Bullhead City, AZ – March 25, 2025 – Forge Building Company, the expert innovator in reliable steel building systems, and Desert Land Group, a leader in providing high-quality storage solutions, today announced the groundbreaking on its newest storage complex, Toy Shack Storage in Bullhead City, Arizona. This state-of-the-art facility aims to meet the growing demand for secure, accessible storage options in the region.
The new 85,782-square-foot facility will feature:
The new facility is on track to open in early 2026.
“Our relationship with the Desert Land Group started back in 2018,” said Hamish Bell, CEO of Forge. “Since that first project, we have been involved in helping Desert Land Group develop facilities from the ground up for all of its storage facilities.”
The groundbreaking ceremony will take place on Wednesday, March 26th, from 11 am to 1 pm, located at Laughlin Ranch Blvd, Bullhead Pkwy intersection. Members of the community, local leaders, and media are invited to come celebrate this significant milestone.
“We are thrilled to bring this innovative storage facility to Bullhead City and become an integral part of the community,” said Luke Still, Owner/Developer at Toy Shack Storage. “This complex is designed not only to provide secure storage for our customers but also to enhance the community's accessibility to valuable space for their belongings. In addition, it will contribute to the local economy through job creation and community engagement.”
Toy Shack is dedicated to providing new and innovative storage solutions in Arizona and other locations in the US. Founded by Luke Still and Mychal Gorden, who bring over 10 years of experience in the boat and RV storage business, Toy Shack combines industry expertise with a commitment to customer satisfaction, security, and sustainability. The team’s knowledge and passion for storage solutions drive the company’s mission to innovate in the storage industry.
For more information, please visit toyshackstorage.com.
Headquartered in Lake Havasu, Arizona, and founded in 2014 by two real estate, design, and development professionals: Mychal Gorden and Luke Still, Desert Land Group has become an all-inclusive development and real estate service for clients around Arizona and the desert Southwest. With over 40 years of combined experience in the desert Southwest, Mychal and Luke have collaborated on various land acquisition and development projects for clients since 2001.
For more information, please visit https://desertlandgroup.com/.
Founded in 2007 by veterans Hamish Bell and Hayden Farrell, Forge Building Company has become a leading expert and provider of comprehensive steel building solutions. With over two decades of experience and a portfolio exceeding 500 projects and 50 million square feet of construction, Forge Building Company remains privately owned and headquartered in Boise, Idaho.
The self storage industry which has experienced remarkable growth in past years and continues to evolve. Following many years of pandemic-driven demand, the self storage industry is now entering a period of adjustment1. Despite the potential obstacles, opportunities for development persist, fueled by technology, customer trends, and strategic innovation. (See our blog, “Is Self Storage a Good Investment for 2025?”)
For savvy investors, opportunities still exist. Self storage businesses must differentiate themselves through storage facility investment. This includes upgrades, improved customer service, and the use of cutting-edge technology, keeping in mind these demand drivers:
Whether building a new facility or upgrading an existing one, so many options exist to help increase profitability. These options range from traditional drive-up units and multi-story facilities to climate-controlled spaces and adaptive reuse projects, such as converting offices or big-box stores into storage units. There’s even a growing market for Pre-Engineered Metal Buildings (PEMBs), flex space, RV/boat canopies, as well as high-end storage condos designed for boats and RVs. With a variety of choices available, investors can select the right storage model and mix based on budget, location, and the needs of the surrounding community.
The traditional self storage facility typically offers outside drive-up storage. These warehouse type of units typically charge by the month and provide wide driveways for trucks to unload belongings into individual units. The interior spaces range in dimensions from 400 to 500 square feet.
This type of facility works well in communities where customers want to store and organize their belongings in a safe, clean place with easy access to their goods. These types of storage units provide the highest level of convenience and work best in a community where people want to load or unload their goods as quickly as possible. They are a great option where land is plentiful enough to create drive-up pathways.
Here is one example of a traditional drive-up facility built by Forge Building Company.
