionally, the rental process can include automated options for tenants to select insurance coverage or other upgrades, making it a seamless and efficient experience for both tenants and managers alike4.
The incorporation of new software and apps in self storage facilities presents a wide variety of benefits for both operators and builders. For self storage management, these include:
Today, mobile apps enable self storage customers to quickly access facilities or units with scannable codes or RFID tags. These apps also supply customers with updates, such as notifications about payment due dates, access changes, and account management.
Furthermore, these software solutions provide real-time data and analytics, offering valuable insights into customer behavior, occupancy rates, and revenue generation. This data-driven approach empowers operators to make informed decisions and optimize facility performance6.
Very few places in the country are fortunate enough to avoid the frigid temperatures of winter, the extreme heat of summer and the humidity that comes with it. For that reason, climate-controlled storage spaces and HVAC control systems have exploded in popularity, and this is particularly true in areas prone to extreme temperatures or high humidity. Renters storing valuable or irreplaceable items often prefer climate-controlled self-storage units due to the high degree of protection and peace of mind they provide.
Owning a climate-controlled storage business is a great investment. Storage facilities that incorporate HVAC control systems typically command higher rental rates than traditional space of the same size. The amount of upcharge will vary by region of the country, however, in some markets, this could be 15-35% or more7. Another huge advantage is that the newest generation of 100% climate-controlled, multi-story buildings enables a developer to build roughly three times the rentable square footage on the same amount of dirt. This means the owner can absorb a much higher land cost. It also allows them to consider many more parcels for a project8.
For more details on climate-controlled self storage units, see our blog, “Is Climate-Controlled Self Storage Worth the Investment?” and our video Climate Control Self Storage.
Integrating cutting-edge smart technology and adopting new software and apps have revolutionized the self storage industry. They yield substantial benefits for both operators and builders. With enhanced security, streamlined operations, and increased customer satisfaction, operators can navigate the challenges of an increasingly digital world. The convenience and peace of mind offered to customers through smart locks, robotics, kiosks, HVAC control systems, and user-friendly apps redefine the self storage experience, attracting a tech-savvy clientele. Furthermore, builders gain a competitive advantage by offering these new technologies in state-of-the-art facilities with advanced security and convenient self-service options. As the self storage landscape continues to evolve, embracing this era of technology proves essential for thriving in the industry and ensuring unparalleled convenience for customers
Works Cited
1,4. Hembree, Jordan. “5 Reasons Smart Locks Are a Self Storage Manager’s Best Friend.” Janus International Group, 31 Dec. 2020, https://www.janusintl.com/news-media/blog/best-smart-lock. Accessed 3 Aug. 2023.
2,3. Ramirez, Rodolfo. “How AI and Big Data Are Disrupting the Self Storage Industry.” Swivl, 21 June 2023, https://www.tryswivl.com/blog/how-ai-and-big-data-are-disrupting-the-self-storage-industry. Accessed 3 Aug. 2023.
5. Burnam, C. (2023, April 18). Forbes.com. Retrieved from Forbes.com: https://www.forbes.com/sites/forbesbusinesscouncil/2023/04/18/three-ways-technology-is-changing-the-self-storage-industry/?sh=645f69c53604
6. Austin, David. “Should I Use a Self Storage App for My Business?” Storagepug, 7 Feb. 2023, https://www.storagepug.com/blog/self-storage-app. Accessed 4 Aug. 2023.
7. Regency Steel Buildings. (n.d.). Retrieved from Ministorageoutlet.com: https://ministorageoutlet.com/self-storage-industry-projections/
8. Rider, J. A. (2022, February 20). howmuches.com. Retrieved from How Muches: https://howmuches.com/how-much-does-it-cost-to-build-a-climate-controlled-storage/
Whether you are building your first self storage facility or own one that you want to upgrade, deciding on what key features you may want to include can be challenging. That’s where the team at Forge Building Company can help. We can work with you to determine upgrades and features that make sense, not just from an aesthetic perspective but financially, for both the short and long term.
When it comes to making physical improvements, you need to be smart. Invest in upgrades that will improve the customer experience and add to your bottom line.
The following are some suggestions and ideas.
