As many people fled to new cities during the pandemic, they kept their stuff in self-storage facilities. Thus, the global self-storage development pipeline has continued to be extremely dynamic.
That being said, many states have enacted new self storage industry laws and regulations from employment to rental contracts that went into place on January 1, 2022.
For example, Senate Bill 101 (SB 101) was signed into law, which will allow self-storage operators to advertise lien sales on online-auction websites instead of in a newspaper of general circulation. The measure also updates rental-agreement requirements regarding delinquency notifications. Many other states have followed suit.
Self-storage rental agreements now must request that tenants provide two email addresses and a mobile number. Facility operators must also inform customers, either within the rental agreement or via verified mail, of the company’s right to enforce a lien. If this information is included in the lease, it must be in bold type at least 12 points in size, and the customer must initial next to the language when signing. If delivered by mail, the information must also be sent via email and text message.
When notifying delinquent tenants of an active lien, self-storage operators must send written notices via verified mail to the last known physical address on the rental agreement as well as by email (primary and secondary addresses) and text message, if provided on the lease.
Operators can still advertise a lien sale 10 days after notification is mailed to the tenant or at least 10 days after the payment deadline has passed, whichever is later. Though that timeframe didn’t change in the updated law, operators must wait 30 days to begin lien enforcement if the notice of lien rights was sent to the tenant via mail instead of included and acknowledged in the rental agreement.
The national Self Storage Association (SSA) recommended that all operators update their rental contract. The bill was supported by the SSA and the Louisiana Self Storge Association, which lobbied to eliminate the newspaper-advertising requirement.
Keeping current with employment laws is challenging but critical for all business owners. Self-storage operations, like all other businesses, have an obligation to comply with state and federal laws that apply to the hiring, work, and termination of employees. Lawsuits are filed every day against owners who believe they’re acting properly in regard to their staff, only to find out certain laws have changed, and they failed to update their systems accordingly. Following are six important areas you should review to ensure you’re current with employment legislation.
The federal minimum wage was recently raised for the first time since 2009. As a result, many states have taken steps to increase their own minimum-wage requirements, causing uncertainty for multi-state self-storage operators as to the proper wage for employees. It’s essential to confirm you’re paying above the minimum at each facility location.
More than 27 states have increased their minimum wage since 2014. Many of those states have even created an “index” for annual inflation, thereby increasing the wage automatically each year over the next few years. In addition, more than 44 localities (cities and counties) have increased minimum wage above the state minimum.
One of the most difficult issues for self-storage owners is exemption. Many pay their facility managers an hourly wage rather than an annual salary. This means staff are non-exempt and must be paid for overtime. In general, they’re entitled to time and a half for hours over 40 worked per week. You must know your wage requirements for the states in which you operate and track your staff hours to ensure proper compensation.
An ongoing challenge in the self-storage industry is how to address hours worked by managers who live on site. Although the practice of hiring of resident managers is diminishing, there are still properties with manager apartments.
The initial idea behind resident management was to offer customers (and owners) a sense of security and a higher level of service. But with the “live where you work” approach comes the risk that employers and employees have a different understanding of “work hours.” This issue isn’t unique to self-storage and has been addressed by the U.S. Department of Labor (DOL). It also arises with apartment managers, firefighters, and other positions in which the employee resides at the workplace.
The DOL has relied on the law found in the Code of Federal Regulations (CFR), specifically 29 CFR 785.23, titled “Employees residing on employer's premises or working at home.” Based on this rule, storage owners can set guidelines with their employees to hopefully avoid any later dispute over hours to be worked and work to be performed.
Under the U.S. Immigration Reform Act, all employers must have a valid and complete Form I-9, Employment Eligibility Verification, for each employee, citizen or noncitizen. The employee must attest to and provide proof of his identity, though the documentation to prove it can vary. There’s a list of acceptable documents on the form, and an employer can’t limit what he’ll accept as proof.
Employees must complete their I-9 no later than their first day of work. Employers must complete their part of the form no later than the employee’s third day of work. They must then retain all forms until the later of three years after the employee began work or one year after he was terminated. The documents can be stored electronically and needn’t be kept in the original format.
An employer can be found to have violated immigration laws if he fails to verify the identity and eligibility of a new employee through the use of an I-9. Fines for violations, depending on the number of employees involved, can range into tens of thousands of dollars, especially for those who knowingly fail to obtain the forms as required. Criminal prosecution is also possible for repeat and flagrant offenders. U.S. Immigration and Customs Enforcement can consider its penalties based on the size of the business, the good faith effort to comply, the seriousness of the violation, whether the violation involved undocumented workers, and the history of previous violations.
