eaching 100 rentals in your first month open isn’t luck; it’s the result of intention, preparation, and a clear strategy that gets your facility’s name in front of every prospect multiple times before you ever open your doors. When you launch with visibility, a customer-first design, and with hospitality as your customer service and marketing mindset, your community already knows who you are and is ready to rent with confidence.

Here’s the blueprint Storage Authority uses to help new franchise facilities start fast and lease up even faster.

High-impact features don’t happen by accident! We love to make design choices that wow, especially in high-visibility areas of the facility. Large comfortable office spaces that are warm and inviting are excellent places to feature high-end finishes and materials that provide customers a feeling of luxury while they enjoy a fresh cup of coffee at the coffee bar or examine the convenient in-office show unit.

Beautiful curb appeal really grabs attention when you have nice, easy-to-read signage and great lighting. Coupled with the convenience of a kiosk in a well-lit temperature-controlled vestibule, hands-free gate access, and a free car vacuum station, customers will be surprised and delighted at every turn.

When your building and grounds stand out, your marketing becomes easier and your pre-opening buzz becomes stronger. A 20-foot flagpole is nice. A 50-foot flagpole is a statement that is seen and remembered; it becomes a landmark in your community.

When we say design matters, what we’re really saying is you have to go beyond the industry standard and elevate your design features to be premium, premier, elite, or luxury. Simply put: You cannot afford to be average.

Plan specific, scheduled tasks and set goals, such as creating a newsletter contact list with 1,000 local email addresses. Consistent social media activity will help your web presence and SEO. When customers see your name repeatedly (at least six to 12 times) in their inbox, on their feed, and around town, trust is built before you even cut the ribbon. Without a plan, it will not happen.

Great signage turns daily drive-by traffic into future customers. My favorite signs—the ones that pay for themselves—are the “Refer a Friend” signs displayed in the office and on the gate. Referrals are essential to get those extra rentals! We love to offer $50 for every referral!

A strong grand opening event creates buzz, foot traffic, and community partnerships. Bounce house, clowns, a food truck—make it big! Get a massive banner to advertise your event. Visibility creates familiarity. Familiarity creates trust. Trust creates rentals, fast.

A hospitality mindset is critical and starts with opening the door for every customer, if possible, and at a minimum, greeting the customers in front of the counter, never behind. A unique greeting is memorable. I love to use “Welcome to Storage Authority! How can I make your day better?” Make customers smile and be different. Scripts are one of the most powerful marketing tools in your arsenal. When used consistently, scripts ensure professional, on-brand, and effective delivery of essential information to customers. Scripts build customer trust.

Execute this plan with discipline and your first month becomes more than a launch; it becomes a statement of who you are and how your facility doesn’t just stand apart but stands far above your competition.

ack in the day of pre-Google marketing, marketing students learned the four Ps: product, price, place, and promotion. The internet and Google search changed that. Search engine optimization (SEO) redirected the focus to ranking and showing up on the first page of Google when someone searched for what you had to offer. That was the new “place.”

Initially the Yellow Pages, printed directory books moved online. It used to be, “If you’re not in the Yellow Pages, you don’t exist.” Then it became, “If you’re not online, you don’t exist.” It later expanded to, “If you’re not on social media, you don’t exist.” Now it’s, “If you don’t get cited in the AI Answer Engines, you don’t exist.”

The AI Answer Agents have shifted marketing from search back to persuasion. Marketers, whether in self-storage facilities, commercial real estate, investment firms, or suppliers, need to get back to basics. I’m talking about going back to the “Mad Men” era of advertising and marketing—the age of persuasion.

In the 1950s and 60s, “Mad Men” referred to the advertising agencies of Madison Avenue in New York City. In those days, they grew brands via persuasion, positioning, and earning trust. We only had a few TV channels, print newspapers, magazines, and radio stations. If you wanted exposure, you had to buy it or have such an outstanding product or service that it got free publicity.

I’m sure you’ve noticed when using an AI Answer Tool like ChatGPT, Gemini, or Perplexity, that it will nudge you to dig further into your query. It wants to keep helping you. For instance, if you search for a travel destination, it may ask you, “Would you like me to compare hotels in that city?” or “Would you like me to create a travel itinerary for you?” or “Would you like me to find the best airline deals?” Most people take advantage of the offer and type “sure” or “yes, thank you!” AI is anticipating your next logical move.

According to a Search Engine Land article (https://searchengineland.com/llm-nudges-ai-driven-journeys-474062), 45 percent of mentions are budget or deal related. Those are what consumers want to see the most.

The next biggest recommendation is product comparisons. For example, “Would you like me to compare ABC Storage to 123 Storage?” This suggestion would be based on the competition at the given location. The results would initially come from Google Reviews, Reddit, and Facebook recommendations. Other considerations are awards and listicles (articles featuring lists), like being included in “the best of [city].”

Here’s how you need to structure your content for each stage of their self-storage journey:

• Awareness – Buyers at this stage are looking for a solution to their problem. They have a question and need an answer; they are seeking a provider to help. Here’s where your location-based content will come in for local searches, as well as your branding efforts. Additionally, those frequently asked questions (FAQs) on your website help both local, national, and global entities.
• Familiarity – At this point, the buyer knows the general solution to their problem, but there is still uncertainty. Here’s where comparisons come in. The potential customer will want to compare one self-storage facility to another by reading reviews. If they’re looking to invest, they’ll look at the credibility of the realtor or advisor. You get the idea. They’ll study the “About Pages” to see who’s behind the company. They may check social media profiles for topical authority and credibility. They want to become more familiar with you to give them the assurance they need to go to the next step.
• Consideration – By this stage, potential customers are contemplating their options. They are almost ready to buy, but they need a little more persuasion. They’ll watch explainer videos on YouTube, download white papers, and compare deals, amenities, and benefits. They’re looking for social proof on sites like Reddit. They want to be convinced.
• Purchase – At this stage, the consumer is ready to buy. Make it easy, convenient, and smooth for them to do so. Have those calls-to-action (CTAs) everywhere on your website and social platforms. Don’t make them hunt for what you want them to do! A bad user experience (UX) on a website will cost you sales! Put those CTAs at the end of every blog and social media post, reel, and YouTube video. You have their attention, so tell them what to do next.
• Experience – Here’s where customer service comes in. Whether they’re moving into a storage unit, making an appointment, or ordering products, a good experience will result in a loyal, satisfied customer. A great customer experience is central to your marketing success.
• Loyalty – Finally, encourage those happy-camper customers at the post-purchase stage to write a review, recommend you to their friends and colleagues, and/or become a returning customer.

Product/Service
Clearly promoting what you have to offer hasn’t changed a bit. You still only have a few seconds to catch a potential customer’s attention. And naturally, first impressions matter. Are your current processes optimized for conversions?

Positioning
Here’s where you can get strategic by understanding your target, your perfect customer, and their buying experience. Prioritize the comparison part of the familiarity stage. How do you stand up next to your closest competitors? Create product/service (A vs. B) comparisons to help people decide which unit they need or which financial investor to work with.

Price
Everyone is looking for a deal. Everyone wants to save money. Pricing and discounts are the No. 1 driver of AI nudges (48 percent of all triggers). Maintain structured, real-time deal data to ensure your site is the preferred destination for AI commerce referrals.

Proof
Lastly, take advantage of any “support” or “customer service” gaps that your competitor may not be covering. Focus on the post-purchase troubleshooting, support, how-to assistance, etc. Encourage reviews on Google, Yelp, and Facebook. Put links to your profiles on receipt/thank you emails to make it easy for your customer to leave you a review. Check out my article in the September 2025 issue of Messenger on the power of reviews.