Multi-story self storage is great for when land space is limited. These are also ideal for investors who want to add climate-control options. Some may contain exterior drive-up options for first level, then climate-control options for the upper levels. For an example of a multi-story Forge project, see Kansas Self Storage Building Projects and to learn more on whether building a Multi-Story facility makes sense, see our blog: “When Building a Multi-Story Facility Makes Sense.”
Climate-controlled storage facility investment is a great option in areas of the country that experience extreme heat or cold temperatures and/or that experience high humidity. These units are great for your customers storing furniture, antiques, artwork, and other items where the climate needs to be controlled to avoid moisture buildup and mold prevention.
For more information on whether or not climate-controlled self storage is worth the investment, see our blog titled, “Is Climate-Controlled Self Storage Worth the Investment?” and see an example of a Forge Building Company climate-controlled storage facility build.
With the decline in big-box retail, there is now a significant inventory of vacant buildings out there for sale. With the current trend of office vacancy rates increasing, building owners are seeking creative ways to make that empty space generate profit again. As such, some are converting these structures into self storage facilities. These buildings can be converted into climate-controlled units or more traditional drive-up units depending upon the building, location, etc.
While this development path can be an efficient time and cost-saver, there are important considerations. These are addressed in our blog titled, “Converting Office and Big-Box Retail Buildings to Self Storage.”
In today’s rapidly evolving landscape of construction and development, the demand for efficient, durable, and cost-effective solutions continues to soar. The pre-engineered metal building (PEMB) is a game-changer in the industry. A pre-engineered metal building system is a building that is constructed with a steel frame system that supports a metal roof and wall panels. They are pre-designed to adhere to precise dimensions in a factory, then the building components are brought to the site in completely knock-down condition (CKD), and finally, they are fixed/jointed at the site and raised with the help of cranes.
PEMBs have revolutionized the construction landscape across various sectors. These include agriculture, recreational sports facilities, warehouses, aircraft hangers, community centers, storage warehouses, and more. These structures offer a plethora of benefits that make them an ideal choice for developers, investors, and owners. PEMBs are perfect as a stand alone building or as a part of a larger self storage facility.
See: U-Haul – Overland Road and Condor Barn Breeding Facility for a couple of examples of how PEMBs are being utilized.
For more information, also see “Mixing PEMBs with Standard Self Storage for Maximum Opportunity” and “Pre-Engineered Metal Buildings – An Investment Alternative.”
Flex spaces are becoming increasingly popular among business owners of both offices and storage space. As a business owner, you know exactly how much overhead costs can add up; it’s unfortunate if you don’t need all the space, but for many, that was the only option. That's why so many companies are investing in flex spaces instead of office buildings.
For flex space storage, garage condos can be constructed for commercial applications. An investor might build several garage condos within one large structure and then rent them out to multiple businesses, such as automotive repair shops or a trade workshop. Flex spaces can be used as offices, warehouses, mechanic shops, manufacturing facilities, and so much more.
Americans love to travel and have been purchasing RVs and boats for years. The RV industry alone has seen consistent growth every year since 2009, and the RV Industry Association is predicting shipments of new RVs to be in the mid 300,000s, up from 2024’s shipments2.
There are many factors to indicate that the addition of boat & RV canopies is worth the investment, including local market conditions. Many areas of the country suffer from a lack of vehicle storage or places where boats and RVs can be stored securely. As the sales of RVs and boats increase, the demand to store these vehicles is also likely to grow.
Read about one of our recent boat canopy projects built by Forge for Havasu Riviera Marina.
Unlike the boat & RV canopies, boat & RV condos can not just be rented, but also purchased. These units are fully enclosed. Owners of other types of vehicles, such as collectible and antique cars, motorcycles, and commercial vehicles, may also be in the market for storage condos. Owners of all these vehicle types will not only want a unit for storage, but for maintenance and light repairs as well – a secure place where they can pursue their hobby.
