xtra Space Storage’s journey into solar energy began nearly 15 years ago, driven by a commitment to sustainability and operational efficiency. “Our goal is to invest in solar where it makes sense,” says McKall Morris, senior manager of corporate communications and sustainability for the REIT. “Each project is evaluated for return on investment and feasibility.” The company has since produced an impressive amount of solar power in 2023 alone, emphasizing its dedication to renewable energy.

Additionally, 33 percent of its REIT-owned properties feature solar installations, a testament to the program’s growth and impact. Each year, Extra Space invests $20 to $30 million in solar projects, prioritizing locations with favorable tax incentives, high energy costs, and ample sunlight. “The nice thing is every year it seems like it makes more and more sense for more properties,” Morris says. This continued commitment not only aligns with their broader strategy of reducing greenhouse gas (GHG) emissions and energy consumption, but it also helps create an innovative opportunity for more storage facilities to follow suit.

Implementing solar energy on a large scale, however, invites challenges. From coordinating with multiple partners to navigating varying local energy grids, the process demands meticulous planning. “It’s not an easy project to undertake,” says Morris. “It takes a lot of coordination and work to make this happen, and not every property is right for solar. We evaluate each site carefully.”

Structural and locational limitations are significant factors, as are the evolving technologies and regulations that govern the energy sector. Weather conditions such as thick cloud coverage or areas at high risk for extreme storms are also components that need to be considered.

Technological advancements present both opportunities and challenges too. For example, the transition away from 3G technology for the facility required a complete overhaul of their reporting systems. “The technology changes quickly,” Morris says. “We had to adapt our reporting systems when older technologies became obsolete. These adjustments are necessary to stay ahead.”

Despite these hurdles, Extra Space Storage has maintained its focus on sustainability, reducing energy use intensity by 7.7 percent and water use intensity by 4.6 percent per square foot in 2023.

Extra Space’s initiatives go beyond solar power. The company has also invested in projects like HVAC retrofitting to enhance energy efficiency. This is a process specific to upgrading existing ventilation, heating, and cooling systems. “We’re always looking for ways to improve,” says Morris. “For us, it’s not just about the environment; it’s also about creating value for our shareholders and communities.” These efforts have earned the company national recognition from Newsweek for excellence in business and social responsibility.

A standout achievement is Extra Space’s ability to maintain 79 percent less carbon emissions than the real estate sector average. According to McKinsey & Company, the real estate industry is responsible for 40 percent of global emissions. This significant gap illustrates the company’s investment into finding eco-friendly solutions in an industry not traditionally known for sustainability.

As an innovator in solar energy within the storage sector, Extra Space has inspired competitors to follow suit. “We launched our solar program well in advance of most others,” Morris says. “Now, it’s common for other big REITs to have competitive solar programs. We’ve shown how it can be both environmentally responsible and financially beneficial.”

The company’s leadership in sustainability and innovation has set industry standards. Recognized with the Nareit “Communications and Reporting Excellence” (CARE) award in 2023, Extra Space continues to excel in reporting and stakeholder communication.

The sustainability efforts aren’t the only positive initiatives made by Extra Space. This also extends to multiple active community and employee engagement programs. The company, for instance, holds a 79 percent employee engagement score and has contributed significantly to charitable causes. Employees have donated over 400,000 meals to Feeding America food banks, and the company has provided over $50,000 in storage space to charities.

Their commitment to diversity, equity, and inclusion (DEI) is evident through programs like “There’s Space for Everyone,” which awards eight annual scholarships. Extra Space Storage also participates in the Project Destined internship program, fostering opportunities for young professionals and strengthening their pipeline of future leaders.

The company’s dedication to workplace equity is another highlight. In 2023, Extra Space achieved 100 percent pay equity, ensuring that women and BIPOC employees receive equal pay for equal work. Recognized by Newsweek as one of “America’s Best Companies for Diversity” and by the Utah Governor’s Office as a company championing women, Extra Space continues to set a high bar for inclusive business practices.

With a 92 percent overall customer satisfaction score, Extra Space Storage prioritizes excellent service alongside sustainability. “Customers appreciate our efforts,” Morris notes. “While solar power may not be the primary factor in their decision-making, it’s a value-added benefit that some find meaningful.” Named by USA Today as one of “America’s Customer Service Champions” for three consecutive years, the company’s customer-centric approach is unwavering.

Following its merger with Life Storage, Extra Space’s solar program now covers 33 percent of wholly-owned properties, down from 55 percent pre-merger. This shift highlights the significant growth potential for the program. “There’s so much runway ahead for us,” says Morris. With ongoing investments and a proven track record, Extra Space is poised to expand its renewable energy initiatives while maintaining its commitment to sustainability, community engagement, and customer satisfaction.

Looking forward, Extra Space plans to build on its five consecutive years of GHG emissions reductions in its like-for-like pool, showcasing its commitment to sustainability. The company has also been recognized as having 79 percent less carbon emissions than the real estate sector average, a key indicator of its leadership in environmental responsibility.

With ongoing investments and a proven track record, Extra Space is poised to expand its renewable energy initiatives while maintaining its commitment to sustainability, community engagement, and customer satisfaction. “Our program has always been about balancing financial returns with doing what’s right,” Morris says, underscoring the company’s mission to lead the industry toward a greener future.

Extra Space also sees opportunities to deepen its engagement with communities and employees. By expanding programs like “There’s Space for Everyone” and continuing its charitable efforts, the company aims to strengthen its social impact while advancing its environmental goals. With a proven track record of innovation and a clear vision for the future, Extra Space Storage is poised to remain a leader in sustainability, community engagement, and customer satisfaction for years down the line.