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 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.
In 2021, owners of self storage facilities saw extremely high occupancy rates. The average cost of renting a storage unit also surpassed pre-pandemic levels. Self storage business owners saw a shift in terms of the types of storage spaces renters desire, and many are updating their buildings or adding new ones to accommodate them. This is where climate-controlled units come into play.
The need for additional storage space is growing especially rapidly in lower-cost cities as population and migration growth continue to flourish in more affordable areas. In 2020, self storage occupancy rates held steady at around 92%, and self storage market insiders expect this trend to continue well into this year and beyond.1
Owning a climate-controlled storage business is a great investment. Storage business profit margin is up to 11% per year, where the capital-intensive business profit ranges between 3%- 5%.2
Climate-controlled units are also a great way to increase profit because they 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 more.3 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 project.4
Building a climate-controlled self storage facility is different from building the traditional ones. There are definitely more unique intricacies. Following are some design considerations.
When it comes to the design of your temperature- or climate-controlled self storage buildings, here are some common items to consider.
Costs. It’s common for commercial steel building developers to phase a project, but when planning a site with climate control, consider how the design will impact construction costs. The most cost-effective building is a large, wide structure.
On average, the cost of building a climate-control self storage is $35-$70 per square foot. It may also cost around $8-10 million for a 2.5 acre landed storage. This figure represents almost all costs, including land, land development, construction, permits, insurance, materials, labor, etc. The actual cost may vary depending upon your location, materials used, type of building, etc. This is simply a rough estimate based on 2021 factors.
A study by Storelocal Storage Coop suggests that when costing out a climate-control build, you also need to factor in the cost of the HVAC mechanical system and the extra insulation you’ll need. This could add, on average, 15% to each square foot or to the total cost when compared to building a non-climate controlled self storage facility.
Heating and Cooling. Depending upon the location of your facility, a facility owner must decide if they are going to offer both heating and cooling (or one or the other). Generally, a climate-controlled facility should maintain building and unit temperatures below 85 degrees in the summer and above 55 degrees in winter, with humidity below 65 percent to prevent mold and mildew.5
Moisture is the biggest design consideration. Split-system HVAC units work well in these situations. When used in conjunction with a dehumidifier, these systems ensure that stored belongings stay dry. Another consideration is to utilize ionizers in lieu of additional “outside air intakes” to help minimize moisture.
Unit access. Climate-controlled buildings are usually built with interior unit access via hallways, but more commercial steel building developers are building climate-controlled units with exterior, drive-up access. Since these units are open to the weather elements, climate-control can be a bit more challenging. Therefore, these units should be equipped with insulated sectional doors (typically R-19 insulating value) rather than traditional roll-up doors. The proper HVAC system can also help overcome these challenges.
Unit size. Interior-access buildings won’t contain units as large as those used for drive-up storage. The largest unit size in these buildings is typically 10-by-20.
Insulation. How much insulation you need and what kind will vary based on local building codes, weather conditions, and owner preferences. The International
Energy Conservation Council recently changed its guidelines in many areas, requiring more insulation to better preserve energy. This isn’t a bad thing because it can provide facility owners the most cost-effective way to keep temperature and humidity at optimal levels.
Inside Self Storage recommends a minimum of 6 inches of fiberglass (R19) for roofs and walls. The building’s heat loss and gain must be determined by the HVAC contractor. This contractor will calculate insulation values, ceiling heights, cubic area, type of construction, amount of lighting, exterior doors, number of windows, and the air infiltration from outside.
Projects can be built with spray-in foam, fiberglass batts, insulated panels or some sort of combination. While building a project with a higher R-value will cost more, it pays benefits in two ways – your operating costs will be lower contributing to a higher property value when it’s time to sell.
Other ways to insulate your facility include:
Roof pitch. You can choose from a variety of roof pitches for climate-controlled buildings. Roofs can be designed to allow room for the desired insulation thickness (R-value) directly under the panels. Or, on higher-pitched buildings, the insulation may be placed directly over the ceiling of the heated/cooled space as you would find in a home, with insulation on the attic floor rather than under the rooftop.
As the self storage industry continues to grow, the large majority of new builds are including climate-control in the mix. And in many markets, self storage sites consist entirely of climate-controlled units.
Climate-controlled units can be an excellent addition to your storage investments since these units command higher rental rates, bring in new customers and generate additional revenue.
