Is now a good time to invest in the self storage industry? The answer is a resounding yes, writes David Lucas of Mini-Storage Messenger, which quotes NDC Construction in its March 2015 issue. Lucas describes a “perfect storm” that he attributes to “pent-up demand, rising rental and occupancy rates, and ready money.” He characterizes Texas as a hotbed of activity because of fewer barriers and a booming population and economy.

“We went from having no work for three years to having six jobs in 2015,” says NDS Construction President Rachel Parham in the piece titled The New Wave of Development. “It’s crazy now compared to what it was three years ago when we were begging for work and now everyone wants to build self storage.”

Lucas describes a “perfect storm” that he attributes to “pent-up demand, rising rental and occupancy rates, and ready money.” He characterizes Texas as a hotbed of activity because of fewer barriers and a booming population and economy. NDS Construction is located in Bulverde, Texas.

Where to Build Self Storage Units

Metro markets in general are a win, he says, and size does matter. Because of barriers to entry, such as neighborhood opposition or municipal requirements, in order for facilities to be profitable they have to be big.

“Back in the day, we could build a 30,000-square-foot facility and have an office and build it out over time,” Parham is quoted as saying. “We were able to pay our manager the going rate, but that’s changed. You’re building bigger facilities because you need to fill it up now because you have to pay for that office.”

Modern Storage Unit Features

In addition to increased size for profit margins, Lucas writes there’s an emphasis on aesthetics and energy efficiency. As municipalities get stricter on requirements, storage facilities are increasingly resembling commercial office space. As energy codes become stricter in areas such as California, construction continues to evolve with energy conservation in mind.

“Another new facility feature we’re seeing in multilevels is covered loading and unloading, especially in Texas where it’s really hot one day and can get cold and rainy,” Parham said.