The choice between automated and in-person managed storage facilities significantly impacts operations, customer experience, and profitability. The following is a breakdown of the pros and cons for each approach.

Automated Properties
Automated properties use technology to manage customer interactions, access control, and other management tasks. These systems often include keypads, mobile apps, security cameras, and online reservation/payment platforms.

Pros

1. Cost Savings – There are lower operational costs due to the reduced need for on-site staff.
2. Convenience – Customers can access the facility 24/7 without waiting for assistance.
3. Scalability – It’s easier to expand operations or manage multiple locations remotely.
4. Efficiency – Automated systems streamline processes such as billing, reservations, and gate access.
5. Enhanced Security – Technology can offer real-time monitoring, access logs, and alerts.

Cons

1. Limited Customer Interaction – The lack of personal touch may deter customers who prefer in-person support.
2. Higher Upfront Costs – A significant investment is required for automation infrastructure.
3. Technical Issues – System failures or outages could disrupt operations and frustrate customers.
4. Reduced Oversight – Absence of on-site staff may result in slower response to maintenance issues or emergencies.

In-Person Managed Properties
Properties that are managed in person use staff to manage day-to-day operations, customer service, and facility maintenance.

Pros

1. Personalized Service – Customers appreciate having staff available for questions, assistance, and guidance.
2. On-Site Problem Solving – The immediate resolution of issues such as mechanical failures or access problems prevents downtime and business interruption.
3. Human Oversight – Staff can provide additional security and ensure proper use of the facility.
4. Upselling Opportunities – Staff can promote ancillary services such as detailing, repairs, or premium amenities.

Cons

1. Higher Operating Costs – Payroll and benefits for employees increase expenses.
2. Limited Hours – Staff availability may restrict customer access outside regular working hours.
3. Scalability Challenges – Managing multiple locations requires more staff and administrative oversight.
4. Inconsistent Quality – Customer experience can vary depending on staff performance.

Hybrid Approach
Many facilities employ a hybrid approach, merging automation with limited on-site personnel. For instance, automated systems manage the basic, everyday functions of entry and payment. Staffing is kept to a minimum, but personnel are available during peak hours as well to provide more complicated, specialized services. Benefits of a hybrid model include:

1. Balance of Cost and Service – It reduces overhead while maintaining a level of personal interaction.
2. Flexibility – It offers 24/7 access with support during critical times.
3. Customer Satisfaction – It combines convenience with the reassurance of human oversight.

The decision between automated and in-person management depends on the facility’s target market, location, and operational goals. Automated systems work well for tech-savvy customers and urban areas, while in-person management excels in rural or community-focused settings. A hybrid approach often provides the best of both worlds, maximizing efficiency and customer satisfaction.

Storage facilities in coastal regions face unique challenges. In Florida, the danger from hurricanes has pushed insurance rates to record levels. Citizens Insurance turned down 37,000 claims in 2023, adding to the burden already placed on property owners. California, meanwhile, is contending with not just one but two potential disasters that could hit demands for storage hard: wildfires and earthquakes. The state also has the highest climate-related costs in the nation, including a new “mansion tax” for high-value properties. This environment demands careful, two-part planning—a long-range strategy that deals with both the physical and financial aspects of the business.

While both segments fall under the broader self-storage umbrella, they have distinct requirements and some shared features, which are summarized in Table 12.1.

According to the “Fall 2024 National RV & Boat Storage Report” by Yardi Matrix, rent growth for this specialty storage sector slid as we headed into the fall/winter season. Advertised annualized rental rates for the most common unit sizes fell to $5.74 per square foot in September from $5.90 per square foot in June, reflecting the seasonality of the sector.

Rent growth also decelerated to -1.1 percent from -0.5 percent in June. Month-over-month declines were more severe in Q3 2024 than Q3 2023, but the sector is outperforming traditional self-storage, where rents dropped 3.5 percent year over year in September. Rent declines were more noticeable in smaller parking units (10-by-20, 10-by-25, and 10-by-30), down 1.4 percent, versus larger units (12-by-40, 12-by-45, and 12-by-50), where rents have remained flat from last year.

Rent growth has varied by market, with seven posting rent growth year over year, led by solid growth above 1 percent in Minneapolis and Kansas City. Sun Belt markets, which tend to have more existing supply, have seen the greatest declines in rates. Atlanta, San Antonio, and Southwest Florida have experienced growth below -3 percent. Most of the markets with the greatest declines in rates have also seen some of the biggest declines in self-storage rents, suggesting a correlation with self-storage performance, although all these markets have also shown more moderate rate growth in the larger parking space sizes.

RV and boat registrations have both fallen from record levels in 2021, while at the same time construction of new dedicated RV and boat storage facilities has increased, particularly in smaller markets in the Midwest and Southeast. There is still a supply-demand imbalance caused by the increase in RV and boat sales during the pandemic and a lack of Class-A dedicated RV and boat storage properties nationally.