Whether you want to add Climate-Controlled Self Storage units to your existing facility or plan to include climate-control in a new build, the team at Forge Building Company will help you design the most cost-effective solution.
Works Cited
1. Regency Steel Buildings. (n.d.). Retrieved from Ministorageoutlet.com: https://ministorageoutlet.com/self-storage-industry-projections/
2. 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/
3. Statistica. (n.d.). Retrieved from Statistica.com: https://www.statista.com/statistics/1051121/monthly-rent-climate-control-self-storage-unit-sizes-usa/
4. Rowley, A. (2022, April 14). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/building-componentsmaterials/building-climate-controlled-self-storage-benefits-and-design
5. Storelocal Storage Coop. (2022, February 23). Retrieved from selfstorage.coop: https://www.selfstorage.coop/blog/considerations-for-a-climate-controlled-storage-facility
As 2022 winds down, the team at Forge wanted to make our customers aware of new laws that will go into effect in the new year that may impact their business. Many states have been busy updating self storage legislation this year. This affects the way facility owners handle lien sales, rental agreements, vehicle towing, employees, ADA compliance on websites, and more. Here are just a few.
Last year, at least 13 states modified some portion of their self storage statutes that address one or more of the following items.1 This will likely hold true for 2023.
The safest way to protect yourself and your business is to compare your lien-sale procedures and rental agreement against the current law to ensure any necessary language additions or removals have been made. As an example, some states allow self storage operators to send lien notices via email, however, they may also require some sort of formal disclosure and acknowledgement by the tenant before you can legally send notices that way. Another example is when states allow you to use online auctions for lien sales, they may require additional language in your rental agreement or sale notice, so tenants understand sales are no longer conducted on property.
Recently, there has been a significant increase in website accessibility where plaintiffs claim that they cannot access websites because they are incompatible with assistive technologies. In such cases, plaintiffs usually cite American with Disabilities (ADA) Title III violations.
Ironically, websites are covered by the ADA. The U.S. Department of Justice has interpreted Title III of the ADA to include websites as places of public accommodation, while Title I requires employers with 15 or more employees to comply. A website that is fully accessible is not at risk of receiving a demand letter claiming ADA violations.2
US Courts and the Department of Justice have cited the Web Content Accessibility Guidelines or WCAG 2.0 (Level AA) as the reference in lawsuits as the standard for website accessibility – and therefore ADA compliance.3
Who is covered by the Americans with Disabilities Act?
ADA compliance refers to WCAG compliance, a way of designing websites, tools, and technologies so that everyone, including people with disabilities, can use them as easily as possible. These take into consideration those with different types of disabilities such as:
How can you avoid legal risk? There are two main steps:
1 Check your level of compliance by performing an accessibility audit of your website usage.
2 Install a high-level web accessibility solution on to your website.
How Does This Help the User Experience?
The nature of accessible web design allows content to be shared across a variety of devices. This in turn ensures that every web user benefits from accessibility considerations.
As a matter of fact, one billion people globally have some kind of disability. This population has a spending power of more than $6 trillion. Statistics have shown that 80% of people with a disability will take their business elsewhere because of poor web accessibility.4 By building an accessible website, you are widening your audience and increasing your prospective customers.
Labor and Employment BillsAs we turn the calendar, you also need to be aware of many new labor and employment bills that will go into effect.5 For specifics, check with your state law details. These include:
When concerned about new laws, legislative updates, and compliance, please make sure that you are looking beyond your state’s self storage statute. Those statutes do not necessarily contain all regulations that pertain to your business.
One example is with the sale of tenant insurance. These provisions are normally placed in the state’s insurance statutes. In states like New York, the lien-sale advertising requirement can be found in a different section of the state statutes. Other laws in the various states control things such as what you are able to charge a tenant for submitting a bad check as payment.
These are just a few of the new laws that the team at Forge is aware of. Of course, any time you have questions or concerns, it is best to contact your attorney to ensure you are aware of the latest and most important statutory developments. This will help protect your self storage business and keep it in compliance with the current laws.
