Construction costs, including those for self storage, are on the rise even though the amount of inflation fluctuate from location to location. If you’re planning to build or expand a self storage facility this year, it’s more important than ever to do your homework when it comes to research, design plans, and bids. (See our blog “A 10-Step Plan to Keep Your Next Self-Storage Development on Track.”
As the owner, it is key that you manage the day-to-day planning, coordination, and execution. It’s your vision, end stake, and money, so take the lead and educate yourself about the forces affecting the market.
In 2021, self storage facility construction spend in the United States dropped to $3.75 billion from its 2018 peak of $4.89 billion. This is a 19% 1-year decrease compared to 2020, a 926% 10-year increase, and a 294% 20-year increase. As the U.S. economy continues to grapple with the economic downturn caused by COVID-19, construction has slowed and will continue to be depressed in the short term despite increasing demand for self storage. (Neighbor.com, 2022)
Despite those statistics, the tremendous industry growth in this sector experienced over the last 25 years can be attributed to greater public awareness of the economic and personal advantages of this industry. Continued increase in demand, teamed with excellent investment potential, has made self storage one of the leading growth industries in the country since 1978 (The Parham Group, n.d.).
Given the current climate, below are some of the variables to be aware of, potential miscellaneous costs, bidding and contractual pitfalls, and other ways to mitigate overall development expenses.
Within the last year the cost of single-story construction jumped from $65 to $85 per square foot. What this means is that with a $6 million, phase-one budget from the Small Business Administration, you’ll likely build closer to 40,000 square feet than 50,000 (Goodin, 2022).
Annual price increases are very typical in the construction industry. COVID-19 over the last several years reduced steel manufacturing and stockpiling. Crippled supply chains have also caused prices to double. Today, however, steel production appears to be on the rebound, and demand will increase once the auto-chip deficit is over, and more cars and planes are built.
If you delay building or expanding your self storage property until prices stabilize, this could take months or years. The income benefit coupled with the growth and latest industry trends makes self storage definitely a great return on investment.
When you are considering building, construction cost is only part of your total development burden. There are many ways to reduce costs and avoid overruns when it comes to building your self storage property. The biggest way to avoid any pitfalls is to thoroughly review your potential self storage property in detail by use of a complete site plan. Look for:
It would be wise to leverage a civil engineer to review properties and local regulations to understand any potential extra costs that can be expected before you start your project.
To maximize your savings and optimize the cost of construction, it’s key to fully understand the expenses tied to certain building and site-design features that can lead to incremental extra dollars per square foot. Below are several other considerations that can impact your project costs. The team at Forge is here to help you make the best building determinations and evaluate your options based upon your budget.
Finally, pay attention to your roof. Many self-storage business owners make the common mistake of using screw-down roofing because it's generally more affordable. The team at Forge urges you to consider using standing seam roof panels instead because this installation doesn't require penetrating the roof with screws because of its joining rib design. The screws typically aren't a problem for the first year or so (depending on your environment), but those screws must be tightened or replaced over time. It's important to remember that each roof penetration increases the risk of leaks and ultimately disappointing your customers. Our services will help you retain your customers and protect their possessions. For more details, see Metal Building Re-Roofing with Standing Seam Metal Roof Panels.
Often times poor or incomplete bidding specifications can lead to higher construction costs. For this reason, every construction contract should include an addendum to list items that might otherwise be unaccounted for. These include:
Full cleaning of walls and floors once construction is completeAlso, if there are specific brand or quality requirements, these should be stated in the addendum with a note that no substitutions are permitted. A bid addendum helps guarantee that everything is communicated clearly to all parties involved.
Additional items you must account for in the total cost of self storage construction and financing include:
When bids are incomplete, this can lead to higher prices and unexpected cost overruns meaning you may then have to later downgrade a part of the construction.
Part of the project-planning process is to include a lease-up plan. The average self storage street rate for a 10x10 storage unit is $131/month, up 4% year-over-year.
The other good news is that the self storage industry has grown to more than 1.6 billion square feet of space so far in 2022 (StorageCafe.com, 2022). According to the latest Storage Café statistics, over the span of the last 5 years, 255.5 million square feet of storage space was built – that's equivalent to 16% of the total inventory. In 2021 alone, almost 44.3 million rentable square feet were finalized, an area that would cover either the whole of Central Park or the Grand Central Terminal. New supply in 2021 represents 3% of the existing inventory.
In even better news, a third of Americans planning a change of residence or needing more space at home reported that they use self storage. (Storage Cafe, 2022) A recent report from Storage Café found:
Self storage is relevant for both homeowners and renters who use it to better manage their belongings without cluttering their living space. In addition, with the COVID-19 pandemic, many customers started using self storage space for clearing space in their homes to work remotely.
These factors all result in greater facility value and the ability to recuperate project and construction expenditures more quickly. One of the other added benefits of commercial real estate is that it appreciates. Self storage owners also receive benefits from depreciation and amortization.
Your biggest expenses are in the land and building. Once you build, the cost doesn’t increase. Each year, you can typically raise rental rates to stay ahead of expenses and generate more profit. And, of course, when you sell, you’ll have an asset that’s worth more than when you built it due to inflation and the work you’ve put into increasing property value.
2021 was a record year for the number of self storage facilities sold. Higher occupancy and record rental rates have laid the groundwork for incredible increases in profit. This has also factored into newly constructed facilities still in lease-up being sold to buyers and providing multi-million-dollar returns for owners.
As you can see, there are a lot of factors that impact self storage construction costs. In the end, working with a company such as Forge to help put together a knowledgeable development team before you make an offer on land and properly executing each phase, from due diligence to bidding to design to operation, is necessary to keep everything on track and on budget. Give us a call! We’d love to help.
From Alaska to Florida, more than 50,000 self-storage facilities are scattered around the country. That’s about the same number of McDonald’s, Starbucks and Subway locations across the U.S. combined. These facilities are the foundation of the U.S. self-storage industry1, which was projected to generate $37 billion in revenue in 2019. The typical profit margin of a self storage business in the U.S. is 11%.2 That’s well above the profit margins for many other types of small businesses. Given those numbers, starting a self storage business, and keeping your self storage development on track is key. There’s a lot to do and many decisions to make.