• Bad websites – Websites that are not set up correctly will block the AI and Google search bots from accessing, indexing, and citing the content. Similarly, a glitchy user experience or user interface will cost you sales. Likewise, a slow-loading site or one that doesn’t render properly on a mobile device scares away not only the AI bot but the potential customer. They’ll go elsewhere.
• Missed calls – Nothing is more frustrating than calling a business and getting voicemail or, worse yet, no response.
• Slow responses – People want fast responses. Even if you have to automate replies to emails or website inquiries, make sure to personalize them and be honest with the follow-up time.
• Difficulty purchasing – Have you ever stopped in the middle of filling out a form because it was just too long? Streamline your onboarding, purchasing, and/or booking process. In other words, reducing friction and increasing speed equals conversions!

The AI evolution is not going away. Success means adapting and adopting. If you need help, don’t hesitate to visit my website and book a free consultation.

If the building is older or unmarked, contact a local metal building contractor or erector. Another excellent resource is the Metal Building Contractors and Erectors Association (MBCEA) at https://www.mbcea.org/.

If your metal roof is leaking, where do you start?

But your roofer friend says he can handle it, right? Maybe. But it’s best to follow these steps.

1. Demand clarity before any repair. A proper metal roof repair is not caulk, tar, silicone, or coating smeared over panels.
2. Require photos of the problem and a clear explanation of the proposed fix. If a fastener has failed, it should be replaced, not coated. If a panel lap is leaking, it should be properly disassembled and corrected, not sealed over. Coating or caulking fasteners, side laps, or end laps is not a repair—it will shorten the life of your roof.
3. Control who penetrates your roof. Metal roofs move constantly, and they require specialized accessories for penetrations, equipment mounts, and snow retention. Never allow plumbers, electricians, HVAC contractors, or other trades to cut into your metal roof. They are not trained for it, and they can cause serious damage, including damage from improper foot traffic.

1. A metal roof is a premium roof system. When repairs are needed, use a contractor who specializes in metal roofing. Ask questions and request photos of the proposed repair.
2. Avoid surface caulking or coating over problems. These shortcuts create new issues, void warranties, and reduce roof life.
3. Use proper accessories for modifications. Metal roofs require components designed for movement and long-term sealing. Conventional roofing products are not compatible with metal roofs.
4. If the roof has truly reached the end of its life, retrofit it with a metal over metal system. Use a fully engineered retrofit system that meets current wind and snow load codes. This improves insurability, resale value, and has the lowest long-term cost.
5. Explore tax incentives. Section 179 of the IRS tax code may allow up to $1 million in deductions, making a retrofit far more affordable.

he self-storage industry has spent the last decade chasing efficiency through remote management, centralized call centers, and automation. However, in the process, many operators have quietly drifted away from the one thing that has always driven performance in this business: people. Self-storage is not just square footage and street rates; it’s a service business built on trust. Customers are storing their lives—transitions, memories, uncertainty—and they choose where to do that based on how they feel about your property. Ultimately, that experience comes down to one person more than anything else: your on-site manager.

If you want managers to act like owners, you must treat them accordingly—invest in them, train them to understand KPIs and the levers that drive performance, and empower them to make informed decisions. Too many companies operate from a place of control, which leads to hesitation, slow decision-making, and, at best, a generic customer experience. At STORE Management, we’ve taken the opposite approach. We believe the on-site manager should be one of the most empowered people on the property, not the most restricted. That means giving them the authority to solve problems in real time, the confidence and skill set to make judgment calls, and clear expectations that they are responsible for the asset—not just the tasks.

This philosophy begins with a fundamental shift in how care is defined. Care isn’t a checklist—it’s a standard that can’t be automated or reduced to a script. Pride in a property, attention to detail, and genuine concern for an asset’s condition all come from the person who walks it every day. The difference becomes clear quickly: A disengaged manager notices a problem and logs it, while an engaged manager takes action to fix it or finds a way to do so. That gap is where asset quality is either preserved or gradually eroded over time. At STORE Management, managers aren’t just expected to maintain properties—they are expected to own the standard through cleanliness, safety, presentation, and customer interaction, not because it’s written in a manual but because it defines the level of care required.

To support that level of ownership, training must go beyond systems and procedures. Training that truly changes behavior focuses on developing how managers think. Empowerment without proper training creates risk, yet too often in this industry, training emphasizes processes instead of decision-making. A more effective approach is to teach managers how to make sound judgments. This includes understanding why customers rent and what they may be experiencing, recognizing how their actions influence length of stay, knowing when to hold firm and when to be flexible, and seeing the direct connection between customer experience and revenue. When managers understand the “why,” the need to micromanage the “how” disappears.

At the same time, technology must be positioned correctly within this model. Technology should support judgment, not replace it. While the industry offers no shortage of tools—CRMs, pricing software, access systems, and dashboards—their value is often diminished when they are used as substitutes for people rather than as resources to enhance them. At STORE Management, technology is used to strengthen on-site decision-making, not eliminate it. Managers are equipped with real-time performance data, customer history, and pricing context, and they are trusted to apply that information thoughtfully. Ultimately, the best decisions are not made by algorithms in the background but by the person standing in front of the customer.

This becomes especially important when evaluating extended customer rate increases (ECRIs). While many operators treat ECRIs as a pricing strategy, they are, in reality, a reflection of customer tolerance—and that tolerance is built on experience. If a tenant only associates your property with rising costs, they are likely to leave. But if they associate it with strong management, fairness, and care, they are far more likely to stay and absorb increases. At STORE Management, we see this consistently: When on-site managers are empowered, well-trained, and supported, length of stay increases and ECRI performance follows, not because we push harder but because customers are more willing to stay.

Despite this, the industry continues to move toward reducing on-site staffing, creating what appears to be a more efficient operating model. On paper, it works—lower payroll, higher margins. In reality, it’s a false economy. What is lost is accountability on the property, consistency in the customer experience, early detection of issues, and relationship-driven retention. These losses don’t show up immediately on a P&L, but they emerge over time through increased churn, declining asset condition, and missed revenue opportunities.

In many ways, none of this is new. If you look back at the fundamentals of the industry, strong operators have always focused on the customer, taken pride in their properties, and invested in their people. What has changed is the growing temptation to replace these fundamentals with systems. But systems alone do not create great experiences—people do.

Ultimately, the competitive edge in this industry remains human. Today, nearly every operator has access to the same tools, the same pricing software, and the same marketing channels. Differentiation no longer comes from technology alone—it comes from execution at the property level.

At STORE Management, we’ve made a clear decision: We are betting on people. We empower our on-site teams, train them to think rather than simply execute, and give them both the tools and the trust to succeed. When that foundation is in place, everything else follows—longer stays, better asset care, stronger customer relationships, and more effective revenue strategies. In the end, the highest-performing assets are not defined by the systems behind them but by the people leading them.

egative annual rate growth spreads across all top metros. A Yardi team recently attended the SSA Spring Conference in San Antonio and ISS World Expo in Las Vegas. The tone was more subdued than in recent years, reflecting muted performance to start the year. Few near-term catalysts for a meaningful turnaround in demand are evident, as a historically weak housing market and ongoing development continue to pressure rental rates, especially in Sun Belt markets already struggling to absorb excess supply. One bright spot is increased investment activity, with a wave of portfolio deals in recent months culminating in Public Storage’s $10.7 billion acquisition of National Storage Affiliates. Yardi Matrix analysis of the 1,000-plus property portfolio indicates the deal will raise Public Storage’s management share to 16 percent of net rentable square footage nationally, expanding its footprint in existing markets and adding exposure to 20 smaller MSAs. The transaction also underscores continued sector consolidation and the growing importance of scale.

Advertised rates decline further as annual growth continues to slow. Annual growth for advertised rates decelerated further in March. Nationally, advertised rates decreased 2.0 percent in March, down from -1.2 percent in February and -0.4 percent in January. The national average rate for March was $16.07 per square foot across all unit sizes and types. Nearly all of Yardi Matrix’s top 30 metros had lower year-over-year rate growth in March compared to February, with all top metros experiencing negative annual growth. Same-store advertised rates for both non-climate-controlled (NCC) and climate-controlled (CC) units across all 30 top markets decreased compared to last year.

