Your land has been purchased, permits have been pulled, your market feasibility study is complete, and financing is in order. Now, you’re finally ready to hire a self storage builder to develop your project. Choosing the right self storage builder can be a daunting task. After all, your future depends on having a well-designed facility that presents the image you want while providing the income potential you require.
This is a big investment. Cost, however, cannot be your only consideration — especially if this is your first venture into building a self storage facility. Contracting with the wrong builder can cause you all sorts of frustrations, time delays, and extra money. So, how do you choose a self storage builder? The following are some tips to help guide you in this process.
Before you schedule an appointment, make sure the builder you are considering is legitimate. They must be licensed, bonded, insured, and in good standing with the Better Business Bureau. If they claim to be a self storage builder, check with professional organizations such as the Self Storage Association. Furthermore, while the law provides some protection from fraudulent or incompetent contractors, it doesn't guarantee honest transactions or quality work. After all, your financial investment is at stake. Look at previous projects similar in scale to your project and check references.
Building your self storage facility is an investment that will bring substantial returns over time. With so much at stake, your builder's experience should be a top priority. It is not enough to be a great builder — the company you choose needs to be a steel building expert.
When building a self storage facility, construction requirements are very specific to the industry. An architect who doesn’t have extensive experience in self storage may miss these pieces in their design.
Forge Building Company is THE steel building expert. As such, we will supply your steel and provide an experienced installation crew for your project. Our installers pay close attention to every little detail ensuring your facility is built to the highest level of quality.
As the leading authority in steel buildings, we offer a comprehensive suite of services tailored to meet our clients' diverse needs. Additionally, we provide high-quality steel and deploy proficient installation crews. We also ensure that every aspect of your construction project is executed with precision and excellence.
Our extensive experience and industry-leading expertise enable us to offer a diverse range of steel products customized to match the unique demands of your venture. Whether your project requires structural beams, roofing panels, or specialized components, our seasoned experts are dedicated to guiding you through selecting the optimal materials. We prioritize using steel renowned for its strength, durability, and performance to ensure the longevity and resilience of your structure.
Our unwavering commitment to quality means we never compromise on excellence. We adhere strictly to industry standards and best practices, ensuring your facility is built with precision and craftsmanship. Whether it's a single-story drive-up facility, a multi-story complex, or a combination of various elements, Forge Building Company guarantees unparalleled expertise and excellence in steel construction.
See what Adam Pakes, CEO of LuxeLocker has to say about working with Forge as its steel provider and steel erector: https://www.youtube.com/watch?v=mtNqxjbVyiQ.
When selecting your self storage builder, look at the different services the self storage builder has to offer. The team at Forge offers a range of services, including project management, site planning, and structural engineering/design-build, along with the installation and erection of steel.
Look for a self storage builder that can offer everything your self storage project requires, such as multi-purpose self storage buildings, customized structures, and boat and RV storage buildings and canopies. By working with one full-service company for all project elements, you will eliminate duplication of efforts and dealing with all the brokers, shipping companies, and subcontractors needed if you were not using a single-source supplier. Ultimately, you will have more control over budgets and deadlines.
See what Mychal Gorden of Desert Land Group and Havasu Riviera Marina has to say about working with Forge: https://www.youtube.com/watch?v=GcL433bfUu4
When selecting your self storage builder, it is key to work with a company that has a team of professionals running your construction site that will maximize efficiencies, foresee and solve potential problems before they cost you time and money, and who will keep you informed at each step of the project. Experienced self storage builders will have well-honed protocols to minimize surprises and keep a project on track. Talk with previous customers to ensure they had a good experience and take a tour of the facilities the company has designed and built. It is important to meet all the key people working on your project.
From meticulous project scheduling and procurement planning to comprehensive risk management and communication strategies, Forge Building Company offers a holistic approach to planning that guarantees the triumph of your construction venture. Our dedicated project managers oversee every aspect of the project, ensuring that milestones are met, budgets are adhered to, and quality standards are upheld.
Another key factor to look for in a self storage builder is one that understands the importance of meticulous planning. At Forge Building Company, meticulous planning serves as the bedrock of our operations. We know that the triumph of your construction project relies on thoughtful layout considerations and comprehensive site analysis. Leveraging our team of experts, we specialize in crafting strategic plans that optimize space utilization, augment functionality, and enhance efficiency. This ensures your facility is meticulously tailored to meet your unique needs and objectives.
Drive aisles, turning radiuses, door size, security, lighting, keyless entry, and more must be considered. An experienced self storage builder can advise you on these issues early in the design process and help you lay out your buildings to maximize the number of rentable units.
At Forge, our process begins with an in-depth assessment of your project requirements, including site specifications, budgetary constraints, and desired timelines. We conduct thorough site analyses to identify potential challenges and opportunities, allowing us to develop proactive solutions that mitigate risks and maximize project success.
Drawing upon years of industry experience and technical expertise, our team collaborates closely with you to translate your vision into actionable plans. Additionally, we employ cutting-edge technologies and innovative design strategies to create layouts that optimize workflow, enhance user experience, and foster operational efficiency.