Given today’s economy, it is key to act in a timely fashion. Developers and self storage business owners sometimes get stuck in the decision-making process, unable to move forward. No doubt, pursuing a self storage project can be overwhelming since there’s a lot to do and many choices to be made.
By being disciplined and taking one step at a time, you can make smart decisions. Here’s a ten-step plan to keep things moving forward in the right direction.
Before scouting locations for a self storage facility — no matter whether you’re looking at buying an existing facility or building a new one — you’ll need to look at the costs involved. The numbers will vary widely based on factors such as location, acquisition costs, land costs and construction costs. Things you will need to consider include:
Look at the cost of operation. A report released in early 2018 by commercial real estate company CBRE shows real estate taxes accounted for 28 percent of all self storage operating expenses, with on-site and off-site management costs eating up another 38 percent of operating expenses.
Develop a business plan. This can help propel the business toward success, letting you realize your goals and manage issues that might arise. In addition, most lenders will want to see a business plan before extending a loan.
Determine your scale of investment. You might be able to put up a single-story, 40,000-square-foot self storage development in a small town for $1 million or less, whereas a two-story, 80,000-square-foot facility in a more urban setting could set you back $6 million.
You can expect to spend anywhere from $25 to $75 per square foot on new construction. However, the location of the facility — including the cost of the land — will dictate the price tag for construction.
If you’re developing a self storage facility, consider:
Join networking groups and your local self storage association to help you learn from their experiences and gain referrals. Get to know professionals in the legal, real estate, financial, construction, and design industries that are experts in the self storage industry.
Drive around in the areas that interest you. Look for high-density residential areas and known upcoming residential developments (single- or multi-family).
Contact a commercial broker and/or your municipality. The city may be selling multiple parcels it owns. Based on its size, think critically about what type of facility could be built on the parcel.
Estimate whether it's good for self-storage. Call the municipality to find out how the land is zoned and any relevant regulations regarding industry development. If the property is already zoned for self storage, that removes a huge barrier. But if the property needs to be rezoned, you could spend months or years seeking approval for a zoning change.
Additionally, the issue of entitlement involves obtaining approval from government entities for your development plans. As with rezoning, an entitlement case could elapse valuable time.
Purchase the land with a 120-day due diligence period. The contract should state that your deposit is refundable during this period if you decide to forego the purchase. If you choose to buy the land, your deposit becomes non-refundable at 60 days. Also, give yourself 180 days to close.3
Complete a market feasibility study. This exercise will help you target the demographics of the customer base within a one- to five-mile radius of the facility. A three- to five-mile area is the typical size of a market for a self storage facility.
You’ll want to validate the median income in the market area (self storage renters tend to be in the middle-income and upper-middle-income brackets), along with the median age (self storage tenants are normally in their early 20s to mid-50s).
In addition, you’ll want to review the following aspects of your proposed market area4:
Other components of the feasibility study normally will include an overview of the self storage industry; long-range projections for rental rates, income, expenses, and property value; and details about the storage project’s zoning. This will help you determine whether the investment's land acquisition and building costs are sound.
This is also the time to look for any obstacles, such as easements, building restrictions, zoning and entitlement hurdles, water retention requirements, and wildlife, tree, or waterway conservation restrictions.
The study should also help determine your unit mix, what phases to build, and the amenities you should offer to achieve your desired return. It provides your operational budget, lease-up period, financial projections, and marketing plan and feeds into the basis of your business plan.
Determining how to finance an acquisition or a new development is your next step. Do you need to take out a loan? A number of options are available, such as acquisition loans, construction loans, and SBA loans. Many of these loans cover terms of 10 to 25 years. Work with a lending professional who’s well-versed in the self storage industry to point you in the right direction.
To qualify for a self storage loan, here are four things you’ll likely need:
Make sure you have enough liquid capital not only to buy or build a facility but also to operate the facility.
You may also want to consider strategically partnering with other investors to buy or build a facility. This can be done through:
If going the loan route, contacting multiple self-storage lenders and negotiating the best terms is best.
Be ready to send each lender or investor all the documents they need to make a quick decision. Your packet should include everything from your feasibility study as well as the items mentioned above, along with your business plan, tax returns, and personal financial statement.
If you ultimately choose a Small Business Administration loan, allow 90 days to close. If you’re going with conventional financing, allow 60 days.
At this stage, there are things you must do to prepare for building – obtain various reports and geographical surveys, such as a phase-one environmental site report, a soil-borings report, an engineer’s preliminary report, and an endangered-species report. Developing a self storage facility requires expertise so organizing your design team is crucial. The team at Forge can lead you through this process.5
A development team should include experienced legal, real estate, financial, construction and design professionals. Few people who are new to the self storage industry can solely develop a new facility.
The design process starts with a survey of the land. The architect creates a plot plan indicating the locations of buildings in relation to the land. In this initial design, the architect considers all the information the civil engineer has provided about site restrictions and the availability of utilities.
The next step is to design the floor plans followed by the elevations, or what the building will look like. Cross sections and details are added to indicate floor levels and details of footings, foundation, walls, floors, ceilings, and roof construction.
The structural engineer then assures the materials and how they are assembled are strong enough to withstand their weight, the weight of any use it may be put to, and all internal and external forces—known as vertical loads and lateral stresses—applied to the building.
A load is any force exerted upon a structure such as snow, wind, or earthquakes or the weight of the building itself. Live loads are produced by people, furnishings, equipment, and materials inside the building. Stresses are internal forces of a material constructed to resist external forces.
The civil engineering plan provides information about the excavation and grading needs the subcontractor will require to prepare the soil for foundations, ensure stormwater drains from the site, determine contours and elevations, and provide an earthwork estimate. That data will also help them provide an accurate bid for crew size, equipment, and timeline, and it’s needed by the retaining wall subcontractor and building manufacturer.