Nationally, Yardi Matrix tracks a total of 2,619 self-storage properties in various stages of development, including 622 under construction, 1,704 planned, and 293 prospective properties. The share of projects (net rentable square feet) under construction nationwide was equivalent to 2.3 percent of existing stock through the end of March, unchanged month over month.

Yardi Matrix also maintains operational profiles for 32,803 completed self-storage facilities in the U.S., bringing the total dataset to 35,422. We are pleased to announce the release of our new Terre Haute, Ind., and Redding, Calif., storage markets, now available to Yardi Matrix customers on the subscriber portal.

Self-storage REITs saw a sharp deceleration in March, with advertised rents declining 4.0 percent year over year, down from -2.2 percent in February. The REITs’ revenue management models seem to be most reactive to demand shifts, and weak move-in volume in Q3 and Q4 2025 could be causing a drag on rates now. They also started pushing rates up in March 2025, leading to more difficult comparison year over year.

See March 2026 Year-Over-Year Rent Change for Main Unit Sizes chart.

At a metro level, advertised rates rose month over month in 13 of the top 30 markets. However, slightly more saw a slowdown, with rates decreasing sequentially in 14 of the top metros.

Tampa’s performance weakened notably in March, posting the largest month-over-month decline in asking rates at -0.7 percent, down from -0.1 percent in February, as the market continues to absorb a significant wave of new supply, forcing operators to offer more aggressive discounts to maintain occupancy and putting sustained downward pressure on rates.

See National Average Street Rates PSF for Main Unit Types chart and Average Street Rates by Metro table.

Although both New York City and the New York suburbs are still managing elevated levels of new lease-up supply, the past year has brought notable declines. In the New York suburbs, the three-year supply rate fell to 14.1 percent, a 350-basis-point decrease from March 2025. Similarly, New York City saw its three-year supply drop to 7.1 percent, down 230 basis points year over year. New York City and its suburbs remain among the strongest-performing markets, supported by relatively solid demand and constrained new supply, which has helped limit rent declines compared to other regions.

See NRSF Delivered Over the Past 36 and 12 Trailing Months table and chart.

Sarasota–Cape Coral leads all top metros in under-construction supply, with projects totaling 8.0 percent of existing inventory as of March. Although this share has declined from 9.7 percent a year ago, the drop reflects project completions rather than a slowdown in new starts. Lease-up supply remains elevated, continuing to place downward pressure on asking rates in the metro.

Las Vegas reported no change in under-construction supply month over month but recorded the largest year-over-year decline, down 2.5 percent. Although this has coincided with an increase in lease-up supply, the pullback in construction signals a more favorable outlook for future rate performance.

See Under-Construction Supply by Percentage of Existing Inventory table and chart.

he self-storage industry has spent the better part of the last two years talking about a development slowdown. It makes sense when cost of construction is up, rates are down, and getting projects approved is harder than ever.

TractIQ currently tracks 395 self-storage projects with an official “Cancelled” status, representing roughly 23.1 million square feet of supply that was announced but never built. Sitting alongside that graveyard is a second larger population: 476 projects we’d call “inactive.” These projects are still listed as active in the pipeline yet show every sign of being abandoned.

See The Cancellation Graveyard: Top 10 States chart.

See Canceled Projects by Planned Facility Size chart.

If the cancellation graveyard captures projects that have formally been pulled, the inactive pipeline captures something messier: projects that are technically still in the pipeline but show no measurable signs of life. We flagged a project as inactive if either its TractIQ record hasn’t been touched in 18-plus months, or its planned start date passed more than a year ago without progression. By that definition, 476 active-pipeline projects qualify. This equals 29.3 million square feet, which is actually larger than the cancellation graveyard.

See The Inactive Pipeline: Projects That Have Stalled chart.

See Top 10 States Ranked by Canceled Projects table.

or two decades, Andrew Hess’ job was showing up on somebody’s worst day. He’d built a career as a fireman and paramedic, operating in high-pressure environments where hesitation could make a situation even more challenging. The job was structured, disciplined, and deeply rooted in teamwork—he loved it.

Then, in an instant, it was gone. “I got hurt on the job and wasn’t able to go back,” he says, “so that became the pivoting point where I went into self-storage and residential lending.”

For Hess, it wouldn’t just be a career change but a reshaping of everything he already knew.

Seeing the devastation and loss of life, along with the first responders who ran bravely into the destruction, Hess decided he wanted to take a different path. “That’s when I knew I wanted to join the fire service. I wanted to give back.”

“It’s usually not glamorous like it’s portrayed on ‘Chicago Fire’ or ‘9-1-1,’ where you’re scaling skyscrapers and jumping out of helicopters every day,” he says. “One of the stranger calls was a 2 a.m. dispatch to remove a cow that someone hit in the middle of an urban five-lane highway. I say, ‘What are we supposed to do with it?’ and law enforcement suggests just dragging it away. I was like, ‘No, you’re going to need a forklift for this job.’”

After his injury, the decision to get into the self-storage industry wasn’t immediate. For a while, he refused to accept that he wouldn’t return to the fire service. “I didn’t want to believe it, but as things developed, it became apparent that returning wasn’t in the cards,” recalls Hess. “That was a real blow to me.”

It was a period of more than just figuring out a new career path; it meant letting go of the one he had built his identity around. Accepting that it wasn’t going to happen didn’t come all at once. “There’s a point where you realize it’s not temporary anymore,” he says. “That’s when it shifts from, ‘When do I get back?’ to ‘What do I do now?’”

With three kids to take care of, Hess and his wife began plotting the next move that would set them up financially. “We looked at a number of things, but self-storage had the most appeal. There’s a smaller number of variables and lower expenses than other asset classes.”

Hess explains that this was important to him; as a firefighter, his job was to minimize unpredictability and risk. That’s exactly what self-storage offers him: control and simplicity. “Of course, anything can happen with any asset class, but this felt safer. That’s why we got fully onboard with it.”

When making the move to storage and co-founding Alpine West Group, Hess was able to take many of the frameworks of the fire service and apply them to business. He was also grateful to have obtained a degree before donning the turnout gear, which remains on the back of his office chair. “Yeah, that was a good decision,” he says with a smile. “It’s coming in handy 20 years later.”

Hess needed to find partners and get some guidance. “Having a coach, someone you’re accountable to, really helped our ability to execute on that first property,” he says.

Once the first deal was closed, they had something critical: proof of concept. However, for Hess and another frequent collaborator, Cameron Barsanti, that means one to two properties per year. “We want to be deliberate about growth. It’s about sticking to our metrics and not getting caught up trying to make the deal work,” he says.

That discipline comes straight from the fire service. “If you go into a situation and you’re not calm, you’re going to make the problem worse,” says Hess. “You take the facts, look at the situation, and make a decision.”

The same strategy applies to acquisitions. Beyond numbers, his focus is on something less tangible: relationships. “Everyone you talk to has a story,” he says. “Storage owners are no different.”

Two properties are located outside of Hess’ home state of California, in Florida and Washington State. At first, the idea of owning property out of state didn’t sit well, especially coming from such a hands-on background. “I was skeptical of it; it felt like too much distance from the asset.”

“Communication is crucial, and that’s something I inherently learned with the fire service. You’re literally putting people’s lives, including your own teammates’ lives, in jeopardy if you’re not communicating, so I’ve made it a point to bring that into my business deals.”

It also applies to the broader industry. “Storage is unique. There’s a tremendous amount of knowledge, and most people are willing to share it—to communicate their successes and failures.”

That openness helped him get started, and now that shapes how he helps others.

Hess shares how the pension system is changing, forcing people to work longer. In California, that means 57 years old. “Firefighters are some of the hardest-working, most dedicated people out there,” he says. “They’re there on Christmas, New Year’s, birthdays—all the time—so keeping them active until 57 doesn’t sit right with me.”

Unfortunately, Hess says they’re working so hard that they’re often not thinking about a long-term financial strategy. “Their mindset is giving back to the community. That’s what’s on their radar.”