Effective communication is paramount in successful project planning and execution. Thus, we prioritize maintaining open lines of communication with our clients, subcontractors, and other stakeholders throughout every stage of the construction process. Regular meetings, progress reports, and collaborative workshops ensure that everyone remains informed, engaged, and aligned toward the common goal of project success.
By fostering a culture of collaboration and transparency, we create an environment where ideas are shared, challenges are addressed, and solutions are implemented swiftly. This proactive approach minimizes disruptions and accelerates project timelines, ultimately delivering superior results that exceed expectations.
Finally, it is key to work with an experienced self storage builder that offers comprehensive structural engineering services. These services encompass designing/building solutions and are willing to consult with you throughout the entire project—from site development to building design to completed construction. These services will enable your self storage builder to work closely with your architect to design all the amenities, utilities, and structural requirements that are unique to self storage. In the end, this will save you time and money.
Forge understands that robust design and meticulous planning are pivotal for project success. Thus, we offer expert structural engineering support to actualize your vision seamlessly. Whether your project entails a single-story drive-up facility, a multi-story complex, covered boat and RV storage, storage condos, or a fusion of these elements, our team possesses the expertise and creativity to materialize your dream facility.
Leveraging cutting-edge software, technologies, and premium-grade steel, our engineers carefully craft detailed drawings and plans for the project’s blueprint. These documents transcend mere visual representations, encapsulating critical details essential for flawless installation. Every design aspect is documented to ensure accuracy and compliance with industry standards, from precise dimensions and material specifications to meticulous load calculations and structural analysis.
See what Mychal Gorden of Desert Land Group and Havasu Riviera Marina has to say about working with the Forge engineering team: https://www.youtube.com/watch?v=pPX7A1eZ88A
In the competitive landscape of self storage construction, choosing the right builder is crucial to your success. With the team at Forge by your side, you’re not just hiring a storage unit builder—you’re partnering with a team of dedicated professionals committed to excellence in planning, design, engineering, construction, and project management.
No matter what type of self storage project you envision building, choose Forge Building Company as your one-stop shop for all your self storage design, construction, and expansion needs. What sets Forge apart is not just our commitment to building storage facilities but also our dedication to crafting solutions tailored to meet the unique needs of each project. Our clients expect projects delivered on time and on budget. When you choose Forge, you are choosing quality, reliability, and innovation every step of the way.
Finally, with our 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 steel construction project to new heights and success.
See why Elevate Self Storage selected Forge as their self storage builder: https://www.youtube.com/watch?v=BMCRBEwlMIM.
Contributing Editor: Phil Warchol, Forge Building Company
When it comes to sustainability, there are three key areas to consider: environmental, economic, and social. In today's society, there is a growing consumer interest in supporting businesses that prioritize eco-friendly practices. Therefore, it is crucial for the self storage industry to introduce sustainability measures in facility design and operations.
However, sustainability goes beyond incorporating LED lighting, solar panels, or green roofs. Facility owners should explore innovative sustainable products and materials to generate clean energy, reduce carbon emissions, and minimize ecological footprints. When constructing or renovating self storage facilities, it is essential to collaborate with construction teams that utilize recyclable and renewable materials, aiming to have a minimal impact on the Earth and its resources. The ultimate goal is to build facilities that benefit both customers and the local community, ensuring longevity and efficient operation 1.
So, where should facility owners and investors begin? Here are several ideas to make a self storage business more sustainable, ranging from building materials to landscaping to customer outreach.
Building Materials and a Sustainable DesignExisting self storage units can be improved in terms of sustainability and energy efficiency. When considering remodeling or constructing new units, partnering with experts in steel building, such as Forge, can be highly beneficial. With over 15 years of experience, Forge specializes in constructing energy-efficient structures.
Many self storage facilities are made of steel due to its durability. Forge utilizes Galvalume, a proprietary coated steel that prevents corrosion and deterioration, ensuring a strong building envelope and minimal energy leaks. Adequate insulation is also crucial for regulating unit temperature. Rigid foam insulation infused with non-toxic borates is an excellent solution that also deters pests.
Steel construction offers the advantage of incorporating solar panels or efficient roofing. Roof coatings with a high percentage of infrared reflectants help maintain a stable building temperature. A “cool” finish can reduce surface temperature by up to 38 degrees and save energy costs by approximately 23 percent 2. Additionally, numerous incentive programs exist to help facility owners achieve a quicker return on investment, particularly in sunnier states where incentive programs are abundant. Local utility programs may even offer the option to sell back any excess power generated.
Including energy-efficient HVAC systems is crucial when aiming for a more sustainable self storage facility. Higher SEER (season energy-efficiency ratio) values indicate more economical mechanical units. Additionally, minimizing ductwork and utilizing fans to distribute conditioned air can provide consistent heating and cooling, suitable for self storage 3.
LightingRetrofitting energy-efficient lights is an effective way to reduce electricity consumption. Another option is to install larger lights with motion sensors, dimming or turning them off when no activity is detected. Motion sensors can reduce energy waste by 10 percent.
