For more than 40 years, the Self Storage market has proven to be one of the sectors with the most rapid growth in the U.S commercial real estate industry. The unprecedented growth of the industry has been attributed to self-storage consumers including renters, homeowners, students, businesses, and transitional populations who are constantly demanding rental storage.¹

The COVID-19 pandemic also led multiple business owners to opt for self-storage. Having to work from home for most parts of 2020 drove up the demand for self storage to cut out on rents on spaces. And to confirm this, the July 2022 National Self Storage Report by Yardi Matrix, indicated that demand continues to come from all directions, including the growth in home offices as most companies employ some type of hybrid strategy for knowledge workers, consumer spending on items such as clothing and furniture, and to a lesser degree businesses using storage for distribution purposes.

Solid occupancy enables property managers to push in-place rents, calculating that vacant units can be filled at higher rates. Concerns center around the slowing economy and rising interest rates that have produced a sudden chill on home sales, which produces an even greater demand for self storage.
In addition, there has been a trend of retailers using self storage as a warehouse and a high end bus company renting two buildings to store their buses-non conventional uses.

The global self storage market was valued at USD 48.02 billion in 2020 and is expected to reach a value of USD 64.71 billion by 2026, registering a CAGR of 5.45% over the forecast period, 2021-2026. The growth in this industry is expected to be positive during the forecast period, owing to the trends of increased urbanization and improved economic outlook across the regions.²

So, how do you know if a property is the right one to invest in for a self storage development?

Market Analysis

The first step is to conduct a market analysis. A market analysis looks to see if there is demand in a particular area for self storage, how much of a demand there is, what specifically is there a demand for, and what the current rates are going for. This part of the process is NOT looking at whether the investment will be profitable, but more about what is current state of the market. Conducting a market analysis gives good foundational information that is included in a business plan. It also gives you information on who your customer is and what type of storage they want.

This critical first step can reduce risk, identify emerging trends, and help project revenue. You can use a market analysis at several stages of your business, and it can even be beneficial to conduct one every year to keep up to date with any major changes in the market.

How Do You Analyze a Market for Self Storage?

One of the first things you will need to analyze is who your targeted customers will be. A target audience is a specific group of people who want and need what you offer. With self storage, your target market will likely be defined by demographics. Is your facility located in a college town where your most likely customers will be young college students looking to store items short-term for the summer? Is it near a military base where active duty military need to store items during deployment. Or is your target audience suburban homeowners looking for climate-controlled storage for their cars or other household items?

Understanding who you are marketing to helps you choose the delivery, location, and tone of your marketing programs. If you’re targeting recently divorced couples in your area or college students, you may want to emphasize competitive rates and easy renting processes. If you’re targeting businesses in need of files storage, you may want to focus on climate control and security at your facility.

How to Conduct a Self Storage Market Analysis

Part of any self-storage market analysis involves deciding on your trade area radius, or how much of the area surrounding your business likely contains your target customers. You can look at current leads and tenants to see how close they live to their storage units. You can also use a general rule of thumb. In cities, self-storage customers may live less than one mile from their units (up to three miles). In rural spaces, your trade area radius may be up to 10 miles.³

Once you have a trade area radius, consider the demand for self storage units. You will want to determine demand by evaluating how many units are vacant and how many renters there are in your area. It can be challenging to determine vacancy rates of competitors, so you may need to evaluate the local population size and income levels as well to determine overall possible demand.

On a per-person basis, if the supply is less than the demand, the market is deemed to be under-supplied. If the supply is greater than the demand, the market is deemed to be over-supplied. As a test of reasonableness, a comparison of the conclusion to the average occupancy in the trade area can be made.⁴

Generally speaking, over-supplied markets have occupancy rates less than 80 percent and under-supplied markets have rates greater than 90 percent. A market with an average occupancy rate between 80 and 90 percent is deemed to be near equilibrium.

Understanding the supply and demand of the trade area is a key component to analyzing and forecasting rental rates

Who Is Your Ideal Tenant?

Once you have a general sense of the demand, supply, and trade area radius, you might want to consider tenants who may be under-served in your area. People who are moving are not the only ones who need storage units. Other possible leads include:

• Contractors or Trade Businesses
• Bands and musicians seeking practice space
• Affluent customers who need climate-controlled spaces for summer cars, RVs, and boats
• Affluent customers who need climate-controlled spaces for art and wine collections
• Small businesses, such as resellers, antique shop stores and any business needing storage space
• College students for their dorm belongings in between semesters or school years
• Military personnel who need to store their home items while they are deployed
• Families who have outgrown their first homes
• Offices looking to store files

Feasibility Studies

Once the market analysis is completed, the next and often simultaneous step is to do a feasibility study. A feasibility study can help determine the viability of a project or business venture by identifying the factors that can lead to its success. The study also shows the potential return on investment and any risks to the success of the venture.

A Market Feasibility Study determines the depth and condition of a particular market and its ability to support a particular development. The main objective of a market feasibility study is to understand the market to determine if enough demand exists to make the venture successful.

Conducting a feasibility study is always beneficial to the project as it gives you and other stakeholders a clear picture of the proposed project. It can also reveal many opportunities or pitfalls that may not have been apparent earlier. A feasibility study can help a self storage developer or owner understand the truth about a potential site, investment, and market. With this information in hand, you’ll be ready to plan and develop your project, mitigate known risks, or move on to the next opportunity.

A full Self Storage Feasibility Study also looks in depth at financial projections, marketing plans, unit mix, and many other factors.

The most important part of a feasibility study is the economics. Economics is the reason most projects are undertaken. This study should help you decide whether your self storage facility will produce enough revenue to generate a profit after taking care of debt and operating expenses.
Overall, this study will enable you to figure out who the customers within a one- to five-mile radius of the facility will be. Typically, a market for a self-storage facility encompasses a three- to five-mile radius, so your demand analysis should focus on this area.

Elements of a self storage feasibility study normally include business and demographic information such as:⁵

• Current population. Of course, the market area in an urban or suburban area will be larger than in a rural area. Generally, you’d want to see roughly 20,000 residents in a rural market and at least 100,000 in an urban market.
• Population projections. Ideally, your facility should be located in an area whose population is growing, not shrinking.
• Median income in the market area. Self-storage renters usually fall into the middle-income and upper-middle-income brackets.
• Median age in the market area. Self-storage tenants typically are in their early 20s to mid-50s.
• Daily vehicle traffic. Most storage facilities rely on drive-by traffic to draw some of their customers.
• Competition. Which self-storage facilities are located near the facility you’re considering? What are their occupancy rates? Are any nearby facilities being built or on the drawing board?
• Overview of the self-storage industry
• Long-term pro forma projections for rental rates, income, expenses, and property value.
• Information about zoning that’s in place at the site.

Market analysis and feasibility study worth the investment?

So, is spending the time and money to do a market analysis and feasibility study worth the investment? In our opinion, absolutely. A self storage analysis will help any owner or investor know what to expect in the future from existing or new projects. A self storage feasibility report is an important document that can help the stakeholders meet benchmarks and milestones as the project progresses.

A self storage market report can help an investor understand the local market and make an informed decision about buying or building. While a well-made self storage feasibility study will lay out the roadblocks to success and the likely paths to success, so investors can have a full picture of the range of outcomes.