Unique changes in employment laws in California, Illinois and New York provide guidance as to women’s rights in the workplace. In New York City, all employers with 15 or more employees in are required to conduct annual anti-sexual-harassment training for all staff. Similarly, California has amended its state law to require all employers with more than five employees to provide anti-harassment training to staff, with additional training for all supervisors.
Additionally, the California law was amended to disallow any settlement agreements that would prohibit the disclosure of the underlying sexual-harassment claim. In other words, the law would void any agreement where a person was required to forfeit his rights to disclose the unlawful acts that occurred in the workplace.
At Forge, we are happy to be employing many women executives who are spearheading the industry movement in the world of construction. For our position on this topic, see women in construction
Sexual harassment is a form of sex discrimination as outlined under Title VII of the Civil Rights Act of 1964. There are two recognized forms. The first is a type of “quid pro quo” scenario in which a supervisor demands a subordinate tolerate harassment as a condition of keeping his job (or tenancy). The second is the existence of a hostile or abusive work environment where conduct can be verbal or physical, is frequent, and is improperly tolerated.
From a legal perspective, the discussion should be about workplace education and training as well as proper procedures for reporting claims and managing the investigation and discipline regarding such claims. The business liability exposure is such that the company as well as the perpetrator can be liable, depending on what the company knew about the conduct and what it did to stop the harassment.
Companies must have a sexual-harassment policy in place, no matter their size. Though only companies with 15 or more employees are subject to the federal laws for Title VII claims, smaller companies may still be held liable under applicable state laws. There must be sufficient training related to sexual harassment, so employees can be educated about proper behavior in the workplace as well as the procedures in place in case an incident occurs.
Two recent topics have led business operators to update their employee handbooks. The first is the use of social media; the second is driving while using a cellphone.
Employers are subject to potential liability if their employees, acting under the scope of their employment, post negative social media statements against other employees, customers, or the company itself. Certainly, employers can be even held liable if their employees, to impact competition, post false or fake reviews to impact business. To combat these risks, employers should update their policy handbooks to address employee behavior on social media. These policies should outline how staff are to conduct themselves online and the risk of discipline and possible termination for the violation of these rules.
Similarly, employers can be held liable for injuries that arise as a result of the employee’s violation of the law while driving and using a mobile phone during working hours. Now that more states have enacted “hands-free” laws, an employee must understand the applicable laws and recognize they’re subject to discipline if not termination for any infractions while driving within the scope of work (visiting customers, running facility errands, etc.).
One of the trickiest arts of running a self-storage business is having staff. Today, self-storage owners need to pay attention not only to federal laws, but also to the states and municipalities laws where the business resides. As a self-storage owner, it’s imperative to stay informed on these ever-changing regulations. Liability can be significant in terms of cost to defend and financial exposure to the business.
At Forge, we stay abreast of all state and federal regulations to ensure that our clients get the best-quality, compliant self-storage facilities in their area. For more information on how we can help you, please see Forge Building Company
At Forge, we understand that construction doesn’t come to a halt when winter weather hits, so it’s important to know the steps to take to keep workers warm and safe. According to the most recent data published by the Bureau of Labor Services, in recent years upward of 20,460 workplace injuries were caused by snow, sleet, or ice. So, before the next major winter storm starts to impact your area with snow and ice accumulation, be prepared and review these winter weather safety tips for construction workers.
When winter weather strikes, Supervisors should:
The last thing any company would want is to have a construction site full of workers stranded because a blizzard blew in without warning. During the winter, it is key to keep an eye on the forecasts in order to give workers adequate time to secure the construction site and get home safely before any severe weather strikes.
During the winter months, it is important to have a reliable way to communicate with workers, especially those in remote areas, during storms and extreme weather to ensure all are accounted for in case of evacuation or schedule changes.
Consider enacting a buddy system, assigning at least two workers together in cold, remote locations and maximize jobsite safety by preparing for a flexible schedule. Weather changes quickly, so can your project in response.
As temperatures continue to plummet, keep a careful watch on workers for signs of hypothermia and frostbite. Make sure workers are wearing appropriate clothing for the weather and encourage them to take frequent breaks to warm up from the cold.
It is also super important to check workers for signs of fatigue, frostbite, or hypothermia.