While the installation of LED lights or sensor switches may seem tedious at first, they prove to be cost-effective in the long run. LED lights consume up to 70 percent less energy compared to metal halide and mercury vapor options. They also have a much longer lifespan, lasting 40 to 50 times longer, and often come with warranties of up to 10 years.
Reducing energy usage not only contributes to sustainability but also leads to economic savings for business owners and customers. Depending on the location, federal and state tax deductions, as well as utility incentive programs, can further support these efforts.
One sustainable way to differentiate your facility is by paying attention to the landscaping and creating a natural environment. This will help your facility stand apart and also ensure that you are not increasing the burden on stormwater systems. Zoning laws may even require new construction projects, including remodels, to avoid increasing water runoff and potentially include constructed wetlands, which are underground systems used to remove contaminants and impurities from septic tank liquid.
Another sustainable strategy for self storage properties is to decrease the use of drinking water for landscaping and increase the utilization of reclaimed water. Landscaping thrives on reclaimed water, which refers to relatively clean used water from baths, sinks, and kitchen appliances. Research shows that plants can effectively filter pollutants in runoff.
Xeriscape, a landscaping design that thrives on runoff, is based on attractive plants that can handle both abundant moisture and drought.
Creating a more sustainable environment can be as simple as making tenants aware of what items should and should not be stored in their units. For instance, paints, solvents, or any items that could leak toxic chemicals and harm air quality should not be stored. Additionally, providing bins for recyclables and potentially damaging items can assist tenants in properly disposing of trash and toxic materials.
Consider becoming an e-waste drop-off site or sponsoring an e-waste collection day. Recycling e-waste, such as drained batteries, empty ink cartridges, old cell phones, and old computer equipment, is convenient for existing customers and can attract new people to your facility. This can be promoted on your website and social media channels. After the collection event, ask a certified recycler to pick up the materials, or drop them off at a certified recycle facility.
Promote authoritative sustainability websites and information. Provide sustainability tips through your website. Link to the websites of sustainable products, businesses, and green building organizations.
Some other ways to become eco-friendly and promote sustainability are to:
Building a self storage facility that is sustainable may be challenging. When considering new construction or upgrading your existing property to be more sustainable, look for a reputable building partner like Forge Building Company that understands all the options for energy savings and sustainability. Teaming with a sustainable company will help you create an attractive facility that is also good for the environment and community in which it resides for years to come.
Introducing corporate-sustainability practices into the facility design and operation of a self storage facility is one of the best and most responsible ways to increase business and add revenue. With some ingenuity and partnering with the right steel building contractors, self storage operators can easily become active members of their communities, being recognized as a vital business committed to cleaning up their community and saving the planet.
References
1. Rebekah Brown, J. W. (2021, June 19). Inside Self Storage. Retrieved from insideselfstorage.com: https://www.insideselfstorage.com/eco-friendly-storage/path-sustainability-designing-self-storage-be-eco-friendly-and-achieve-green
2. Barnard, J. (2018, September 14). Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/eco-friendly-storage/differentiation-through-sustainability-green-ideas-self-storage
3. Overcash, S. (2023, April 4). Inside Self Storage. Retrieved from insideselfstorage.com: https://www.insideselfstorage.com/eco-friendly-storage/7-strategies-enhance-eco-friendliness-your-next-self-storage-development
In 2021, the global self storage market was valued at $54 billion. The self storage industry growth projections at a compound annual growth rate (CAGR) of 7.53% between 2022 and 2027 and expected to hit $83.6 billion by the end of 2027. The North American market is projected to contribute the most significant chunk of this figure1.
Despite the current economy, the self storage market continues to look promising. More and more people are taking advantage of self storage facilities due to the high cost of housing in densely populated areas and the increased frequency with which they must relocate. Additionally, there is a need for more storage space as families grow and acquire more possessions. Self storage software, AI (artificial intelligence), and IoT (internet of things) are also fueling market expansion to keep tabs on all storage facilities, boost marketing efficiency, increase occupancy rates, and enrich tenants’ lives.
Similarly, the self storage recession-proof nature has been further bolstered by the increased adoption of remote work policies worldwide, exacerbated by the coronavirus (COVID-19) pandemic. This trend has inadvertently led to increased demand for self storage to reduce overhead costs.
The self storage industry continues to demonstrate exceptional performance as a prominent commercial real estate sector and emerging as one of the nation’s top investment categories. Occupancy rates remained steady at around 90% throughout the latter half of 2022, and this pattern continued with minimal variation throughout 20232.
Here's what is in store for 2024.
The self storage industry continues to attract investors and entrepreneurs more than any other real estate sector. Its tremendous growth is reflected by the number of people utilizing self-storage – 14.5 million in 2022, up by 970,000 since 2020, according to YardiMatrix3. Additionally, investors remain optimistic thanks to the resilience factor of self storage. In flourishing economies, consumers buy more goods, which leads to the need for storage. In contrast, in trying economic times, residents tend to downsize, which leads to the need for storage4.
“Over a recent nine-year span, self-storage facility owners across the United States saw an annual return on their investments of almost 17%,” -Real Estate Daily News.
Self storage properties have seen record high occupancy rates, rents, and revenue growth. With around 10.6 percent of U.S. households renting a self storage unit, according to Storable, the industry is projected to be valued at $64.71 billion by 20265.