Forge Building Company has created its building design that allows for efficient use of materials and allows for crews to build quickly.
Once the team has been assembled, the general contractor is responsible for making sure that everyone is building the project in accordance with the design. General contractors may provide labor and materials themselves, use subcontractors and vendors, or a combination of the above. Subcontractors provide their own shop drawings and may be in charge of trade-specific permits and inspections.
The general contractor weaves everyone’s efforts into the completed product. Because of the volatility of material markets, most contractors won’t lock in pricing for materials and there could be price increases when material orders are processed. It is a good idea to ensure you include a Price Increase Contingency amount in your budget.
When you reach this step, the team at Forge is ready to assist. We will ensure your self storage project is built on schedule and on budget and will take pictures along the way.
With a project start date determined, your general contractor will give you expert feedback on construction activity and sequence of work to accomplish your goals best. Along this path, milestones will be identified such as:6
As the schedule is designed, the general contractor typically gets requirements from the major subcontractors to help determine realistic timelines. This information can also help identify long lead times for materials so they can be addressed early in the purchasing process and reviewed for the projected construction cash flow.
This is also a great time to set up your property-management systems and marketing initiatives to be ready to open as soon as you receive your Certificate of Occupancy. For technology considerations, see our blog “Technology – What You Need for Your Self Storage Business.”
Now is the time to leverage your marketing to lease the facility storage units. Your website is one of the biggest assets for a positive customer experience. It should be easy to find and use.
Content for your web presence is the single most important thing for search engine optimization and for prospects and customers to be able to find your business quickly. This includes your blog posts, social media, landing pages, FAQ pages, videos, and everything else related to your business.
Other helpful technology that will improve the customer experience includes any automation you use, security and access tools, digital signage, and property-management software that facilitates online rentals and autopay. Customers expect technology that’s easy to use, available around the clock, nice to look at, and engaging.
For more tips on creating the best customer experience, see our blog “Creating the Best Customer Experience for Your Self Storage Business.”
Once your self storage development is built, open, and renting, the most important aspects of hitting or exceeding your projections and maintaining high performance are answering your phone, monitoring rates regularly, keeping customers happy, and monitoring your marketing and online presence. In addition, it is key to think about giving back to your community, rewarding your employees, and starting to look for land for your next facility!
One of the best ways to create the ultimate customer experience is to walk through the process of renting a unit, visiting the site, and accessing the unit. Was anything surprising? Confusing? Alarming? Go about this drill as if you’re someone who knows nothing about the industry and see how easy it is to navigate the process of looking for, renting, and using self-storage.
The relationship you build with customers through these strategies and how you fulfill their needs is ultimately what will make their experience pleasant and help with retention and referrals in the future.
Works Cited
1 SpareFoot. (2021, January 27). Retrieved from SpareFoot StorageBeat: https://www.sparefoot.com/self-storage/news/1432-self-storage-industry-statistics/
2 Egan, J. (2021, September 13). Storable. Retrieved from Storable: https://www.storable.com/resources/learn/is-a-self-storage-business-profitable/
3 D’Agostino, K. (2021, October 5). InsideSelfStorage.com. Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/development/9-step-plan-keep-your-next-self-storage-development-track
4 Egan, J. (2021, July 26). Storable. Retrieved from Storable: https://www.storable.com/resources/learn/starting-a-self-storage-business/
5 Inside Self Storage. (2008, September 15). Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/construction/building-self-storage-creating-harmonious-design-team
6 Rogers, R. (2016, October 6). Inside Self Storage. Retrieved from InsideSelfStorage.com: https://www.insideselfstorage.com/construction/creating-and-managing-self-storage-construction-timeline
Disaster preparedness has never been more important than it is now. Natural disasters like hurricanes, tornadoes, flooding, or wind and hail can cripple your business. Even man-made events like arson, vandalism, burglary, or pollution exposure can be a significant disaster. Creating a disaster preparedness plan will save you time and money and can be the key to keeping your business going.
The best disaster plans start with a key list of emergency contacts including fire and police departments, insurance agent, electrician, plumber, and HVAC contractors. In addition, it is key to keep an updated list of tenants, employees, and vendors available including your steel building contractors. This information should be backed-up on a regular basis and retained off site. A site map or diagram, building plans, and bank account records should also be kept online and/or at an off-site location.
It is important to consider privacy implications when backing up tenant records. It is your responsibility to keep that information safe. If a data breach occurs, you have the duty to notify customers and comply with state and federal regulations. All facilities should consider a cyber liability insurance policy that includes legal services that can assist in determining regulatory obligations and notification requirements.1
For the safety of your employees, your business should have an emergency kit on site that includes:2
Your facility should have a plan in place for disruption in utility services. Ahead of time, determine what utilities are necessary for continuing your business and contact your local provider to see what back-up options are available for phone service.
To prevent arson, vandals, and burglaries, facilities should consider perimeter fencing at least 6 feet high as well as a surveillance system with a sign advising the facility is monitored. Central station burglar and fire alarms are always recommended, especially for the office.
Another step you can take is to contact your local disaster restoration company to see if they offer a preparedness assessment. Implementing what they suggest could minimize interruption to your business in the event of any sort of disaster.
Your facility’s emergency preparedness plan should be updated regularly. You can review and create your own plan at www.ready.gov.3 This plan should be shared with your insurance agent who will use this information to present your facility to underwriters for the most competitive insurance policy available. The more information you provide to your agent regarding disaster preparedness, safety features, and updates to plumbing, heating & electrical, and roofing, the better an underwriter can use this information to justify applying credits to your insurance premium.
Firstly, tenant access to your facility should be restricted if an extreme weather situation is pending. Only emergency personnel should be allowed on site during a storm or disaster. Call the fire department immediately and evacuate the premises if there is a fire. All facility employees should be trained on the proper use of fire extinguishers. Employees must understand the safe use of fire extinguishers and be instructed never to try to fight a spreading fire.