Given this information, these two things are a definite necessity when determining whether or not to invest in the self storage industry, even if it means using a third party professional. A good Self Storage Advisor is totally worth the investment if they help you identify the best deals and steer you away from the ones to avoid.

Works Cited

1. InvestmentBank.com. (n.d.). Retrieved from Investment Bank: https://investmentbank.com/self-storage-real-estate-market/#:~:text=A%20sub-sector%20of%20the%20commercial%20real%20estate%20market%2C,growth%20in%20the%20U.S%20commercial%20real%20estate%20industry.

2. MordorIntelligence.com. (n.d.). Retrieved from Mordor Intellligence: https://www.mordorintelligence.com/industry-reports/self-storage-market

3. Scheib, K. (2021, 8 23). Investment Real Estate, LLC. Retrieved from irellc.com: https://irellc.com/resource/choosing-self-storage-target-market/

4. Spencer, K. (2019, May 2). Radius Plus. Retrieved from Radiusplus.com: https://www.radiusplus.com/post/how-to-conduct-a-self-storage-market-analysis/

5. Egan, J. (2021, August 23). Storable. Retrieved from Storable.com: https://www.storable.com/resources/learn/self-storage-feasibility-study/

The self storage industry in the U.S. has experienced tremendous growth in the last several years. The current total square footage of self storage facilities in the U.S. is estimated at 2.35 billion square feet with the average facility size approaching 50,000 square feet. Due to their large size, unique space configuration, and recent technology changes, self storage facilities now have the opportunity to generate substantial Section 179D Energy Policy Act (EPAct) tax savings.¹

What is the EPAct Tax Opportunity?

The EPAct (Energy Policy Act) is a federal program allowing for a one-time tax deduction of up to $1.80/sq. foot. Buildings placed in service starting January 1, 2006 are eligible. New self storage construction projects are some of the best candidates for EPAct, usually qualifying for the full $1.80/sq. foot incentive.²

To qualify, you must incorporate energy-efficient construction or improvements that reduce the energy use of a building, specifically the lighting, building envelope, and mechanical systems.

You can take 179D deductions for new construction and retrofits, but you must be able to reduce total annual energy and power costs by 50 percent or more in comparison to the minimum requirements of ASHRAE Standard 90.1. If the 50% target savings is not met, the provision allows a partial deduction of $0.60 per square foot for each of the following components:

• Interior lighting systems meeting a 25% cost savings
• Heating, cooling, ventilation, and hot water systems meeting a 15% cost savings
• Building envelope meeting a 10% cost savings. The building envelope is every item on the exterior of the building’s perimeter that touches the outside world – roof, walls, insulation, doors, windows, and the foundation.³

The following table illustrates the potential EPAct tax savings available to the self storage industry at and for an average size of 50,000 square feet

Lighting

In the area of lighting, all self storage facilities upgrading to the highly energy efficient low wattage compact fluorescent lighting or LED (Light Emitting Diode) lighting would be eligible for a tax credit. It is also important for self storage facilities to use occupancy sensors or lighting control so that lights can be completely shut off for extended periods of time.

Climate Control Storage Units

There is an increasing demand for climate controlled storage facilities since customers prefer facilities where it is more likely that their property and possessions will remain in good condition. Having a climate control option is a particularly important customer attraction element since a mature self storage market has become more competitive. To maintain stored property properly, it is necessary to control temperature, humidity, and dust. Storage facilities are often ideal candidates for energy efficient energy recovery ventilation equipment (commonly called ERV), that optimizes the use of outside air. HVAC system designers who are familiar with storage centers can utilize high efficiency equipment and create a design configuration that optimizes the building spaces. HVAC design configurations that use less HVAC equipment to cover more rooms are much more likely to qualify for the EPAct HVAC tax deduction.

Natural Gas Heaters

Self storage facilities in the northern U.S. states often use low-cost, energy-efficient natural gas heaters to meet their climate needs. Large tax deductions are often available for these heaters, provided that the self storage facility also upgrades to energy efficient lighting either before or currently with the heater purchase.

Building Envelope

When self storage facilities are converted from an existing manufacturing warehouse or other facility, it is generally necessary to open the building envelope to insert access doors, overhead doors, and make other necessary self storage facility building envelope changes.

Since the building envelope doesn’t physically utilize energy, the ability to achieve a building envelope tax deduction is dependent on previous or concurrent investments in energy efficient lighting and HVAC systems. Here is an example:

A 200,000 square foot self storage facility invests $160,000 in energy efficient lighting and heating resulting in a 50% energy cost reduction. Although the building qualifies for a $360,000 EPAct tax deduction (200,000 sq.ft.* $1.80 per square foot), the initial EPAct tax deduction is limited to the $160,000 project cost. However, the remaining 200,000 of potentially available EPAct tax deduction can be used for building envelope improvements, such as new roof or insulation.

Making the U.S. Tax Law Work for You

When it comes to accounting and taxes, self storage owners and investors should keep a few planning strategies and reporting considerations in mind to make the U.S. tax law work for them.

The key to maximizing self storage center EPAct tax deductions is to simultaneously install very energy efficient lighting with the other energy efficiency measures, particularly HVAC. The lighting upgrade is normally required since lighting is often the largest energy user in storage facilities, and the EPAct modeling tax system is based on total building energy cost reduction.

For example, installing energy efficient HVAC, such as dehumidification systems or natural gas heaters alone, may not enable a self storage facility to qualify for the HVAC EPAct tax deduction. However, installing energy efficient lighting with sensors, along with the upgrade to highly energy efficient HVAC, makes it much more likely that the HVAC will qualify for EPAct tax deduction.

Depreciation

Another tax consideration is depreciation. This refers to the amount an asset decreases in value over time. This reduction is due to wear and tear from typical use. In an accounting context, depreciation is estimated by considering the generally accepted useful life of an asset.

Here are some examples of specific items and their typical time for depreciation:

• Residential building: 27.5 years
• Commercial building (including self-storage facilities): 39 years
• Gate or fencing: 15 years
• Landscaping: 15 years
• Gate system: Five to seven years
• Security cameras: Five to seven years
• Kiosks: Five to seven years

Assets that depreciate over five to 15 years are generally eligible for something called “bonus depreciation,” which means you don’t have to write them off over their useful life. Thanks to the Tax Cuts and Jobs Act of 2017, you can take 100% bonus depreciation in the year you acquire the assets.⁴

Cost Segregation

Self storage operators can also benefit significantly from using cost segregation because of the unique types of construction and exterior improvements found on a storage site.

Cost segregation (also known as cost seg) is a federal tax methodology that uses modified accelerated cost-recovery systems (MACRS) to accelerate the timetable for property-depreciation deductions. To determine depreciation schedules, a cost seg study identifies and reclassifies personal property assets to shorten depreciation time.⁵

Under the MACRS methodology, you can identify and reclassify assets in five-, 15- and 39-year class lives, depending on the IRS determination of their actual useful life. Here are some examples:

• 39-year property: Windows, walls, doors, roofs, HVAC systems, plumbing, and electrical components;
• 15-year property: Exterior improvements such as fencing, exterior signage, asphalt, curbs, landscaping, and exterior lighting;
• Five-year property: Carpeting, appliances, specialty lighting, woodwork, unit partitions, individual unit locks, security, business-specific heating, and ventilation systems

By commissioning a cost segregation study, you can retain additional cash flow for capital improvements, repairs, or expansion. Self-storage operators can benefit significantly from using it because of the unique types of construction and exterior improvements found on a self storage site. And if your tax bill is lower, you can carry forward any unused depreciation amounts until they’re used up.