So, where do you start? According to Steven Wear of IMPACT Self Storage, when it comes to facility improvements, there’s a return multiple for every dollar of increased net operating income (NOI). Cap rate is calculated by dividing NOI by value or price. If a self-storage property trades at an 8% cap, for every $1 that NOI increases, facility value grows $12.50.
Any upgrades that affect the trading cap rate also result in a return multiple. By improving a property’s class ranking, the cap rate will decrease. If a facility with NOI of $100,000 is improved so someone will buy it at a 7% cap as opposed to 8%, there’s a profit increase of more than $178,000.
When considering value-add projects to include when building or renovating your self-storage facility, any investments that can improve asset class and increase NOI should be prioritized. One example of this would be taking traditional units and converting them into climate-controlled spaces. Facilities that do this often see an increase in rental rates as well as a better class. However, the increased utility expense prevents the owner from capturing 100% of the rate increase, but if there is an overall positive impact on NOI, then it’s a good investment.
When you think about what features to add to your facility, consider that while paint and landscaping may not necessarily add a lot of value, if a lack of new paint and attractive landscaping results in customers not wanting to rent there, then improving those items will increase NOI.
Many functional items will improve the appearance and offer more benefits than an indirect valuation increase. Two of these, for example, include paving and fencing. Many times, our customers run into self-storage loans that have physical requirements. For instance, commercial mortgage-backed securities loans have some of the most favorable market terms but usually require a facility to be paved and fenced.
Does adding or upgrading your facility with sustainable improvements make financial sense? Typically, when self storage units have been in operation for a while, there are usually many ways to improve their sustainability and energy efficiency that will add to the profitability of the facility.
When trying to sort this out when you are looking to remodel an existing facility or build a new one, consider partnering with a steel building contractor, such as Forge Building Company. We have over 15 years of experience building energy-efficient structures. We use low-energy lighting but without compromising on items such as a high-quality, modern HVAC system.
Many self-storage facilities are constructed of steel, which is already very durable. With Forge, being a steel building expert, we use Galvalume in the buildings we erect. This is a proprietary coated steel, that prevents corrosion and deterioration that could result in a compromised building envelope and energy leaks. We also highly recommend that the insulation is sufficient to regulate unit temperature. Rigid foam insulation infused with non-toxic borates is a great solution that also discourages pests.
Solar panels or efficient roofing, such as the standing seam roof panels used by Forge, is another benefit to steel construction. Roof coatings with a high percentage of infrared reflectants help maintain a more stable building temperature. A “cool” finish can reduce surface temperature by up to 38 degrees and save on energy costs by about 23%.2
Retrofitting energy-efficient lights is another great way to reduce electricity consumption. Alternatively, consider fitting larger lights with a motion sensor, so they either dim or turn off completely when there’s no activity. While installing LED lights or sensor switches might seem tedious on the surface, they will be much cheaper to run and maintain in the long run.
Lower energy use isn’t only sustainable, it creates economic savings for business owners and customers.
For other sustainable improvements to consider, see our blog titled, “Sustainability in Self Storage Facility Renovation and Projects to Consider.”
With the explosive growth in the boat and recreational vehicle (RV) market, adding boat and RV storage may boost your bottom line quickly if your market warrants it. And there are many options when adding this type of storage from open canopies to storage condos.
With storage condos, many of these facilities are adding fire sprinklers, electrical outlets, fluorescent lighting, and individual door alarms. Many also offer 24-hour access with alarm monitoring and 24-hour video protection. The large sectional doors are sealed on all four sides. Driveways are 56 feet wide to allow easy parking of these large vehicles. Many of the storage condo buildings are plumbed for water so customers can wash vehicles in front of their units before storing them. And many offer an RV-waste dump and separate bathrooms with showers for men and women.
Many of these types of facilities are creating a new culture where the owners of these “toys” come to store their vehicles and then end up hanging out for the evening.
Facility improvements aren’t just about increasing value and immediately adding to your bottom line; they're also about maintaining it. So, weigh your options carefully and invest wisely. Forge Building Company welcomes the opportunity to help you choose value-added features and projects based on how positively they affect the asset from a financial point of view. Let’s connect.
Works Cited
1 Wear, S. (2021, September 25). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/facility-value/value-add-projects-self-storage-making-smart-upgrades-yield-positive-return
2 Barnard, J. (2018, September 14). Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/eco-friendly-storage/differentiation-through-sustainability-green-ideas-self-storage