So, he introduces something different, not as a pitch but as an option. “I have conversations with them, especially those starting out. I say, ‘You’re a firefighter and that’s great; I love what you’re doing, but here’s an opportunity to set yourself up later in life. What do you think?’”

Through residential lending and real estate conversations, he shows how existing assets like home equity can be used to build something more. “You have something here you can work with already,” he says.

It’s not about replacing their careers, says Hess, but expanding their options. “I’m not telling them to quit, but rather [to] invest so you’re able to retire comfortably when you want, not at 57 after work has taken a toll on your body.”

Of course, he also talks to them about self-storage—when they’re not asking about it themselves. “They may razz me a little, but that’s how the conversations start. Even helping a few people is enough. That’s a tremendous win.”

Would Hess ever partner with one of his old colleagues, or even one of those younger recruits he’s been talking to? “Absolutely. These are salt-of-the-earth people that you can trust.”

“You don’t get those days again,” he says. “And when you start stacking those weeks and years together, it hits you. My oldest is 12, and it feels like yesterday she was the size of my five-year-old, so this new path has allowed me more freedom. It’s allowed me to spend more time with the kids and pour more into my marriage too.”

Hess makes it clear he’s not looking to build a self-storage empire, as that would take away some of the time he’s regained. “I’m not looking to buy every single property on the face of the planet. What I’m looking for is the right opportunities and the right people. And I want to continue to give back.”

While the shift from fireman to businessman may seem drastic, Hess is still doing the same thing—just without the uniform. He’s assessing risk, working with a team, and making outcomes better for the people counting on him. It’s how he earned trust as a firefighter and how he’s building a reputation in self-storage.

1. Missing or inaccurate alt text on images – Screen readers need descriptions to convey information to users. If a screen reader encounters an image with no alt text, it has nothing to say to a visually impaired user. Alternatively, if the alt text is inaccurate or unrelated to the broader story, this can lead to confusion.
2. Poor color contrast – It’s important to achieve the right contrast between text and background colors. Low contrast between the two makes content difficult or impossible to read for users with low vision or color blindness.
3. Inaccessible forms – Forms need to be properly labeled so a screen reader can announce each field’s intent. Forms that lack proper accessibility features like this can be a real problem for self-storage, as many sites now allow users to complete rental applications and make payments online. “It’s also worth noting that if a payment processor’s embedded form isn’t accessible, from a legal standpoint, that’s on the operator, not the processing company,” adds Anthony.
4. No keyboard navigation – Websites must allow someone to tab through the site and interact with every element without the use of a mouse. For payment systems specifically, it’s critical that the entire checkout flow is keyboard accessible and that any third-party payment integrations also meet WCAG standards.
5. Broken or confusing navigation – Menus should be clearly mapped out with no broken links, or else users will face accessibility hurdles. For self-storage, tabs should be in a logical order so users can move through the rental flow step by step, and error messages need to be clearly announced so users understand why they’re not progressing to the next step. Accessible Rich Internet Applications (ARIA) labels, which provide the text for a button, navigation landmark, or other interactive element, are also important (think unit size selectors or date pickers). Lastly, buttons should be descriptive, e.g. “Rent Unit” not just “Click Here.”

There is one final barrier that comes up in lawsuits frequently, and it’s one that surprises a lot of people: “accessibility overlay widgets,” says Nguyen.

Lastly, many lawsuits are filed by firms that scan websites automatically for accessibility problems. An overlay widget is easy to identify in the code, which is an immediate red flag, giving someone reason to check out the site. “Plugins that promise instant accessibility often make operators more of a target, not less,” says Nguyen. That’s because if the widget isn’t helping or perhaps making things worse, a plaintiff’s attorney may interpret it as “This company knew about accessibility but relied on a quick fix.” This makes the case even more compelling.

Nguyen compares it to maintaining your physical facility. “You don’t just pass one ADA inspection and never think about it again,” he says. “You keep your ramps clear, your signage updated, and your accessible units maintained. Your website is the same way. Implementing accessibility testing as part of your ongoing development process prevents new compliance issues from emerging as you update or expand your website.”

There’s also an SEO benefit. WCAG-compliant websites naturally align with search engine optimization best practices, which can boost visibility in search results. “This means you’re not just reducing legal risk; you’re making a better site that ranks higher and converts more visitors into tenants,” Anthony says.

Moreover, it’s imperative that the website company does regular re-audits. These are essential because the guidelines themselves evolve, and courts continue to redefine what they consider compliant. “I’d recommend finding a company that uses a combination of automated scanning tools and manual audits. The automated tools are great for catching the basics [missing alt text, contrast issues, broken ARIA labels], but even the best ones can only detect around 30 percent of WCAG issues,” Anthony says. “The rest requires manual testing with actual screen readers and keyboard-only navigation. Incidentally, these are all things StoragePug does.”

he self-storage industry has never stood still—and it isn’t about to start now. From its earliest days as a practical solution for excess household goods, to the rise of institutional ownership and the expansion into multistory urban facilities, self-storage has consistently evolved alongside shifts in how people live, work, and use space.

Today, the industry stands at another inflection point.

This moment is not simply about building larger facilities or entering new markets. It reflects a broader shift in how storage is being conceived, designed, and integrated into the built environment. The opportunity ahead is less about optimizing a single asset type and more about understanding how space can work harder, support multiple functions, and evolve alongside changing patterns of demand.

What is emerging is a development approach that can best be described as Convergent Storage Development.

In broader commercial real estate and economic development, this concept aligns with what is often referred to as agglomeration (the clustering of complementary uses in a way that creates more value collectively than they would independently). As noted by CBRE’s Spencer Levy in recent discussions on the evolution of self-storage, the growing appeal of the asset class is increasingly tied to its ability to integrate with adjacent uses and participate in a broader ecosystem of demand.

Convergent Storage Development is essentially a specialized application of that principle, where multiple storage-related and adjacent uses are intentionally designed to function together within a single site.

In practice, a convergent development may include multistory climate-controlled self-storage, flex space designed for small businesses and trades, boat and RV storage in both canopy and enclosed formats, portable storage solutions, and light industrial or last-mile distribution components.

Historically, these uses were often developed independently, separated by different ownership groups, investment strategies, or operational models. Today, that separation is beginning to break down as developers ask a more forward-looking question: What happens when these uses are intentionally designed together from the start?

In many urban and high-growth suburban markets, rising land costs are forcing developers to think more strategically about how sites perform financially. Single-use developments can be increasingly difficult to justify when land pricing demands stronger and more diversified returns. In many ways, this reflects a shift toward site-level agglomeration, where value is no longer created by a single use alone but by how multiple uses interact within the same footprint.

At the same time, many of the most experienced operators in the self-storage industry are entering a new phase. These are developers who have successfully built and operated traditional storage assets for years. They understand the development process, they understand operations, and they have seen firsthand how technology has reshaped the customer experience. Many are now approaching the market with more discipline, recognizing that in some regions self-storage has become increasingly competitive and, in certain cases, oversupplied.

What is changing is not the relevance of self-storage itself but the context surrounding it.

Storage remains the foundation—the stable and proven use anchoring the property. However, the people using that storage are operating differently than they were even five or 10 years ago. More individuals are running businesses from home, managing inventory across multiple channels, or generating income through side ventures that require flexibility, mobility, and operational space. The line between personal use and business use is becoming increasingly blurred, creating demand for environments capable of supporting multiple needs within a single location.

Developers who recognize this shift are not replacing self-storage. They are strengthening it by positioning it within a more dynamic and interconnected operating environment.

Flex space has emerged as one of the most important adjacent asset types in this transition. When integrated with self-storage, it introduces longer tenant duration, higher revenue potential, and increased daily activity across the site.

James Reid, founder of FlexSpace Nation, captures this advancement well, saying, “The next evolution of storage isn’t about separating uses—it’s about bringing them together with intention. The most successful developments will be the ones that recognize how people actually use space today, where storage, businesses, and movement are all part of the same equation.”

Traditional self-storage planning has long focused on optimizing unit mix, maximizing rentable square footage, and creating efficient circulation patterns. While those principles still matter, convergent developments require a far broader and more integrated approach.