In Summary

With the U.S. lifestyle changes due to more people working remotely, divorce, death, relocation, downsizing and more, self storage facilities have become a major building category in the U.S. Federal product law changes impacting existing technologies, and new energy-efficient retrofit products coupled with market competition provide a great opportunity to save energy costs and utilize the Section 179D EPAct tax incentives. This coupled with cost seg will have your business booming and more cash in your pocket.

When you are ready to build, convert, or expand your self storage facility, give the team at Forge a call. We will help you capitalize on making your facility energy efficient so that you can qualify for the maximum tax savings.

Works Cited

1 Energy Tax Savers, Inc. (n.d.). Retrieved from energytaxsavers.com: http://www.energytaxsavers.com/articles/Self-Storage-Facilities

2 Eric Ryan Corporation. (n.d.). Retrieved from ericryan.com: https://ericryan.com/dont-miss-the-epact-tax-deduction-opportunity/

3 Cost Segration Authority. (n.d.). Retrieved from costsegauthority.com: https://costsegauthority.com/section-179d/

4 Anderson, M. (2021, June 23). Inside Self-Storage. Retrieved from insideselfstorage.com: https://www.insideselfstorage.com/tax-issues/whats-your-plan-tax-considerations-todays-self-storage-operators

5 Engineered Tax Services. (2021, August 10). Retrieved from engineeredtaxservices.com: https://engineeredtaxservices.com/mobilize-upcoming-tax-changes-to-boost-your-cash-flow-use-cost-segregation-179d-tax-incentives-options-to-defer-taxes/

Note: Forge Building Company does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

From Alaska to Florida, more than 50,000 self-storage facilities are scattered around the country. That’s about the same number of McDonald’s, Starbucks and Subway locations across the U.S. combined. These facilities are the foundation of the U.S. self-storage industry¹, which was projected to generate $37 billion in revenue in 2019. The typical profit margin of a self storage business in the U.S. is 11%.² That’s well above the profit margins for many other types of small businesses. Given those numbers, starting a self storage business, and keeping your self storage development on track is key. There’s a lot to do and many decisions to make.

Given today’s economy, it is key to act in a timely fashion. Developers and self storage business owners sometimes get stuck in the decision-making process, unable to move forward. No doubt, pursuing a self storage project can be overwhelming since there’s a lot to do and many choices to be made.

By being disciplined and taking one step at a time, you can make smart decisions. Here’s a ten-step plan to keep things moving forward in the right direction.

Step 1: Research and Develop a General Business Plan

Before scouting locations for a self storage facility — no matter whether you’re looking at buying an existing facility or building a new one — you’ll need to look at the costs involved. The numbers will vary widely based on factors such as location, acquisition costs, land costs and construction costs. Things you will need to consider include:

• Do you have enough liquid assets to buy or develop a self storage facility on your own?
• Can you afford to allocate those assets for a self storage development?
• Do you need to take out an acquisition or construction loan?
• Do you need to recruit self storage investors to help finance an acquisition or development deal?

Look at the cost of operation. A report released in early 2018 by commercial real estate company CBRE shows real estate taxes accounted for 28 percent of all self storage operating expenses, with on-site and off-site management costs eating up another 38 percent of operating expenses.

Develop a business plan. This can help propel the business toward success, letting you realize your goals and manage issues that might arise. In addition, most lenders will want to see a business plan before extending a loan.

Determine your scale of investment. You might be able to put up a single-story, 40,000-square-foot self storage development in a small town for $1 million or less, whereas a two-story, 80,000-square-foot facility in a more urban setting could set you back $6 million.

You can expect to spend anywhere from $25 to $75 per square foot on new construction. However, the location of the facility — including the cost of the land — will dictate the price tag for construction.

If you’re developing a self storage facility, consider:

• Facilities range from 10,000 square feet to 100,000 square feet or more
• The average self storage facility encompasses 46,000 net rentable square feet (the amount of money-generating space that can be rented by tenants)
• A facility typically covers 2.5 to 5 acres

Step 2: Network and join your local Self Storage Association

Join networking groups and your local self storage association to help you learn from their experiences and gain referrals. Get to know professionals in the legal, real estate, financial, construction, and design industries that are experts in the self storage industry.

Step 3: Identify and Evaluate your Potential Self Storage development site

Drive around in the areas that interest you. Look for high-density residential areas and known upcoming residential developments (single- or multi-family).

Contact a commercial broker and/or your municipality. The city may be selling multiple parcels it owns. Based on its size, think critically about what type of facility could be built on the parcel.

Estimate whether it's good for self-storage. Call the municipality to find out how the land is zoned and any relevant regulations regarding industry development. If the property is already zoned for self storage, that removes a huge barrier. But if the property needs to be rezoned, you could spend months or years seeking approval for a zoning change.

Additionally, the issue of entitlement involves obtaining approval from government entities for your development plans. As with rezoning, an entitlement case could elapse valuable time.

Step 4: Put the Land Under Contract

Purchase the land with a 120-day due diligence period. The contract should state that your deposit is refundable during this period if you decide to forego the purchase. If you choose to buy the land, your deposit becomes non-refundable at 60 days. Also, give yourself 180 days to close.³

Complete a market feasibility study. This exercise will help you target the demographics of the customer base within a one- to five-mile radius of the facility. A three- to five-mile area is the typical size of a market for a self storage facility.

You’ll want to validate the median income in the market area (self storage renters tend to be in the middle-income and upper-middle-income brackets), along with the median age (self storage tenants are normally in their early 20s to mid-50s).

In addition, you’ll want to review the following aspects of your proposed market area⁴:

• Current population (anywhere from about 20,000 people in a rural setting to 100,000 or more in an urban setting, as a general guideline).
• Projected population growth (more people mean more prospective tenants).
• Daily vehicle traffic (the majority of self storage facilities depend heavily on drive-by traffic to attract customers).
• Competitive landscape. Which self storage facilities already are operating in the area? What is their occupancy rate? Are there any facilities that are under construction or are planned within the trade area?

Other components of the feasibility study normally will include an overview of the self storage industry; long-range projections for rental rates, income, expenses, and property value; and details about the storage project’s zoning. This will help you determine whether the investment's land acquisition and building costs are sound.

This is also the time to look for any obstacles, such as easements, building restrictions, zoning and entitlement hurdles, water retention requirements, and wildlife, tree, or waterway conservation restrictions.

The study should also help determine your unit mix, what phases to build, and the amenities you should offer to achieve your desired return. It provides your operational budget, lease-up period, financial projections, and marketing plan and feeds into the basis of your business plan.

Step 5: Financing

Determining how to finance an acquisition or a new development is your next step. Do you need to take out a loan? A number of options are available, such as acquisition loans, construction loans, and SBA loans. Many of these loans cover terms of 10 to 25 years. Work with a lending professional who’s well-versed in the self storage industry to point you in the right direction.

To qualify for a self storage loan, here are four things you’ll likely need:

• A credit score of at least 680
• A credit history clear of recent bankruptcies, foreclosures, and tax liens.
• A cash down payment of 10 percent or more
• A business track record of at least three years

Make sure you have enough liquid capital not only to buy or build a facility but also to operate the facility.

