Investing in commercial real estate can be a worthwhile endeavor, but maximizing returns requires strategic decision making, especially when it comes to construction costs. While many people think that location is the most important part, smart investors know that the characteristics of a parcel can significantly impact the cost of development, especially when it comes to self storage. Factors such as terrain, utility availability, zoning restrictions, land use, and existing site conditions all play a role in determining how much a developer will spend before a project is completed. Understanding these factors can make the difference between a cost-effective development and a budget-breaking endeavor.
Investors considering building a self storage facility that are looking for ways to reduce costs and avoid overruns need to begin by properly reviewing the land they’re interested in. To make an accurate assessment it is important to analyze all the details before determining an offer price.
The land itself can drive up construction costs due to bad soil conditions, steep or uneven topography, unusable land (wetlands, floodplains, easements), and other issues.
Some other factors that can increase construction costs include:
There are other regulations that a municipality may have in place that limit how much square footage permanent structures can take up on the parcel. That is, you may only be able to build on 40% of the area of the parcel. This could directly impact on the rentable square footage you are able to obtain by developing.
It is important to understand the difference between Zoning and Acceptable Land use for a parcel. Municipalities categorize land in the community based on where it is located, the current use of the land, and what is acceptable to be developed on that parcel. Although there are many similarities on how zoning is done from municipality to municipality, each one will have its own codes and definitions.
A common mistake made amongst new developers is making assumptions that if a parcel has a specific zoning, then self storage will be okay to build on the site. This assumption could be costly. It is imperative to dig deeper and learn what the Acceptable Land Use is for that property.
If the property’s zoning and acceptable land use does not work for self storage, there are a few options. First, the property could be rezoned. This process is not consistent between different municipalities. It is essential to ask what the process is, the cost to apply for rezoning, and how quickly it could be executed. If the property is zoned correctly, but self storage is not an acceptable use of land, then a Conditional Use Permit (CUP) or a Special Use Permit (SUP) may be an option. This is an option that needs to be discussed directly with the Planning and Zoning Department for the municipality.
Ensuring that a property can be developed and used in a specific manner is part of the Entitlement Process. There are those who can be hired to assist in this process; however, this is an additional cost that should be accounted for. Below is a list of experts that could help if there are hurdles during this process.
Municipalities not only have say on whether storage can or cannot be developed on property, but they can also have specifications that the buildings(s) must meet. Some of these requirements will directly increase the cost of development. For instance, the municipality may dictate that there can be no more than 40% of steel paneling on building. In this situation, it would be required to use other material such as stucco or masonry products. These other exterior building materials are more expensive than a typical exposed fastened metal panel. There are other times that a municipality may indicate they do not want any buildings to be visible from the road. This would typically require a tall CMU wall, which in return will drive up costs.
Before purchasing land, it is important to consider the environmental regulations in the area. Depending on the location, there may be local, state, and federal regulations that need to be considered. For example, the Clean Air Act requires that any new construction projects must meet certain air quality standards. Additionally, the Clean Water Act requires that any new construction projects meet certain water quality standards.
Other considerations to consider when purchasing land for self storage development include:
Selecting the land to develop a self storage facility can be a daunting task. Finding the ideal site can take time and research. An affordable parcel may not be too visible. A visible parcel may not be zoned for a self storage facility. A parcel in an eligible zone may be prone to flooding or be in an odd shape. When selecting land, keeping these fundamental considerations in mind could prevent an investor from costly problems down the line.
Contributing Editor: Melissa Anderson, Forge Building Company
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.
Boise, Idaho – March 6, 2025 – Forge Building Company, the expert innovator in reliable steel building systems, today announced its continued nationwide expansion, now managing projects in 31 states, including Alaska and Hawaii. This milestone reinforces Forge Building Company’s position as the premier steel building expert in the self-storage industry. This growth is largely driven by its unwavering commitment to quality, innovation, and continuous improvement.
To stay at the forefront of industry trends, Forge Building Company offers customers a variety of options for designing or upgrading self-storage facilities to enhance 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. The demand for pre-engineered metal buildings (PEMBs), flex space, RV/boat canopies, and high-end storage condos for boats and RVs is also on the rise. Additionally, Forge has continued to excel with its standing seam and roll-forming roofing solutions. With these diverse solutions, investors can tailor their storage model and mix based on budget, location, and community needs.
“We are excited to contribute to the growth of local economies in 62% of the country as we expand toward the East Coast,” said Hamish Bell, President of Forge Building Company. “Our transition from primarily operating west of the Mississippi to becoming a nationwide developer underscores our expertise in steel buildings and the self-storage industry, regardless of location. With our diverse product offerings, such as pre-engineered metal buildings, we are now able to offer our expertise to even more sectors than self-storage.”