When the facility is safe, the owner should do whatever is necessary to protect the buildings from further damage. Ensure the property is secure, contact local authorities, and then call your insurance agent to report the claim. Make sure to take photographs of all damage.
The next key item is when a situation occurs at your facility that results in damage to your tenants’ property, it is crucial that the tenants be notified immediately. Notice should be made both by phone and by written notice to each tenant's last known address. The notice should explain whether the tenant can recover its property from the facility and, if so, when. Access to a tenant's goods can usually be given unless the damage is so extensive that it would be dangerous for the tenant to enter the facility property. The written notice should also recommend that the tenant notify his or her insurance company.4
It is also extremely important to note that if a disaster cannot be controlled by the facility, most leases and rental agreements will protect the facility owner from tenant claims arising from the loss of their property. Self storage leases typically contain specific language stating that the facility will not be held responsible for the loss of or damage to its tenants' stored property from such natural occurrences or Acts of God. Self storage leases generally provide that the tenant's property is to be stored at their own risk and that the facility does not take care, custody or control of the property stored.
Self storage facility owners should be aware that standardized comprehensive and business liability policies will likely not cover tenant loss and damage claims and therefore they may need to add additional liability insurance for customer goods for added protection.
After a loss occurs, the facility owner must protect the property (and the contents) from further damage. All efforts should be made to cover or board up areas that remain open to the elements and rope off damaged areas to protect tenants' property.
Next, an incident report with photographs or video footage documents the loss and your efforts to mitigate further damages should be completed. Finally, it is key to contact your insurance company immediately. Many insurance companies will not be obligated to cover your claims if they are not given reasonable notice of the occurrence and have a chance to investigate it.
Even with the best planning, disasters can cause havoc for self storage facility owners. By implementing a “safety first” policy, a facility owner can often mitigate problems ahead of time. Once the dust has settled from the disaster and safety has been verified, the process can move forward with recovering the tenants' property and repairing the facility. As long as the proper insurance is in place, the financial impact of the disaster can hopefully be controlled.
Once the property is safe for access, facility owners should obtain dumpsters for their customers who have suffered a loss. Damaged property can be removed from the storage units (due to the certain risk of mold and mildew). Extra effort should be made to contact tenants who have not inspected their property within the first week since, after two or more weeks, the risk of mold and mildew on affected property increases. If the tenant doesn’t respond and before any action is taken to dispose of damaged property, the facility owner should again attempt to contact its tenant and work in concert with its insurance company regarding the need to clear the storage building of damaged property.
Additional emergency preparedness resources include:
CDC Emergency Preparedness
FEMA
Ready.gov
Red Cross
For assistance in weather proofing and securing your facility, give us a call. Team Forge is here to help ensure your facility is as safe and secure as possible. We will inspect and make sure your roof is secure as well as your hallways and doors. We look forward to helping you ensure you are prepared for any disaster.
Works Cited
1 Lamoureux, J. (2022, February 24). World Insurance. Retrieved from World Insurance
2 Silverado Self Storage. (n.d.). Retrieved from Silverado Self Storage
3 Ready. (n.d.). Retrieved from Ready: https://www.ready.gov/
4 Zucker, S. (n.d.). Self Storage Association. Retrieved from Selfstorage.org
With climate change related to higher temperatures and drier weather conditions comes the threat of wildfire season. A wildfire can be devastating to a self storage business. An article from The Wall Street Journal indicates that wildfires could increase by up to 57% by the end of the century. (wsj.com, 2022) Following are conditions that set the stage for wildfires and in addition to corresponding tactics to improve your wildfire resilience.
Many self storage facility fires are caused by improperly stored flammable goods or packaging, however other fire risks include the following (Jensen, 2020):
There are a number of tactics for self storage facility owners. In California, most self storage facilities are Type II or Type III construction consisting of non-combustible concrete or masonry or light gauge steel. (Valli Architectural Articles, 2006)
Whether you’re in California or another state, all self storage facilities absolutely need a class-A and -B fire extinguisher as well as sprinklers. A sprinkler system is key for reducing fire, smoke, and water damage since it’ll use far less water than responding firefighters.
Here are some other simple tactics to protect your property from fire. It’s also key that staff members are trained and informed, safety equipment is available and in working order, and preplanned/drilled/validated protection routines and strategies are in place.
A lot of fireproofing hinges on staff and tenant education. Since many self-storage fires are caused by human error or arson, ensuring employees and tenants are aware of rules and responsibilities goes a long way toward increasing fire safety. Additionally, making sure your facility has the proper equipment, such as sprinklers, smoke detectors, and fire extinguishers along with firewise landscaping will increase preparedness and resiliency for the upcoming wildfire season. For assistance with upgrading or making your facility more firewise, give the experts at Forge a call!
Alalouff, R. (2022, February 28). IFSEC Global. Retrieved from ifsecglobal.com: https://www.ifsecglobal.com/fire-news/guide-fire-risk-assessment-get-one/
Jensen, O. (2020, September 1). Inside Self-Storage. Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/disaster/tips-increase-fire-prevention-and-safety-your-self-storage-facility
Park, C. (2016, August 11). IFSEC Global. Retrieved from ifsecglobal.com: https://www.ifsecglobal.com/fire/a-guide-to-fire-alarm-system-types-2/
University of Florida Gardening Solutions. (n.d.). Retrieved from gardeningsolutions.ifas.ufl.edu: https://gardeningsolutions.ifas.ufl.edu/design/landscaping-for-specific-sites/firewise-landscaping.html
Valli Architectural Articles. (2006). Retrieved from Valliarch.com: http://www.valliarch.com/press-awards/articles/article06.pdf
wsj.com. (2022, February 23). Retrieved from The Wall Street Journal: https://www.wsj.com/articles/wildfires-will-become-more-intense-and-frequent-u-n-study-finds-11645652588
With so many self storage facilities popping up across the U.S., the thought of doing any sort of facility renovation causes many self storage owners and investors more anxiety versus excitement. Facility improvements offer many business advantages such as higher rental rates, increased property value, and happier customers that will stick with the facility once improvements have been implemented.