You may also want to consider strategically partnering with other investors to buy or build a facility. This can be done through:

• A debt partnership is a lending relationship that does not assign an ownership stake to the person or entity you are borrowing the money from
• An equity partnership, with each partner chipping in a certain amount of cash and owning a share of the business
• A joint venture with, say, a self storage developer. Each partner owns a certain percentage of the business.
• A syndicate of accredited investors assembled for the sole purpose of buying or developing a facility
• A tenant-in-common arrangement allows at least two people to own a property and enables the relatively seamless transfer of an ownership stake to another party.

If going the loan route, contacting multiple self-storage lenders and negotiating the best terms is best.

Be ready to send each lender or investor all the documents they need to make a quick decision. Your packet should include everything from your feasibility study as well as the items mentioned above, along with your business plan, tax returns, and personal financial statement.

If you ultimately choose a Small Business Administration loan, allow 90 days to close. If you’re going with conventional financing, allow 60 days.

Step 6: Preparing for the Self Storage Development Project: Organize a Design Team – Architect, Structural Engineer, Civil Engineer

At this stage, there are things you must do to prepare for building – obtain various reports and geographical surveys, such as a phase-one environmental site report, a soil-borings report, an engineer’s preliminary report, and an endangered-species report. Developing a self storage facility requires expertise so organizing your design team is crucial. The team at Forge can lead you through this process.⁵

A development team should include experienced legal, real estate, financial, construction and design professionals. Few people who are new to the self storage industry can solely develop a new facility.

The design process starts with a survey of the land. The architect creates a plot plan indicating the locations of buildings in relation to the land. In this initial design, the architect considers all the information the civil engineer has provided about site restrictions and the availability of utilities.

The next step is to design the floor plans followed by the elevations, or what the building will look like. Cross sections and details are added to indicate floor levels and details of footings, foundation, walls, floors, ceilings, and roof construction.

The structural engineer then assures the materials and how they are assembled are strong enough to withstand their weight, the weight of any use it may be put to, and all internal and external forces—known as vertical loads and lateral stresses—applied to the building.

A load is any force exerted upon a structure such as snow, wind, or earthquakes or the weight of the building itself. Live loads are produced by people, furnishings, equipment, and materials inside the building. Stresses are internal forces of a material constructed to resist external forces.

The civil engineering plan provides information about the excavation and grading needs the subcontractor will require to prepare the soil for foundations, ensure stormwater drains from the site, determine contours and elevations, and provide an earthwork estimate. That data will also help them provide an accurate bid for crew size, equipment, and timeline, and it’s needed by the retaining wall subcontractor and building manufacturer.

Forge Building Company has created its building design that allows for efficient use of materials and allows for crews to build quickly.

Step 7: Contract with a General Contractor and Get Bids

Once the team has been assembled, the general contractor is responsible for making sure that everyone is building the project in accordance with the design. General contractors may provide labor and materials themselves, use subcontractors and vendors, or a combination of the above. Subcontractors provide their own shop drawings and may be in charge of trade-specific permits and inspections.

The general contractor weaves everyone’s efforts into the completed product. Because of the volatility of material markets, most contractors won’t lock in pricing for materials and there could be price increases when material orders are processed. It is a good idea to ensure you include a Price Increase Contingency amount in your budget.

Step 8: Build Your Facility

When you reach this step, the team at Forge is ready to assist. We will ensure your self storage project is built on schedule and on budget and will take pictures along the way.

With a project start date determined, your general contractor will give you expert feedback on construction activity and sequence of work to accomplish your goals best. Along this path, milestones will be identified such as:⁶

• The mobilization date for construction
• The completion of the foundation and steel erection
• Installation for underground utilities
• Building dry-in, including installation of the roof, exterior skin, and weather barrier

As the schedule is designed, the general contractor typically gets requirements from the major subcontractors to help determine realistic timelines. This information can also help identify long lead times for materials so they can be addressed early in the purchasing process and reviewed for the projected construction cash flow.

This is also a great time to set up your property-management systems and marketing initiatives to be ready to open as soon as you receive your Certificate of Occupancy. For technology considerations, see our blog “Technology – What You Need for Your Self Storage Business.”

Step 9: Marketing Efforts: Prepare for the Grand Opening

Now is the time to leverage your marketing to lease the facility storage units. Your website is one of the biggest assets for a positive customer experience. It should be easy to find and use.

Content for your web presence is the single most important thing for search engine optimization and for prospects and customers to be able to find your business quickly. This includes your blog posts, social media, landing pages, FAQ pages, videos, and everything else related to your business.

Other helpful technology that will improve the customer experience includes any automation you use, security and access tools, digital signage, and property-management software that facilitates online rentals and autopay. Customers expect technology that’s easy to use, available around the clock, nice to look at, and engaging.

For more tips on creating the best customer experience, see our blog “Creating the Best Customer Experience for Your Self Storage Business.”

Step 10: Run Your Business and Manage the Operations of the Facility

Once your self storage development is built, open, and renting, the most important aspects of hitting or exceeding your projections and maintaining high performance are answering your phone, monitoring rates regularly, keeping customers happy, and monitoring your marketing and online presence. In addition, it is key to think about giving back to your community, rewarding your employees, and starting to look for land for your next facility!

One of the best ways to create the ultimate customer experience is to walk through the process of renting a unit, visiting the site, and accessing the unit. Was anything surprising? Confusing? Alarming? Go about this drill as if you’re someone who knows nothing about the industry and see how easy it is to navigate the process of looking for, renting, and using self-storage.

The relationship you build with customers through these strategies and how you fulfill their needs is ultimately what will make their experience pleasant and help with retention and referrals in the future.

Works Cited

1 SpareFoot. (2021, January 27). Retrieved from SpareFoot StorageBeat: https://www.sparefoot.com/self-storage/news/1432-self-storage-industry-statistics/

2 Egan, J. (2021, September 13). Storable. Retrieved from Storable: https://www.storable.com/resources/learn/is-a-self-storage-business-profitable/

3 D’Agostino, K. (2021, October 5). InsideSelfStorage.com. Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/development/9-step-plan-keep-your-next-self-storage-development-track

4 Egan, J. (2021, July 26). Storable. Retrieved from Storable: https://www.storable.com/resources/learn/starting-a-self-storage-business/

5 Inside Self Storage. (2008, September 15). Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/construction/building-self-storage-creating-harmonious-design-team

6 Rogers, R. (2016, October 6). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/construction/creating-and-managing-self-storage-construction-timeline

Are you a self storage owner looking at capital improvements to increase income? The team at Forge would love to help with assessing your self storage property. All existing self storage properties will eventually need capital improvements and/or redevelopment. This means making improvements to an existing facility to maximize its physical and economic performance and preserve asset value.¹ Buildings suffer from general wear and tear over time, and sometimes you just need to upgrade to keep up with the current trends. For this reason, it’s important to regularly assess your site for potential upgrades, maintenance, and expansion. This blog will discuss what goes into developing a plan, including why these measures are important and their impact on facility value.

Why Invest in Capital Improvements?

To begin, it’s helpful to understand the “why” of investing in capital improvements. The two most common ones are to attract new customers and to improve the current customer experience.² Other factors to consider include how well your facility competes in its market, current condition of the facility’s units, and opportunities for growth.

Evaluating the Site and Identifying Potential Projects

The first step in determining whether or not to invest in capital improvements is to develop a plan after assessing your self storage property.

