Site Information • Section 5
leased an exterior space without drive-up access, 24 per- cent rented an interior space with drive-up access, and 10 percent rented an interior space accessible by elevator. Offering the unit sizes and locations customers want
is an important component for success in the self-storage business. However, ideal storage facility layouts often have to be adjusted based on the property’s size, dimensions, grading, and other environmental factors. Zoning laws and government requirements may also place restrictions on new self-storage developments. While compromises are generally required, industry professionals continue to build new storage facilities that are functional and customer-cen- tered while also proving profitable and successful.
Offering Climate-Controlled Storage One site option that should always be considered is the presence of climate- controlled units. Overtime, extreme fluctuations in temperature can bring the possibility of damage to certain traditionally stored belongings, as phases of freezing and thawing have the potential of putting splits in wood. The benefit to cli- mate control—where storage space is kept at an average of between 55 and 70 degrees throughout the year—is the prevention of spikes in temperature and moisture build-up that can result in mildew, mold, and warping. The presence of climate control can play a significant
role in facility operations. Climate-control systems can bring with them a competitive advantage in terms of attracting certain tenants, but they also bring owners increased costs for maintenance and utilities. Owners typically pass these costs on to consumers, many of whom are willing to pay a premium to protect their goods. Climate-controlled storage varies from region to region
with the local climate playing a major role in what’s offered where. For instance, in southern states such as Florida, Loui- siana, and Mississippi, storage space is more likely to be air conditioned, while heated space is not as necessary in these areas where temperatures rarely dip below 40 degrees. Both heated and air conditioned space is more likely seen in Midwestern regions where temperatures can soar dramati- cally during summer months and drop-off proportionately during winter months. In the New England region, keeping items cool in the summer is not the issue, but rather main- taining a warmer storage environment during the chillier winters. It runs the gamut, including “swamp” coolers in the dryer, hotter southwest areas where air conditioning is of- ten accomplished by cooling the air through a method of evaporation. As seen in Table 5.1, the metro areas monitored by REIS in the South Atlantic and Northeast regions tend to have a larger percentage of climate-controlled facilities. Following close behind is the Southwest where 62 percent of the fa- cilities offer climate control due primarily due to excessively high summer temperatures. In fact, the remaining regions all fall below the national average of 53.3 percent.
In looking at facility criteria, it is apparent in Table 5.2 that a
greater percentage of self-storage facilities built after 1990 tend to offer climate-controlled units. In fact, approximately 86 percent of the facilities in the metro areas monitored by REIS have climate-controlled units. Moreover, as seen in Table 5.3, the percentage of climate-controlled facili- ties increases for those sites with more than 400 units. From a long-term
Table 5.1 – Facilities with Climate-Controlled Units Percentage
Region of Facilities
Midwest 51.9% Northeast 65.0% South Atlantic
70.7%
perspective, the market for climate-controlled storage units shows unlimited po- tential. With applications as varied as preserving fam- ily heirlooms, maintaining proper temperature and humidity for valued art and wine collections, and keeping critical business inventories at optimum temperatures, climate-con- trolled storage will continue to be highly sought after, commanding a premium price for those willing to pay. As a result, facil- ity owners who can offer climate con- trol will continue to capture higher rental rates as they meet market de- mand. (See
addi-
tional information in Section 3.)
Southwest 62.0% West 32.4% National 53.3%
Source: © 2014 REIS, INC.
Table 5.2 – Facilities with Climate Control by Year Built Percentage
Year Built Before 1980
of Facilities 36.1%
1980-1989 34.1% 1990-1999 58.3% 2000-2009 75.0% 2010 or Later
86.0% Source: © 2014 REIS, INC.
Table 5.3 – Facilities with Climate Control by Number of Units Percentage
Number of Units 1 to 200
201 to 400 401 to 600 601 to 800
of Facilities 21.1%
40.8% 58.8% 68.3%
801+ 65.1% Source: © 2014 REIS, INC.
Chart 5.1 – Facilities with Climate-Controlled Units 80%
50% 60% 70%
40% 30% 20% 10% 0
Midwest Northeast
South Atlantic
Southwest West
National Source: © 2014 REIS, INC. 2015 Self-Storage Almanac 71
Percentage of Facilities
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