While the Self Storage industry is booming, there are a lot of properties out there that have aged with little or no maintenance, upgrades, or renovations to keep them operating at peak performance. This may include broken unit doors, leaky roofs and poor lighting or other safety hazards. When customers don’t feel that the items they are storing are being responsibly protected, they are more likely to seek out a facility that is newer, cleaner, safer, more sustainable or renovated.
All self storage facilities should have:
Forge Building Company can help you assess and improve your self storage facility to meet the needs of your customers while increasing rental income and property value. When determining what to renovate, Forge can evaluate your site, looking at the aesthetics and functionality to determine what areas should be upgraded or replaced – doors, hallways, roof, lighting, vehicle storage areas, and other equipment.
Many Forge customers are upgrading unit doors because their appearance and functionality impact site safety and security. Remember, curb appeal is the first thing a customer will notice. Also, replacing older doors can potentially lower your insurance liability and costs.
Replacement doors should be customizable, easy to operate and maintenance-free. This will result in minimal upkeep. Forge recommends dead-axle roll-up doors with factory-lubricated and enclosed springs that’ll be protected from harmful elements while ensuring smooth operation for many years. Samples can be seen here: storage building hallways and doors.
In a recent blog post titled Sustainability In The Self Storage Industry, Forge suggested several sustainability options, including:
Adding vehicle storage designed to house a car or other type of vehicle is another great upgrade. Think of it like a garage or parking space that you rent within a self-storage facility, with similar benefits depending on the storage company and unit that you choose, such as on-site security, gated access, and climate control.
There are four primary types of vehicle storage:
In a recent blog post titled Guidelines for Vehicle Storage, we discuss the various options for vehicle storage. One of the best ways to enhance your customer experience and grow your business is to offer RV and boat storage. Your customers will be motivated when they learn that they can store their RV or boat at the same storage facility as their other items.
Forge Building Company is a premier commercial storage builder that constructs not just self storage facilities, but also commercial RV and boat storage canopies. Because we partner closely with many self-storage business owners, we know what storage facilities require when it comes to their buildings and canopies. For samples of our vehicle storage projects, see Canopies RV Boat Commercial.
Many renovation projects can be completed without interrupting the rhythm of your business. The team at Forge can suggest a rollout plan to ensure your business continues to run smoothly during any renovations.
While the thought of renovation often brings concerns and questions over the financial burden, it is key to consider all of the benefits of the renovation. An improved facility will allow you to market all of the safety and sustainable new features to current and potential customers which will then allow you to charge higher rents, increasing your property value! It’s a win-win for both you, the property owner and your customers!
In addition, once the renovations are completed, there could be cost savings in utilities and insurance.
Cost seg (CSA, n.d.) is a tax-planning tool that allows you to write off discarded old materials as part of your federal tax filings.
Renovations aren’t just for older self storage facilities. They can benefit any site. If your occupancy rate is above 85%, consider upgrades. Making appropriate repairs and upgrades will provide your customers with a safe, secure and clean environment for their precious belongings enabling an easier justification for higher rental rates while increasing your property value.
Barnard, J. (2018, September 14). Retrieved from Inside Self-Storage: https://www.insideselfstorage.com/eco-friendly-storage/differentiation-through-sustainability-green-ideas-self-storage
CSA. (n.d.). Retrieved from CSA: https://www.costseganalysis.com/
U.S. Department of Labor. (n.d.). Retrieved from U.S. Department of Labor: https://www.dol.gov/general/topic/disability/ada
Most often, when you think of self-storage, you usually think of finding a place to keep boxes, furniture, and other standard household belongings. But what if what you need to store right now is a car or other vehicle? Vehicle storage works in pretty much the same way as regular storage, with various options available to help ensure that your vehicle stays protected when it’s not in use. Following is a quick guide to vehicle storage, including what you should do to prep so your car or vehicle is ready to drive off the lot later on.
Vehicle storage is a self-storage unit specifically designed to house a car or other type of vehicle. Think of it like a garage or parking space that you rent within a self-storage facility, with similar benefits depending on the storage company and unit that you choose, such as on-site security, gated access, and climate control.
There are four primary types of vehicle storage:
The various types of storage units for vehicles differ in terms of price and utility. It’s important to choose the type that’s best suited for your vehicle itself, particularly if it is highly valuable.
Each type of vehicle storage unit offers its own advantages and disadvantages. To figure out what unit will be best for you, you’ll need to consider not only availability (though that’s obviously a key factor) but what your specific vehicle requires.
This type of vehicle storage isn’t so much an individual unit as it is a parking space that you rent for a set duration. These are usually within a large parking lot on site of the storage facility, and the surface may be paved, grass, gravel, or dirt. This is the cheapest way to store a vehicle, and though you lack protection from the elements you still get the security benefits that come with renting at a storage facility. For added protection you can put a cover on your vehicle which will provide a barrier from the weather.
If you’d prefer to have your vehicle protected from things like sun, rain, and snow, then consider a covered parking space. These are generally housed in a large vehicle port shared by many vehicles, with open walls and a roof overhead. This type of storage doesn’t offer quite as much protection as an enclosed unit, but it’s better than the uncovered space if you’re worried about exposure.
These warehouses house multiple vehicles in a shared enclosure, with full protection from outdoor elements. They’re a cheaper alternative to renting your own enclosed unit since you’re sharing the space with others, but do not give you the ease of convenience when it comes to accessing your vehicle. These units may require you to schedule a time in advance to retrieve your vehicle.
The priciest option for vehicle storage is a non-shared enclosed unit, which is basically a garage that you rent just for your vehicle. You can drive your vehicle right in and out of these units so you don’t have to worry about access, and many self-storage facilities offer additional options such as climate control and live streaming to your unit so you can check on your vehicle as needed.