For more information on where this segment of self storage is heading, see our blog, “Where is Boat and RV Storage Headed?” and then check out Luxelocker Storage Condos for an example of one of our storage condo developments.
Choosing the right self storage investment option and the right mix will depend on your location and its market demand. Many Forge customers have a mix of these different types of storage options on their premises. The steel building experts here at Forge Building Company are happy to help you through the entire process. Let’s connect today.
Contributing Editor: Phil Warchol, Forge Building Company
References
1. Dmyterko, A. (2024, November 5). Streams Development. Retrieved from streamsdev.com: https://www.streamsdev.com/post/self-storage-industry-trends-and-outlook-for-2025
2. Fedorick, L. (2025, January 21). Camper Report. Retrieved from camperreport.com: https://camperreport.com/the-year-ahead-rv-predictions-for-top-trends-in-2025
The self storage industry is evolving. As we enter 2025, this industry is well-positioned to adapt to the shifting landscape of increased mobility and shifting customer expectations. Facility owners and operators who invest in flexible pricing, innovative technology solutions, and targeted regional marketing will be better equipped to thrive in this evolving market.
In our previous blog, “2025 Self Storage Industry Growth Projections and Trends,” we looked at top trends and innovations expected to shape the construction industry in 2025. From an investment standpoint, Self Storage still provides great opportunities for investors. The US market alone is expected to jump from $44.37 billion to $49.88 billion by 2029. This represents a Compound Annual Growth Rate of 2.37%1.
Price Matters. Price is a significant factor when it comes to self storage. In the Storable survey, 83% of respondents emphasized that price is a significant factor when choosing a storage unit. Affordable, flexible options will likely remain a key selling point for facility owners. Convenience and location also rank high, with 68% of respondents emphasizing the importance of accessible facilities.This expansion has been fueled primarily by an increase in RV ownership and a rising population of boating enthusiasts, creating a demand for dependable storage solutions during periods of inactivity. Storage options may include uncovered storage, canopies (or covered storage), or storage condos (fully enclosed storage).
In our blog, “Investing in Storage Condominiums,” we address this sector of Boat and RV Storage as a great investment alternative.
Investors and facility owners should also consider the growing demand for short-term storage. With 79% of customers needing storage for six months or less, flexibility in rental terms and ease of extension could be a game-changer for attracting and retaining customers.
As more people plan moves, the demand for storage is projected to grow. Current facility owners must adapt by offering value-driven services while keeping prices attractive to stay competitive.
The global population is increasing. More people means more stuff creating a need to stash their belongings. With the increased cost of living, many young professionals are opting to rent rather than buy, living in apartments and condos with limited space.
Self storage is profitable. Revenue from self storage rentals and sales is on the rise. The US market alone is expected to jump from $44.37 billion to $49.88 billion by 2029. With high demand and significant cash flow potential, self storage is an appealing real estate investment.
The self storage industry shows no signs of slowing down, and recent trends explain why there are so many storage facilities. In our blog, “Self Storage is an Investment Alternative,” we discuss the primary reason investors look at this asset class is because it can be an inflation hedge. This is still true today.
Here’s what the Forge President and CEO have to say about “Self storage as an investment.”
Strong market fundamentals, smart investments in technology, and a growing customer base all point to continued opportunities for self storage facility owners and investors. The demand for extra space isn’t going away anytime soon. For people and businesses with too much stuff and not enough room, self storage provides an ideal solution.
References
1. Davison, M. (2024, July 4). Storeganise. Retrieved from storeganise.com:
https://storeganise.com/blog/why-are-so-many-storage-facilities-being-built
2. Storable. (2024, October 22). Retrieved from storable.com:
https://www.storable.com/resources/learn/2025-self-storage-industry-outlook-trends-to-watch/
3. Investinselfstorage.com. (2024). Retrieved from StorageUnits:
https://investinselfstorage.com/2025-self-storage-industry-outlook-whats-ahead/
4. Verified Market Reports. (2024, November). Retrieved from verifiedmarketreports.com:
https://www.verifiedmarketreports.com/product/rv-and-boat-storage-market/
One of the most anxiety-producing steps in self storage investing and development can be figuring out the right mix of unit sizes (and types) to build. There are so many factors that go into this decision from the size of your land, to your location, demographics, competition, budget, and more.