Forge Building Company’s dedication to customer satisfaction and close collaboration distinguishes it from competitors. With this growth, the company is well-positioned for continued national growth and success.
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.
Undoubtedly, when you think of a male-dominated industry, construction might be one of the first that comes to mind. According to the U.S. Bureau of Labor Statistics (2024), of all the people working in construction, women comprise only 11.2%. However, in a recent report from the U.S. Department of Commerce, in 2024, construction employment grew by 133,000, 18,000 of which was accounted for by women. This means that about 1 in 7 jobs have gone to women, helping to maintain the share of women in construction at just over 14%1.
Several factors explain this enormous gender gap. These include unconscious gender bias, a lack of adequate training, and negative perceptions of women working in construction. Despite these barriers, women continue to build their path in the industry. Furthermore, the Bureau of Labor Statistics estimates that the construction industry will grow by 4% between 2021 and 2031. With this fast and steady growth, companies are actively recruiting qualified women to leverage their skills within the industry2.
As new construction industry jobs are expected to add 439,000 new workers in 2025, companies are looking to recruit more women than ever before to bring their skill sets into the field3. When you think about it, women use the spaces, so they should be building them too.
Women can take on any role in the construction industry. There has been a growing demand for women in this industry as organizations recognize the potential benefits that women can bring. These benefits include increased productivity, creativity, innovation, and improved communication and collaboration skills4. Additionally, having women in the construction industry contributes to a more diverse workforce. This cultivates a more inclusive environment, increasing employee retention and satisfaction. Ultimately, having women in construction can positively impact the industry. Ideally, this will create more opportunities for both men and women and younger generations to follow in their footsteps.
Today, 13% of construction firms are owned by women. There was a 64% growth rate reported for construction firms with women owners from 2014 to 2019, and 9% of women-owned firms achieved revenues greater than $500,000.
To enter a field like construction, women must have access to resources that address their specific needs in the industry. Fortunately, companies and associations are increasing their efforts to promote women within their organizations and, moreover, educate young women about the benefits of working in the industry.
Women’s Organizations. Nationally recognized groups like the National Association of Women in Construction (NAWIC) and Women Construction Owners & Executives USA provide mentorship, marketing and networking opportunities to help women new to the construction industry.
Construction Courses. Construction companies in certain parts of the U.S. collaborate with the local community to offer courses and boot camp programs for young girls and women interested in the industry. Equally, many cities also offer apprenticeship programs that strive to recruit women, thus preparing them for exams and training them with job-specific skills.
Construction Forums and Conferences. A number of conferences are held to celebrate and discuss the topic of women in construction. These include:
Although more diverse representation in the construction industry isn’t a reality today, a report by McKinsey & Co. reveals that the most gender-diverse companies are 25% more likely to achieve above-average profitability than companies with less diversity. In fact, that report found that construction companies with more women in executive line roles than staff roles experienced above-average financial performance compared to companies that didn’t. When 30% or more of executive-level positions were filled by women, those companies had a 48% likelihood of outperforming their least diverse competitors5.
Although more diversity brings about more success, Randstad found that women executives are more likely to occupy staff roles (14%) than line roles (7%). This starkly contrasts men in executive roles, with 33% operating as staff executives and 46% as line executives6.
There is still much work to be done to fully include women in construction. To increase recruitment and improve retention, companies need to acknowledge and remove gender bias from their work culture and develop training programs and local mentorship groups specific to women’s needs. They also need to include more women in the hiring process and encourage women to become role models for other women. Schools, colleges, and educational programs need to highlight the value of construction jobs for women and young girls so that they can see the industry as a viable career path.
Other obstacles that need to be dealt with specifically in the construction industry include:
The current labor shortage in the construction industry presents an opportunity to hire even more women in construction jobs. Despite many advancements in construction technology, many companies are hesitant to embrace them for a variety of reasons, including a staff shortage. Hiring and training women in the IT departments of construction companies can help with the staff shortage and improve companies’ diversity.
Although there are obstacles for women entering construction, diversity is a proven asset in driving profitability. In addition, it is a key component in solving the construction industry’s labor shortage. With more and more groundbreaking women chipping away at gender norms and leveling the playing field, the industry is taking more significant steps to become a more diverse and inclusive space for future generations.
At Forge, we presently employ many women executives spearheading the industry movement in the construction world.
