Self-storage facilities continue to be popular and in demand in many locations across the country, but finding the right place to build one can sometimes be tricky. In many market areas, rather than constructing a new facility, converting an existing building for self-storage is a great alternative. For example, an underutilized warehouse building may make a lot of sense for a conversion, particularly if it is no longer suited for the use intended but is conveniently located in an area easy for individuals or businesses to access. This kind of approach can save time with local regulatory approvals if the building is already accepted for storage uses. It can also save construction time and costs if the work is fundamentally limited to an interior remodel of the space to create separate storage rental spaces.
Climate-controlled units have become a staple in new self-storage developments. While this feature may not work in every rental market, tenants are asking for it, and the demand is driving construction plans.
Climate control is enticing to customers who want to preserve sensitive and valuable goods. They're looking for storage facilities that monitor and control humidity and temperature settings, and they're willing to pay a premium for this type of space.
The addition of climate control also appeals to self-storage developers and owners because it offers a way to increase revenue. Climate-controlled units typically command higher rental rates than traditional self-storage. In some markets, this could be up to 40 percent or more.