Create a maintenance checklist for your facility broken into daily, weekly, monthly, and yearly tasks. This will help you assess areas of need.

Next, drive around your area and check out all of your competitors within a five mile range. Make a checklist so you can keep track of what you see and learn. Focus on:

• Curb appeal
• Branding and signage
• Access control
• Entry/exit
• Parking lot
• Landscaping
• Site layout and circulation
• Unit doors
• Roofs
• Lighting
• Visibility into office
• Office fixtures and interior
• Bathrooms
• Americans With Disabilities Act accessibility

Create a spreadsheet and list each competitor. Then give each property a rating of one to five in each category so you can compare them side by side. Also create a notes section so you can document what products and services each provides – climate-controlled units, drive-up units, boat/RV storage, wine storage, record storage, packing and shipping supplies, truck rentals.

Be as objective as you can. This will help you understand how your facility compares to others and help you determine if you are missing key products and services being offered by other operators in your target area. Once you have completed this assessment, the team at Forge can help you decide and prioritize upgrades to consider as well as help in the complete planning for these upgrades.

Determining a Good Investment

When deciding which upgrades to make, the Forge team can help you determine which projects are worthwhile – which ones maximize facility aesthetics, function, and value. The areas Forge looks at includes:

1 Will the project increase sales? Will it attract new customers? Having features that are distinguishable from competitors can improve conversion rates.

2 Will it improve the customer experience? If tenants are happy, they’ll stay longer and leave better reviews; and positive reviews are part of the formula to rank well on search engines and attract more business. Improvements can also demonstrate your company’s value and commitment to current customers.

3 Will it prolong the life of the asset? If the project is preventive or good for the long-term value of the property, then the costs are more easily justifiable. The Forge team will suggest measures to take to help decrease expensive measures later and capital expenses over time.

4 Will capital improvements make the property more attractive to buyers down the road? If your long-term strategy is to sell, capital improvements can raise facility value, commanding a higher sales price. In addition, they can help justify higher rental rates, which improves cash flow and makes the asset more attractive to buyers.

Assessing Your Self Storage Property: Project Focus and Type

Capital improvements can be broken into the following four categories.

Aesthetics. This includes things such as painting, façade upgrades, signage, and landscaping. The objective of an aesthetic project is to attract attention with a retail appearance and clear branding elements, so potential customers driving down the street see this is storage, and it’s clean and modern.

Functional/operational upgrades. These include things like door replacements, additional parking, gate upgrades, point-of-sale systems, and office retrofitting. It might include the installation and implementation of technology such as kiosks and smart locks. These improvements enhance the customer experience and make your site more competitive.

Asset preservation. This area includes items that have worn out over the years. It includes items such as roof replacements, parking-lot repaving, sealcoating, mechanical-equipment servicing, and drainage issues. These are areas where Forge can really help. We can provide you with many cost-effective options from which to choose.

Expansion and conversion opportunities. This includes expanding existing buildings, constructing new ones on extra property, teardown and rebuild, or a conversion of portions of your existing facility. Again, the Forge team can step in and guide you through this process from start to finish.

Final Words of Advice

Here are a few final tips to keep in mind when considering capital-improvement projects.

Pay attention to market dynamics. Besides surveying what your competition is or isn’t doing, keep an eye on other factors shaping the self storage industry, particularly in your market, such as future residential and commercial developments in the pipeline. These could drive the need for additional self-storage or lead to necessary projects at your facility.

Build relationships with trustworthy vendors.³ The Forge Building Company team has your back. The company has completed over 500+ jobs and built over 50 million square feet. It is key that anyone you hire is looking after your best interests. Forge has your back! And the company provides the right team for your construction project. This includes a contractor, site planning engineer, building supplier, architect, and project manager. Build a team of people you trust to bring your project to completion. The Forge team knows the self storage industry.

Redevelopment is a great way to add lasting value to your self-storage facility and maximize its physical and economic performance. Creating an honest assessment of your property and understanding how it competes in your market will allow you to create an appropriate scope of work that will make your operation competitive and viable in today’s changing market.

Works Cited
1 Wyckoff, S. (2020, February 28). Inside Self Storage. Retrieved from Insideselfstorage.com
2 Tom Heick, M. S. (2022, January 8). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/site-maintenance/capital-improvements-assessing-your-self-storage-property-and-planning-potential
3 Live Oak Bank. (n.d.). Retrieved from liveoakbank.com

Boise, Idaho. – May 26, 2022 – Forge Building Company, a leading national building company with a strong focus on self-storage and innovative building solutions, today announced the opening of their new headquarters at North Bogus Basin Road. The new facility is 12,152 square feet – up from 6,000 square feet at their old headquarters. The new building is iconic in its design and the community as a standout building in Boise. The atmosphere creates an inspiring workplace and is an excellent fit for the company, aligning with its commitment to innovation and excellence in the steel building industry.

“The strong growth the company has seen over the last year was a catalyst for us expanding out of our previous location,” said Hamish Bell, CEO of Forge Building Company. “We are happy to do our part to help our local economy by hiring top talent. In addition, our summer program will also include interns from Boise State University. On top of our employee growth, we have expanded our business from primarily being only on the West Coast to being a nationwide developer with projects in places like New York, Connecticut, Florida, and Hawaii.”

Building the best team with driven employees is the key to Forge's success. This enables the company to deliver the highest level of customer service to both its customers and vendors. The Company intimately collaborates with the customer as a problem solver, providing the most innovative solutions for their building project. Forge Building listens to customers' needs to provide the most up-to-date, consistent solution using its proprietary methods. The company’s experience, knowledge, and reputation in the industry provide its customers with stability and economic and environmental sustainability.

About Forge Building Company

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, constructing, 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 complementary 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.

For more information, please visit www.forgebuildings.com.

Wine storage is becoming increasingly popular as an addition to self storage facilities. However, the customer base for this niche is very discerning and it may not be ideal for every market. That being said, some self storage owners have found success with this niche by building a dedicated area at their existing facility or adding one during construction of a new property. Following are tips to help in the planning and execution of a design that will help generate income by offering wine storage as a part of your self storage facility.

Self storage development has grown, and is still on pace to grow, significantly more than any other point in the industry’s 40-plus year history (see our blog 2022 Outlook for Self Storage). As more and more competitors are coming into each market around the country, self storage facility owners must find new ways to differentiate themselves in their markets. This can include adding features such as boat/RV storage, high-security art storage, and/or wine storage.

Wine sales in the United States have continued to climb over the past two decades, leading some self storage owners to add wine storage to their business as a niche offering. While this service isn’t ideal for every market, many self storage owners have found success by building a dedicated area at an existing facility or adding it during construction of a new property.¹

Wine storage can serve as a great addition to self storage, but it’s highly dependent on the region of the country.  Wine-storage rooms also require a special touch during development and construction to ensure the contents will be properly preserved. The location of your facility as well as correct design of the storage area is important for success.

Feasibility Study/Analysis

If you are considering adding wine storage to your facility, you should start with a thorough analysis of the region by a professional who’s familiar with the self storage industry and this specific storage type. Having a detailed understanding of the market and potential future supply is paramount in determining financial viability. You must consider the competition as well as population and industry growth.²

Making sure you don’t overbuild for wine storage in the market is also key, since wine-storage customers comprise a much smaller demographic than the general self storage client base. Affording expensive wine is one thing; paying to store it only further shortens your list of potential tenants. On the other hand, room to grow with the market is also important.