Cold stress occurs when the body is unable to warm itself and can lead to hypothermia and frostbite. Hypothermia occurs when the core body temperature falls below 95°F. Common symptoms include shivering, shallow breathing, confusion, loss of coordination, drowsiness, slurred speech, and slow, weak pulse.
If someone is showing symptoms of hypothermia, it is imperative to get their core temperature back up. Remove all wet clothing and move the person to a dry, warm area. Use blankets, additional clothing, and heating pads to increase their temperature.
If conscious, they should be given warm liquids to drink. CPR should be given immediately to an unconscious hypothermic person or one who has no pulse or isn’t breathing, and 911 should be called for emergency medical service.
Frostbite occurs when body tissue freezes and is most common in the extremities since these areas tend to have less blood flow when exposed to cold temperatures. Color changes in the affected tissue and loss of normal sensation are typical signs of frostbite.
Rewarm frostbitten areas with warm water. Avoid rubbing the areas to warm it up and do not use heating pads to try and warm the affected areas. Call 911 and get medical treatment immediately if affected by frostbite.
Finally, remind workers to limit consumption of caffeine, nicotine, and other stimulants as this increases their heart rate, causing them to feel warmer than they actually are.
Construction workers tend to expend more energy when working in cold weather in order to keep their bodies warm. It is key to ensure the company has a heated trailer, tent, or indoor area for workers to warm up from the cold. Limit exposure to the elements by encouraging workers to take frequent breaks in order to rest and warm up, drink warm liquids, and change out of wet clothing.
If using portable heaters in break areas, make sure to vent the area properly and use CO sensors to monitor for carbon monoxide exposure.
During the winter months, it is important to take extra steps in ensuring workers are wearing the proper clothing and gear as well as all necessary personal protective equipment (PPE) when winter weather conditions are present.
Follow the manufacturer’s instructions on properly warming up heavy equipment before use.
Keeping warm is one of the most important things when working in cold weather. The key is finding a balance of wearing enough layers to stay warm while still being able to maintain a good range of mobility to perform the required work.
For more tips on keeping warm on the construction site, be sure to check out 10 Tips for Keeping Warm on the Construction Site.
Make sure each of your company’s fleet of work trucks and vehicles is equipped with winter weather emergency kits. Kits should include a:
Encourage workers to create emergency kits for their personal vehicles.
Remind workers to be cautious when driving in snow and ice, giving themselves plenty of time to get to their destination, and leaving plenty of space between themselves and other vehicles to avoid accidents.
Keeping construction workers safe is always a top priority with The Forge Team!
The self-storage industry has proven to be fairly recession-proof during the pandemic and offers many diverse investment opportunities and strategies depending on the location, according to a report from Trepp.
The report, titled “Self-Storage: Analyzing a ‘Recession-Resistant’ Sector,” looks at commercial mortgage-backed securities (CMBS) data. According to Trepp’s CMBS database, more than 1,700 CMBS loans totaling almost $16 billion were backed by self-storage properties across the US. It is one of the smaller property types in the private-label CMBS universe of over half a trillion dollars of loans, accounting for only 3% of the total CMBS outstanding balance.
The reason an individual would rent a storage unit is being driven by what the report refers to as the four Ds of self-storage: divorce, dislocation, death, and downsizing. Of course, there has been an abundance of these throughout the pandemic.
In addition, there were a number of trends that directly impacted the demand in the self-storage sector.
Another big factor contributing to this industry’s resilience are its net operating income margins which are among the highest of any real estate asset type at upwards of 60% to 70%, Trepp says, citing a Cushman & Wakefield report.
Those attributes have attracted a wide variety of players, including the five largest real estate investment trusts (REITs) that together own about 20% of the market:
That leaves thousands of other owners and other investors that have driven construction spending up by 584% from January 2015 to January 2020, the Trepp report says, citing census data on self-storage facilities.
According to this same report, rising expenses such as wages and advertising are impacting the Self-Storage industry.
There is a lot of competition, especially in a segment that doesn't typically have a lot of amenities to prompt someone to drive farther to get to and feels restricted on how much rent can be raised.
So how do self-storage operators aim to provide a value-add? The Trepp report suggests the following:
The report also suggests remote management – operating a facility without an on-site manager through digital interactions with customers. This operating model could make it more feasible to invest in a small size storage facility in a small market.
Small towns and rural areas are typically not on the radar for big players. This creates a buyer’s market for potential acquisitions. So, this is a great time to look into that steal building construction investment idea.