The most reliable means to determine the self storage demand for your facility is by engaging in a market feasibility study that will look at customer demographics and competitive landscape. These two elements are key when developing your self storage business plan and determining what types of self storage to build and what rates you can charge. See our latest blog on self storage site plans.
In today’s economy, Forge is seeing many of our customers adding in Pre-Engineered Metal Buildings (PEMBs) along with traditional storage. PEMBs provide incredible versatility, reduced construction time, and weather-resistant properties. They are especially well suited for storage facilities. See our blog, “Pre-Engineered Metal Buildings – An Investment Alternative.”
With PEMBs, the modular design provides a diverse amount of customizable design options. PEMBs can be designed with a variety of precise configurations to suit various needs within the same storage facility. Storage facilities, especially those that may include boat, RV, or vehicle storage often require wide open floor plans with a variety of custom, convenient entrances for larger inventory. With modular floor plans and versatile customization options inside and out, mixing PEMBs with Standard Self Storage is a perfect solution for any storage facility project.
Pre-engineered metal buildings help ensure the longevity and ease of maintenance of any storage facility due to their durability and resistance to harsh weather conditions, seismic activity, mold, and pests. The naturally resilient steel used to construct a pre-engineered metal building will never warp, rot, or attract pests like wood-eating insects. The galvanized steel framing system is also treated with a moisture-resistant coating, which makes it impervious to rust and corrosion. This coating is also applied to the wall panels and roofing, preserving their color and making them more resistant to weather, dirt, and other damage as well.
Many PEMBs are designed with energy efficiency in mind. These buildings can accommodate insulation, energy-efficient HVAC systems, and sustainable building practices, leading to reduced energy consumption and lower operating costs over the building’s lifespan.
With the components of the building pre-engineered off-site, storage facility construction time can be greatly reduced. While each component is manufactured according to precise factory regulations, your general contractor can carry out all the necessary steps to prepare the construction site. This may include demolition, laying the foundation, installing plumbing and other utilities, and more. Since these phases of the project can be completed simultaneously, the overall timeline of storage facility construction projects is reduced.
Because PEMBs are manufactured offsite, the manufacturing process reduces labor costs, material waste, and construction time, leading to overall lower project costs. With a reduced construction time, using a pre-engineered metal building for a storage facility construction project can also reduce the overall cost of the whole operation. Once the steel framing system has been manufactured and delivered to the construction site, PEMBs can be erected faster and more efficiently, dramatically reducing on-site labor costs.
With over 15+ years in the industry, Forge Building Company IS the Steel Building Expert. We have contributed to the success of over 500+ self-storage projects. The team at Forge is ready to provide insight and guidance as to “Best Building Practices” when it comes to developing or expanding facilities. Forge has a team of dedicated professionals committed to excellence in planning, design, engineering, construction, and project management.
Through strategic planning and prudent decision-making, Forge developers can navigate challenges and capitalize on opportunities to create successful self storage facilities that deliver value to investors, tenants, and the community alike.
When you choose Forge, you are choosing quality, reliability, and innovation every step of the way. With the company’s proven track record of delivering superior results, you can trust Forge Building Company to bring your vision to life with precision, efficiency, and unmatched expertise. Contact us today to discover how we can elevate your next project to new heights and success.
When it comes to building a self storage facility, many investors focus on location, security features, and unit sizes, often overlooking a critical element that can make or break the success of the investment—the roof. The roof may not be the most glamorous aspect of a storage facility, but it is undoubtedly one of the most crucial.
As self storage buildings grow older, maintaining the roof becomes increasingly crucial and time intensive. A regular inspection and maintenance routine is key to extending the life of the roof and avoiding hefty bills for repairs and property hassles. That’s why using the steel building experts at Forge for your commercial roofing needs ensures that your investment is protected while also adding value to your self storage facility whether it be new construction, an expansion, or renovation of your existing units.