Works Cited
1. Greenberger, J. (2021, October 22). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/legal/what-you-need-know-about-recent-changes-state-self-storage-legislation
2. Ronen, R. (2022, January 21). Forbes. Retrieved from Forbes.com: https://www.forbes.com/sites/forbesbusinesscouncil/2022/01/21/ada-compliance-for-websites-getting-it-right/?sh=386010f148c0
3. Siteimprove. (2022). Retrieved from Siteimprove.com: https://www.siteimprove.com/glossary/ada-compliance-checker/?utm_campaign=us_fy20_ppc_accessibility_bing&utm_medium=ppc&utm_source=bing&utm_content=ada-requirements&tad_id=84250407544633&adgroup_id=1348002241464864&campaign_id=413363497&msclkid=79f79cda3d
4. Michelle Yin, D. S.-M. (2018, April 17). AIR. Retrieved from air.org: https://www.air.org/resource/report/hidden-market-purchasing-power-working-age-adults-disabilities
5. California Employers Association. (n.d.). Retrieved from Employers.org: https://www.employers.org/events/private-webinars/2023-labor-law-update-sponsored-by-california-self-storage-association/01/26/2023/
Designing and developing a profitable self storage facility requires much more than picking the perfect location and unit mix. The vendors you select and the team you work with can impact decision making and impact the bottom line.
In the early years of self-storage, many facilities simply consisted of single-story, garage-style structures built from a flat slab with concrete block walls and simple wood-truss roofs. Today, with a scarcity of available land, many self-storage owners and investors are building multi-story units that are climate controlled and energy efficient. Materials being used are very different as are the requirements for new construction and building codes, especially those mandated by new standards of energy efficiency.
However, before you build or start down the design planning road, it is imperative that you engage a company to do a market feasibility study. This is a critical first step since most investors and developers want to know if the property will be profitable before going into the design phase.
Once your market feasibility study is complete, the Forge team will provide a complimentary site layout in this preliminary phase of the project. This site layout can then be turned into AutoCAD drawings so the architectural team can make any necessary updates and incorporate these into the architectural set of drawings (see below).
So, who are the key players you will need in your design team? Below we outline the major vendors and how they will contribute to the development of the most aesthetically pleasing, profitable, and cost-effective self-storage facility.
Now that you know who the players are, the next question is how do you choose the right companies to provide these services? Just like with many service-oriented businesses you’ll want to choose a business that has a solid reputation, comes from a referral, or meets your expectations with initial interactions. Beyond the basics of choosing a “good” company to work with there are some key attributes specifically for the architect, structural engineer, and civil engineer that you want to take into consideration.
First, it is absolutely critical to select an architect and structural engineer that have experience specifically with self storage. There are aspects to self storage that are very different from building a multi-family or commercial development. The architect and structural engineer don’t have to be local to the area that you are building in, however, they need to be able to effectively obtain information required in order to communicate with you about your project. It's a little bit of a different situation with the civil engineer.
It's a good idea to select a civil engineer that is familiar with the region in which the project is being built. The reason for this is you want the civil engineer to have experience and knowledge specifically with the conditions of the soil within a particular area. Different parts of the county have different types of earth that needs specific considerations. For example, building in the wetlands of Florida is going to vary greatly from building in the dry dessert of Arizona.
Another thing to keep in mind is that these companies should be working collaboratively together. If buildings need to move because of where the retention pond is, then the architect will need to make changes to the layout. If this causes a building size to change, then the structural engineer is going to have to adjust their drawings. So, with these things in mind, make sure that every player has the bandwidth to take on another project. To keep progress moving along, you don’t want anyone held up because one of the team members doesn’t have time.
As you are making selections on your design team, it is a good idea to make your selection on a steel building contractor. Many of these contractors, like Forge Building Company, offer structural engineering as part of their services. The benefit of bringing a steel contractor into the design phase is that it allows them to provide insight on best practices that they have seen over the years, as well as allow them to show where there may be areas to value engineer the project, ultimately saving you money.
When selecting a steel frame building contractor, it is key to work with one that has created custom steel buildings of every shape and size. Here are some questions to ask when making your decision on who to work with:
The right steel building contractor should also be able to provide:
For more considerations, also see our blog “Commercial Steel Building Developers.”
For the last 15 years, Forge Building Company has partnered with investors and developers on over 500 self storage projects. With our experience in this space, Forge can provide all the necessary vendors and information needed for your project to be a success – from start to finish.
Here is how we can help. Forge offers:
Whether you are considering your first or your fiftieth self storage project, we are ready to partner with you. Forge knows self storage and has built over 60 million square feet of it.
To hear more about what our customers are saying about working with Forge as a one-stop shop, see https://www.youtube.com/watch?v=P7WFCRms2kI.
Let’s begin the discussion on your next project. Click here to connect!