Adding to the competition, the market continues to be of interest to big players looking for high-quality investments in the ‘recession-resistant’ commercial real estate space. So, for smaller players, the best options might be partnering with other investors in locally owned operations in small markets, or maybe even building your own, using the increasingly robust choice of self-service digital options.
Today it’s possible to build REAL wealth in the Self-Storage industry at a fraction of what it used to cost, meaning the unfair advantages are now available to individuals like you.
To find out more about how to invest in this growing industry, let Forge be your self-storage building contractor partner. See some of our completed projects.
Despite all of the craziness that the pandemic has caused, self-storage development continues its forward momentum—but not without impediments. The cost of raw materials is on the rise, and orders can take longer to ship, plus there are labor shortages. These issues will likely resolve in time, but there’s one obstacle poised to grow still more obtrusive: a lack of suitable sites on which to build. Between market saturation and increasingly restrictive zoning, builders and owners struggle to find suitable parcels to build self storage facilities. It’s a process that’s often taking longer and generating more frustration.
Every self-storage construction project has its own nuances, and it’s never a “one size fits all” when it comes to construction but following are some basic “rules of thumb” to help point you in the right direction.
Additionally, also see our blog post, “Building a Commercial Storage Building” for more insights into understanding development fundamentals.
For a sample of the types of single-story self-storage buildings that Forge Building Company offers, please check out: Single-Story Self-Storage Building Contractors
And for more information on costs and location considerations, please see our blog titled “Contractors That Build Commercial Storage Buildings & Facilities.”
Finding a suitable parcel on which to build a self-storage facility with the best steel building contractor will also reap the highest return on investment and get your 2022 off to a great year.
Recent thefts at high-end retailers are a good reminder that the holiday season can bring about more criminal activity. Make sure you are protecting your self-storage business from being vulnerable.
About a month ago, a Nordstrom department store in Walnut Creek, California was ransacked in what police are calling an “organized theft.” Anyone that may have seen the footage, would agree that this was a well-planned, coordinated crime. Around 9 p.m. on a Saturday, the thieves entered the store, grabbed merchandise, and fled to their vehicles, which were conveniently and haphazardly parked just outside the store, crowding the street. Two employees were assaulted, and another was doused with pepper-spray. Some arrests have been made, and police are still investigating.
What’s scary about this whole incident is the possibility that it might not be isolated and how it clearly demonstrates what lengths people are willing to go to get what they want. While this may not happen at a self-storage facility, it’s a great reminder that all and any sort of business is susceptible to theft.
The first thing to think about is, “How’s your security?” Many facilities with video and other security measures are experiencing break-ins. It’s not enough to add security and expect it to insulate your business from crime. You must also look for other creative ways to prevent it every day.
Components that can help include:
In addition to break-ins, there are a host of other problems that could wreak havoc on your business. Read this blog from a storage operator who dealt with vagrants hanging around and causing damage. Criminal activity increases during this time of year, so be on guard.
Besides having a solid security system, it is also important to walk around your property frequently and look for things that might seem out of place. For example, examine unit locks and keypads for tampering and encourage your tenants to report odd behavior or events. Keep an eye on your security cameras as people move about your property. Make yourself present so everyone knows you’re keeping an eye on the facility. For customers of Forge, we do three daily walk-throughs to audit locks and doors and inspect visual signs for any potential problems. We offer This service to our new and existing self-storage customers.
While it is key to keep your facility at a good occupancy level, that doesn’t mean you should ever let your guard down. When someone comes in to lease a unit, make sure you are following all protocols, checking identification and asking questions. Questionable people don’t like questions. They offer vague answers and might not look you in the eye. If their identification doesn’t check out, tell them you can’t accept it and don’t be afraid to say “no.” Self-Storage Talk members often share “dodge a bullet” moments when a prospect seems like trouble, and they refuse the rental.
In truth, it’s been a crazy, disastrous couple of years, and many people are desperate, especially at this time of year. Even those who might’ve never considered crimes before could be entertaining the thought. This person could already be a tenant! Or, someone who just drove by your site and thought it might be good for a burglary. Prospect to walk through your door may be casing your business. Don’t leave your facility vulnerable. Your self-storage site might not be Nordstrom, but it’s just as valuable to you.
Whether you’re a seasoned veteran or new to the self-storage business, it is key that you learn how to identify and understand your target market using demographics as a tool. The correct use of this date is vital to your facility’s success. As with any real estate business or investment, location is of the utmost importance for a self-storage facility. It’s critical to understand your market, particularly if competitors are closing in.
