Building storage units is a valuable opportunity for investors and operators. The demand for self-storage continues to grow and evolve, as consumers are more and more reliant on flexible storage solutions. So, it is key to know our storage options. For example, how do the building costs for storage units differ between traditional and relocatable self-storage? If you are looking into building storage units, here are some things to consider. 

When building storage units, it’s important to compare traditional and relocatable self-storage options. Each has unique advantages, challenges, and costs. Understanding these differences helps operators and investors make informed decisions that align with their goals, market demand, and long-term strategy. Here, we break down the different types of self-storage facilities, storage units, and the various options within each.

Types of Self-Storage Facilities

• Traditional Storage: Traditional drive-up storage facilities offer various unit sizes. They accommodate diverse customer needs. Yet, these are permanent structures. Which means that they involve significant upfront investments. Plus, there are the permitting and building codes to deal with when building a traditional storage facility.

• RV and Boat Storage: Building a facility for RV and boat storage requires additional considerations, such as larger unit sizes and possibly covered parking. These facilities may incur higher construction costs due to the need for reinforced concrete and larger entryways. Using relocatable units is an innovative and efficient option to enhance RV and boat storage.

• Multi-Level Indoor Storage: Construction costs for multi-level facilities are typically higher. This is due to the need for specialized materials, insulation, and HVAC systems. Hallway systems, however, are an ideal cost-effective storage solution for multi-story facilities.  

• Facilities Using Relocatable Storage Units: Relocatable storage units are designed for maximum flexibility and offer fast order-to-installation timelines. They are ideal for setting up entire facilities or for expanding existing ones. These movable, stackable, and customizable storage units provide convenient, drive-up storage that can function independently or complement traditional storage structures. Operators meet the demand without the lengthy construction projects or high initial costs.

Building and Expanding Self-Storage Facilities

When building or expanding a self-storage facility, here are some essential factors to consider:

Building Materials

Constructing traditional storage facilities involves using costly materials such as wood, concrete, and insulation, which add complexity to the construction process and increase both initial and long-term expenses, especially when factoring in ongoing maintenance and necessary upgrades over time. In contrast, relocatable units are built with durable, weather-resistant steel, reducing upfront construction costs and requiring less maintenance over their lifespan. Their durability and ease of care make relocatable units an attractive, cost-effective solution for many operators.

Self-Storage Facility Location

The location of your facility significantly impacts the costs of building storage units. In urban areas, land and labor expenses are higher. This often translates to a greater investment. Rural settings may be less expensive but could face lower demand. Relocatable storage units shine here, as they optimize space usage by fitting in tight areas. They fit along fence lines, easements, or around existing structures, enhancing site utility without the cost of new builds. 

Storage Size and Design

Traditional facilities need planning and investment. With their fixed layouts and complex designs, it is challenging to adapt to market shifts in a timely manner. By contrast, relocatable units offer flexible, scalable options that expand incrementally with demand. Relocatable units are shipped flat-packed, which lowers costs. Plus they assemble quickly with forklift pockets to place and reconfigure as needed. Customizable colors, configurations, and door types make them ideal for adaptable growth.

Permitting and Regulations

Permitting impacts project timelines and plays a role in the facility’s financial strategy. Traditional construction involves time-consuming permitting processes due to zoning and building regulations. This will delay project timelines when building storage units. Relocatable storage typically requires less stringent permitting processes since these units classify as equipment rather than permanent structures. They also provide valuable tax savings through Section 179 write-offs. Ultimately, relocatables enable quicker project launches and expansions.

Financing Options 

Understanding financing options is critical in managing costs for your facility. Lenders offer customized financing options, including SBA loans, conventional loans, bridge loans, and more. Each option has distinct advantages, and working with experienced lenders can help find the best fit for specific business needs. Check out our recent article, “The Best Financing Options for Relocatables.” 

Here are a few common financing options for storage: 

• Traditional Bank Loans: Many developers finance their projects through loans. This provides the capital needed to cover construction costs. 

• Small Business Administration (SBA) Loans: Long-term financing with competitive interest rates. Intended for smaller operators.  

• Other Financing Options: These include bridge loans, construction loans, hard money loans, mezzanine loans, private investors, merchant cash advances, and lines of credit. 

Return on Investment

ROI depends on factors like market demand and efficiency. Traditional facilities may take longer to generate returns. This is due to extensive construction and permitting. Relocatable units, on the other hand, arrive in about 10-14 weeks. They are delivered flat-packed for easy assembly. Your facility will move from concept to cash flow much faster than with traditional construction. These units also offer flexibility for gradual expansion. You can grow your storage facility to meet market demand without extensive delays.

Advantages of Relocatables

Why consider relocatable self-storage units? With quick assembly, low initial costs, flexibility, and durability, it’s a win-win. Plus, consider the security features and customization options. They help maximize revenue, minimize costs, and allow operators to pivot quickly as market conditions evolve. 

• Quick Assembly: Relocatable units are assembled within 20 minutes on-site. This reduces labor costs and enables rapid expansion. 

• Lower Upfront Costs: Compared to traditional facilities, these units involve lower initial expenses. Plus, they have minimal site preparation. 

• Flexibility: They are moved easily and repositioned within a facility. This makes them ideal for maximizing space and adapting to market demands. 

• Durability and Maintenance: With robust steel construction, relocatable units withstand various weather conditions with minimal maintenance. 

• Enhanced Security Features: Relocatable units come with features like robust doors and locking mechanisms. Plus, they are compatible with smart entry and locking systems.  

• Customization: Units can be tailored with custom colors, logos, roll-up doors, and dividing walls to meet specific needs. 

Self-storage is not a one-size-fits-all industry. The choice between traditional and relocatable units depends on specific business goals. Relocatable units provide the adaptability, cost-effectiveness, and scalability needed to remain competitive. This all makes them an ideal choice for modern storage facilities. By choosing relocatable units, you can expand your business. Plus, you can reduce costs and stay competitive in the evolving self-storage industry.

At Boxwell, our commitment to quality is more than just words. Because we produce our products at Boxwell-owned facilities, we can offer the highest standards and responsiveness to all of our customers. Our portable containers, relocatable self-storage units, roll up doors, and hallway systems come with warranties and dedicated support. Therefore, they are a reliable and worthwhile investment for any storage facility.   

Each of our products caters to the diverse needs of businesses worldwide. Our extensive reach encompasses storage facilities across various regions. This spans across America, Australia, Canada, Europe, Ireland, Germany, the Middle East, the United Kingdom, and beyond. Boxwell designs, manufactures, and delivers fully customizable, durable, and movable storage solutions. At the end of the day, you can focus on running your operation!  

Work with a Boxwell representative to decide your ideal unit mix, custom colors, door configurations, and more. Your Boxwell storage units will be shipped flat packed and assembled fast with just a few dozen nuts, bolts, and basic tools. You will be ready to rent them in no time! Check out boxwell.co or call (303) 317-5850 for more information.