Most self-storage facilities also offer storage options for RVs, boats, and other large vehicles, including both enclosed and unenclosed units. Call your local storage facility to see what’s available. When Forge partners with storage companies, we put the customer at the front of everything. Luckily, you don't have to worry about the durability of our canopies. As commercial storage builders, we work with only top-quality materials to guarantee our customers the best possible canopy. It's not your responsibility to check the quality of the canopies; we take care of that for you. Here’s an example of what to look for: Commercial canopies for RV and Boat storage.
The average cost to store a vehicle or RV varies from about $45 a month to $450 a month depending on the type of vehicle storage unit you rent and the size of the unit that you require. Tack on an additional $50 a month or so if you are going to be renting a climate-controlled unit.
When it comes to vehicle storage costs, size does matter. A storage space that’s too small will be difficult to navigate, if not impossible to use altogether. A storage space that’s too big will run you a higher rate than you need to pay. If you’re like most vehicle owners, you probably don’t know the dimensions of your vehicle off the top of your head. You probably also don’t have a laser-calibrated vision of what 10 feet looks like compared to, say, 8 feet or 15 feet. Stor-It Self Storage provides the following guideline that outlines storage space size for your vehicle.
A 10 x 15 storage space is good for compact vehicles, such as:
A 10 x 20 storage space is ideal for storing several commonly used vehicles, such as:
A 10 x 25 storage space is good for most bigger vehicles, such as:
Vehicle storage is a safe way to store your vehicle until you need it again. That being said, there are some steps that you’ll want to take prior to putting your vehicle into storage so that you can be assured that when you’re ready to drive it off the lot it will be good to go—especially if you plan to store your vehicle for at least a year. Edmunds suggests some of the following ideas.
It’s a good idea to get some basic maintenance performed on your vehicle if you’re going to be leaving it in storage for a while. This should include having someone check your coolant levels and tire pressure and may also require a change of your oil and filter. Let your maintenance provider know that the vehicle will be going into storage, and they should be able to assist you on the best next steps.
This step may seem a bit strange. Why would you clean your vehicle if you’re just going to store it? The reason for this is that any dust, dirt, or residue that is caked on top of your vehicle when you put it into storage will wear down the paint and metal of your vehicle’s exterior. Don’t let that happen. Do the same for the interior, too. Be sure to remove any food that’s in your vehicle too, since even if it’s non-perishable and not at risk of going bad it could be a draw for rodents.
A battery maintainer, also called a float charger, will help keep your vehicle’s battery from dying while in storage. It works by continually monitoring the battery level and periodically sending a surge of power as needed to ensure that the battery stays full. Unlike a basic battery charger, a float charger stops supplying power once the battery is at capacity, so you won’t have to worry about overcharging—nor will you have to worry about needing to jump your vehicle when you’re ready to use it again.
Worse things can happen than a stuffy vehicle, but if you’re going to be using an enclosed unit then crack your windows slightly to facilitate air flow and keep the interior from getting musty.
To keep your vehicle clean no matter how long it’s in storage, invest in a quality vehicle cover.
You may have been taught to engage the parking brake every time you park your vehicle, but you should do the exact opposite when storing your vehicle for long periods of time. If you do use your parking brake during storage, you run the risk of damaging your brake pads and rotors. If brake pads and rotors are in contact for long periods of time, they may fuse together. This can lead to major headaches on your end, major safety issues when it’s time to drive your vehicle again, and major funds getting flushed down the drain to fix your rotors and brake pads. To keep your vehicle stable in storage, use tire stoppers. They’re much better for your vehicle.
There’s nothing worse than making the decision to sell your vehicle and realizing that you can’t legally sell it because you don’t have your title. Keep your title in a safe place where it won’t get stolen, lost, or forgotten. Also, be sure to keep your vehicle registered while it’s in storage. Even if you are thinking about trying to unregister your vehicle (because you’re not exactly using it), you will not legally be able to do so. In order to store a vehicle in a storage unit, you must have the vehicle registered under your name.
You don’t need to drive your vehicle, but you do need to start it up every so often to ensure the battery stays in good shape. When you do start your vehicle, you shouldn’t leave it idling in the storage unit, as this can lead to a life-threatening buildup of carbon monoxide. If you don’t want to drive your vehicle, at least roll it outside of the unit and leave it on for a few minutes to recharge the battery. There’s nothing worse than finally getting ready to take your vehicle out of storage and not being able to start it because your battery is dead.
To find exactly what you need for your vehicle, call a few different storage facilities to see what they offer in terms of units, features, and pricing.
Storing your vehicle in a storage unit or parking space is a unique endeavor that requires preparation. Whether you’ve had a storage unit for a while, you just got your very first-ever storage unit, or if you are on the fence about wanting to get a storage unit in the first place, you’re going to want to do your homework. As a premier commercial storage builder, Forge has built quality canopies and storage units that will protect your investment. Are you a storage company looking to add or upgrade your vehicle storage? Give us a call today to help.
National Self Storage Builders have experienced record growth over the past two years. Self Storage industry growth has been driven by major life-altering events such as divorce, death, disaster, and dislocation. Beyond these traditional demand drivers, the pandemic added new factors to the equation. Shifts to remote work and relocations and the need for businesses to store goods and supplies locally have been major demand drivers across the sector.
As a result, the sector recorded a substantial uptick in both occupancy and rental rates across the U.S. Self-storage rents reached historical highs in 2021, and experts are optimistic that this sector will continue to perform well this year, according to the latest National Self Storage Monthly Report from Yardi® Matrix.
As the year progresses, most operators are seeing uncharacteristically high occupancy rates, giving them the possibility to maintain and ultimately increase street rates, according to this same Yardi Matrix report.
The national street rates for a 10×10 non-climate-controlled units grew 6.7% on a year-over-year basis in December 2021, while rates for 10×10 climate-controlled units increased 7.4%, down 80 basis points from the gains recorded in the previous month. Despite cooling rents, the growth rates are well above of where they were in December 2020, when national increases were 2.3% for 10×10 non-climate-controlled and 3.5% for climate-controlled units.