Demographics are the statistical data of a population within a defined geographic area. This usually includes population, age of the population, race, housing types, income levels, education levels and more. Knowing these details about your market will help you to make decisions about how to attract and service customers.
Sometimes you find a tract of land that looks good for self-storage. You may have driven around the area and become familiar with all the competitors, watched the traffic flow by the site, feel the price is right, and think local government officials will approve your development plan. When you look at the demographics reports for the area, you may find the region has a very low-density population and a very low-income level per person and household. However, you also may discover the majority of local residents rents their homes, and most of those live in multi-family units such as apartments or mobile-home parks. By doing some shopping, you find out the competitors are all full in their smaller unit sizes, and they’re all comparable in price. Second, you learn there’s sometimes a waiting list for certain unit sizes.
This information would tell me that in spite of the low density, a lot of this population appears to need storage, since the housing units are small, and they’re probably already using storage on a regular basis. The fact that unit prices are all on par indicates that price is important to this market, but there may be an opportunity to get slightly higher rents. The data also indicates that you probably shouldn’t build a “Cadillac” storage center when a mid-priced Chevrolet might work.
This information is, of course, just the beginning of what you would need to decide about whether to build, but it demonstrates how knowing market demographics can be extremely useful.
If you already operate a self-storage facility, and you’re noticing some drops in occupancy, using demographics reports can help you find out information such as:
This presents a couple of interesting possibilities. For example, should you create any of your marketing materials in Spanish? What about putting some marketing materials together that show how freeing up room in the garage or carport makes for a less cluttered home and allows the homeowner to enjoy his space? You can even demonstrate how the average household should have some disposable income, since each home is well within the average income level for the area.
Using this data, you could also tell you that your market population is somewhat sophisticated and, thus, more prone to have a mobile device or computer. Now your method of advertising delivery can be varied and less costly.
These are just a couple of ways demographic information can be helpful. This information can also be used to determine unit pricing. If you find your area has a higher than average per-capita income level, it would be safe to assume your pricing could be a little higher. Conversely, if you’re having a hard time renting at your asking rates, you might want to look at the income levels in your market and make the appropriate adjustments.
Once you’ve identified your market using demographic data, it can be a useful tool in managing your marketing campaigns, determining which advertising sources to use, adjusting rental rates, predicting the unit types most likely to rent, etc. By knowing your market income levels, housing types, educational levels and more, will make your facility more productive and efficient. The use of demographic data is key to having a successful self-storage facility, whether it’s new to the market or well-established.
When you are ready to build or modify your self-storage facility, the team at Forge Building Company can help you achieve your goals. Give us a call to discuss your project.
To view our some of our recent project, see https://forgebuildings.com/projects/
As this generation ages, so does the Millennial demand for self-storage. Self-storage demand continues to remain high in U.S. markets that have cultivated a following among millennials, according to a November 2018 self-storage report from real estate data provider Yardi Matrix. The report says self-storage development activity (planned and under construction) is percolating in several metro areas that draw millennials:
Other self-storage markets that attract millennials — including Austin, TX; Denver, CO; and Charlotte and Raleigh-Durham, NC — also are seeing robust development activity.
In many cases, millennials are renting self-storage units in tandem with apartments because the cost per square foot of storage is roughly 30 percent less than it is for an apartment. Even in less-hyped markets like Minneapolis, MN, millennials living in apartments are boosting self-storage demand.
But it’s not just apartment-dwelling millennials who are driving storage demand. As more millennials buy houses and amass wealth, they’re behaving more like their predecessors, and that includes renting storage units. As a percentage of households, millennials make up the biggest share of storage users in the U.S.
The Self Storage Association’s most recent demand study, released in December 2017, found that 14 percent of millennial households in the U.S. rented storage, with Generation X at 11 percent and baby boomers at 7 percent.
Aside from shorter lengths of stay, some millennials are seeking out smaller storage spaces, presumably because millennials have less stuff than baby boomers. Rents are growing less for non-climate-controlled than for climate-controlled units, according to Yardi Matrix. (See our blog post on Generating More Revenue by Offering Climate Controlled Self-Storage)
Millennials are a “positive force” for self-storage expansion, Jeff Adler, vice president of Yardi Matrix, pointed out during an October 2018 webinar. Millennial employment is rising versus other age groups and millennials household formation is up too; the oldest millennials are now 40.