Development interest picked up over the summer, with Yardi Matrix tracking 56 dedicated RV and boat storage facilities under construction and 162 planned in September, an increase from June. Despite a growing pipeline, trailing 12-month completions (net rentable square feet) as a percent of stock was 4.4 percent, down 20 basis points in the past three months.

Sales of dedicated RV and boat storage properties picked up in the summer, with 16 sales since July, bringing the number of properties sold in 2024 to 39. Sales volume is still behind 2023, with about 342 acres sold by fall 2024, down nearly 30 percent from October 2023 year-to-date but higher than pre-pandemic years (2014 to 2020). Average sales price per acre was also down to $627,283, versus $685,774 in 2023 and $768,287 in 2022.

Rents are declining modestly in most markets, but larger units are performing better. Advertised same-store rent growth for parking units dropped to -1.1 percent in September from -0.5 percent in July, as of the last reporting. Rents have dropped about 2.3 percent since June compared to a 0.8 percent decline from June to September in 2023, leading to decelerating growth year-over-year. Seasonal rent declines have been more noticeable in the smaller unit sizes (down 2.9 percent since June and 1.4 percent year-over-year) than for the larger units, which are down 0.3 percent since June and 0 percent year-over-year.

A few smaller Midwest markets like Minneapolis, Kansas City, Grand Rapids, and St. Louis have been seeing more resilient rent growth, despite some recently delivered supply in these places. On the other hand, Sun Belt markets with recent high migration have fared worse. Below-average growth in Atlanta, San Antonio, the Southwest Florida Coast, and Tampa corresponds with new dedicated RV and boat storage supply in these places and below-average self-storage rent growth.

Advertised annualized rents averaged $5.74 per square foot in September 2024, compared to $5.80 in September 2023. Rents in Chart 12.1 are indexed to the most recent month using same-store month-over-month growth. Indexed rates are down 3.5 percent from a peak in April 2022, a modest decline compared to traditional self-storage, which has seen rates for the main unit types drop three times as much from peak.

Rate declines recently have been mostly concentrated in the smaller parking units. Only five markets saw flat or increasing rates in 10-by-20, 10-by-25, and 10-by-30 spaces, which are usually only suitable for personal vehicles, trailers, and boats. This compares to 15 markets with increasing rates in the larger unit sizes of 12-by-40, 12-by-45, and 12-by-50, which can fit a modern full-size recreational vehicle. Grand Rapids saw a 4.2 percent year-over-year increase in rents for large parking units, followed by Las Vegas at 3.8 percent growth, Kansas City with 2.8 percent growth, and the Bay Area with 2.1 percent growth.

Half of the top 30 markets have had new supply delivered in the past year. Trailing 36-month deliveries (acres) as a percent of stock was 15.2 percent in September, a slight decline from 15.4 percent in July, while trailing 12-month supply remained flat at 5 percent. Supply is a concern in several markets that have seen a third or more of their dedicated RV and boat storage supply delivered in the past three years alone, including Texas markets like College Station/Killeen/Waco (Central East Texas), Dallas-Ft. Worth, and San Antonio, which has seen the most new supply as a percent of stock deliver in the past 12 months.

Above-average supply has not had an impact on rent growth in Minneapolis, St. Louis, or Kansas City, which posted above-average rent growth in September. Conversely, Atlanta and Charleston have posted below-average rent growth despite no new dedicated RV and boat storage supply being built in the past three years. These markets could feel pressure from multiple new traditional self-storage properties that include substantial parking.

Construction pipeline remains active in 24 out of the top 30 markets. Yardi Matrix is tracking 59 dedicated RV and boat storage projects currently under construction, 37 of them in the top 30 largest self-storage markets, with most markets only having one or two properties under construction. Southwest Florida, from Sarasota down to Naples, currently has the most new properties under construction, with six, followed by Houston, the second-largest RV and boat storage market, with four under construction. The largest RV and boat storage market, Dallas-Ft. Worth, currently has just one property under construction.

Total acres under construction as a percent of stock was 4 percent in September, a small 10-basis-point drop from the last report in July as developments have been completed, and a 50-basis-point decline from the three-year peak in October 2023. Construction financing and decline in rate growth are two potential reasons for a slowdown in construction activity. Despite this, three markets (the Central Valley of California, the Southwest Florida Coast, and Atlanta) have seen an increase in supply under construction since June as new projects have broken ground.

As the RV and boat storage sector continues to grow, investors and operators must adapt to evolving consumer demands and regional challenges. By offering sought-after amenities, selecting strategic locations, and addressing environmental risks, facilities can position themselves for success. With rising demand and limited supply, this niche market remains a strong opportunity for investment and operational innovation.