Overcoming Difficulties in Rezoning for Self-Storage

In the self-storage sector, successful developers are distinguished by their ability to rezone land in premier locations and ultimately break ground. However, local regulations are growing increasingly difficult to navigate. I’ve discovered a few strategies that improve one’s chances of getting approval from zoning-board members, and I share them below. But first, let’s first examine the key factors creating these development challenges.

Why Zoning Approval Is Becoming More Difficult

Influx of development. The U.S. Census Bureau reported that self-storage construction spending totaled $6.9 billion in 2023, a 24% year-over-year increase. This was a significant jump for an industry that averaged $1 billion in annual construction spending from the early 2000s through 2015. This building boom has reached every region of the country, overwhelming local zoning jurisdictions with more development applications than ever expected.

Zoning classification. Self-storage struggles to fit neatly into any single zoning category. Commercial and business districts typically require a conditional-use permit or prohibit these facilities entirely. Just last month, a mayor informed me that self-storage wasn’t even mentioned in their municipality’s zoning language.

Most commonly, classifications designed for heavy industrial uses are applied. Yet as a consumer-focused business, self-storage thrives in areas with high population density and traffic flow, which are characteristics rarely found in industrial zones. This disconnect creates a persistent gap between developers and zoning boards.

Negative perceptions. Self-storage is rarely featured in a town planner’s ideal vision. When designing community development, officials typically prioritize pedestrian-friendly spaces with dining options and dynamic retail establishments. Storage facilities—often viewed as unattractive structures with sparse personnel consuming precious land through endless corridors of drive-up units—clash with these aspirations. Any proposal that contradicts a planner’s established blueprint will face skepticism, with opposition manifesting in various ways.

Moratoriums. Several communities have responded to these three factors by implementing moratoriums on self-storage, prohibiting new development indefinitely. Birmingham, Alabama; Cape Coral, Florida; Milford, Connecticut; Toledo, Ohio, and other municipalities have chosen this path to halt additional construction. The duration of these restrictions makes rezoning impractical in certain regions for the foreseeable future.

With this challenging landscape as context, here’s my four-step approach to achieve optimal results when engaging with local zoning departments to build a self-storage project.

Step 1: Educate and Prepare

It’s always a losing proposition to call the local zoning board and simply ask whether an area allows for self-storage. You’ll invariably receive a “no” response while simultaneously positioning yourself poorly for any formal approach later.

Before presenting your case to the board, invest time in thoroughly educating yourself on zoning laws relevant to your potential self-storage site. Understand your parcel’s current classification, determine whether you need a full rezone or just a conditional permit, and familiarize yourself with any design requirements in the building code. For instance, parcels within a Planned Unit Development typically come with specific regulations you’ll need to address.

To gauge the political climate surrounding a particular zoning board, research recent developments to identify what projects have been approved, their locations, and how they secured permission. Building rapport with a local self-storage broker can be valuable, as they often understand what the city permits. Just be wary of overly optimistic “broker talk.” The most valuable resource is a local zoning attorney, though the additional overhead costs make this option impractical in some cases.

Step 2: Paint the Picture

In the self-storage industry where facilities often appear indistinguishable, setting yourself apart from other developers is essential. You must present a vision of a well-orchestrated, class-A project through a comprehensive pitch and unified team.

Begin by making a strong first impression and become thoroughly familiar with the jurisdiction’s zoning policies. Surprisingly often, you may find yourself educating the zoning-board members—but always do so respectfully.

Provide contemporary renderings of a self-storage facility that aligns with the board’s design standards. Distinguish your plan from older, outdated properties by emphasizing features such as:

Advanced security

Climate-control systems

Enhanced lighting

Aesthetic appeal

Spatial efficiency (particularly for multi-story buildings)

In addition, outline how your preliminary build plan complies with setback requirements, ensuring adequate distance between the self-storage facility and surrounding properties.

While exercising caution for tax-assessment purposes, providing an estimate of expected construction costs can strengthen your position. Local governments have significant financial incentives not to reject a $10 million project on undeveloped land.

Step 3: Leverage Experience

The most effective way to instill confidence in a zoning board is to demonstrate previous success through the process, with high-quality self-storage facilities as evidence. If you lack this track record but possess an excellent site and plan, consider hiring a development-services group that can incorporate their portfolio as proof that your project is in capable hands. Their extensive experience means they’ve navigated these processes numerous times and are prepared for the various challenges and requirements that invariably emerge.

Step 4: Get Used to Rejection

If you dedicate substantial time to researching self-storage markets and sites, you’ll recognize that most promising areas where you’d want to build have low approval probabilities. When approaching a zoning board in these locations, prepare yourself for the likely outcome.

However, with persistent effort, you’ll discover sites that offer the ideal combination of location, market conditions and legal feasibility to make a project financially viable. Self-storage industry trends confirm this reality, with development showing no signs of slowing down in the foreseeable future.

Andrew Macy is a broker and developer for Macy Storage Co. , which specializes in self-storage brokerage, deal syndication and development for standalone facilities and mixed-use projects. He oversees day-to-day operations, focusing on site selection, zoning strategy, business development and investor relations. He also leads entitlement efforts, prepares lender-facing financial models, and supports management teams through lease-up and operational performance. You can reach him at 317.654.8089 or by email [email protected].

About the Author

Andrew Macy

Broker and Developer, Macy Storage Co.

See more from Andrew Macy

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