In a report published by Fort Worth, TX-based Karr Self-Storage, a team within Marcus & Millichap’s National Self-Storage Group emphasized that millennial demand for self storage is poised to lead the next generation of storage consumers, partly because of their desire for lifestyle flexibility and mobility.
“Many in the industry assumed that student debt, at-home living and slower career acceleration would prohibit the millennial cohort from becoming a reliable tenant base,” the Karr Self-Storage report says. “Although these macro trends may exist, many young people are obtaining full-time careers, purchasing homes, starting families and utilizing storage, just like previous generations.”
While Millennials took a little longer to become consumers, today they are buying houses, accumulating wealth, and are starting to behave like previous generations. As a percentage of households, they have the highest usage of storage and rank second when it comes to total users of storage. Millennials are the fastest growing customer cohort. What remains to be seen is if they will be valuable customers. Today, many of them have a shorter length of stay than Gen X or Boomers.
Storage is a need-based product, generally triggered by some sort of a life transition (moving, remodeling, military deployment, going to college, divorce etc.). This applies to Millennials the same way it did to previous generations, and, on average, Millennials are more transient, so they are experiencing these transitions at a more frequent rate than previous generations. Also, with many of them living in smaller spaces in urban areas, some are using storage as a permanent solution for their lack of space.
Millennials are most focused on the location, the price and the ease of doing business with the storage provider.
Technology has played a significant role in the storage industry, especially when it comes to how customers are acquired. Millennials spend significantly more time on devices than previous generations. Therefore, the focus should be on digital advertising, search engine optimization, advertisements and social media. Since storage is need-based, once people have the need, they generally rent quickly. Self-storage companies need to make sure they are visible online when they are making that decision.
According to a Self-Storage Association study, 14% of all Millennials are already renting a self-storage unit. They also access the self-storage units quite often, with 20% visiting their unit several times per week, and are very interested in having access to their stuff 24/7. 61% of Millennials who rent self-storage say that anytime access to the unit is the most important feature for them.
Overall, Millennials are the most demanding generation when it comes to self-storage amenities. They really want it all: controlled humidity (51% of Millennial customers), pest control (57.7%), flexible contracts (52.8%), flexible means of payment (51.3%), discount rates for long-term contracts (50.9%), fire sprinklers (47.2%), tools for loading and unloading (46%), security guards (44.7%), and facility website (54.3%). While some believe millennials will use storage less than previous generations, data from Marcus & Millichap’s “2018 U.S. Self Storage Investment Forecast” suggests they will continue the demand trend as they still, although slightly later in life, are forming families and accumulating material possessions.
Very few places in the country are fortunate enough to avoid the frigid temperatures of winter every year. If you think it's cold outside, just imagine what it would be like in a storage unit. The freezing temperatures throughout the northern portion of the United States are cold enough to damage many belongings that are typically placed in storage. However, you can avoid damage caused by freezing temperatures by renting a climate controlled self storage unit, especially if you live in a region that experiences harsh winters.
Cold temperatures can be just as damaging to your belongings as to your body. Prolonged exposure to freezing temperatures can severely damage belongings commonly stored in a storage unit. Items to be especially cautious with include:
ElectronicsFluctuating temperatures can create condensation inside electronics, causing irreparable damage. Likewise, anything with liquid already can crack due to expansion from freezing. This is especially true of battery cells, including those for cars, mowers, and other small engines, which can crack when frozen.
A temperature-controlled self-storage facility is both heated and cooled. Its purpose is to provide an environment suitable for preserving stored goods, so the temperature range will typically be higher or lower than what you would find in a home or office—usually heated to 55 degrees and cooled to 85.
While it’s commonly referred to as “climate-controlled” storage, the term “temperature-controlled” should be used unless the building also has a system to regulate humidity. Claiming to be climate-controlled while failing to address humidity might leave you open to legal trouble if the dampness damages a customer’s items. With today’s more efficient building insulation, it’s more important than ever to work with a reputable storage unit contractor to install a system that not only heats and cools but also monitors and removes humidity.
Let’s look at common uses, the benefits of temperature or climate control for self-storage facility owners and tenants, and some of the more critical design considerations.
The typical customer who wants to rent climate-controlled storage has previously rented traditional storage with bad results and now wants to protect his or her belongings better.
Many people store unused items during the colder months of the year. Just as people store cold-weather items during the summer, you’ll often see people putting away summer belongings when the temperature drops. Storing seasonal items is an easy way to save space in your home. Here are a few seasonal belongings commonly stored during the winter.