Contributing Editor: Melissa Anderson, Forge Building Company
With the self storage market booming, many investors are jumping in or expanding on existing facilities they own. Whether this is your first build or fiftieth, self storage facilities are designed and operated much differently than other real estate product types. So, before you start planning and building a self storage facility, there are some common mistakes you will want to avoid.
The team at Forge Building Company has repeatedly witnessed many of the same construction mistakes when the property owner didn’t hire someone with industry experience (like Forge) to oversee the development. Common design and construction mistakes can cost a self storage owner a lot in extra expenses, and possibly long-term financial losses, because these mistakes can’t be easily corrected. Let’s take a look at these common mistakes and how to avoid them.
From the onset, some of the biggest mistakes are made in site selection and design – from choosing the right site and land for development to determining unit mix. Here’s how to avoid these mistakes.
On average, here’s an ideal 100-unit ratio for a new facility:
Before you start your build, here are some of the very basic mistakes that can be completely avoided with proper planning and communication.
Not understanding fire code and fire hose access: It is key for property owners to fully understand fire code and provide fire department access roads that are up to code, which allow a quick response time.As you’re building your facility, it is key to keep in mind that your facility should be welcoming, easy to see, and easy to access. Here are some mistakes to avoid in this area.
What other areas do you need to think about when planning and building a self storage facility? Here are a few other mistakes that can easily be avoided.
Avoiding these common mistakes when planning your next self storage project, will ensure you build it right and enjoy a long and successful investment for years to come.
Works Cited
1. Goodin, M. (2014, July 23). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/security/25-design-and-construction-mistakes-self-storage-owners-and-developers-should-avoid
2. Reliant-mgmt.com. (n.d.). Retrieved from Reliant Real Estate Management, LLC: https://www.reliant-mgmt.com/self-storage/top-20-mistakes-in-self-storage-investing
In an economy that appears to be heading into a recession and investors preparing for another jumbo-sized rate hike next month, why should one consider investing in self storage today – especially given that the S&P 500 fell 2.9%, the Dow Jones Industrial Average fell 2.2%, or 669 points, and the Nasdaq slipped 3.7%?1 While not necessarily the sexiest asset class in commercial real estate, self storage is still seeing a continuum of strong growth and still appears to be the most recession-resistant sector in commercial real estate.
The good news for self storage owners is that history has proven the recession resilience of the self storage industry. During the Great Recession of 2008, all commercial real estate segments experienced a net annual loss from 25 to 67% with the exception of self storage, which posted a gain of 5%. In addition, this sector had the least number of foreclosures.2
Even with all of the recent price increases in construction materials, energy, and wages, self storage is staying ahead of inflation with rent increases. The higher rental rates paid by tenants are offsetting the rise in new-construction and operational costs while allowing self storage owners to reap financial gains during these current economic times.
Americans, in general, tend to accumulate and hold on to a lot of stuff. With the craziness of the real estate market, many millennials are being priced out of owning a home. In addition, many baby boomers are downsizing, opting to rent and live in apartments and smaller rental homes, which have much less storage space than the homes they are moving from. Thus, the biggest demand for self storage is created by people moving from one place to another.
With recession also comes job loss which may also force a homeowner to sell their home, or they may lose their home through a foreclosure. Changing jobs, relocation, divorce, death, college students moving back home for the summer, and many other events also create a demand for self storage.
Another reason that self storage continues to perform well is that self storage has one of the lowest break-even occupancies in the commercial real estate market, often as low as 60%. Self storage owners can also quickly and legally evict non-paying tenants. The contents of a storage unit can also be auctioned off to cover any unpaid rent.
Like any investment, there are always risks. Because self storage is a great investment, there is now an increasing number of properties being built and more competitors coming into the market.
Like other industries, inflation and the current economy has hit the self storage industry in two areas – operations and new construction.
Operation and life cycle costs such as marketing, utilities, property taxes, insurance, and routine repair and maintenance are definitely on the rise. And with the current economic environment, qualified labor is also becoming harder and harder to come by.