Location

Wine enthusiasts that collect expensive, rare, and vintage wines sometimes look to resources outside their home to ensure proper storage. Restaurateurs and commercial sellers often require additional space for their wines as well. Self storage operators with the right environment can fill these special storage needs.

However, not all facilities are suitable for wine storage. It takes a specific type of market to be successful, as the common denominator among collectors is high income.

The average yearly household income of customers linked to high-end wine storage is $125,000, and the average age for these tenants is 45 years old, according to Tom Maxfield, national operations manager for Move It Self storage LLC, which operates 44 facilities in Maine, Tennessee and Texas.

Environment

Another factor to consider when it comes to building a wine-storage area is the environment. It’s critical to create and maintain the correct temperature and humidity. In general, the proper climate for storing wine is 55 degrees and 60 to 80 percent relative humidity.³ Because even the slightest variation in temperature can reduce the value of a bottle of wine, a properly designed system with consistent moisture and temperature control is vital. An improper temperature will cause the wine to age quicker, while incorrect humidity can affect a bottle’s label and cork. The storage area must have a properly insulated and designed perimeter to prevent air movement and condensation, and a system to monitor temperature and moisture.

It is critical to work with a company, such as Forge Building Company that know how to build for this delicate environment. The wine-storage area should be properly insulated with a well-designed perimeter that prevents air movement and condensation.

Wine storage also requires a backup system in case of a power failure. This can include natural gas backup generators tied into the city gas lines or double-enveloped walls, so even if the generators went down, the temperature would stay the same for about a week. Temperature and humidity controls should be monitored by facility staff and tied to an alarm system. If levels ever approach preset limits, the facility manager will be alerted. When the facility is closed, the system can be monitored by an outside service that notifies a designated person or company if there’s an issue. Other options may include installing redundant fans along with a temperature and humidity sensor that can be controlled and monitored remotely.

There are other considerations as well, such as special flooring as well as 25-watt sensory lights because wine is sensitive to heat and light.

Size

The space designated for wine storage and the size of the lockers are additional construction components to address. Generally, for every square foot of wine storage, a developer should allow an additional four-square feet for aisles, staging and ADA [Americans With Disabilities Act] access.

Customers seeking wine storage will typically fall into two categories: commercial tenants and private collectors. You’ll want to build units in a variety of sizes to accommodate both. Small lockers should typically appeal to private collectors, while units as large as 10-by-10 feet should be considered for commercial tenants.⁴

Wine-storage lockers can range in size from 2-by-2 feet, which holds 12 to 15 cases, to 8-by-11 feet, which holds up to 400 cases. However, since most customers seek wine storage for case quantities, larger units are most popular. Within a footprint area of 1,000 to 1,200 square feet, generally, consider designing 300 to 360 actual square feet of wine storage.
Wine lockers can be single-, double- and triple-stacked, or use a simple side-by-side layout. They can be constructed in a range of materials from exotic woods to metal and will vary in cost.

The Décor

The décor of the wine storage is another consideration. Some self storage facilities offer tasting rooms as part of the customer experience and boast visual aesthetics such as mahogany doorways, vaulted ceilings and chic glassware. Special touches include wine barrels, vineyard murals and decorative furniture.

Exterior

The facility exterior is super important since this will be the first thing potential customers see. Welcoming features like water displays (fountains, waterfalls, ponds) and outdoor furniture are some creative ways to complement the building. Additional features that can help frame the office include trellises with ivy or grape vines, awnings at entry points, pavers or enhanced concrete, decorative gates and doors.

Interior

Once you’ve planned the exterior design, planning for the interior elements that can enhance the marketability of your wine-storage program are also key. Some creative touches can include items such as empty wine barrels, heads staves and hoops to faux wine vats to help play up the theme.

Climatization

The most important aspect of wine-storage design is the climate. There’s no point in going through any of this unless you can ensure customers’ stored property is perfectly preserved. No expense should be spared here.

Working with Forge Building Company will ensure that we will bring in the necessary experts on refrigeration and climate control for wine storage. Proper temperature and humidity are key in keeping the wine in optimum condition. We will pay attention to the placement of your wine storage area in relation to the sun, limiting exposure on that portion of the facility to save in energy costs.

Security

Another critical aspect of wine storage is security, not only from the facility owner’s perspective but the customer’s, too.

• An easy way to ensure security is to add an electronic keypad at the entrance and assign each customer an individual access code.
• The wine-storage area should also include video cameras that are integrated with the facility’s security-monitoring system.
• Also, pay attention to lighting, which can serve a dual function of enhancing security and improving the overall look and feel.

Moving Ahead of the Competition

Wine storage can make a profitable complement to a traditional self storage operation in the right location. By building or adding wine-storage facilities that feature proper climate and humidity control, ease of access, customer perks, and proper security, the wine-storage market can give your bottom line a profitable boost.

When designing wine storage, think about how and where you like to enjoy a glass of wine. An attractive, secure environment that promotes your new offering won’t only differentiate your facility from competitors, it’ll draw in new customers. It can pay greatly to take care of these high-quality customers.

Works Cited

1 Self, K. (2016, January 22). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/wine-storage/adding-wine-storage-self-storage-business-location-design-construction-and-more

2 Bruce Jordon, D. M. (2022, January 21). Inside Self Storage. Retrieved from InsideSelfStorage.com

3 Storable. (2021, August 17). Retrieved from storable.com: https://www.storable.com/resources/learn/wine-self-storage/

4 Diamond, K. (2017, September 3). Inside Self Storage. Retrieved from insideselfstorage.com: https://www.insideselfstorage.com/wine-storage/uncork-success-adding-wine-storage-your-self-storage-facility

Disaster preparedness has never been more important than it is now. Natural disasters like hurricanes, tornadoes, flooding, or wind and hail can cripple your business. Even man-made events like arson, vandalism, burglary, or pollution exposure can be a significant disaster. Creating a disaster preparedness plan will save you time and money and can be the key to keeping your business going.

The best disaster plans start with a key list of emergency contacts including fire and police departments, insurance agent, electrician, plumber, and HVAC contractors. In addition, it is key to keep an updated list of tenants, employees, and vendors available including your steel building contractors. This information should be backed-up on a regular basis and retained off site. A site map or diagram, building plans, and bank account records should also be kept online and/or at an off-site location.

It is important to consider privacy implications when backing up tenant records. It is your responsibility to keep that information safe. If a data breach occurs, you have the duty to notify customers and comply with state and federal regulations. All facilities should consider a cyber liability insurance policy that includes legal services that can assist in determining regulatory obligations and notification requirements.¹

For the safety of your employees, your business should have an emergency kit on site that includes:²

• A first-aid kit
• Bottles of water
• Radio with extra batteries
• Lighting (such as flashlights or lanterns) including batteries
• Candles and matches in a waterproof container
• Hand tools
• Whistle
• Duct tape
• Local maps
• Fire extinguisher
• Blankets
• Hand sanitizer
• Soap
• Trash bags
• Feminine supplies
• Toiletry items
• Detergent
• Bleach
• Toilet paper
• Paper towels
• Medications

Your facility should have a plan in place for disruption in utility services. Ahead of time, determine what utilities are necessary for continuing your business and contact your local provider to see what back-up options are available for phone service.