View our women in construction playlist
References
1. U.S. Department of Commerce. (2024, November 5). Retrieved from commerce.gov: https://www.commerce.gov/bureaus-and-offices/ousea/spotlight-women-construction-industry
2. Bigrentz. (2024, February 24). Retrieved from bigrentz.com: https://www.bigrentz.com/blog/women-construction
3. ABC.org. (2025, January 24). Retrieved from ABC: https://www.abc.org/News-Media/News-Releases/abc-construction-industry-must-attract-439000-workers-in-2025#:~:text=WASHINGTON%2C%20Jan.,by%20Associated%20Builders%20and%20Contractors.
4. The Constructor. (n.d.). Retrieved from theconstructor.org: https://theconstructor.org/others/women-in-construction-breaking-barriers-and-building-futures/570899/
5. McKinsey & Company. (2020, May 19). Retrieved from McKinsey.com: https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
6. Academy of Self-Reliance. (2020). Retrieved from acade3myosr.com: https://academyosr.com/feature-women-in-construction-2020/
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/
As 2024 winds down, it is a good time to reflect on the current year and look to the year ahead. In a report from Deloitte Research Center for Energy & Industrials, “The construction industry in 2024 was defined by strong fundamentals, marked by a 10% increase in nominal value added and a 12% increase in gross output. Construction spending crossed US $2 trillion and maintained a balanced trajectory in the first half of 2024”1.
Nevertheless, the industry had its fair share of challenges. High interest rates and price inflation continued to affect the commercial segment. Looking ahead to 2025, there are reasons to be more optimistic. According to the Deloitte analysis of the Oxford Economic Model, short-term interest rates are likely to decrease gradually over the next couple of years, following a 50 basis point interest rate cut by the Federal Reserve in September 2024. The improving economic conditions are likely to influence construction demand across various segments.
Overall, the US construction industry is likely to record moderate growth in the medium term with slowing inflation and a supportive monetary policy. However, the construction industry, and especially those utilizing steel, such as Forge, is not without additional challenges.
Here’s a look at some of the top trends and innovations expected to shape the construction industry in 20252.
In 2025, sustainability will continue to be a priority in construction. Governments, stakeholders, and the public are pressing for greener buildings to mitigate environmental impact and reduce carbon footprints.
The push for net-zero buildings by 2050 has also influenced design approaches and material choices. Technologies like carbon-capturing concrete and bio-based materials, including hempcrete and timber alternatives, are gaining traction. Modular and prefabricated buildings, which produce less waste and consume fewer resources, are also gaining favor. In addition, many governments have implemented regulations to limit emissions in construction processes, pushing companies to adopt sustainable practices or risk fines and reputational damage.
Modular and off-site construction techniques are expected to flourish in 2025 as companies look for efficient ways to manage time and reduce costs. Prefabricated components can be manufactured off-site and assembled at the project location, reducing waste, speeding up project timelines, and minimizing on-site disruptions.
This approach is especially advantageous for urban construction, where space is limited and labor costs are high. Modular construction also allows for greater quality control as components are built in controlled factory environments. As these techniques become more mainstream, they’re likely to reshape how commercial structures are built.
With climate change increasing the frequency and severity of natural disasters, building resilient infrastructure is a growing priority. In 2025, more construction projects are expected to integrate features that help buildings withstand extreme weather events like hurricanes, floods, and wildfires. Materials designed for resilience, such as impact-resistant glass, fireproofing materials, and flood-resistant foundations, are becoming standard in vulnerable areas. Additionally, adaptable infrastructure—such as buildings designed for repurposing rather than demolition—is gaining popularity. As cities continue to grow, adaptive buildings reduce the need for new construction and preserve resources.
Governments worldwide are tightening construction regulations to meet environmental targets and improve safety standards. Regulations related to carbon emissions, waste management, and energy efficiency are becoming more stringent. At the same time, incentives are being offered for sustainable building practices, such as tax breaks, grants, and financing options for projects that meet high environmental standards.
On the flip side, 2025 will also have its challenges.
On September 5th, the Department of Commerce announced the antidumping duty (AD) and countervailing duty (CVD) investigations on steel imports coming from ten countries3. Over the next several months, this investigation could drive domestic steel prices up in anticipation that these countries are guilty of dumping. If these countries are found guilty, a duty will be applied to all imported steel. When the price of imports goes up, the domestic steel mills will likely counter by raising their prices too.
Forge Building Company has noticed that since the announcement of this investigation, CRU steel pricing has started increasing. It is unknown at what rate the mills will escalate pricing or at what interval; however, it is the company’s professional opinion, based on experience, that prices are going to trend up over the next year.