So, what areas of the country are self storage industry growth projections for 2024? Studies have shown that the millennial population prefers residing in cities, driving the demand for self storage units. The lack of space in apartment units leads many residents to seek alternative storage options. For example, in New York, the average one-bedroom apartment is 866 square feet, and Los Angeles averages 789 square feet, according to RentCafe.
Small businesses also contribute to demand for self storage since utilizing a storage unit is less expensive than warehouse space. Many e-commerce businesses look to renting storage units to carry out their orders. Although not all kinds of companies can be run from a self-storage unit, many can utilize the space for inventory or store supplies that do not fit in a home or apartment unit. Additionally, businesses are using storage units for inventory or equipment, thereby also increasing the commercial usage of these facilities6.
For 2023 (and projected for 2024), the strongest performing markets were in high-growth metros in the South and West, led by Miami, Atlanta, Phoenix, and Tampa. Other in-demand cities for self storage include New York, Houston, San Antonio, and Los Angeles.
The Northeast also continues to experience upward trends in occupancy levels. According to SelfStorage.com, states experiencing a surge in the growth of self storage facilities include:
In 2024, the following trends are on track to reshape the market.
1. Self Storage Websites
In today’s business climate, developing a website and establishing a presence on social media is key to the success of any business. The right features on your website will increase business efficiency and provide a great customer experience.
With your self storage website, you can let customers know your location, which types of units you offer, including dimensions, features, and associated prices. You can include ways for customers to book and manage units online as well as pay for those units. This facilitates a more streamlined experience for tenants.
If you sell ancillary products or services (like offering moving trucks or moving materials), you can make that information more easily accessible to potential buyers by including it on your website.
2. Integration of Technology and Customer Convenience
Technology is playing a critical role in driving data storage trends in the self storage industry. Self storage businesses are embracing technological advancements to enhance operations and improve customer experiences. This includes adopting self storage software, which enables efficient management of billing, accounting, and customer management tasks. By leveraging technology, self storage facilities can streamline their processes and provide a seamless experience to their customers.
Many self storage facilities offer contactless access options, enabling customers to enter the premises and access their belongings without physical interaction. These conveniences enhance the overall customer experience and cater to individuals’ evolving needs and preferences.
3. Adoption of Sustainable Practices
The self storage industry is increasingly embracing sustainable practices to reduce environmental impact. To minimize energy consumption, many self storage facilities are implementing energy-efficient technologies, such as LED lighting and smart climate-control systems. Additionally, some self storage facilities are exploring renewable energy sources like solar panels to power their operations. By adopting sustainable practices, the industry is reducing its carbon footprint and attracting environmentally conscious customers.
For other ways and considerations for incorporating sustainability into your self storage facility, see our blog, “Sustainability in Self Storage Renovation & Projects to Consider” https://forgebuildings.com/self-storage-facility-renovation/.
These trends are shaping the growth and future of the self storage market. By staying ahead of these trends, self storage businesses can position themselves for success and meet the evolving needs of their customers, significantly improving the customers’ experience.
References
1 Insights, P. M. (2022, October 7). GlobeNewswire. Retrieved from Globenewswire.com: https://www.globenewswire.com/en/news-release/2022/10/07/2530200/0/en/Self-Storage-Market-Size-2022-to-2027-Market-Share-predictable-to-grow-at-a-CAGR-of-7-53-during-the-forecast-period-Top-Companies-report-covers-Global-Industry-Trends-Statistics-De.html
2 Matthews Real Estate Investment Services. (2023, September 18). Retrieved from matthews.com: https://www.matthews.com/self-storage-market-report-northeast/
3 Adler, J. (2023, February 21). Yardi Matrix. Retrieved from Yardimatrix.com: https://www.yardimatrix.com/blog/demand-holds-steady-for-us-self-storage-sector/
4 Matthews Real Estate Investment Services. (2023, September 15). Retrieved from Matthews.com: https://www.matthews.com/insights-thought-leadership-self-storage-update-2023/
5 McLeod, A. (2022, June 23). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/market-conditions/can-self-storage-performance-strength-last-here-s-an-outlook-for-the-rest-of-2022
6. imarc. (2023). Retrieved from Imarcgroup.com: https://www.imarcgroup.com/self-storage-market
As 2023 comes to a close, the team at Forge likes to reflect on the past year and make our customers aware of new laws in store for 2024. Overall, the self storage industry continues to demonstrate exceptional performance as a prominent commercial real estate sector and emerging as one of the nation’s top investment categories. Occupancy rates have remained steady at around 90% throughout the latter half of 2022, and this pattern continued with minimal variation throughout 20231. More and more people are taking advantage of self storage facilities due to the high cost of housing in densely populated areas of the country coupled with the increased frequency with which they must relocate.
So, what laws should self storage investors and owners be aware of?
One bipartisan group of House members is set to finalize a bill to upgrade and expand access to outdoor recreation areas across the nation. If signed, the bill would add more fuel to the fire for developing RV and boat storage facilities. Currently, there is still a large demand for this form of storage.