Overall, no metros in the top 30 markets tracked by 3rd party analytical groups recorded negative rate performance on a year-over-year basis. A total of 22 markets saw 5 percent or higher rent growth in the non-climate-controlled category and 19 markets registered the same growth in the climate-controlled category.
Nonetheless, on a month-over-month basis in January, national rates for 10×10 non-climate-controlled units declined by $1 to $127, and rates for the same-size climate-controlled units also fell $1 for the third consecutive month to $145.
While some short-term demand drivers have dissipated, the long-term need for storage space is bolstered by several demographic trends, including Millennial family formation, downsizing retirees, and accelerated migration across the U.S.
The pandemic also urged many people to leave expensive urban centers in favor of suburban areas and smaller, lower-cost cities. This migration trend will likely persist in 2022, benefiting the storage sector.
Although self-storage rents are coming off record-high gains seen in 2021, industry experts expect robust growth in 2022. Most operators will start the spring leasing season on a high note, with strong occupancy rates, giving them the possibility to maintain and ultimately increase street rates.
Nationally, projects under construction or in the planning stages accounted for 8.9% of total stock, up 10 basis points over the previous month. The number of storage facilities under construction increased by 24 to 719, while the number of planned projects dropped by four to 1,252. Overall, there were 3,022 self-storage properties in various stages of development as of December 2021.
New York continues to have the most robust pipeline, with projects under construction or in the planning stages equal to 19% of total inventory, up 40 basis points over November. Las Vegas was second on the list—the metro’s new-supply pipeline increased from 15% in November to 15.6% in December 2021.
Although industry experts expect occupancy and rental rates to slightly moderate this year, the shift in the way people live and work will likely continue to foster a competitive environment for the self-storage sector in 2022. And due to healthy market fundamentals, investor interest is also set to remain high.
All in all, thanks to the record-setting performance over 2021, the self-storage sector is set for another strong year.
If you’re looking to invest in a self-storage project, Forge Building Company would love to help. We partner with top-notch investors and developers nationwide. With over 15 years of experience in this space, we will provide all the necessary information needed for your project to be a success from start to finish.
Here is how we can help.
Forge knows self-storage and has built over 60 million square feet of it. Let’s begin the discussion on your next project. To obtain a quote request, click Request a Quote.
Building a self-storage facility that looks great is important, but to keep customers happy and business booming, you also need to ensure your facility is maintained…especially your unit doors and roof.
One of the most distinguishing factors of a self-storage facility are the roll-up doors, so it’s important that they be well-maintained! Not only do they contribute to curb appeal, but they are a large part of the tenant experience and can be a safety hazard if left untended.
Doors should be inspected before a tenant moves in, and again after they’ve moved out. Inspection of a roll-up door doesn’t just mean ensuring it looks good but also means it is functioning properly. Here are some guidelines for ensuring your doors look good and function properly.
Even when your self-storage units are occupied, there are aspects of your doors that should be inspected regularly. (O'Hearn, 2022) For example, examine the curtain for damage and check the latch for tampering. If the unit has a header draft stop or jamb brush seal, determine if they have excessive wear and replace them if necessary.
Once a unit becomes vacant, there are other items you should inspect before renting it to the next customer.
The most common adjustment to your self-storage doors as they age will be to spring tension. When properly tensioned, the door will open easily. Once it’s about two-thirds open, it should roll up the rest of the way on its own. The springs need more tension if they close too rapidly or require significant force to open. Most doors have a ratcheting mechanism that allows you to make necessary adjustments.
If you’re in an area that requires wind-locked doors, inspect the brackets and confirm they’re secured to the door. If they are not secure, drill out the old rivets and put in new ones. Some door guides come with a wind-lock insert; ensure they’re also secured now.
Protecting your tenant’s property is the main focus of a self-storage facility. That protection includes the structure of the building, and a big part of that structure is the metal roof. It doesn’t matter if you have a traditional, single-story facility or a multi story facility – your metal roof matters.
As self-storage buildings age, roof maintenance and repair become more important and time-consuming. An inspection and maintenance program are an important part of sustaining roof life as well as keeping costly repairs and property claims in check.
With proper inspection and maintenance, a metal roof can last for decades. A good program aims to proactively locate and repair possible leaks while extending the life of the metal panels.
This inspection and care will help you keep your roof in the best possible condition. The most effective examination for metal-roof systems includes four specific areas: the perimeter, the ridge, fasteners, and debris.
To learn more, see Forge Building Company - Metal Building Re-Roofing with Standing Seam Metal Roof Panels
Perimeter inspections are simple and quick. (Ness, 2015)
The ridge is another area for potential leaks.
Effective fastener inspection requires walking each fastener row, one at a time. Fasteners are the single biggest maintenance concern on the older (built in the last 10-20 years) R-panel roof systems. R-Panel roofing has exposed fasteners every few feet. This becomes an issue when the metal roof expands and contracts with hot and cold weather, as the fasteners can become loose. This is where leaks can begin. Not only do loose fasteners allow water into the units, but they can also cause rust and mold. In these screw down roof types, sometimes the seals or seams are not sealed correctly, which can also lead to rust and leakage at your facility. The options are to remove and replace the fastener with a new one or apply non-silicone sealant to the top of the fastener, making certain to completely encapsulate the head.
Standing Seam metal roofing has now replaced R-Panel as an industry standard roof for a few reasons. To start, Standing Seam roofs are 24 gauge, whereas most R-Panels are 26-29 gauge. This means that Standing Seam roof panels are made of thicker metal and are therefore stronger than other panel types. Standing Seam roofs are more resistant to leaks, and this is mostly due to the way that they are designed and installed. This means no water damage to a tenant’s property, which is always a plus.
Debris on the roof can clog gutters as well as damage metal panels. Certain metal items can strip the Galvalume coating from the panels and dramatically shorten their life. Wire hangers and batteries are two of the biggest culprits, and the end result can be a large area of rust. The longer the metal item is on the roof, the greater the damage will be.