During 2024, there was a lot of price correction in the market due to the aftermath of COVID-19 pandemic. The Forge team watched steel prices steadily decreasing over the last year; however, economists believe that there will be a higher demand for steel in 2025. When this is taken into account along with the impacts of the AD/CVD investigation, then it is very likely that prices for steel will increase.
Another trend to watch for 2025 is new legislation affecting the commercial (or self storage sector). While each state has its own laws regarding the operation of a self storage business, there are often similarities among them. The team at Forge has addressed these in previous years. See:
New Laws for the New Year that Could Impact Your Storage Business
2024 Self Storage Industry Growth Projections and Trends
Here’s a summary of some of the new laws taking effect next year4.
If a self storage tenant fails to move out after receiving a termination notice, the operator must file an eviction action with the local court and go through the hassle of removing them. With a recent wave of legislation in California, Georgia, Idaho, Kansas, and Utah self storage operators are entitled to terminate a tenant’s rental agreement and dispose of their property if the tenant doesn’t vacate the space within a certain amount of time. Each of these laws requires the operator to send a notice to the tenant clearly stating the demand timeline. The statutes will allow operators in these states to remove troublesome tenants and free up their storage units much quicker and at a fraction of the cost.
This new legislation impacts the self storage industry as more operators offer discounted pricing via their websites. Therefore, operators must update their website to clarify pricing and any additional charges, making sure to disclose any administrative or other fees that are added on top of the rent. Additionally, the same goes with any other advertising. When offering an initial, discounted rate, operators must disclose how much it is, how long it’ll last, and the rent the tenant will be charged once it ends. More than ever, it’s important to be transparent about move-in rates, the right to increase rent, and any fees that can be charged to the customer.
For 2025, the construction industry is moving toward a more sustainable, tech-driven, and resilient future. While labor shortages and regulatory hurdles will present challenges, they also push the industry toward innovation. The emphasis on sustainability, modular construction, and smart infrastructure is reshaping the industry’s landscape, making it an exciting time for both seasoned professionals and new entrants. As the construction industry evolves to meet these demands, companies, such as Forge, that embrace change, invest in digital transformation, and prioritize sustainability will be best positioned to thrive in the years to come.
Works Cited
1. akingump.com. (2024, September 12). Retrieved from Akin: https://www.akingump.com/en/insights/alerts/new-antidumping-and-countervailing-duty-petitions-on-certain-corrosion-resistant-steel-products-from-ten-countries
2. azclc.com. (2024, 6 November). Retrieved from Arizona Contractor License Center: https://www.azclc.com/blog/construction-industry-outlook-for-2025-trends-challenges-and-innovations
3. Deloitte.com. (2024, November 4). Retrieved from Deloitte Research Center for Energy & Industrials: https://www2.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html
4. Oblinger, A. (2024, October 5). insideselfstorage.com. Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/legal-issues/the-modernization-of-state-self-storage-laws-recent-changes-and-the-modifications-on-the-horizon
Forge Building Company stands as the pinnacle of expertise in steel building construction, renowned as the industry-leading steel building expert. The company’s supremacy is underscored by its comprehensive structural engineering services, that encompass design-build solutions that consistently surpass customer expectations. While the company excels in supplying premium-grade steel, it understands that robust design and meticulous planning are pivotal for project success. Thus, one of the company’s key offerings is expert structural engineering support to seamlessly actualize a customer’s vision.
See what our customer, Mychal Gorden of Desert Land Group, has to say:
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The Forge engineers are dedicated to collaborating closely with their customers to translate abstract concepts into practical, innovative structural solutions. Whether your project entails a single-story drive-up facility, a multi-story complex, covered boat and RV storage, storage condos, a modern pre-engineered metal building, or a fusion of these elements, the Forge team possesses the expertise and creativity to materialize those concepts into the customer’s dream facility.
Leveraging cutting-edge software and technologies, Structural Engineering creates detailed drawings and plans that serve as the project’s blueprint that helps drive and determine costs. Utilizing the Forge Engineering team enables more cost-effective practices using our designs, saving the clients money. These designs include critical details essential for installation – from precise dimensions and material specifications to load calculations and structural analysis. Every aspect of the design is carefully documented to ensure accuracy and compliance with industry standards while also saving the client money.
Forge Building Company’s unwavering commitment to excellence resonates throughout the structural engineering process. Forge ensures that the customer’s project is not only visually striking but also structurally robust and compliant with the highest industry standards. Each customer can trust Forge to bring their vision to life with unparalleled precision and innovation, delivering results that surpass expectations.
See what our customer, Adam Pakes, CEO of LuxeLocker has to say:
With Forge Building Company as a partner, the customer gains access to a team of dedicated professionals who are committed to realizing their construction aspirations with exceptional expertise. Forge’s reputation for excellence precedes them, and they take pride in their ability to consistently deliver exceptional results that stand the test of time.