The EXPLORE Act is comprehensive in its efforts to improve Americans’ outdoor experiences. It will direct a variety of government agencies, like the Forest Service, the Interior Department, and the Bureau of Land Management to produce meaningful changes to our outdoor areas. One such improvement is modernizing campgrounds through better broadband connectivity and digital park passes, bolstered by private-public partnerships. These improvements will bolster our country’s recreation industry, which produced nearly $1.1 trillion in economic activity and supported roughly 5 million jobs in 2022. It will also bolster RV and boat storage growth 2.
The Self Storage Association is also tackling several initiatives including addressing two common concerns for storage operators. First, what to do when paying tenants are told to move out but fail to do so; and second, how to ensure that a tenant is bound by a rental agreement that he refuses to sign.
Several states already address these concerns in laws applicable to residential or commercial landlords. The SSA is pursuing legislation to address one or both concerns in Georgia, Kansas, Maine, Utah, and Virginia.
They are also looking at reforms to provide greater clarity on how to deal with trespassers who store personal items or vehicles without permission, towing of vehicles for non-monetary violations of the rental agreement, and disposal of low-value property without a lien sale (as is already permitted by a handful of states) 3.
In the state of California, Governor Newsom signed a bill that becomes effective January 1, 2024, which might be able to reduce the number of newspaper advertisements you have to run before a lien sale.
Specifically, a new option has been added to allow you to run an advertisement “once in a newspaper of general circulation published in the public notice district where the sale is to be held or in the county where the self-storage facility is located, and once on any publicly accessible internet website that customarily conducts or advertises online auctions or sales.” The online advertisement must remain online for Seven (7) days before the sale 4.”
There are several important implications to this change, not the least of which is you must choose the right place to post this “alternative second advertisement.” Further, please note the requirement to include a listing of the contents of the unit in your advertisement has been removed. There are many other changes made and nuances to AB-542. It is always advisable to consult with your California legal counsel to review and understand how you can potentially enjoy the benefits of reducing your physical newspaper advertising to one time per sale.
The need for self storage is expected to continue to rise as individuals choose to rent for more extended periods or opt not to sell their current homes, resulting in a shortage of space. Additionally, self storage construction has also notably increased over the past several years and is expected to continue as the demand for personal and business storage continues to grow. With these new laws and new initiatives, 2024 is predicted to be another growth year for self storage. Cheers to the new year!
References
1. Matthews Real Estate Investment Services. (2023, September 18). Retrieved from matthews.com: https://www.matthews.com/self-storage-market-report-northeast/
2. Stern, B. (2023, December 11). Toy Storage Nation. Retrieved from toystoragenation.com: https://toystoragenation.com/2023/12/11/new-bill-would-improve-outdoor-experience-across-america-bolster-rv-and-boat-storage-development/
3. Doherty, J. (2023, December). SSA Magazine. Retrieved from SSA Magazine: https://cloud.3dissue.com/132457/132608/155202/2023-December-SSAMagazine/index.html?page=10&_ga=2.185880489.1264725417.1701897973-44071511.1701897973
4. Self Storage Legal. (2023, December 6). Retrieved from selfstoragelegal.com: http://www.selfstoragelegal.com/2023/12/06/california-self-storage-statute-updated/
5. McLeod, A. (2022, June 23). Inside Self Storage. Retrieved from Insideselfstorage.com: https://www.insideselfstorage.com/market-conditions/can-self-storage-performance-strength-last-here-s-an-outlook-for-the-rest-of-2022
With the rapidly growing market for boats, RVs, classic cars, and other “toys,” developing or Investing in Storage Condominiums can be lucrative for both the investor and buyer of the individual units. These types of storage units appreciate in value due to the low supply and high demand, allowing owners to capture a full return on investment and more. Plus, there are many tax breaks because it is commercial real estate.1
A storage condo, like it sounds, is much like a residential condo except it is a storage unit that you own. These units are designed primarily for the rapidly growing market for boats and RVs (see our blog https://forgebuildings.com/where-is-boat-rv-storage-headed/), but can also be used to store items like classic cars, business inventory, and more. Each storage condo unit is part of a storage complex that has some shared amenities for which owners typically pay monthly dues to maintain in a similar manner as a traditional Homeowners Association.
While these types of condos share the same basic purpose as other storage units, condo-style vehicle storage differs in significant ways from the standard rental model. First, vehicle-storage condos share many characteristics with office-warehouse or flex condos, including high and wide doors, high ceilings, wide aisles between buildings, climate control, and security features. They may also be in an industrial park or on land zoned for light industry. A big difference is that the storage condo complexes usually offer services specific to boats and RVs, such as dump stations, wash stations, maintenance, and repair.
Irrespective of market conditions, storage condos appeal to buyers and developers for a variety of reasons:2
In today’s market, most storage condominium units range in cost from $55,000 to $200,000.4 They sell for around $125 to $150 per square foot. In addition, owners can expect to pay $30 or more each month for maintenance fees such as snow removal and lawn care. Also, like other real estate properties, the storage condo is also subject to local property taxes.3
How large are they?Storage condos are built primarily with the owners of large RVs, boats, and classic cars in mind. They typically range between 35 to 50 feet in depth and 10 to 25 feet in width. They also typically have 14-foot-high ceilings. The average storage condo covers about 600 square feet in total.