At Forge, we always recommend standing seam roof panels to our customers. This type of roofing has concealed fasteners that eliminate the risk of many leaks, rust, and loosening screws. They also serve two other very important functions – reducing material and labor costs and increasing the sustainability of the self storage facility. In this blog, we will explore the importance of investing in a quality metal roof when developing or upgrading a self storage facility and the long-term benefits it can bring.
A self storage facility’s primary purpose is to safeguard the belongings of its tenants. An investment in a high-quality, durable metal roof ensures that the stored items remain safe and protected from the elements. Whether it’s scorching sun, heavy rainfall, or snowstorms, a strong, commercial metal roof acts as the first line of defense against weather-related damage. Leaks and water ingress can wreak havoc on stored items, leading to potential financial losses and damage to the facility’s reputation. Regardless of the climate of your self storage facility, a commercial metal roof from Forge Building Company is sure to keep your facility safe and your tenants happy.
To learn more, see Doors, Roofing and Best Climate Control for Your Geographic Location and Ensuring Form, Function and Long Life: How to Properly Care for Your Self Storage Unit Doors and Roof.
Aside from new construction, as self storage buildings age, roof maintenance and repair become more important and time-consuming. An inspection and maintenance program are an important part of sustaining roof life as well as keeping costly repairs and property claims in check.
With proper inspection and maintenance, a metal roof can last for decades. The goals of a good inspection and maintenance program are to proactively locate and repair possible leaks while extending the life of the metal panels. This inspection and care will help you keep your roof in the best possible condition. The most effective examination for metal-roof systems includes four specific areas: the perimeter, the ridge, fasteners, and debris.
For more details on when it’s time to replace your metal roof, see “Forge Building Company – Metal Building Re-Roofing with Standing Seam Metal Roof Panels.”
While upfront costs for a premium metal roofing system may seem higher, it’s essential to view it as a wise long-term investment. The quality roofing materials and professional installation from Forge can result in a roof with an extended lifespan, reducing the need for frequent repairs or replacements. This, in turn, leads to significant cost savings over time, sparing facility owners from the financial burden of constant maintenance and unexpected roofing issues.
One of the best investments for your self storage facility is the installation of standing seam metal roof panels. These metal panels, installed by the experts at Forge, are built to resist corrosion and leaks and require less maintenance in the long run, which ultimately saves you more money.
To learn more about standing seam metal roof panels and watch the entire process in action, see Standing Seam Panel Roof Installation.
With 20+ years of experience, Forge Building Company, you can rest assure you that you are getting the highest quality materials for your investment that will last you for years to come.
Standing seam metal roofs are made of recycled and recyclable materials like aluminum. When the time comes to replace them, they can be reused for other projects. This eliminates the need for landfills.
In addition to being sustainable, standing seam roof panels reflect solar radiant heat coming from the sun, reducing cooling costs for your facility.
A secure roof not only protects against weather-related damage but also plays a pivotal role in maintaining a secure storage environment. An intact, well-maintained roof protects against unauthorized access, discouraging potential break-ins and vandalism. Tenants are more likely to trust a facility with a sturdy roof, knowing their belongings are safe from both natural and human threats. This, in turn, fosters a positive reputation for the facility, attracting more tenants and ensuring customer loyalty.
Investing in a high-quality roof also ensures compliance with local building codes and regulations. Regulatory bodies often mandate specific roofing standards to guarantee the safety and well-being of tenants and the surrounding community. Failure to meet these standards can lead to fines, legal troubles, and even the closure of the facility. By investing in a quality metal roof, facility owners can avoid legal complications and demonstrate their commitment to meeting or exceeding industry standards.
