Metal Construction News, November 2018

The Self Storage Market By James Dotson Making a profi t from storage For most of the current economic expansion the self storage sector has been leading all other major commercial type properties in growth With the recent trends to downsize and minimize their lives Millennials and baby boomers are turning to storage facilities to house non essential possessions and seasonal item as a way to de clutter their lives This means existing facilities are approaching capacity and new ones have the potential for immediate occupancy Trends In 2018 we saw a drastic rise in multifunction storage facilities A combination of standard climate controlled and vehicle storage is necessary to be the one stop solution for customers needing secure storage for their various consumer goods With the increased percentage of disposable income many consumers are opting to store their weekender boats all terrain vehicles and RVs close to their favorite getaway locations This has bolstered the construction of facilities that are targeted away from traditional urban areas and close to major tourist attractions Self storage units must cater to the emerging Millennial market With more sensitive electronic gear to store the need for climate and environmental controls is ever increasing That coupled with the desire to be fl exible with their possessions to afford geographic and lifestyle changes makes them the leading target for new occupancy These customers place a lot of value on technology To be more attractive facilities must allow consumers to book pay schedule and check in on their units on a mobile platform Online connectivity is key to this particular demographic The Business Niche Businesses that use self storage require a different approach Small businesses that need a place to store fl exible quantities of nonperishables will often choose a facility in close proximity to their businesses Often a staging area is required Vendors mainly storing product samples on the other hand will gravitate to facilities that offer meeting rooms to conduct product demonstrations and presentations to prospective customers Knowing the mix of businesses in the area will help determine the right set of amenities to offer Curb appeal is a growing consideration among the self storage units located in city centers and in urban areas More stringent zoning laws and property associations are putting pressure on new construction to make the facilities an attractive blend with the surrounding architecture Outwardfacing façades and landscaping serve to bridge the gap in these urban settings In many cases retrofi tting an empty big box store to house storage units is the answer The structure normally comes with adequate parking environmental controls inherent curb appeal and community acceptance The new owners score bonus points for recycling an empty shell into a vital service The Road Ahead While some experts feel that the self storage market will begin to slow as areas of the country become more saturated almost everyone agrees it will remain strong through all of 2019 Beyond that even if it starts to level off it still remains one of the hottest commercial REIT sectors Baby boomers can be expected to continue to absorb a lot of the new supply of units as they move from large family houses to smaller apartment condos Many millennials are constantly relocating for work and other opportunities creating a need for temporary storage The regular occurrence of family events such as marriage divorce and death also drive a seasonal need All things considered self storage unit construction should be a safe bet through the foreseeable future James Dotson is marketing brand manager for Central States Manufacturing Michigan City Ind To learn more visit www centralstatesmfg com or call 219 879 4770 November 2018 METAL CONSTRUCTION NEWS 35 www metalconstruct ionnews com