To prevent arson, vandals, and burglaries, facilities should consider perimeter fencing at least 6 feet high as well as a surveillance system with a sign advising the facility is monitored. Central station burglar and fire alarms are always recommended, especially for the office.

Another step you can take is to contact your local disaster restoration company to see if they offer a preparedness assessment. Implementing what they suggest could minimize interruption to your business in the event of any sort of disaster.

Your facility’s emergency preparedness plan should be updated regularly. You can review and create your own plan at www.ready.gov.³ This plan should be shared with your insurance agent who will use this information to present your facility to underwriters for the most competitive insurance policy available. The more information you provide to your agent regarding disaster preparedness, safety features, and updates to plumbing, heating & electrical, and roofing, the better an underwriter can use this information to justify applying credits to your insurance premium.

WHEN A DISASTER IS IMMINENT

Firstly, tenant access to your facility should be restricted if an extreme weather situation is pending. Only emergency personnel should be allowed on site during a storm or disaster. Call the fire department immediately and evacuate the premises if there is a fire. All facility employees should be trained on the proper use of fire extinguishers. Employees must understand the safe use of fire extinguishers and be instructed never to try to fight a spreading fire.

When the facility is safe, the owner should do whatever is necessary to protect the buildings from further damage. Ensure the property is secure, contact local authorities, and then call your insurance agent to report the claim. Make sure to take photographs of all damage.

NOTIFYING TENANTS

The next key item is when a situation occurs at your facility that results in damage to your tenants’ property, it is crucial that the tenants be notified immediately. Notice should be made both by phone and by written notice to each tenant's last known address. The notice should explain whether the tenant can recover its property from the facility and, if so, when. Access to a tenant's goods can usually be given unless the damage is so extensive that it would be dangerous for the tenant to enter the facility property. The written notice should also recommend that the tenant notify his or her insurance company.⁴

It is also extremely important to note that if a disaster cannot be controlled by the facility, most leases and rental agreements will protect the facility owner from tenant claims arising from the loss of their property. Self storage leases typically contain specific language stating that the facility will not be held responsible for the loss of or damage to its tenants' stored property from such natural occurrences or Acts of God. Self storage leases generally provide that the tenant's property is to be stored at their own risk and that the facility does not take care, custody or control of the property stored.

Self storage facility owners should be aware that standardized comprehensive and business liability policies will likely not cover tenant loss and damage claims and therefore they may need to add additional liability insurance for customer goods for added protection.

HAVE A DISASTER PREPAREDNESS PLAN

After a loss occurs, the facility owner must protect the property (and the contents) from further damage. All efforts should be made to cover or board up areas that remain open to the elements and rope off damaged areas to protect tenants' property.

Next, an incident report with photographs or video footage documents the loss and your efforts to mitigate further damages should be completed. Finally, it is key to contact your insurance company immediately. Many insurance companies will not be obligated to cover your claims if they are not given reasonable notice of the occurrence and have a chance to investigate it.

Even with the best planning, disasters can cause havoc for self storage facility owners. By implementing a “safety first” policy, a facility owner can often mitigate problems ahead of time. Once the dust has settled from the disaster and safety has been verified, the process can move forward with recovering the tenants' property and repairing the facility. As long as the proper insurance is in place, the financial impact of the disaster can hopefully be controlled.

Once the property is safe for access, facility owners should obtain dumpsters for their customers who have suffered a loss. Damaged property can be removed from the storage units (due to the certain risk of mold and mildew). Extra effort should be made to contact tenants who have not inspected their property within the first week since, after two or more weeks, the risk of mold and mildew on affected property increases. If the tenant doesn’t respond and before any action is taken to dispose of damaged property, the facility owner should again attempt to contact its tenant and work in concert with its insurance company regarding the need to clear the storage building of damaged property.

Additional emergency preparedness resources include:

CDC Emergency Preparedness
FEMA
Ready.gov
Red Cross

For assistance in weather proofing and securing your facility, give us a call. Team Forge is here to help ensure your facility is as safe and secure as possible. We will inspect and make sure your roof is secure as well as your hallways and doors. We look forward to helping you ensure you are prepared for any disaster.

Works Cited
1 Lamoureux, J. (2022, February 24). World Insurance. Retrieved from World Insurance
2 Silverado Self Storage. (n.d.). Retrieved from Silverado Self Storage
3 Ready. (n.d.). Retrieved from Ready: https://www.ready.gov/
4 Zucker, S. (n.d.). Self Storage Association. Retrieved from Selfstorage.org

With climate change related to higher temperatures and drier weather conditions comes the threat of wildfire season. A wildfire can be devastating to a self storage business. An article from The Wall Street Journal indicates that wildfires could increase by up to 57% by the end of the century. (wsj.com, 2022) Following are conditions that set the stage for wildfires and in addition to corresponding tactics to improve your wildfire resilience.

What Causes Fires in Self Storage Facilities?

Many self storage facility fires are caused by improperly stored flammable goods or packaging, however other fire risks include the following (Jensen, 2020):

• Overcrowded units: Units that are overpacked with boxes and other goods create a huge fire risk.
• Poor or no extinguishing systems: A fire-extinguishing system, such as sprinklers, can prevent a fire from spreading, however, if it’s not configured properly, or covers too small of an area, it may be inadequate to seriously tackle a fire.
• Insufficient water supply: Some self storage facilities may have low water pressure, which may be inadequate for fire-suppression systems as well as those of the local fire department.
• Inadequate detection: When employees or tenants are not around, an automated detection and alert system is a key element needed for notifying the fire department. Without such a system, serious damage is likely to occur before authorities are even aware of an incident.
• Human acts: Two of the biggest causes of fires in self storage facilities are human error and arson. This includes smoking near flammable objects, faulty installation of electrical equipment, improperly stored items, and storing prohibited/flammable items inside units. Sadly, there are also a number of deliberate crimes that are designed to destroy property.
• Landscape management & Disaster Preparedness: Dry landscaping, mulch coupled with the higher temperatures and winds – especially when close to the self storage facility can also spark a fire if there are any flying embers.

What Can Be Done to Protect a Self Storage Facility from Fire?

There are a number of tactics for self storage facility owners. In California, most self storage facilities are Type II or Type III construction consisting of non-combustible concrete or masonry or light gauge steel. (Valli Architectural Articles, 2006)

Whether you’re in California or another state, all self storage facilities absolutely need a class-A and -B fire extinguisher as well as sprinklers. A sprinkler system is key for reducing fire, smoke, and water damage since it’ll use far less water than responding firefighters.

Here are some other simple tactics to protect your property from fire. It’s also key that staff members are trained and informed, safety equipment is available and in working order, and preplanned/drilled/validated protection routines and strategies are in place.