In the competitive landscape of self storage facilities, every detail matters, and the roof is no exception. Investing in a quality standing seam metal roof not only protects stored items but also contributes to the overall success and longevity of the facility. With enhanced durability, incredible resiliency to endure extreme weather conditions without rusting, coming loose, or allowing leaks, reduced long-term costs, increased security, and compliance with regulations, a well-built roof proves to be a critical component for any investor looking to establish a reputable and profitable self storage business. So, before you break ground on your next project, remember to look up and secure the future success of your facility by investing in a reliable and resilient roof.
Let’s face it, the self storage industry, which continues to see amazing growth, has come a long way. According to Mordor Intelligence Research, the valuation of the self storage market reached $87.65 billion USD in 2019. By 2025, that valuation is expected to grow to $115.62 billion. This puts the compound annual growth rate (CAGR) at 134.79% over the forecast period of 2020-2025.1
More and more, today’s different types of self-storage facilities are being built with an increasing emphasis on design and amenities, as well as security and convenience. Regardless of what you need to store, there is likely a spot that will provide the space you need with a few bells and whistles, too. As the industry has grown and continues to grow, so has the value associated with this type of investment.
And for the savvy investor, there are now more options than ever - from the traditional drive-up units to multi-story buildings to climate-controlled spaces to converting an office or big box store to building storage condos for boats and RVs. There are a wide variety of self storage options to choose from depending on your budget, location, and needs within the community in which you intend on building.
To see the types of projects Forge is involved with, see:
Let’s explore each option.
The traditional drive-up self storage facility typically offers outside drive-up storage. These warehouse type of units typically charge by the month and provide wide driveways for trucks to unload belongings into individual units. The interior spaces range in dimensions from 100 square feet up to hundreds of thousands of square feet.
This type of facility works well in communities where customers want to store and organize their belongings in a safe, clean place with easy access to their goods. These types of storage units provide the highest level of convenience and work best in a community where people want to load or unload their goods as quickly as possible. They are a great option where land is plentiful enough to create drive-up pathways.
These types of units typically do not offer climate-control options.
For an example of a traditional drive-up facility built by Forge Building Company, see Wise Space Storage | Boise, ID.
Multi-StoryMulti-story self-storage is great for when land space is limited. These are also ideal for the investor wanting to add climate-control options. Some may contain drive up options for the lower levels, then climate-control options for the upper levels.
Climate-controlled self storage is a great option in areas of the country that experience extreme heat or cold temperatures and/or that experience high humidity. These units are great for your customers storing furniture, antiques, artwork, and other items where the climate needs to be controlled to avoid moisture buildup and mold prevention.
For more information on whether or not climate-controlled self storage is worth the investment, see our blog titled, “Is Climate-Controlled Self Storage Worth the Investment?” and for an example of a Forge Building Company climate-controlled storage facility build, see: Kuna Caves Storage
ConversionsWith the recent pandemic and decline in big-box retail, there is now a significant inventory of vacant buildings out there for sale. With the current trend of office vacancy rates increasing, building owners are seeking creative ways to make that empty space generate profit again. As such, some are converting these structures into self storage facilities or selling them to others who wish to do so. These buildings can be converted into climate-controlled units or more traditional drive-up units depending upon the building, location, etc.
While this development path can be an efficient time and cost-saver, there are important considerations. These are addressed in our blog titled, “Converting Office and Big-Box Retail Buildings to Self Storage.”
Americans love to travel and have been purchasing RVs and boats for years. According to numbers shown from industry trade groups and places like Statistica 2, Camper FAQs 3, and Go Rving 4, growth in ownership and usage of RVs and boats is growing.
The RV industry alone has seen consistent growth every year since 2009, and with the popularity of van life coupled with the pandemic, there was a huge spike in Gen-Z and millennial RV owners that wanted to travel and have recreational experiences without crowds. Many also found that they could work from remote locations, which meant they could live in RVs and work, not just use them for travel. This helped the outdoor recreation industry to reach close to a trillion dollars.
