The New Self-Storage Campus: Diversifying Unit Types to Appease Planning Boards and Expand Revenue Potential

Since the inception of the self-storage industry six decades ago, facility design has continuously evolved and modernized. What started as simple, single-story, drive-up units has diversified to cater to various customer needs. As the product has matured, it has grown increasingly sophisticated; however, developers, investors and owners must prioritize innovation and flexibility to ensure continued success.

One trend gaining popularity is the integration of multiple storage types within the same project to serve a wider renter base. This article explores the range of products that can be incorporated into a development and how they may open new opportunities with jurisdictions and customers. Each is driven by market demand and designed to target specific sectors of users.

Storage-Unit Types to Consider

Forward-thinking self-storage developers recognize the benefits of integrating multiple types of units into their projects, creating storage “malls” or “campuses” that serve a multi-generational market. Let’s review the many kinds of product you can build.

Traditional drive-up units. We’ve all seen these long rows of single-story, non-climate-controlled units. The product has thrived for 60 years! Aesthetically, it has a bit of a tainted reputation, though. It’s discouraged by many municipalities and often banished to industrial zones.

Climate-controlled units. This is currently the most popular self-storage product. It’s often allowed in urban environments, even those with design restrictions. Developers use it to maximize small sites, usually in the form of a multi-story or over/under hybrid building. These facilities can be very neighborhood-friendly.

Boat/RV units. This is one of the hottest storage products today, as it requires a lower initial investment and achieves strong returns. Though convenient sites that are zoned for this use are scarce, it appeals to a more affluent customer base that often includes older generations of customers. If an owner couples this with a valet-parking service, they can achieve 50% more vehicle parking than with standard self-serve spaces.

Business units. This product includes larger units with higher ceilings. It caters to the needs of the business community and is commonly used by retailers, landscapers, contractors and other commercial enterprises that require space for inventory and equipment.

Flex space. Popular since the 1980s, this type of product is gaining traction in the self-storage market as a complementary use. It offers a combination of storage, retail or office space in varying proportions to suit tenant needs.

Modular storage. When “quick to market” is important, portable-storage units, cargo containers and prefabricated, panelized systems can be a real advantage. They’re often allowed in powerline rights-of-way to help to maximize site utilization.

Specialty units. High-security, humidity- and temperature sensitive units can be used for valuable collections including wine, musical instruments and artwork.

Condos. Rapidly growing in use among car enthusiasts, storage condos come with many upscale amenities such as electricity, air-conditioning, restrooms and others. Purchased outright rather than rented, which makes them fully customizable, these units appeal to those who want to tinker on their vehicles and entertain in their space.

Man caves. These are similar to storage condos in that they offer flexibility in terms of size, customization and amenities. They typically include a mezzanine that can be tailored for use as a workshop, study or social gathering spot.

Warehouses. These have been prevalent for centuries, but they’re evolving into a more sophisticated product that can be integrated into a project for larger bulk-storage needs.

Add-On Offerings

With many of the self-storage types above, developers and owners are incorporating more amenities to help boost convenience and value for customers and revenue for themselves. For example, many include retail stores that sell items in high demand by renters. Others offer coffee shops, coworking areas, conference rooms, truck rentals and more.

“Offering a variety of storage products and conveniences helps businesses to grow within the campus,” says Steve Hopper, a partner and owner of Atlantic Self Storage in Charlotte, North Carolina. “By offering larger storage places, we help our clients expand within the same facility. We provide all types of amenities to boost their success including covered loading docks, ramps, small offices and communal lounges.

A New Path Forward

Self-storage developers, investors and owners face many challenges when attempting to build projects today, from elevated construction costs and higher interest rates to land scarcity, more intense zoning regulations and increased market saturation. There’s also the need to appeal to diverse socio-economic and multi-generational groups, each with its own unique requirements. Regardless of the demographic, all customers desire convenience and accessibility. The best way to appeal to them all is to implement a multi-use approach to development that incorporates many product types within a single facility.

That said, it can be difficult to identify a site that’s appropriately zoned for a storage park, particularly in an urban location. Most zoning ordinances don’t explicitly address this type of project, so you may have to convince the local planning and zoning department of the need for a multi-use storage facility and the role it can play within an essential community infrastructure. If you can do that, it can help you streamline municipal approvals.

Another way to win favor with the city is to repurpose an existing building. Conversions are popular, as they capitalize on the surplus of vacant retail stores, entertainment complexes and offices that many jurisdictions are eager to fill. Renovating these structures is a smart strategy for building your self-storage campus, especially given their general abundance of parking that can be redeveloped. Conversion can be more cost-effective than building from the ground up, and it’s often embraced by planning departments.

Self-storage has matured immensely; but though the business may seem future-proof, it’ll take innovation and flexibility to remain relevant and continue to capture market share. By bundling multiple unit types within a single project, developers, investors and owners will ensure our industry remains pertinent and profitable for the next 60 years.

Stephen Overcash is managing principal at ODA Architecture, inspiring “FUNomenal Design” for all projects including master planning, commercial architecture and interior design. ODA has provided architectural expertise to clients for more than 36 years. It specializes in office, hotels, hospitality, lifestyle storage, mixed-use developments and interior spaces. To reach Stephen, call 704.905.0423 or email [email protected].