Factors to Consider When Building Climate-Controlled Self-Storage

As the self-storage sector continues to grow, climate-controlled space is becoming increasingly popular. Customers are looking for units that can better protect and preserve their valuable items. This offering also creates multiple advantages for facility operators, including:

New customers: It can bring in a more diverse range of tenants, attracting those who are concerned about protecting their belongings from the elements.

Extra income: On average, units that are climate-controlled generate 25% more revenue than those that aren’t.

Competitive edge: This offering can be the thing that drives customers to choose your self-storage business over other facilities that don’t.

Additional opportunity: Climate-controlled space can allow you to specialize in other types of storage such as art, records or wine.

Though there are many benefits to this self-storage offering, there are also many factors to consider before embarking on a development. Let’s see what they are.

Demand

Before you commit to building climate-controlled self-storage, it’s wise to complete a feasibility study. Analyze local demographics and the competition to determine if the market can support the new product. For example:

In areas with higher income levels, customers are typically willing to pay the premium rates associated with climate control.

Facilities in business districts can cater to companies that need a controlled storage environment for sensitive records, office furniture, fixtures and inventory.

If you’re near a major transportation corridor, your offering may appeal to traveling salespeople who need storage for temperature-sensitive products like cosmetics, pharmaceuticals, vending supplies and semi-perishable goods.

Tenants who are storing their belongings long-term will recognize the importance of avoiding seasonal temperature and humidity fluctuations that could damage their possessions.

Equipment

Both single- and multi-story self-storage buildings can be suitable for climate-controlled space. Just bear in mind that while a single-story facility only requires one air-conditioning output level, a larger building may need greater output on the second level since it’ll attract heat from the roof. This is why it’s important to work with a knowledgeable contractor who understands air-conditioning loads and equipment.

Climate-controlled storage units maintain precise environmental conditions, typically keeping temperatures below 85 degrees and above 55 degrees. Humidity is consistently maintained below 65% to prevent mold and mildew.

Your choice of HVAC system is critical and requires thorough research. Among the things to consider are operational efficiency and initial financial outlay. Depending on your budget, you might consider a system with a dedicated humidistat that provides independent humidity regulation. This can be essential for protecting customers’ sensitive belongings and maintaining the premium service quality that justifies higher rental rates in competitive markets.

Cost

The cost to build climate-controlled self-storage varies significantly based on facility size, number of units and project complexity, among other important factors. When calculating budget projections, you must carefully account for the specialized HVAC systems and enhanced insulation required.

According to research from Storelocal Storage Coop, traditional self-storage facilities typically cost $60 to $70 per square foot to build, with multi-story developments costing $70 to $95. Climate-controlled construction generally requires an additional 15% investment, a premium that directly translates to higher rental rates and improved competitive positioning in increasingly sophisticated markets.

Cost can also be affected by the price of steel and your location. It tends to be higher in a major metropolitan area than in a small community. It’s also important to remember that monthly utility bills will be greater for climate-controlled units; however, they’ll go down as capacity increases.

Getting Started

Climate-controlled self-storage continues to increase in popularity with customers, owners and developers. While the cost to build is more expensive, it can provide additional revenue and a competitive advantage.

Want to get started? Your best bet is to team up with builders who know the self-storage world inside and out. They'll make sure your project meets regulations—without the headache. With the right partners to handle the details, you'll have your climate-controlled facility up and running before you know it, ready to welcome customers and boost your bottom line.

Hamish Bell is president and co-founder of Forge Building Company LLC. With more than 20 years of building experience, he's been a leader behind the company's growth. He even spearheaded a proprietary method for designing and erecting metal buildings. This innovative approach has been applied primarily to self-storage facilities, revolutionizing construction efficiency and quality in the industry. To contact him, email [email protected].

About the Author

Hamish Bell

President and Cofounder, Forge Building Company LLC

Hamish Bell is president and co-founder of Forge Building Company LLC. With more than 20 years of building experience, he's been a leader behind the company's growth. He even spearheaded a proprietary method for designing and erecting metal buildings. This innovative approach has been applied primarily to self-storage facilities, revolutionizing construction efficiency and quality in the industry. To contact him, email [email protected].

See more from Hamish Bell

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