There are many factors to indicate that the storage condo business is worth the investment, including local market conditions. Many areas of the country suffer from a lack of vehicle storage or places where boats and RVs can be stored securely. There are currently over 25,000,000 boat and RV owners with another 9,000,000 expected to join the market in the next 3 years. Economic and social trends indicate that this is likely to continue throughout 2023 and beyond. As the sales of RVs and boats increase, the demand to store these vehicles is also likely to grow. Traditional self storage facilities have limited space and amenities to store RVs and boats, which means that demand for RV/boat condos will likely grow as RV and boat sales rise.
Owners of other types of vehicles, such as collectible and antique cars, motorcycles, and commercial vehicles, may also be in the market for storage condos. Owners of all these vehicle types will not only want a unit for storage, but for maintenance and light repairs as well – a secure place where they can pursue their hobby.
For more information on where this segment of self storage is heading, see our blog titled, “Where is Boat and RV Storage Headed?” and for an example of a Forge Building Company Storage Condo development, see: Luxe Locker.
There are many perks that investors look forward to when owning a self storage facility.
Consistent Demand
From boat & RV condos to small units that accommodate a few moving boxes, there is generally a reliable level of demand for this type of commercial real estate. Finding and/or building the facility that is right for your budget and location is key.
What’s more, self storage businesses can usually weather the storm of an economic downturn or recession. When people are forced to downsize or move, self storage becomes a valuable option.
On the other hand, when the economy is strong, people are more likely to buy things or pursue home renovations that require temporary furniture storage.
Flexible Management Options
In comparison to other types of businesses, interaction with customers is usually minimal. Facility owners may choose to have a small team, but it’s not uncommon for a single person to run this type of business.
Aside from providing tours and signing contracts, it usually isn’t necessary to always have someone on the premises. Once a contract is signed, tenants have access to their unit and can make automatic payments each month. As an investor or facility owner, you can be as involved as you want to be.
Opportunities for Additional Revenue
The base rent for your storage units will be your main source of income, but many self storage locations offer a variety of other products and services to generate more revenue.
In addition to selling moving and storage supplies, such as boxes and packing materials, many storage businesses partner up with other companies to offer truck, trailer, and van rentals.
Low Maintenance Costs
Self storage is very low maintenance. Aside from proper lighting, security, and landscaping, there isn’t much to tend to. Common areas should be clean and well-maintained, but there’s no reason to invest in extensive decor.5
Choosing the right self storage investment option will depend on your location and its market, budget, and demand. The team at Forge Building Company is happy to help you through the entire process. Just give us a call.
Works Cited
1. Meyers, S. (2020, December 1). Forbes. 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=79758c022165
2. Statista. (2022, December 9). Retrieved from Statista.com: https://www.statista.com/statistics/1155988/us-recreational-boating-vessels/
3. Camper FAQs. (2023). Retrieved from Camperfaqs.com: https://camperfaqs.com/rv-statistics-trends-facts
4. Go Rving. (2022, June 16). Retrieved from gorving.com: https://www.gorving.com/newsroom/rv-industry-association-manufacturing-statistics
5. Mizes, B. (2023, January 5). CREXI. Retrieved from Commercial Real Estate Exchange, Inc.: https://www.crexi.com/insights/8-pros-and-cons-of-investing-in-self-storage?g_acctid=166-395-
Americans love to travel and have been purchasing RVs and boats for years. According to numbers shown from industry trade groups and places like Statistica1, Camper FAQs2, and Go Rving3, growth in ownership and usage of RVs and boats is growing. There are currently over 25,000,000 boat and RV owners with another 9,000,000 expected to join the market in the next 3 years.
The RV industry alone has seen consistent growth every year since 2009, and with the popularity of van life coupled with the pandemic, there was a huge spike in Gen-Z and millennial RV owners that wanted to travel and have recreational experiences without crowds. Many also found that they could work from remote locations, which meant they can live in RVs and work, not just use them for travel. This helped the outdoor recreation industry to reach close to a trillion dollars.