In the self-storage industry, limited access to units makes leak identification a difficult task. Vacant units should be inspected by the manager immediately following a significant rain. This gives the manager the opportunity to find unreported leaks and can help alleviate problems from tenants in the future. When a leak is identified, it is always advisable to make or arrange repairs as soon as possible.
We all know the customer experience is the backbone of any successful business. At Forge Building Company, we partner with developers that provide the best doors and roofs in the industry. We have over 15 years of experience in this space and will provide all the necessary information needed to help maintain and grow your business.
Let’s begin the discussion on how we can help. Click Contact Us to connect!
As a self-storage owner/manager, your approach to customer service can make the difference between securing a rental or losing a customer to a competitor. However, in today’s environment, self-storage tenants demand even more. To win them over, you must create the ultimate customer experience.
Prospects visiting your property are generally there for one of a few very specific reasons: to rent a unit, buy packing supplies, pay a bill, or discuss a rental-related issue. Your job is to make these tasks as easy as possible by removing barriers, obstacles, and complications. Therefore, your service approach is vital.
Customer service is all about the interactions you and your employees have with potential and current tenants in person, over the phone, and via e-mail, text, or other online channels. It always involves human interaction. The customer experience includes every way and place a person interacts with your business, even when there’s no person involved.
Today, the customer experience requires more wow factor thanks to an evolving market filled with creative websites, social media, online reviews, mobile apps, and other technology (see our recent blog, “Technology – What You Need for Your Self-Storage Business”). The self-storage customer experience consists of everything from finding and renting a unit online to entering the gate to opening the unit door. There are many opportunities for it to go right, and as many opportunities for it to go wrong.
The following are easy ways to elevate the customer experience and better connect with prospects and tenants, which can help you grow your business.
It’s absolutely imperative that any customer-facing staff properly represent your self-storage operation. The right facility manager must be enthusiastic, energetic, and integrity. He/she must have a positive, can-do attitude and a customer-centric mindset.
A friendly face goes a long way in customer service. Warmly greet your current and potential customers when they contact you to make a great first impression and solidify a reputation for positivity with each interaction.
If a prospect shows up at the front door, come running. Make sure you’re always accessible, no matter where you may be on the property. If a customer knows you’re dropping everything to help him/her, he’ll appreciate the level of service you provide.
First impressions are vitally important, so greet everyone with a smile and kind words. Here are some other things you can do:
Every customer has a preference for communication. Your customer service should offer several lines of communication, including email, texts, online chats, and phone service, so anyone can get in touch the way they feel most comfortable. A willingness to meet lessees halfway is a valuable trait for any customer service team.
Having a personal connection with you directly at their local facility will bolster customers’ confidence in your business. Customers appreciate businesses treating them like real people rather than numbers, adding to their bottom line. Take the time to learn your customers’ names and a little about them. If your customers feel at home, they’ll keep coming back Additional tips to consider:
Be open to not only phone calls and in-store visits but to emails and other forms of communication. Customers may send questions or requests via text, Facebook Messenger, Instagram, Snapchat, or similar platforms. If you aren’t prepared to engage in online chat with them, but your competitor is, guess who will win the rental? Additional tips to consider:
Stay in touch with existing customers as well as prospects and former tenants. In times of uncertainty, it’s especially important to be reassuring. Thank them for their business and let them know you’re thinking of them, without trying to sell them anything.
Give tenants the option to opt-in for text messages. Send e-mails containing news, announcements, and other important information. Don’t hassle or upsell; just tell them about the necessary stuff like holiday office hours, discount coupons for loyal tenants, and digital copies of lease and insurance documents.
Additional tips to consider:
Review your facility as a whole. Your company needs a logo and color scheme that’s universal from store to website to social media platforms to print materials. Your business name should be consistent everywhere it appears. If you rebranded an existing facility, look for any places where the old name and logo still exist, as this will confuse customers. Keep your logo and colors uniform so people always know they’re in the right place.
One of the biggest assets for a positive customer experience is your website. Your website should be easy to find and use. If images take several seconds to load or your platform isn’t mobile-friendly, it will have a negative effect on prospects and customers.
Content for your web presence is the single most important thing for search engine optimization and for prospects and customers to be able to quickly find your business. This includes your blog posts, social media, landing pages, FAQ pages, video, and everything else that relates to your business and lives online.
Other helpful technology that will improve the customer experience includes any automation you use, security and access tools, digital signage, and property-management software that facilitates online rentals and autopay. Remember, customers expect technology that’s easy to use, available around the clock, nice to look at, and engaging.
Creating a positive customer experience starts by listening attentively. This means thoroughly absorbing, understanding, responding, and retaining what is being said. While sales are central to any business, listening to a prospect’s specific needs and providing customized solutions is paramount for gaining and retaining a customer.
Practice asking questions that will give you more marketing insights and improve the customer experience, such as:
The reason a customer chooses or needs to store his belongings isn’t always pleasant. It could be caused by circumstances such as divorce, job loss, eviction, or the death of a loved one. While offering sympathy might be the first, instinctive response, being empathetic is what will stick in a tenant’s mind long after the moment. Try to remember what it’s like to experience a break-up; what it would feel like if your spouse lost his job, or a grandparent passed away.
Does your facility offer coffee and tea, or chilled water for customers? How about free Wi-Fi to help them while they’re between houses (and internet providers)? Other value-added services could include:
One of the ultimate ways to create the ultimate customer experience is to put yourself in the customer’s shoes. Is your company easy to find online and what information is available? Is your website easy to read and use? Is all content up to date? Walk through the experience of renting a unit, visiting the site, and accessing the unit. Was anything surprising? Confusing? Alarming? Go about this drill as if you’re someone who knows nothing about the industry and see how easy it is to navigate the process of looking for, renting, and using self-storage.
The connection you make with customers by using these strategies and how you fulfill their needs are ultimately what will make your customers' experience pleasant and help with retention and referrals in the future.