• Conduct a fire-risk assessment to evaluate the construction and layout of your structures. (Alalouff, 2022) This can identify any inherent risks as well as any paths through which smoke and fire may spread. The most effective risk assessments don’t have a start or end point; rather, they continue throughout a property’s lifecycle.
• Continually review and upgrade your fire-extinguishing devices. Check exit signage and alarms to ensure they’re up to code. Faulty equipment or unclear signage can cause devastation of a facility. (Park, 2016)
• Ensure facility managers and staff are fully trained and safety routines are up to date. All personnel should be able to identify any potential fire risks, so training and education is key.
• Implement policies regarding vehicle parking such as not parking immediately adjacent to buildings due to the potential of leaking flammable material.
• Fire-detection and -protection equipment should be positioned so it doesn’t impede the movement of people or the transfer of goods to and from storage units.
• Ensure video cameras, perimeter barriers and lighting are checked regularly and updated to work as effectively as possible.
• Institute rigorous ID checks and access protocols. Common motives for arson are domestic disputes and conflicting ownership claims.
• Apply Firewise landscaping with “lean, clean, green design”. (University of Florida Gardening Solutions, n.d.) :
  • Creating an area of “defensible space” with “fire dept. emergency access” to lessen the risk of wildfires. This is a space between natural areas (like woods) and your facility. This space breaks up the continuity of plants, giving the facility a better chance of surviving if fire comes near.
  • Planting plants that are low in flammability to reduce the likelihood that a fire will jump from a wooded area to your facility. This includes plants with thick, succulent leaves such as cacti, aloe, and century plants that maintain high leaf moisture content and take longer to ignite.
  • Making sure any shrubs, vines, and small trees are pruned to 10 feet off the ground.
  • Keeping tall trees away from the facility and using short shrubs in foundation plantings. Groups of plantings should be separated by nonflammable areas, such as gravel, stepping stone pathways, or a well-maintained and healthy lawn. If you use mulch, try to limit it to the area of landscape outside of the defensible space, as mulches can be flammable.
  • To keep your landscape firewise, keep up with routine maintenance: don't delay necessary pruning and irrigation, and remove dead leaves, branches, and plants from your property.

A lot of fireproofing hinges on staff and tenant education. Since many self-storage fires are caused by human error or arson, ensuring employees and tenants are aware of rules and responsibilities goes a long way toward increasing fire safety. Additionally, making sure your facility has the proper equipment, such as sprinklers, smoke detectors, and fire extinguishers along with firewise landscaping will increase preparedness and resiliency for the upcoming wildfire season. For assistance with upgrading or making your facility more firewise, give the experts at Forge a call!

Works Cited

Alalouff, R. (2022, February 28). IFSEC Global. Retrieved from ifsecglobal.com: https://www.ifsecglobal.com/fire-news/guide-fire-risk-assessment-get-one/
Jensen, O. (2020, September 1). Inside Self-Storage. Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/disaster/tips-increase-fire-prevention-and-safety-your-self-storage-facility
Park, C. (2016, August 11). IFSEC Global. Retrieved from ifsecglobal.com: https://www.ifsecglobal.com/fire/a-guide-to-fire-alarm-system-types-2/
University of Florida Gardening Solutions. (n.d.). Retrieved from gardeningsolutions.ifas.ufl.edu: https://gardeningsolutions.ifas.ufl.edu/design/landscaping-for-specific-sites/firewise-landscaping.html
Valli Architectural Articles. (2006). Retrieved from Valliarch.com: http://www.valliarch.com/press-awards/articles/article06.pdf
wsj.com. (2022, February 23). Retrieved from The Wall Street Journal: https://www.wsj.com/articles/wildfires-will-become-more-intense-and-frequent-u-n-study-finds-11645652588

With so many self storage facilities popping up across the U.S., the thought of doing any sort of facility renovation causes many self storage owners and investors more anxiety versus excitement. Facility improvements offer many business advantages such as higher rental rates, increased property value, and happier customers that will stick with the facility once improvements have been implemented.

While the Self Storage industry is booming, there are a lot of properties out there that have aged with little or no maintenance, upgrades, or renovations to keep them operating at peak performance. This may include broken unit doors, leaky roofs and poor lighting or other safety hazards. When customers don’t feel that the items they are storing are being responsibly protected, they are more likely to seek out a facility that is newer, cleaner, safer, more sustainable or renovated.

All self storage facilities should have:

• Doors that open easily
• A roof that doesn’t leak
• A modern security system
• A pleasing look
• Compliance with the Americans with Disabilities Act (ADA) (U.S. Department of Labor, n.d.)

Forge Building Company can help you assess and improve your self storage facility to meet the needs of your customers while increasing rental income and property value. When determining what to renovate, Forge can evaluate your site, looking at the aesthetics and functionality to determine what areas should be upgraded or replaced – doors, hallways, roof, lighting, vehicle storage areas, and other equipment.

Doors

Many Forge customers are upgrading unit doors because their appearance and functionality impact site safety and security. Remember, curb appeal is the first thing a customer will notice. Also, replacing older doors can potentially lower your insurance liability and costs.

Replacement doors should be customizable, easy to operate and maintenance-free. This will result in minimal upkeep. Forge recommends dead-axle roll-up doors with factory-lubricated and enclosed springs that’ll be protected from harmful elements while ensuring smooth operation for many years. Samples can be seen here: storage building hallways and doors.

Sustainable Upgrades

In a recent blog post titled Sustainability In The Self Storage Industry, Forge suggested several sustainability options, including:

• Installing solar panels or efficient roofing. Roof coatings with a high percentage of infrared reflectants help maintain a more stable building temperature.
• Retrofitting with energy-efficient lights to reduce electric usage. Another option is to 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 add security and be much cheaper to run and maintain in the long run.
• Paying attention to your landscape plan; creating a natural, more sustainable design that is more water efficient and applies integrated pest management.

Vehicle Storage

Adding vehicle storage designed to house a car or other type of vehicle is another great upgrade. Think of it like a garage or parking space that you rent 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.

There are four primary types of vehicle storage:

• Uncovered parking spaces
• Covered parking spaces
• Shared indoor units
• Personal enclosed units

In a recent blog post titled Guidelines for Vehicle Storage, we discuss the various options for vehicle storage. One of the best ways to enhance your customer experience and grow your business is to offer RV and boat storage. Your customers will be motivated when they learn that they can store their RV or boat at the same storage facility as their other items.

Forge Building Company is a premier commercial storage builder that constructs not just self storage facilities, but also commercial RV and boat storage canopies. Because we partner closely with many self-storage business owners, we know what storage facilities require when it comes to their buildings and canopies. For samples of our vehicle storage projects, see Canopies RV Boat Commercial.

Final Thoughts

Many renovation projects can be completed without interrupting the rhythm of your business. The team at Forge can suggest a rollout plan to ensure your business continues to run smoothly during any renovations.

While the thought of renovation often brings concerns and questions over the financial burden, it is key to consider all of the benefits of the renovation. An improved facility will allow you to market all of the safety and sustainable new features to current and potential customers which will then allow you to charge higher rents, increasing your property value! It’s a win-win for both you, the property owner and your customers!

In addition, once the renovations are completed, there could be cost savings in utilities and insurance.

Cost seg (CSA, n.d.) is a tax-planning tool that allows you to write off discarded old materials as part of your federal tax filings.

Renovations aren’t just for older self storage facilities. They can benefit any site. If your occupancy rate is above 85%, consider upgrades. Making appropriate repairs and upgrades will provide your customers with a safe, secure and clean environment for their precious belongings enabling an easier justification for higher rental rates while increasing your property value.

Works Cited

Barnard, J. (2018, September 14). Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/eco-friendly-storage/differentiation-through-sustainability-green-ideas-self-storage
CSA. (n.d.). Retrieved from CSA: https://www.costseganalysis.com/
U.S. Department of Labor. (n.d.). Retrieved from U.S. Department of Labor: https://www.dol.gov/general/topic/disability/ada