The cost of doing business coupled with rising interest rates could slow the pace of construction even more as financing for projects becomes more expensive. However, while some developers are pulling back from new construction projects as a result of the skyrocketing materials and labor costs, others have recently discovered self storage as being resilient during hard economic times and are now dynamically reallocating money into this industry, pursuing acquisitions and new development deals.3
While the self storage industry has its risks, many investors and developers are still seeing it as being very attractive as a recession-resistant investment in a time of uncertainty. And according to Mordor Intelligence Research, the self-storage market is expected to grow to $115.62 billion by 2025. This puts the compound annual growth rate (CAGR) at 134.79% over the forecast period of 2020-2025.4
Works Cited
1. Ebrahim, Y. (2022, October 7). Investing.com. Retrieved from Investing.com: https://www.investing.com/news/stock-market-news/sp-500-slips-as-strong-jobs-report-puts-hawkish-fed-bets-back-in-focus-2907596
2. Mainstay Global. (n.d.). Retrieved from Mainstayglobal.com: http://www.mainstayglobal.com/is-self-storage-recession-proof
3. Fitzgerald, J. (2021, December 14). Storable. Retrieved from Storable.com: https://www.storable.com/storage-beat/self-storage-inflation/
4. Meyers, S. (2020, December 1). Forbes.com. Retrieved from Forbes.com: https://www.forbes.com/sites/forbesrealestatecouncil/2020/12/01/a-look-at-self-storage-growth-trends-now-and-post-pandemic/?sh=1e5675912165
Boise, Idaho. – October 18, 2022 – Forge Building Company, a leading national building company focusing on self-storage and innovative building solutions, announced today the groundbreaking of the first phase of its new Stor-It facility construction project on Federal Way in Boise.
The first phase of this project includes 240,000 square feet of facility. The facility is located at 6099 S. Federal Way in Boise and will serve the growing population and business community. The new facility is on track to open in November 2024.
“Our relationship with Stor-It started in 2001,” said Hamish Bell, CEO of Forge. “Since that first project, we have been involved in helping Stor-It develop, do maintenance and repairs, remodel, or build facilities from the ground up for its 20 facilities. They now manage over three million square feet of self-storage space! This treasured relationship was the catalyst that led to the founding of Forge Building Company in 2007.”
New Stor-It facility construction groundbreaking ceremony
Stor-It has been around for 50 years and is the largest storage provider in Idaho. What started as just one storage location over three decades ago has since expanded to more than 20 facilities. From Boise to McCall, Stor-It facilities have over three million square feet of total square footage!
“The values that Stor-It holds strong are completely in alignment with those of Forge Building Company,” said C.W. of Stor-It. “Both companies treat their customers and employees like family. We would never build, renovate, or consider a property without Forge. Because of our relationship of over 20 years, we know that if Forge is involved, it will get built to the highest standards.”
The company started with a professor teaching business classes in real estate and financing at Boise State University. He loved teaching his classes using real examples and encouraged his students to apply them to what he was teaching them.
One day, some students came to him and said they had found a piece of property to invest in. The professor was excited and asked the students, “How will you purchase it? What are you going to build on it to make money? What is your plan to sustain the business?”
The students wanted to invest in a property on Mitchell Street in Boise, Idaho and put storage units on it as an investment. This was laughable at the time but did spark the professor's interest. The professor believed in his students, and they all took the risk.
Stor-It Self Storage was started in 1972 by this professor and four of his students. After the students graduated and moved on, they were eventually bought out by the professor. He continued to grow the business with his family every step of the way. He even has his grandchildren working by his side in the family business!
Founded in 1972, we opened our doors at the first Stor-It location on Mitchell Street in Boise, ID, making it the first operational self storage provider in Idaho. What started as just 600 storage units grew over 50 years to what we call a “well-oiled Green Machine.” We are unique in that we Forge build our sites very large, maximizing the square footage. One site can range from 80,000 square feet to the current largest of 455,000 square feet. Each site is designed perfectly to fit its our customer’s storage needs.
We truly know storage inside and out. Many of our family members were born and raised at the Stor-It locations. They say their backyard was an asphalt jungle of doors. With a core of strong family values today, our company is still a family-run business. For over 50 years, three generations of relatives have worked together to provide the best storage solutions in Idaho.
For more information, please visit https://www.stor-it.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.
The Self Storage market is exploding and you’re anxious to jump in. You’ve found the ideal location and purchased the land, so now what?
Before you can pull permits or start the design process, it is key to completely understand your target market – who your customer is based on the highest demand units in your geographical areas down to the lowest usage units.
In our August 31 blog titled “Market Analysis and Feasibility Studies – Are They Worth the Investment?” we discuss the best ways to determine your given market, rental rates, demographics, and tenants. Additionally, a full Self Storage Feasibility Study also looks in depth at financial projections, marketing plans, unit mix, and many other factors. This blog is worth the read as the first step towards fully understanding the importance of understanding who your target market is so that you can then determine the right unit mix for your facility. Whether you hire an outside resource to do a professional feasibility study or complete it on your own, at the end of the day, the call on determining the best unit mix is entirely up to the owner.