A convergent property must accommodate users with very different operational needs and access patterns. Daily flex-space tenants require consistent and efficient entry points, while traditional storage customers may visit less frequently but still expect ease of navigation. Delivery vehicles associated with light industrial or last-mile distribution components introduce an entirely different layer of operational complexity. These movements and interactions must be considered early in the design process.

Vertical integration is also evolving. Developers are beginning to explore configurations where flex space exists at ground level with storage above, or where enclosed RV storage is integrated into larger structural systems. These layouts require thoughtful coordination of structure, access, visibility, and long-term functionality.

Before design even begins, one of the most impactful decisions in convergent development is site selection. While undeveloped land may appear attractive, sites that have already undergone some level of entitlement review or infrastructure development can offer significant advantages. Existing access, utilities, zoning groundwork, or environmental review can reduce uncertainty and allow developers to focus more directly on how the site will ultimately function.

For convergent developments, where multiple uses must work together cohesively, that head start can become strategically valuable.

Consider a small contractor operating in a growing suburban market. They may initially lease a flex space unit to serve as a base of operations. As their workload increases, they add a traditional storage unit for additional materials and equipment. Over time, vehicle storage becomes part of the equation as they begin parking work trucks or trailers on site.What began as a single lease evolves into a much broader relationship with the property.

This is agglomeration in practice. The value is not created by any one component alone but by the way each use strengthens the others. The property begins to function less like a collection of isolated revenue streams and more like an integrated ecosystem—one capable of increasing customer lifetime value, improving retention, and creating a more resilient operating model.

Unlike traditional storage facilities, which can often feel static, convergent developments tend to experience more consistent daily activity driven by active users across multiple business types. This can positively influence visibility, engagement, and the overall perception of the property.

From a financial perspective, diversified uses also create a level of resilience that single-use properties may lack. A property that is not dependent on a single revenue stream is generally better positioned to adapt to changing market conditions. Take, for example, a three-acre site. A traditional single-story exterior-access layout at 60 percent coverage may produce approximately 680 to 700 average-size rentable units once typical efficiency adjustments are applied. However, when that same site is intentionally reconfigured to incorporate boat and RV canopy storage alongside a row of flex units, the overall unit count naturally declines.

What emerges instead is a more nuanced performance profile, where higher-rent uses and longer-stay tenants begin reshaping the economics of the land itself. In that environment, the measure of success shifts. The focus is no longer simply on how many units fit on the site but on how effectively the property performs as an integrated, revenue-generating ecosystem.

Traditional self-storage has long been attractive because it is relatively straightforward to model. Inputs are familiar, operating assumptions are well established, and performance benchmarks are widely understood. Convergent developments, however, require a more nuanced underwriting approach because they combine multiple product types with different lease structures, ramp timelines, and operational rhythms.

Bishesh Shrestha, senior vice president of self-storage lending at Live Oak Bank, sees this evolution as a natural progression for the industry. “The self-storage industry has had synergies with complementary commercial uses that was done in the past because the appeal for storage was not as high as it has been in the past decades. As a result, we still encounter vintage assets that include these ancillary businesses as part of the sale. From a lender’s perspective, some of these businesses were fundamentally different from self-storage operations, like car washes, laundromats, and gas stations, which lead to some underwriting challenges depending on the revenue and expense contributions generated by these ancillary/secondary businesses. However, the addition of flex space or commercial storage to traditional self-storage facilities, is a particularly natural evolution of the asset class, much like the addition of (fully enclosed or canopied) boat and RV storage or open parking. We are seeing increased borrower interest in flex and commercial storage as small businesses and contractors seek space for inventory, machinery, equipment, and operational overflow. From a banking standpoint, the diversification of services and revenue streams enhances the overall appeal of a self-storage project. Multiple income sources can help strengthen cash flow stability and reduce reliance on a single tenant profile or demand driver. In addition, the lease-up dynamics for flex space/commercial storage and boat and RV storage often differ from traditional self-storage units, which can create operational balance and support occupancy growth across the broader facility. As the industry continues to evolve, lenders are increasingly recognizing the value of well-executed mixed-use storage facilities that can adapt to changing consumer and business needs while providing diversified and resilient income performance.”

For lenders and equity partners, the conversation increasingly shifts from uniformity to segmentation. Different uses stabilize at different points in time and contribute to overall performance in different ways. Flex space may behave more like light industrial, while traditional storage continues to operate on a shorter-term, rate-driven model.

A well-designed convergent project allows capital partners to see not simply one income stream but a layered operating environment capable of creating both stability and long-term growth.

As Brad Relford, president and CEO of TBS Companies, explains, “In most cases, divergent customer needs and innovation ultimately lead to the best market-driven solutions. Convergent storage development is clearly following that path. As a building package and door provider, it is important to offer the full array of products, design, fabrication, and construction services to meet the needs of a very dynamic market opportunity.”

Developers are asking more of their projects, and builders are responding with more integrated and adaptable solutions that extend beyond traditional self-storage formats while maintaining the efficiencies that made the asset class successful

With the right technology in place, convergence becomes not only possible but scalable.

This evolution is also beginning to reshape how developers think about demand itself.

For years, many commercial real estate markets prioritized what were considered “higher and better” uses, often pushing industrial outdoor storage and operationally driven space further out of the development conversation. In some markets, that transition made sense. In others, it unintentionally removed critical-use space that businesses still relied upon. As a result, developers are now seeing renewed demand for functional outdoor storage, contractor space, equipment parking, and operational overflow areas that have become increasingly difficult to find.

Lance Watkins of Tenant Inc. notes that the industry is beginning to recognize that not every “self-storage” site should follow the standardized unit mix models that have remained relatively unchanged for decades. That means rethinking long-held assumptions around land use and operational functionality; for the first time, the industry now has the tools to validate those decisions with real operational insight.

Today’s modern operating platforms are generating a level of behavioral and performance data that allows owners to make more informed decisions about how a site should function. Questions such as the lifetime value of a 10-by-40 unit, how different tenant types interact across a property, or which uses create the strongest retention and revenue patterns are now becoming measurable in ways they were not before.

This represents a significant shift for the industry. Developers are beginning to move beyond instinct alone and toward what could best be described as “data-informed intuition,” where operational data, customer behavior, and market demand work together to shape development strategy.

The technology itself is also evolving alongside convergence. Platforms originally designed around traditional storage categories are increasingly being asked to support multiple space types, blended customer journeys, and more operationally diverse environments within a single ecosystem.

Watkins adds, “For a long time, operators relied on instinct because the industry simply didn’t have access to this level of information. Today, technology allows us to understand not just occupancy but behavior, retention, customer movement, and lifetime value across different space types. That changes the conversation entirely. The future platform isn’t just a storage platform anymore—it becomes an operational intelligence platform capable of supporting convergent assets within a single environment.”

As convergent developments continue to emerge, the role of technology will likely extend far beyond operations management. It will increasingly influence how sites are planned, how demand is interpreted, and ultimately how future storage environments are designed.

The next generation of storage will likely be defined less by a single building type and more by how intelligently different uses are brought together, how effectively they function as a system, and how well they adapt to changing patterns of demand.

The question is no longer simply what type of storage to build. The more important question is how a property should work. Because the future of self-storage is not just about space. It is about designing environments capable of evolving, adapting, and continuing to perform in a market that is changing around them.

And the future of self-storage will belong to those willing to design for what comes next.

s self-storage demand continues to grow in urban and infill markets, developers are increasingly encountering a familiar constraint: limited land availability paired with rising costs and extended development timelines. In many dense cities, traditional ground-up construction is no longer the most efficient—or even a feasible—path forward. As a result, attention is shifting toward existing commercial assets as potential platforms for new self-storage development.

Among these opportunities, large-format retail buildings have emerged as particularly compelling candidates for adaptive reuse. Former big-box properties offer scale, visibility, and infrastructure that align well with self-storage fundamentals. When approached strategically, retail-to-storage conversions can unlock significant value while reducing exposure to many of the risks associated with new construction.