Summer clothing – In a small living space, putting out-of-season clothing in a storage unit can make a big difference.
Another reason many people use storage during the winter is if they’re moving to a new home or apartment. While spring and summer are busier for real estate, people move year-round for various reasons. When moving, a storage unit can give you a place to store belongings between homes, making the entire process much more manageable.
Climate controlled self storage buildings offer several benefits for storage unit owners. First, you get increased land coverage. Compared to drive-up buildings, typically 30 to 40 feet wide, climate-controlled buildings can be up to 200 feet or more. This width reduces the amount of pavement necessary on the property and increases the amount of rentable space. The interior hallways are usually 5 feet wide and occupy only 15 to 20 percent of the space. This increased coverage can make it possible to develop on more expensive land in a better location than could be justified with traditional storage only.
Climate control can also serve as a market differentiator. Self-storage has penetrated just about every community in the country. Working with a quality self-storage contractor to incorporate climate control can set your site apart. So, while building and operating climate-controlled storage costs are higher, the increased rental rates are also significantly higher in most markets. These units usually rent for a 15 percent to 35 percent premium compared to standard units.
When it comes to the design of your temperature- or climate-controlled self-storage buildings, here are some common items to consider.
Costs. It’s common for commercial steel building developers to phase a project, but when planning a site with climate control, consider how the design will impact construction costs. The most cost-effective building is a large, wide structure.
Full vs. partial control. Some buildings are designed with both exterior-access ambient-temperature units and interior-access temperature-controlled units. While these projects allow for various unit types in a single structure, their popularity is declining. One reason is that the weather can create challenges when you build in a northern climate. Snow and ice will melt faster over the heated portions of a building, and if the runoff travels over a non-heated portion, ice dams may result.
Another reason is that stricter energy codes specify an insulated barrier between the foundations of climate-controlled and non-climate-controlled portions of a building. With the cost and complexity this adds to a project, it’s more cost-effective to design entirely climate-controlled buildings.
Unit access. Climate-controlled buildings are usually built with interior unit access via hallways, but more commercial steel building developers are building climate-controlled units with exterior access. These units should be equipped with insulated sectional doors (typically R-19 insulating value) rather than traditional roll-up doors. They should also be priced at a premium, as customers are willing to pay for the convenience of direct access.
Unit size. Interior-access buildings won’t contain units as large as those used for drive-up storage. The largest unit size in these buildings is typically 10-by-20.
Insulation. How much insulation do you need, and what kind will vary based on local building codes, weather conditions, and owner preferences? Projects can be built with spray-in foam, fiberglass bats, insulated panels or combinations. While building a project with a higher R-value will cost more, it pays benefits in two ways – your operating costs will be lower, contributing to a higher property value when it’s time to sell.
Roof pitch. You can choose from a variety of roof pitches for climate-controlled buildings. Roofs can be designed to allow room for the desired insulation thickness (R-value) directly under the panels. Or, on higher-pitched buildings, the insulation may be placed directly over the heated/cooled space ceiling, as you would find in a home, with insulation on the attic floor rather than under the rooftop.
Condenser location. Climate-control buildings commonly have recessed entries, which provide a staging area out of the weather and a place for the condenser unit. However, there are some options for putting the condenser unit outdoors. This may be the best option if there’s a place where it won't be vulnerable to client vehicles. Rooftop placement isn’t preferred due to the potential for creating leaks when penetrating the roof and possible damage from installers walking on the roof.
HVAC equipment. Your HVAC installer will guide you in choosing the equipment you need. However, HVAC equipment should be undersized for the space. It’ll run more often but consume less energy. In the summer, the result will be that the smaller HVAC system will circulate more air and do a better job removing humidity than a more robust system that runs for shorter intervals.
Most self-storage industry units across the U.S. are still the standard drive-up building; however, more sites are starting to include climate control. In some markets, many storage sites consist entirely of climate-controlled units. They can be an excellent addition to your storage development in the right market. Using insulation and central heating, a climate-controlled unit will protect your customer’s belongings in even the harshest winters.
When it comes to building storage facilities or other commercial construction projects, custom steel buildings are an excellent choice. There are many factors that make commercial steel buildings a solid choice, including versatility, durability, energy efficiency, quicker builds, low maintenance, and cost effectiveness. Finding the right Commercial Steel Building Developers for your steel building project is crucial to your success. Erecting a metal building is a significant investment; your metal building contractor can make or break your project. So, keeping all of these factors in mind, it is a priority to find the right steel building contractor who can help design and develop the most cost-efficient commercial steel building that meets the requirements.