What's needed in determining the best unit mix for your location? This decision is one of the most important aspects when it comes to developing a self storage facility. Determining the right layout with the right mix of units can increase your facility’s profits.
Once you have the demographic and competitive data, you can more easily calculate the current and future market demand by developing a matrix based on types of units (or X) expected rental rates rolling up to a monthly and yearly proforma to determine projected income for your facility. To do this:
1. Take the population number for your demographic or trade area
2. Multiply it by the forecasted demand number
This equals the gross demand in square feet for your demographic or trade area.
1. Subtract the result from the sum of the total existing amount of square feet of self storage and square feet in development in your demographic area.
This gives you the net demand in square feet in your area.1
1. Fully Evaluate your Demographics
Your ideal layout and unit mix should cover the needs of potential tenants in your area. If, for example, your area has a higher percentage of homeowners, then you may need to include larger units versus smaller units for renters. If the area your facility is located in has a high percentage of boat and/or RV owners, then you may want to include canopies or storage for those types of vehicles as well.
2. Consider the Climate
In last week’s blog titled, “Doors, Roofing, and Best Climate Control for Your Geographic Location,” we discuss the importance of climate-controlled storage units if your facility is located in a part of the country that reaches temperatures above 90 degrees or in areas that fall below 32 degrees. Places with both extremes will definitely need humidity protection. Fluctuating temperatures can create condensation inside electronics, causing irreparable damage.
Likewise, anything that has liquid in it already can crack due to expansion from freezing. This is especially true of battery cells, including those for cars, mowers, and other small engines, which can crack when frozen. If your facility is located in an area that experiences extreme temperatures or high levels of humidity, your customers may be looking for climate-controlled storage units. Even in areas with moderate climates, humidity-controlled units are often popular with storage unit tenants, as they protect their belongings from the damaging effects of the environment.
3. Consider Residential versus Commercial Units
This ratio will also affect your unit mix. Again, your Market Analysis and Feasibility Study will help you best determine this.
4. Use Your Square Footage Efficiently
When planning your facility, you will definitely want to maximize your facility’s rental areas and minimize common areas. However, it is also best to keep your customer in mind when planning. While narrow hallways can give you more space, they may make it extremely difficult for your tenants to move their belongings.
5. Make Your Layout Convenient
Your facility layout should be designed with customer convenience in mind. This will keep them renting their storage units longer and increase the profitability of the facility. One example is to minimize the number of turns required from an elevator to the storage units. An ideal layout requires only two turns.2
6. Consider Phasing
One other tactic that self storage facility owners should consider is to build their projects in phases to help determine their optimum unit mix. This gives facility owners an opportunity to adjust the unit mix as they expand. Phasing will allow the owner to make more calculated decisions and create a larger asset value over time. It will also allow for any changes in the market with the changing economic environment currently occurring in the U.S.
When you are developing a self storage business plan the two biggest factors will be built on the unit mix and lease-up timeline. For the highest possibility of your facility’s success, it is important to constantly be doing the research and continue working on your proforma at 120, 90, 30 days out – all the way up until building is complete. Again, if you decide to use a phased in approach, you will also be able to adjust the business as market conditions change.
Works Cited
1. Self-Storage Ninjas. (n.d.). Retrieved from selfstorageninjas.com: https://www.selfstorageninjas.com/self-storage-feasibility-blog/2019/2/5/demystifying-the-unit-mix
2. Scheib, K. (2022, March 1). Investment Real Estate, LLC. Retrieved from irellc.com: https://irellc.com/resource/choosing-best-storage-unit-mix/
You have your storage facility up and running, or you’re in the planning phase of building your next facility... so what are the key factors you need to think about when it comes to your doors, roof, and climate control?
In our February 25th blog “Ensuring Form, Function and Long Life: How to Properly Care for Your Self Storage Unit Doors and Roof” we discuss how to properly care for your doors and roof. And in our November 21, 2021 blog post titled "Generate More Revenue by Offering Climate Controlled Self Storage” we discuss common uses and benefits along with design considerations when building a temperature or climate controlled self storage facility.