Rather than highlight a single example, this explores the broader strategy behind converting large retail structures into modern self-storage facilities and outlines what it takes to execute a project of this scope successfully, particularly within constrained urban environments.

From a development perspective, existing retail buildings offer several inherent advantages. Core infrastructure is already in place, including utilities, access roads, parking fields, and stormwater systems. Zoning use may already support commercial operations, reducing entitlement risk compared to undeveloped land. Most importantly, the building footprint itself is fixed, providing immediate clarity around density and site constraints.

In tight urban markets, these factors can significantly shorten development timelines and accelerate a project’s path to revenue. However, these advantages only materialize when conversion projects are carefully evaluated and thoughtfully designed.

Key considerations typically include:

• Column spacing and its impact on unit layout efficiency,
• Slab thickness and load-bearing capacity,
• Clear heights and the potential for vertical expansion,
• Condition of the building envelope, and
• Compatibility with surrounding uses and community expectations.

In many urban settings, vertical expansion becomes a defining strategy. Adding additional levels within an existing footprint allows developers to dramatically increase rentable square footage without expanding the site, an essential advantage where land is constrained and acquisition costs are high. However, vertical builds demand rigorous engineering analysis and close coordination among design partners from the earliest stages.

Successful conversion designs account for these constraints while prioritizing:

• Logical circulation patterns and clear wayfinding,
• Clean alignment of hallway systems and doors,
• A flexible mix of unit sizes to serve diverse demand, and
• Efficient vertical transitions in multi-level layouts.

In dense urban environments, where facilities are often multistory, usability becomes a critical differentiator. Poor sightlines, confusing layouts, or tight corridors can negatively affect customer satisfaction and long-term occupancy. Thoughtful interior planning ensures the increased density achieved through conversion does not come at the expense of day-to-day functionality.

In urban settings where aesthetics influence entitlement, leasing, and long-term market perception, exterior design becomes as strategic as interior functionality.

Developers who approach conversion projects with a systems mindset, rather than treating individual components as standalone decisions, reduce downstream risk. Early collaboration among engineers, architects, contractors, and product manufacturers helps ensure:

• Structural realities are reflected in design assumptions,
• Interior systems align with installation constraints, and
• Consistency is maintained across floors and phases.

This level of coordination is especially critical in multi-level conversions, where misalignment at one stage can have cascading impacts later in the project lifecycle.

Key principles that consistently support successful conversions include:

• Rigorous upfront feasibility analysis,
• Vertical density strategies tailored to site constraints,
• Intentional interior design that prioritizes usability,
• Thoughtful exterior integration within existing communities, and
• Early and ongoing collaboration across all project partners.

Ultimately, converting retail to self-storage is less about reuse alone and more about strategic repositioning. With the right planning, coordination, and long-term perspective, underperforming retail assets can be transformed into durable, high-performing self-storage facilities built to succeed in the most constrained urban markets.

or self-storage business owners and acquisitions-minded entrepreneurs, the path to a Certificate of Occupancy or a successful closing often hinges on one critical hurdle: the equity injection. Whether you are building a multistory climate-controlled facility or buying a rural drive-up site, lenders want to see your “skin in the game.”

To help you navigate these requirements, this guide breaks down the specific rules for self-storage financing, acceptable capital sources, and post-close liquidity requirements unique to the storage industry.

• Land Equity – If the land is already owned by the borrower, its purchase price or appraised value can count toward the equity injection, less any existing debt. Whether the purchase price or appraised value is used to determine equity depends on how long the land has been owned and which loan product is being used.
• Spent Project Costs – For many construction projects, spent project costs, such as architect or engineering fees, can count toward the borrower’s equity injection. Your lender will verify the spent project costs via paid invoices and other forms of proof of payment.
• Cash – Often, the down payment is sent via wire at closing to the title company. However, not all that money needs to come from the borrower alone. Equity partners can contribute a portion of the equity injection in exchange for ownership in the borrowing entity. Just make sure you understand if the lender will require personal guarantees based on ownership percentages. SBA loans, for example, require anyone with 20 percent or more ownership in the borrowing entity to guarantee the loan. Someone who wishes to be a limited partner may want to keep their ownership below that threshold. Even with investors, your lender may want the key principals to have personal funds invested as well, to show they have “skin in the game.”

• Funds from Checking, Savings, or Brokerage Accounts – Typically, lenders will trace the funds for 60 to 90 days, so be prepared to explain any large deposits during that period.
• Documented Gifts – Common in first-time storage developments, gifts are acceptable but require a certified gift letter. The lender must be 100 percent certain this isn’t a “shadow loan” that you secretly intend to pay back once the facility starts cash-flowing.

• Borrowed Funds – You can use borrowed funds to contribute to an equity injection, although you will have to meet some additional criteria. HELOCs and personal loans are both options for obtaining additional funds for an equity injection. For SBA loans, you must show an outside income source (like a day job or other rental properties) that can comfortably service the HELOC or personal loan payment without relying on the self-storage facility’s yet-to-be-earned profits.
• Seller Notes – In rare circumstances, a seller note may be able to count toward the required equity injection. Your lender will need to review the structure and terms of the note to determine if it can be equity.

Even acquisitions may need some working capital included in loan proceeds to help make minor improvements, tackle deferred maintenance, or simply bridge the gap until the facility is self-sufficient on its debt.

• Document everything. In the “Know Your Customer” (KYC) era, you must maintain a clear paper trail showing where your cash has been for the last 60 to 90 days.
• Budget for overruns. For new construction, lenders often require a 10 percent contingency fund within your budget. Ensure your equity injection covers your share of this cushion.
• Experience matters. If you are a first-time operator, lenders may require a higher injection to offset the perceived operational risk.

By coming to the table with a clean, well-documented equity stack and ample liquidity for the lease-up phase, you position your self-storage venture as a low-risk, high-reward opportunity for the bank. To learn more or connect with a member of our team, visit liveoak.bank/self-storage.

hen DXD Capital broke ground on two self-storage projects in 2024, the optics were striking: one site in Kihei, on the Hawaiian island of Maui, and another on the island of Nantucket in Massachusetts—two islands on opposite sides of the country in the same year and two entirely different logistical universes, thousands of miles apart.

And yet, beneath the surface, these projects had more in common than one might guess. What united them was not just their island setting but the discipline, deep subcontractor relationships, and creative problem-solving that island development demands at every turn.

Nantucket, by contrast, is a small island of nearly 50 square miles sitting 30 miles off the coast of Cape Cod. For most of the year, it’s home to a quiet, year-round population of just 14,500 residents. From May to October, however, that number explodes. The population quadruples, reaching more than 65,000 on peak summer days, as a flood of seasonal residents and visitors transform the isolated island into a bustling, high-density destination.

Both islands are engines of seasonal tourism. Both are geographically isolated. Both require every nail, beam, and roll of insulation to be transported across open water. This logistical constraint is not just a footnote; it is the defining challenge of construction.

During our initial due diligence, we made it a priority to walk the communities and meet with local contractors. Our primary focus was to understand the rhythms of each island. This meant understanding not only the seasonal ebb and flow of the population but also the deep-seated cultural currents that shape daily life and commerce. That time we spent on the ground, before a single dollar was committed, proved to be one of the most valuable investments we made. The relationships we developed with locally embedded contractors, vendors, and neighbors became foundational to the success of both projects.

Island contractors don’t just build. They manage logistics, anticipate delays, navigate local politics, and serve as the institutional knowledge for a market that can be opaque to outsiders. Finding those partners early and investing in those relationships genuinely set the tone for everything that followed.

Nantucket was the mirror opposite. Due to the astronomical cost of living, where new home builds start at $1,500 per square foot, most of the island’s workforce commutes daily by ferry from Cape Cod. The workday begins with 500 workers boarding a 6:10 a.m. ferry, arriving after 7 a.m., and navigating congested streets to their job sites. With the ferry home departing at 4:35 p.m., the effective workday is 75 percent to 80 percent of a mainland equivalent.