Contact us today to embark on a journey toward turning your vision of any sort of metal self storage building into reality with precision, innovation, and unmatched expertise.
When developing a self storage facility, numerous decisions influence the project’s success and profitability. One critical decision is whether to build a single-story or multi-story self storage facility. For investors and developers, understanding the factors that make a multi-story facility advantageous is essential for maximizing return on investment (ROI). This blog explores the key considerations that may favor the construction of a multi-story self storage facility over a single-story one.
The location of the parcel plays a crucial role in determining whether a multi-story facility is feasible. In metropolitan areas where land prices are steep, maximizing the use of vertical space becomes necessary to justify the high land acquisition costs. For instance, purchasing five acres in a rural area might cost the same as acquiring one acre in a metropolitan area due to supply-demand dynamics and population density.
Metropolitan areas often face scarcity in undeveloped land parcels suitable for large-scale commercial projects like self storage facilities. This scarcity drives up land prices and necessitates, resulting in the need for innovative solutions to maximize usable space. In contrast, rural areas may offer more expansive land options at lower costs, making single-story developments financially viable unless land restrictions or zoning regulations favor multi-story constructions.
Navigating municipality regulations is crucial for any development project, particularly for multi-story facilities. The Authority Having Jurisdiction (AHJ), typically managed through a Planning and Zoning Department, dictates what can be built on a specific parcel of land. Regulations often include restrictions on building height, setback requirements, fire safety standards, and environmental considerations.
In urban settings, zoning laws may favor vertical development to accommodate population density while maintaining urban aesthetics and infrastructure capacities. Compliance with these regulations ensures that the facility meets safety standards and operational requirements, which may include provisions for parking, access roads, and utility connections.
The physical characteristics of the land parcel influence construction feasibility and costs. Easements, setbacks, wetlands, and uneven terrain can limit the buildable area or necessitate creative design solutions for multi-story structures. Steep elevations, for example, may allow for bi-level (under/over) designs that utilize the natural slope of the land, reducing the need for costly excavation or elevator installations.
Moreover, land parcels with strategic advantages such as proximity to transportation hubs or high-density residential areas can enhance the viability of a multi-story self storage facility. By optimizing land use through innovative architectural and engineering solutions, developers can mitigate construction challenges and capitalize on unique site attributes.
Conducting a comprehensive market feasibility study is essential for evaluating the demand and competitive landscape of the self storage market in a specific location. Factors such as population demographics, existing storage facilities, rental rates, and consumer preferences provide critical insights into market dynamics.
In densely populated urban areas, high demand for storage solutions coupled with limited available space often justifies the higher construction costs associated with multi-story facilities. The study helps investors determine whether the anticipated rental income and occupancy rates justify the additional investment required for vertical construction.
Building a multi-story self storage facility entails higher initial costs compared to single-story constructions. Factors contributing to increased costs include structural reinforcements, elevator installations, stairwells, enhanced security systems, and compliance with building codes and regulations.
Securing adequate financing is paramount to successfully executing a multi-story project within budgetary constraints. Investors may explore various funding options, including commercial loans, private equity partnerships, or crowdfunding, tailored to the project’s scale and financial projections. Proper budgeting and financial planning ensure that the project remains economically viable throughout the construction and operational phases.
Beyond immediate financial considerations, the sustainability and long-term return on investment (ROI) of a multi-story self storage facility depend on operational efficiency, market resilience, and adaptive management practices. Sustainable building designs, energy-efficient systems, and environmentally responsible practices contribute to reducing operational costs and enhancing asset value over time.
Moreover, strategic asset management, tenant retention strategies, and responsive customer service are critical for maintaining high occupancy rates and revenue streams. Investing in technology-driven solutions for facility management and security enhances operational efficiency and customer satisfaction, positioning the facility competitively in the marketplace.
In conclusion, the decision to build a multi-story self storage facility hinges on a complex interplay of location dynamics, regulatory compliance, land constraints, market demand, budget considerations, and long-term investment objectives. While the initial costs and logistical challenges of vertical construction may appear daunting, the potential benefits in maximizing land use efficiency and meeting urban storage demand justify the strategic investment for many developers and investors.
Working with the team at Forge, the steel building experts, will help make this process less daunting. 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, developers can navigate challenges and capitalize on opportunities to create successful multi-story 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.
See what Ryan Montoya from Elevate Self Storage has to say about working with the team at Forge:
Contributing Editor: Melissa Anderson, Forge Building Company