What it boils down to is that these three critical components are critical to keeping your facility and your tenant’s belongings safe, secure, and protected from any sort of criminal activity and/or weather elements. Using the right materials is also super important for curb appeal and energy efficiency.
One of the most distinguishing factors of a self storage facility are its steel roll up doors, so it’s important that they be well-maintained! Not only do they contribute to curb appeal, but they are a large part of the tenant experience providing safety for their belongings and can be a safety hazard if left untended. When building a new facility, metal wall and siding panel systems will provide the most flexibility when it comes to design, and these can be used for new construction or retrofit to existing buildings.
In addition, roll-up doors will also help maximize usable square footage in each storage unit.
Steel roll up doors should be inspected before a tenant moves in, and again after they’ve moved out. Inspection of a roll-up door doesn’t just mean ensuring it looks good, but also means it is functioning properly.
Here’s a closer look at metal panel wall systems.
Metal Panel Wall Systems
There are a number of benefits to using metal panel wall systems for a self storage facility. First, they often come in a variety of colors that can coordinate with any buildings' décor to create continuity and increase the facility’s curb appeal. Metal panel wall systems are also durable, environmentally friendly, and cost-efficient.
In addition to the aesthetic appeal and safety ratings of metal wall panels, they are also revered for their sustainability in the building industry. Not only can they help with reducing the consumption of energy within the building, but they can also be recycled. Recyclable metals can then be restructured into other metal wall panels with the same structural integrity.1
The good news is that Forge has one of the largest selections of metal wall and siding panel systems in the self storage industry. The Company’s wall panels include single skin, insulated, exposed fastener, concealed fastener, and interior wall liners, and most can be installed both vertically and horizontally, providing additional flexibility in design. Forge’s metal siding panels can be used for new construction or to retrofit existing buildings.
In addition to providing complete building packages, Forge also offers components to be installed in buildings by our experienced team. The system can include either swing or steel roll up doors as well as man doors. Additional steel angle, wire mesh, and burglar bars are available as needed. Hallway walls can be purchased as flush or ribbed PBU panel.
When looking at key factors for your existing or new facility, one of the biggest considerations is the roof. Protecting your tenant’s belongings is the main focus of a self storage facility. It doesn’t matter if you have a traditional, single-story facility or a multistory facility – your roof matters. Even a small leak can damage your customer’s property.
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. That’s one of the reasons the team at Forge Building Company recommends commercial metal roofs.
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.
To learn more, see Metal Building Re-Roofing with Standing Seam Metal Roof Panels.
A metal roof will also act as a fire barrier if some part of the building or the surrounding area were to catch fire. Another benefit is that metal roofs can prevent water build-up from creating mold or decay problems that could destroy the building's structural integrity.
Very few places in the country are fortunate enough to avoid the frigid temperatures of winter every year or the extreme heat of summer. These extreme temperatures are not good for storing items unless you put them into a self storage unit that is climate controlled.
If your self storage facility is located in a part of the country that reaches temperatures above 90 degrees, air conditioning is definitely needed to protect customer’s property from problems like rotting or yellowing. Self storage units located in areas that fall below 32 degrees may need to be heated to prevent cracking or warping.2 And places with both extremes will need humidity protection. Fluctuating temperatures can create condensation inside electronics, causing irreparable damage. Likewise, anything that has liquid in it already can crack due to expansion from freezing. This is especially true of battery cells, including those for cars, mowers, and other small engines, which can crack when frozen.
A temperature-controlled self-storage facility is one that’s both heated and cooled. Its purpose is to provide an environment suitable for preserving stored goods, so the temperature range will typically be higher or lower than what you would find in a home or office—usually heated to 55 degrees and cooled to 85.
Today more self storage sites are starting to include climate control in the mix, and in some markets, many storage sites consist entirely of climate-controlled units. In most markets, climate or temperature-controlled units can be an excellent addition to your storage development. Through the use of insulation and central heating and air, a climate-controlled unit will protect your customer’s belongings in the harshest of winters and/or the hottest summers.
And with today’s more efficient building insulation, it’s more important than ever to work with a reputable storage unit contractor such as Forge Building Company to install a system that not only heats and cools, but also monitors and removes humidity.
Works Cited
1 Metal Sales. (n.d.). Retrieved from MetalSales.us.com: https://www.metalsales.us.com/metal-wall-panels/
2 StorageFront. (n.d.). Retrieved from storagefront.com: https://www.storagefront.com/storagetips/company-tips/climate-control/
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.