The weather is also a constant factor. Nicknamed the “Grey Lady” for its frequent fog, Nantucket required us to budget over 40 weather days to account for rain, wind, and the rough seas that cancel ferries for days at a time. The system is so challenging that one major off-island contractor found it more efficient and cost-effective to buy two turboprop airplanes and employ full-time pilots to fly his crews in and out each day rather than rely on the ferry service.

If Kihei was a long-distance challenge, Nantucket was an intricate puzzle of history, regulation, and culture. Nantucket’s regulations forbid cargo ships, making the island’s sole lifeline the Steamship Authority’s fleet of 200-foot-long ferries, which make the two-hour journey carrying a mix of passengers, cars, and a limited number of tractor-trailers. This constraint transforms logistics into a high-stakes reservation game when ferry reservations open in late January each year. Every truckload of steel and every pallet of materials had to compete for a slot alongside tourists and residents. It’s a world away from the ports of Hawaii, where a single cargo ship can deliver 10,000 containers or more in a single trip. For Nantucket, our entire project had to arrive one truckload at a time.

For a personal trip this summer, I logged on at the moment that the year’s ferry reservations opened to the public on January 27th at 8 a.m. sharp and was placed 18,000th in the virtual queue. For a family, that’s an inconvenience. For a construction project, it’s a crisis.

In 2022, UPS famously failed to secure its priority ferry reservations for the summer, nearly crippling the island’s merchants. The message was clear: The ferry is not a convenience; it is the only supply chain.

All our construction freight was routed to their staging facility in Wareham, Mass. When we needed a trailer, we gave them 24- to 48-hours’ notice, and the material arrived at our job site reliably and efficiently. This arrangement wasn’t just a convenience; it was a vital function that made the project’s economics work.

The result is a self-storage facility unlike any other in the country. The building features white cedar shingles, grooved red cedar siding, standing seam metal roofs, and multiple cupolas. It’s a piece of architecture that happens to store things, including a two-story deep basement. This contrasts sharply with the Kihei project, which is pragmatic and grounded, a well-executed, locally appropriate building that does its job without pretense.

• Both required us to understand markets that do not behave like the mainland.
• Both required us to build relationships before we built anything else.
• Both rewarded patience, local knowledge, and humility about what we did not know.
• Both reminded us that the most valuable assets a developer can bring to a difficult market are not capital or construction expertise; they are trust and relationships with the people who already belong to that place.

At DXD Capital, we expect our projects to reflect the markets in which they are built. That philosophy is more than aesthetic. It is operational. It is the reason we walked Nantucket’s cobblestones and Kihei’s shoreline before we ever opened a spreadsheet. The islands told us what they needed. We listened.

ew Braunfels is the Texas town everyone’s talking about. Nestled between San Antonio and Austin, it’s garnering attention for its rapid growth and is ranked the second most moved-to U.S. ZIP code. Opened in 2025, New Braunfels Executive Storage correctly hedged its bets on this Lone Star State gem.

Developed by entrepreneur Jorden Mahler, the nine-acre facility prioritizes convenience, security, and customer experience. Located along busy Highway 46, the Class-A property spans 122,709 rentable square feet and boasts 575 units plus RV and boat storage. Design was thoughtful, with buildings arranged fortress-style to improve security, minimize fencing, and optimize traffic flow. Amenities include an air station, ice kiosk, food truck zone, and customer lounge with vintage juke box. It all reflects Mahler’s philosophy of “making storage sexy again.” And based on demand, which even required a tenant waitlist, the approach is clearly turning heads.

enjamin Franklin summarized the undeniable weight of taxation by saying, “In this world nothing can be said to be certain, except death and taxes.” We all know we are required to pay them, so we do, but it behooves everyone to lower those liabilities by using all available U.S. Tax Code statutes to our advantage.

Warren Dazzio is the executive vice president of sales at CSSI – Cost Segregation Services, Inc., an tax consultant firm that specializes in real estate and business taxes, and he is happy to provide general information self-storage investors should be aware of to maximize their tax savings.

When discussing this issue, Dazzio immediately mentions a laundry list of deductions. “The Section 179D energy efficiency deduction, bonus depreciation tied to qualified improvement property, cost segregation, and partial asset dispositions—that last one is often missed. When you throw something in the dumpster, like roll-up doors that aren’t fully depreciated, you can expense the remaining tax life of that asset.”

Dazzio gets very specific when discussing the role of depreciation in reducing tax liability. “Depreciation can reduce your taxable income by roughly 8 percent to 10 percent per million dollars of purchase price,” he says. “For some investors, that’s enough additional capital to help fund the acquisition of their next facility.”

In addition, he stresses the importance of being mindful of all related deductions. “Any time you buy, build, renovate, or make an improvement, there are additional deductions available. For example, bonus depreciation and Section 179 expensing are two of the most powerful tools.”

Bonus depreciation refers to a tax incentive that allows businesses to deduct a significant portion of an asset’s cost in the first year, instead of spreading out the deduction across multiple years, but it can only be used in certain circumstances. “Bonus only applies to asset classes with a life of 20 years or less,” Dazzio states. “A building itself is a 39-year asset under the IRS code, so you can’t apply bonus directly to the building as a whole, but once you break the building into shorter-lived asset classes through a cost segregation study, bonus becomes available.”

Meanwhile, Section 179 expensing refers to deducting the full purchase price of qualifying equipment, up to $2.5 million; and the amount allowed as a deduction cannot exceed the aggregate amount of taxable income of the taxpayer for that taxable year.

The type of facility also plays a role in uncovering additional tax deductions. Dazzio points out that climate-controlled self-storage facilities rank among the highest of any asset class for accelerated depreciation, with 35 percent to 40 percent or more of the building costs potentially captured in the first year. “Non-climate-controlled facilities are right behind them,” he says. “Even without climate control, a facility owner can typically accelerate 28 percent to 29 percent of the building cost as a tax benefit in year one.”

Officially known as the IRS Tangible Property Repairs Regulation, this law allows owners to deduct all the ordinary and necessary expenses incurred during that taxable year, including the costs of certain materials, repairs, and maintenance.

“One of the most underutilized deductions is the routine maintenance safe harbor,” Dazzio says. “If you can reasonably expect to perform a repair more than once within a 10-year period, you may be able to expense it.” As an example, he shares the story of a storage owner who had recently acquired two facilities and was planning to spend $200,000 painting them. “When I asked him how often he expected to repaint, he said about every 10 years. Under the routine maintenance safe harbor, he could expense that entire amount, because he could reasonably expect to incur it more than once in a 10-year window.”

Another useful provision is sometimes called the one-third rule. “If you have 100 doors and you replace fewer than a third of them at one time, you may be able to expense those replacements as repairs, rather than capitalize them.”

“A 1031 exchange is a solid strategy for deferring taxes, and it can be used alongside most of these other strategies,” Dazzio adds. “That said, you can often accomplish the same result with a cost segregation study and avoid the pressure of 1031 deadlines altogether. Rather than completing a 1031 exchange, some facility owners simply perform a cost segregation study on their next acquisition. That study can generate enough deductions to help offset the capital gains from the sale of the prior property.”

That said, there is one provision storage owners should look at closely to determine whether they qualify. “The Section 179D Energy Efficiency Deduction is different from Section 179 equipment expensing,” Dazzio says, mentioning that the 179D deduction applies to new construction or significant renovations involving lighting, HVAC, and the building envelope. “When construction exceeds the current energy code requirements, the government rewards that efficiency with deductions of up to $5.81 per square foot,” he says. “This is a meaningful benefit, but the Big Beautiful Bill legislation terminates it for projects where construction begins after June 30, 2026. So, if you have a qualifying project in the pipeline, this is worth reviewing now.”