Because owners typically store their boats, RVs, and classic cars storage condos are usually very well-insulated, climate-controlled, and outfitted with electrical service. They also usually offer dump stations and wash areas for RVs, along with 24-hour access, and enhanced security features (due to the cost of the boats and RVs being stored).
There are many factors to indicate that the storage condo business is worth the investment, including local market conditions. Many areas of the country lack vehicle storage or places where boats and RVs can be stored securely. Limited inventory equals a great investment opportunity for both the developer and buyer of the individual unit.
There are currently over 25,000,000 boat and RV owners with another 9,000,000 expected to join the market in the next 3 years. Economic and social trends indicate that this is likely to continue throughout this year and beyond. As the sales of RVs and boats increase, the demand to store these vehicles is also likely to grow. Traditional self storage facilities have limited space and amenities to store RVs and boats, which means that demand for RV/boat condos will likely grow as RV and boat sales rise.
Owners of other types of vehicles, such as collectible and antique cars, motorcycles, and commercial vehicles, may also be in the market for storage condos. Owners of all these vehicle types will not only want a unit for storage, but for maintenance and light repairs as well – a secure place where they can pursue their hobby.
Want to know more about investing in storage condominiums ? Check out our latest video with LuxeLocker to learn more about the Storage Condominium market and why they chose to work with Forge Building Company. Then let’s connect.
References
1. The Storage Guy. (n.d.). Retrieved from thestorageguy-madison.com: https://thestorageguy-madison.com/storage-condominium-your-home-away-from-home/#:~:text=Storage%20condominiums%20appreciate%20in%20value,the%20value%20of%20a%20property.
2. Stratton, J. (2007, October 1). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/vehicle-storage/entering-storage-condo-market
3. Roberts, D. (2023, August 6). Guide Home Blog. Retrieved from GuideHomeBlog.com: https://guidehomeblog.com/how-much-do-storage-condos-cost/
4. Harris, A. (2020, May 26). SpareFoot Blog. Retrieved from Sparefoot.com: https://www.sparefoot.com/self-storage/blog/23966-what-are-storage-condos/
In an unpredictable world where natural disasters can strike with little warning, such as the recent fire in Lahaina, Hawaii, safeguarding valuable possessions has become an essential concern. As individuals and businesses increasingly turn to self storage units to store their belongings, the imperative to ensure the preparedness of self storage facilities for natural disasters has grown exponentially. The significance of incorporating resilient infrastructure and developing comprehensive disaster preparedness plans cannot be overstated. This blog delves into the crucial measures necessary to fortify self storage units, guaranteeing the safety of stored items and providing peace of mind to your customers in the face of nature's unpredictability.
Some natural disasters that you should be prepared for are:
In the United States, where you live is the largest risk factor for determining the type of natural disaster to be most prepared for. For example, large hilly areas are at risk for landslides, whereas coastal areas are most at risk for hurricanes. It is always a good idea to check with your local Emergency Management Agency for a complete listing from the Hazard Vulnerability Analyses Plan.
One of the key considerations in constructing self storage units that can withstand natural disasters is the choice of materials used. Concrete has long been lauded for its durability and ability to withstand various forces of nature. Reinforced concrete, in particular, proves to be a formidable option for disaster-resilient construction. Its combination of high compressive strength and flexibility makes it a suitable material for enduring earthquakes, while also offering resistance against fire. Additionally, concrete's resistance to water damage is crucial in flood-prone areas. When reinforced with steel bars or mesh, it gains the ability to absorb and distribute stresses, rendering the structure more resistant to impacts and vibrations caused by seismic events. Moreover, concrete's low maintenance requirements and longevity contribute to the long-term sustainability of the facility, further solidifying its position as a top choice for self storage construction.
In combination with concrete, the strategic use of steel can significantly enhance the disaster resilience of self storage facilities. Steel’s innate strength, flexibility, and ductility make it an ideal material for framing and structural components. As Forge, your steel building experts always recommend, incorporating steel framing in the construction not only provides the necessary support to withstand seismic forces but also enables a quicker construction process. Additionally, steel’s non-combustible nature safeguards the facility against fire hazards, reducing the risk of extensive damage in case of an inferno. For areas prone to hurricanes and strong winds, steel can be employed to create impact-resistant roofs and doors, bolstering the facility’s capacity to endure even the most aggressive weather conditions. The combination of concrete and steel provides the self storage facility with a robust structural foundation capable of withstanding a diverse array of natural disasters.
Creating a disaster preparedness plan tailored specifically for a self storage facility is important. Such a plan serves as a proactive blueprint for managing potential crises, ranging from earthquakes and floods to wildfires and severe storms. The team at Forge helps its customers identify vulnerable points within the facility’s design that might exacerbate the impact of a disaster. By addressing these vulnerabilities early on, our team can implement structural enhancements, reinforce critical infrastructure, and strategically position emergency resources to minimize damage and ensure the safety of both stored items and occupants. Furthermore, a well-documented disaster preparedness plan enhances the facility’s credibility, attracting customers who prioritize safety and are more likely to entrust their belongings to a space equipped to weather unexpected challenges.