Commercial steel buildings are versatile and customizable to meet the project's needs. Steel buildings offer strength and the ability to be expanded as requirements change. The strength of the steel beams allows for a wide-open construction for large space requirements.
You can even achieve the appearance you are looking for with features like brick facades, wood veneers, vinyl siding or even stonework. The solid framework of a steel building allows for the inside to be remodeled easily as your needs change.
The construction of a steel building offers cost efficiency for the initial construction as well as the cost of ownership over time. For example, a steel building can be less expensive to insure as it offers resistance to fire damage. The strength and durability of a commercial steel building is built to last and should require less structural maintenance over the years of ownership.
Additional savings can come from lower maintenance requirements versus traditional wood or brick construction. The steel frame and metal panels are safe from the destructive effects of termites that can cause expensive damage.
Properly constructed commercial steel buildings offer excellent interior temperature protection. With proper insulation, ventilation, and HVAC service the interior climate can be preserved during extreme heat or cold weather. This is key for storage unit contractors. The building can also be designed in a way that encourages natural air flows that help with ventilation and comfort. This can be extremely important for use in commercial storage facilities.
A commercial steel building can be built in much less time than a traditional brick or wood building. Commercial steel buildings are designed off site and made to fit together quickly and efficiently. This faster build time can make a big difference in carrying costs as well as construction costs. The shorter the construction time the sooner you can be utilizing the new building. This can mean faster revenue for your business or savings from being able to leave a less cost-effective location sooner.
Steel metal buildings are now being used as warehouses, distribution centers, and industrial facilities. Commercially they are also used for office, government, and retail sectors. According to the Metal Building Manufacturer Association, shipments have grown to 1,094,064 tons in 2017 and this growth continues today. That’s why it is crucial to work with the most qualified commercial steel building contractor for your project.
One great example is where the team at Forge Building Company completed the Coppertop Storage Facility in Washington state. This 18,000 square foot pre-engineered steel building was added to an existing business park.
When selecting a steel building contractor, it is key to work with one that has created custom steel buildings of every shape and size. It is also most cost-effective and efficient when working with a company that:
The right steel building contractor should also be able to provide:
The most important factor when choosing between different metal building contractors is making the right choice. But the right choice will be different for different people. This is because everyone has different requirements and preferences. Therefore, the best way to make the right choice is to outline your requirements.
So, to make a proper decision, we recommend that you first decide which criteria are most important to you. It is helpful to divide your analysis into a few key areas. The features to consider include the following.
The first consideration should be what products and services the company offers. No metal structure is the same. So, if a company doesn’t offer the products and services necessary to help you achieve your specific project, it isn’t the right company for you.
This is why it is so important to have clear plans beforehand. If you have a clear idea of what you need to build and the services you require to build it, then you can easily see which company offers the best range of services.
Certain companies specialize in building different types of metal structures. Different companies also offer different construction services to help you build the structure. Know what you are looking for and find the company that offers it.
Of course, having the proper certifications to do the work offered is pretty much a bare minimum for any construction company. However, while not a concrete rule, you can expect a contractor with more certifications to have a better understanding of the industry. And while a more experienced company may cost a bit more, the extra experience is often worth it for the higher level of service.
Of course, price is a valid consideration in just about any decision you make. However, when shopping based on price, it’s best to think in terms of the quality that you are receiving for that price.
Price alone isn’t a very good metric because that doesn’t consider what you are getting for what you pay. You should first decide on which products and services you want and then shop on price based on that. See which company can give you the most value for the best price, and that’s the decision you want to make. Do your research on average costs to build self storage facilities in your market.
Customer support is also a big one. This is especially important in this industry. Ongoing support is important when you have frequent questions about your construction process and steel building materials.
With metal building companies, look for one with a customer support line that is easy to reach and covers many hours of the day. And with a construction service, good customer support also includes a competent and efficient construction team.
Overall, try to find a company that is friendly, responsive, and very knowledgeable about their products and services. They should also be quick to solve any problems or issues that may arise.
It’s a great idea to research a company by looking at their website and their service offerings. To get a truly objective view of a company’s competence, you should be looking at customer reviews.
These are just a few of the qualities that make custom steel buildings the right choice for business use cases. When you are ready to choose Commercial Steel Building Developers who can help you achieve your goals, the team at Forge Building Company will be ready to serve you.
To view our pre-engineered steel buildings, see our completed projects