The great news is that the environment looks favorable for continued growth; and Dazzio advises lining up an effective team of tax professionals, including a specialty tax consultant, to build a long-term strategy that captures every available benefit as your portfolio grows.

he idea of a completely “man-less” self-storage facility generating pure residual income is appealing. Recently, I read a social media post from an owner who claimed to operate a self-storage facility three states away with no manager, no staff, and no hands-on involvement—all while producing 100 percent residual income. It’s an attractive narrative. It’s also one that deserves closer examination. The real question isn’t whether remote management and automation have a place in self-storage—they absolutely do. The real question is how much work is actually being done, and by whom, before an operation can honestly be described as residual income.

• Who removes trash left in drive aisles?
• Who cleans units after move-outs?
• Who over-locks units when rent is not paid?
• Who assists a tenant when a key breaks off in a lock?
• Who follows up with delinquent tenants via calls, texts, or emails?
• Who handles lien notices and auctions?
• Who walks the property to confirm move-outs before credit cards are charged?
• Who does the marketing so that premium rates can be achieved?
• Who oversees maintenance and repairs?
• Who posts to social media and manages the Google Business profiles?
• Who monitors vendors for snow removal, landscaping, and larger repairs, etc.?

These tasks exist whether a facility is manned or not.

In my experience, there are only two realistic explanations for how these items get handled at a so-called man-less facility: either a third-party management company is doing the work, or the owner is doing it themselves. If it’s the latter, then the operation may be partially remote, but it is not truly residual.

In those cases, the economics may support automation and minimal staffing.

The challenge arises when this model is applied to medium-sized and larger facilities, typically in the range of 40,000 to 60,000 net rentable square feet or greater.

That time doesn’t disappear with automation. When a full-time on-site manager works 10 a.m. to 5 p.m., Monday through Friday (35 hours per week), the owner is effectively paying for only 19 more hours for 35 hours of on-site coverage. The return on that investment is significant.

First, it dramatically reduces owner involvement. In most cases, owner time drops from roughly 16 hours per week to closer to four. That is the difference between owning a job and owning a business.

Second, it drives revenue. On-site managers improve customer service, follow up on leads, and actively market the facility. That extra attention allows owners to charge premium rates that simply aren’t achievable in a fully unmanned environment.

We routinely see prospects visit a facility several days before needing a facility. The majority choose to rent with us because of the interaction with the on-site manager. Without that human connection, you will be sending many of those renters to visit the competition.

Our preferred approach is to have an office open seven days a week until the facility reaches stabilization, then close on Sundays. From there, owners can determine whether a five-, six-, or seven-day schedule best fits their market and goals.

The difference between a modest, remotely managed self-storage facility and a high-performing self-storage business often comes down to one thing: having the right person on site to protect the asset, serve customers, and maximize revenue.

At scale, a great manager isn’t an expense. They are a force multiplier.

hen customers entrust their physical assets to a self-storage facility, they naturally want to feel assured that their items will be kept safe and sound. That means proper security precautions, but it might also mean climate control. Simply put, temperature moderation can be a critical way for self-storage operators to ensure that the items in their care are maintained in pristine condition.

Finding the right heating solution can be a challenge, as there are concerns with both efficiency and safety. It’s crucial for operators to be strategic, seeking an approach that supports operational efficiency, customer satisfaction, and long-term profitability.

Many stored items, from wood furniture to electronics to textiles, are sensitive to fluctuations in temperature. Prolonged exposure to the cold may result in cracking, warping, brittleness, or damage related to recurring condensation.

For self-storage operators, this not only means a heightened risk of customer dissatisfaction but also a greater likelihood of insurance claims. This is to say nothing of reputational damage; being known as the self-storage facility where items are regularly ruined can be a death knell.

Unlike more conventional commercial buildings, self-storage facilities are often designed without centralized, forced-air heating. Retrofitting may be possible, but it also tends to be expensive and disruptive. There are also major logistical complications, especially in facilities with multiple buildings, varying unit sizes, or outdoor access corridors.

Unit heaters have emerged as an effective alternative. These heaters can be installed with minimal requirements for ductwork and other infrastructure upgrades, and they can be selectively placed in the self-storage units where they are needed most. For creating ambient warmth in self-contained areas, unit heaters can be a cost-effective option.

When selecting a unit heater, it’s important to verify that it’s sized to meet the cubic footage of the space where it’s intended for use. When a self-storage unit is undersized, it may not be able to keep pace with significant drops in temperature, leading to uneven results. And when units are too large, they may cycle too frequently, straining the equipment and wasting a lot of energy.

Smart placement is important, too. The most effective positions tend to be areas where cold spots naturally develop, such as near exterior walls or along entry points. Placing unit heaters in these areas can lower the facility’s overall temperature gradient. This leads to improved performance and more efficient energy consumption as systems won’t have to work as hard to overcompensate.

Insulation matters because it determines how well the building maintains heat. Properly insulated walls, ceilings, and doors function as barriers against external temperature fluctuations, thus reducing the workload for heating systems. Insulation upgrades can deliver a strong return on investment by improving both energy efficiency and tenant satisfaction. This is particularly true in older self-storage facilities where insulation may be badly out of date or of a low rating (R-value).

It’s similarly important to manage air leaks. Even high-caliber heating systems will struggle to maintain consistent temperatures if warm air is constantly escaping the facility. Gaps around doors, windows, and structural joints may allow cold air to penetrate units, endangering stored items. Sealing these gaps with weatherstripping, door sweeps, and sealants is a low-cost improvement that can significantly enhance temperature stability throughtout the facility.

evenue management has quietly become one of the most powerful profit drivers in the self-storage industry, and yet many operators still aren’t using it to its full potential.

Once reserved for REITs and national platforms, advanced pricing strategies and automation tools are now accessible to independent operators. Businesses that adopt them gain a measurable edge: higher occupancy, stronger rate integrity, and better long-term revenue performance.

In today’s increasingly competitive storage market, pricing smarter isn’t optional. It’s essential.

It’s not about raising rents blindly. It’s about optimizing pricing intelligently, so each unit earns what the market will support while keeping inventory moving efficiently.

When done correctly, revenue management doesn’t just improve performance. It fundamentally changes how a facility competes.

By assigning weighted value scores to these attributes, operators can build smarter pricing tiers that reflect true demand. The result is higher gross potential revenue without adding square footage or raising blanket rates.

Editorial Insight: The most profitable self-storage operators don’t discount across the board; they price with precision.

• Adjust rates instantly based on occupancy changes,
• Set customized pricing thresholds,
• Monitor inventory continuously, and
• React to market demand in real time.

Today’s market moves fast. Self-storage operators adjust rates and promotions constantly, and those who aren’t monitoring competitors daily risk falling behind.

Sophisticated pricing tools, once only available to enterprise portfolios, are now accessible to independent owners. That levels the playing field, but it also raises expectations. To stay competitive, operators must assume their competitors are using advanced pricing strategies and respond accordingly.

Front-loaded, expiring promotions tend to perform better. They attract renters while preserving long-term rate integrity.

Price matching should also be used strategically—limited by distance, size of the discount, and occupancy conditions. In some situations, protecting your pricing structure is more profitable than filling a unit at a steep discount.

High reservation volume may signal an opportunity to increase rates. Persistent vacancy, even at competitive pricing, may indicate market oversupply.

Seasonality plays a role as well. Summer moving surges, college cycles, and year-end storage needs all influence demand patterns. Successful operators build flexibility directly into their pricing strategies.

Another overlooked opportunity is walk-in pricing. Customers seeking immediate access often prioritize convenience over cost and may be willing to pay slightly higher rates.

Features such as:

• Real-time competitor pricing visibility,
• Manager controlled rate overrides,
• Automated promotional triggers, and
• Visual pricing displays like strikethrough offers allow staff to close deals effectively while protecting long-term revenue health.

When teams have the right tools, pricing decisions become consistent, confident, and profitable.

Facilities that embrace data-driven pricing consistently outperform those relying on gut instinct or static rates. The result is stronger margins, improved occupancy, and a more competitive market position.

In today’s self-storage landscape, pricing smarter is no longer a luxury. It’s a necessity.