The advantages of a disaster preparedness plan extend beyond immediate safety concerns, encompassing economic, legal, and ethical dimensions. Self storage facilities who establish robust disaster mitigation strategies demonstrate their commitment to responsible stewardship of their clients' possessions. This not only cultivates trust but also fosters a positive reputation that can translate into long-term success. From a legal perspective, having a clearly defined and regularly updated disaster plan can shield facility owners from potential liability in the aftermath of a natural disaster, ensuring compliance with safety regulations and obligations. Moreover, a well-prepared facility is more likely to recover swiftly from the aftermath of a disaster, thereby minimizing disruption to business operations and ensuring ongoing revenue generation. Ultimately, investing time and resources into crafting a thorough disaster preparedness plan is an investment in the facility’s sustainability, reputation, and the well-being of everybody involved.
In the realm of self storage construction, material selection plays a pivotal role in establishing the resilience of self storage units. The fusion of reinforced concrete and steel emerges as a potent combination to withstand a spectrum of natural catastrophes. Reinforced concrete’s durability, flexibility, and resistance to fire and water make it a cornerstone of disaster-resilient construction. Complemented by steel’s strength, ductility, and non-combustible nature, these materials together furnish the self storage facility with a robust structural foundation capable of standing up to the most severe elements.
However, materials alone cannot ensure preparedness. Crafting a tailored disaster preparedness plan is indispensable for self storage owners. Providing customers with reference documents for Personal Preparedness using FEMA and Red Cross Materials will show a sincere commitment to customer safety. Beyond immediate safety, such plans elevate a facility’s credibility, attract safety-conscious customers, shield self storage facility owners from potential legal ramifications, and bolster overall sustainability and reputation.
Working with a company, such as the steel building experts at Forge Building Company will ensure that your facility is built with the highest quality materials that will endure even the most aggressive weather conditions, providing peace of mind for your customers should a natural disaster occur.
FOR IMMEDIATE RELEASE
Boise, Idaho – September 6, 2023 – Forge Building Company, a renowned nationwide storage builder, proudly announces its nationwide expansion with projects in eleven additional states. This significant milestone solidifies Forge Building Company as the leading expert in the self storage industry.
The nationwide expansion includes projects in Delaware, Michigan, Ohio, Kansas, Missouri, Maryland, Tennessee, Pennsylvania, Hawaii, New York, and Florida. With a focus on providing tailored and up-to-date solutions, Forge Building Company offers a diverse range of designs, including single-story and multi-level self-storage facilities, boat and RV canopies, storage condos, flex buildings, and conversions of large-scale retail spaces into self-storage facilities.
“We are excited to contribute to the development of local economies as we expand our company towards the East Coast and Hawaii,” said Hamish Bell, President of Forge Building Company. “Our transition from primarily operating west of the Mississippi to becoming a nationwide developer demonstrates our expertise in the self storage industry regardless of the location.”
Forge Building Company's commitment to customer satisfaction and close collaboration sets it apart from competitors. With 100+ projects already in the pipeline for the remainder of 2023 and throughout 2024, the company is well-positioned for continued growth and success on a national scale.
In the growing self storage industry, choosing the right builder is crucial to your success. With the Forge team, you’re not just hiring a storage unit builder; you are partnering with dedicated professionals committed to excellence in planning, design, engineering, construction, and project management.
About Forge Building Company
Founded in 2007 by veterans Hamish Bell and Hayden Farrell, Forge Building Company has become a comprehensive steel building expert and provider. With over two decades of experience as a nationwide storage builder and a portfolio of over 500 projects spanning 50 million square feet of construction, Forge Building Company, the self storage experts, remains privately owned and operated in Boise, Idaho.
In the changing landscape of the self storage industry, the integration of cutting-edge smart technology has emerged as a transformative force, redefining the experience for both operators and builders. With the advent of smart locks and smart-security systems, robotics and AI, intuitive kiosks for seamless check-in/out processes, and user-friendly software and apps, HVAC control systems, and more, benefits abound on multiple fronts. For operators, these advancements provide a competitive edge and greater profitability with heightened security, streamlined operations, and increased customer satisfaction. Developers, such as Forge Building Company, who fully understand the importance of these technologies and know how to implement them into the facilities they are building, gain a competitive advantage in creating state-of-the-art facilities for their customers. Embracing this era of technology empowers self storage businesses to stay ahead in an increasingly digital world providing its customers with unparalleled convenience and peace of mind.
Smart TechnologyThe integration of smart technology, including smart locks, smart security-systems, robotics, AI, and self-service kiosks for check-in/out, offers many advantages for both operators and builders of self storage facilities.
One of the most significant pieces of technology for a self storage business is security and location intelligence software. This software can also provide valuable insights into how foot and vehicle traffic flows at their facilities.
Many self storage software products also offer integrated security systems such as access control and video surveillance. This is key for protecting the owner’s investment.