One other development advantageous to RV/boat exclusive storage demand is the growth in Airbnb-type online apps, which allow RV owners to rent vehicles that are parked in storage facilities. The RVIA notes that median annual usage of RVs is 25 days a year, which means that many vehicles are in storage most of the year. Renting stored vehicles can generate significant income for owners.
Recreational vehicles and boats are definitely growing as a genuine part of the American family experience, and economic and social trends indicate that this trend is likely to continue throughout 2023 and beyond. As the sales of RVs and boats increase, the demand to store these vehicles is also likely to grow. Traditional self storage facilities have limited space and amenities to store RVs and boats, which means that demand for RV/boat exclusive facilities will likely grow as RV and boat sales rise.
According to Yardi Matrix, Denver leads metros in RV/boat exclusive storage in acreage with 596.8, followed by San Francisco (420.4), Dallas (345.7), Houston (302.9), and Phoenix (299.3). Denver also leads with 47 properties, followed by Houston (45), San Francisco (39), the Inland Empire (36) and Los Angeles (35)4. Currently, there are only 3,000 RV and Boat Exclusive Storage facilities in the US. If you do the math, that would equate to each facility being required to support 2,000 boats and RVs to make up for current the demand.
While boat and RV exclusive storage facilities remain relatively small compared to other niche segments of commercial real estate, the industry registered a record-high capital flow in 2021 – $157.7 million of RV/boat exclusive facilities were sold in 2021, almost triple the previous annual high. These numbers are expected to continue throughout 2023.
The key to any successful self storage project is finding the right parcel of land in the right market for the right price, and then build the right facility on that land. Given the growth of the boat and RV market, if you’re thinking about the best way to add these storage units to your existing facility or building a new boat and RV storage facility, then give the team at Forge Building Company a call. We know all the ins and outs of building these sorts of facilities. Check out our Boat & RV product page and check out our recent video for our customer, SE Boise (https://www.youtube.com/watch?v=HmAcEcb4I-E&list=PL7FdrDM_tL-wtL-oZhF6Jk4CRIXQjkCKU&index=2).
Boat and RV exclusive facilities might be constrained by the cost of land, the amount of acreage needed to house vehicles and the fact that the facilities are geared toward specific objects as opposed to general usage. Drive aisles will need to be larger, and the costs and timelines may differ.
Generally speaking, for a facility to be profitable, you would need a parcel of seven to ten acres. Full lease-up should occur within 24 months, with breakeven occurring in the mid 14-16 months5. Typically, a ratio of 50 percent coverage yields approximately 217,800 to 304,920 square feet under roof when built out. The average unit size for an enclosed RV unit is 14-by-40 feet or 560 square feet.
Another reason for the increased land requirements is because the drive aisles need to be wider to give tenants room to maneuver boats with trailers and RVs. Aisles of at least 50-55 feet wide are recommended when accessing spaces that are 40 feet deep.
Boat and RV Storage Worth the Investment?Proper due diligence will help any investor assess how much you can afford to pay for a piece of land, based on the amount of rent per square foot of space, and your anticipated construction costs. However, the growing demand from RV and boat sales combined with the limited amount of supply means the segment’s fundamentals should remain healthy, even in volatile economic times making this a very worthwhile investment.
Works Cited
1. Statista. (2022, December 9). Retrieved from Statista.com: https://www.statista.com/statistics/1155988/us-recreational-boating-vessels/
2. Camper FAQs. (2023). Retrieved from Camperfaqs.com: https://camperfaqs.com/rv-statistics-trends-facts
3. Go Rving. (2022, June 16). Retrieved from gorving.com: https://www.gorving.com/newsroom/rv-industry-association-manufacturing-statistics'
4. Fiorilla, P. (2022, March 21). Yardi Matrix. Retrieved from yardimatrix.com: https://www.yardimatrix.com/blog/demand-for-rv-boat-storage-rising-as-sales-hit-record-highs/
5. Swingler, S. (2020, May 9). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/vehicle-storage/decision-develop-boatrv-storage-differences-traditional-self-storage
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