Smart LocksWhen you combine smart locks with advanced security systems, operators have the ability for real-time monitoring and control over access points, minimizing the risk of unauthorized entry and potential theft. Smart locks and security systems also reduce the time that the building operator spends on tedious tasks such as checking and cutting locks. With the implementation of smart systems, operators can spend more time focusing on the needs of their customers and less time on “time consuming manual tasks”1.
Another trend driving the self storage market is the use of robotic/AI-driven surveillance systems. These types of systems can efficiently monitor large areas, identifying suspicious activities and alerting operators promptly, further fortifying the facility's security measures.
One major cost saving use of technology for self storage facilities is the implementation of intelligent kiosks. Instead of maintaining a physical presence on-premise round-the-clock, self storage facilities can now leverage intelligent kiosks to replicate the interactions a manager would typically have with customers. “These kiosks efficiently handle approximately 60% of the frequently asked questions, relieving the burden on staff and improving customer service”2.
Automated systems like smart kiosks offer numerous benefits by streamlining self storage operations. They play a crucial role in guiding tenants through the onboarding or move-in process. They can assist customers in choosing the appropriate storage size, facilitating unit access, accepting payments, and addressing lease-related inquiries. Embracing this technology empowers facilities to optimize resources and provide a more seamless and efficient experience for all parties involved3.
By incorporating smart locks and automated rental systems, operators have the opportunity to offer upgraded smart units at a premium price point. Tenants are willing to pay extra for the enhanced benefits. These benefits may include improved security, convenience, and the superior quality that these smart units provide. Additionally, the rental process can include automated options for tenants to select insurance coverage or other upgrades, making it a seamless and efficient experience for both tenants and managers alike4.
The incorporation of new software and apps in self storage facilities presents a wide variety of benefits for both operators and builders. For self storage management, these include:
Today, mobile apps enable self storage customers to quickly access facilities or units with scannable codes or RFID tags. These apps also supply customers with updates, such as notifications about payment due dates, access changes, and account management.
Furthermore, these software solutions provide real-time data and analytics, offering valuable insights into customer behavior, occupancy rates, and revenue generation. This data-driven approach empowers operators to make informed decisions and optimize facility performance6.
Very few places in the country are fortunate enough to avoid the frigid temperatures of winter, the extreme heat of summer and the humidity that comes with it. For that reason, climate-controlled storage spaces and HVAC control systems have exploded in popularity, and this is particularly true in areas prone to extreme temperatures or high humidity. Renters storing valuable or irreplaceable items often prefer climate-controlled self-storage units due to the high degree of protection and peace of mind they provide.
Owning a climate-controlled storage business is a great investment. Storage facilities that incorporate HVAC control systems typically command higher rental rates than traditional space of the same size. The amount of upcharge will vary by region of the country, however, in some markets, this could be 15-35% or more7. Another huge advantage is that the newest generation of 100% climate-controlled, multi-story buildings enables a developer to build roughly three times the rentable square footage on the same amount of dirt. This means the owner can absorb a much higher land cost. It also allows them to consider many more parcels for a project8.
For more details on climate-controlled self storage units, see our blog, “Is Climate-Controlled Self Storage Worth the Investment?” and our video Climate Control Self Storage.
Integrating cutting-edge smart technology and adopting new software and apps have revolutionized the self storage industry. They yield substantial benefits for both operators and builders. With enhanced security, streamlined operations, and increased customer satisfaction, operators can navigate the challenges of an increasingly digital world. The convenience and peace of mind offered to customers through smart locks, robotics, kiosks, HVAC control systems, and user-friendly apps redefine the self storage experience, attracting a tech-savvy clientele. Furthermore, builders gain a competitive advantage by offering these new technologies in state-of-the-art facilities with advanced security and convenient self-service options. As the self storage landscape continues to evolve, embracing this era of technology proves essential for thriving in the industry and ensuring unparalleled convenience for customers
Works Cited
1,4. Hembree, Jordan. “5 Reasons Smart Locks Are a Self Storage Manager’s Best Friend.” Janus International Group, 31 Dec. 2020, https://www.janusintl.com/news-media/blog/best-smart-lock. Accessed 3 Aug. 2023.
2,3. Ramirez, Rodolfo. “How AI and Big Data Are Disrupting the Self Storage Industry.” Swivl, 21 June 2023, https://www.tryswivl.com/blog/how-ai-and-big-data-are-disrupting-the-self-storage-industry. Accessed 3 Aug. 2023.
5. Burnam, C. (2023, April 18). Forbes.com. Retrieved from Forbes.com: https://www.forbes.com/sites/forbesbusinesscouncil/2023/04/18/three-ways-technology-is-changing-the-self-storage-industry/?sh=645f69c53604
6. Austin, David. “Should I Use a Self Storage App for My Business?” Storagepug, 7 Feb. 2023, https://www.storagepug.com/blog/self-storage-app. Accessed 4 Aug. 2023.
7. Regency Steel Buildings. (n.d.). Retrieved from Ministorageoutlet.com: https://ministorageoutlet.com/self-storage-industry-projections/
8. Rider, J. A. (2022, February 20). howmuches.com. Retrieved from How Muches: https://howmuches.com/how-much-does-it-cost-to-build-a-climate-controlled-storage/
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-
