Commercial Real Estate | 5 minute read
5 Types of Businesses That Can Leverage Self Storage to Maximize Space
BY Eliza Theiss | Jan 25, 2024
Businesses increasingly use self storage, renting extra space for stock, equipment, paperwork and much more. The flexibility of this service lets freelancers, entrepreneurs and large companies alike expand operations by taking advantage of a wide range of unit sizes, whether their storage needs are regular or unpredictable.
Self storage tends to score better than warehousing in terms of availability, and costs are lower than they would be for extra office space needed to accommodate a stockroom. Since storage facilities stayed open during the last few years’ challenges, a wider range of businesspeople have discovered its benefits. As a result, storage for business purposes is now the main reason cited by an increasing 7% of customers.
To further showcase the versatility of self storage, we looked at five types of business — some widespread and others somewhat niche — that can gain significant advantages by accessing the self storage market.
1. Retail Businesses Use Self Storage Units for Efficient eCommerce
Ecommerce has significantly accelerated in recent years as physical premises had to close. More retail companies turned to self storage as a flexible and low-cost solution for keeping stock — not to mention office paperwork and other documentation.
Top 5 Ways Retail Businesses Leverage Self Storage:
- Monthly leases save businesses money as leased space is tailored exactly to their requirements
- Swapping easily between small or large units helps businesses with unpredictable inventories
- Storage units with drive-up access allow easy delivery and retrieval of stock
- 24-hour access and electronic keycards make shipping possible at all times
- Self storage is increasingly common nationwide, making it more convenient than warehousing
Retailers often find that supply and demand don’t match — sometimes having to wait for events like Christmas or Black Friday to shift a lot of products — and have found the flexibility of self storage a great advantage. Free-standing shelving in units, provided either by the facility or the customer, makes inventory organization and shipping even more efficient. However, it should be noted that storing food or flammable liquids is usually prohibited.
2. Contractors and Construction Companies of All Sizes Can Efficiently Use Self Storage
The wide range of tools and materials needed by plumbers, glazers, electricians and plasterers, as well as the more advanced equipment used by established companies, can all be kept in self storage units.
Top 5 Ways Construction Businesses Leverage Self Storage:
- Start-up construction workers can keep tools and gear in storage rather than in a cramped apartment
- Storage facilities are often located near major roads, so everything can be picked up quickly on the way to work
- Specialist equipment kept at a conveniently located storage facility can be used for a multitude of nearby jobs
- Storage facilities have large units and covered outdoor parking for construction vehicles
- The high level of security through commercial video surveillance systems and cleanliness at storage facilities provides a better environment than most other options
For large vehicles, units with garage-sized floor spaces and ceilings higher than the usual 8-foot standard are usually needed, but outdoor parking places will generally have lower rates. Units with climate control are useful for items susceptible to humidity, such as plans and paperwork. In addition, some storage facilities have business centers attached, allowing for a construction company to handle office work close by.
3. Pharma Needs Storage for Products & Promotion Materials
The pharmaceutical sector handles a lot of delicate items. Not only do medicines have very specific storage requirements, but often, equipment and promotional materials also need careful handling.
Top 5 Ways Pharmaceutical Businesses Can Leverage Self Storage:
- Climate-controlled units are ideal places for medicines that need to be stored under strict conditions
- Promotional materials such as paperwork and pamphlets, also benefit from climate-controlled storage
- Promotional samples need to be stored in the same careful way as medicines
- Self storage tends to be hyper-local, so everything sales reps need can often be kept close to a regional office
- The advanced security at storage facilities presents an additional layer of safety when storing particularly popular drugs and medicines
Reps can also keep their work vehicles in car storage. Boxes of pharmaceutical products are often light and flimsy, so rather than stacking them in a unit up to the usual 8-foot ceiling, putting them on shelves may be preferable. Flammable or explosive substances are not allowed in storage units — in fact, a facility may even prohibit certain types of batteries — and neither are any live plants grown for their pharmaceutical properties.
4. Dealers in Collectibles Use Storage Units Both to Store & to Sell
Building a collection can take up significant amount of space, and this is multiplied for businesses dealing in collectibles. A storage unit is an excellent place for large quantities of bulky items.
Top 5 Ways Dealers in Collectibles Can Leverage Self Storage:
- Dealers amass lots of items to attract business but some may stay on the shelf a long time — leasing storage is a great solution
- Collectibles such as sports memorabilia, vinyl records and antiques gather less dust in a sealed storage unit
- Units with climate control are recommended for delicate collectibles such as vintage clothing and comic books
- Anything worth collecting has value, making a storage facility’s security a better option than a dealer’s garage
- A storage unit could also be used to showcase and display items to potential customers who can access the premises by invitation
Walk-in 5×10-foot storage units could be used as small showrooms, with collectable items displayed on shelves placed against walls or they can be packed for quick and easy retrieval. Collecting military memorabilia is particularly popular, with specialist dealers sometimes keeping large stocks of uniforms, swords, helmets and other such items for specific wars. However, functioning firearms cannot be kept in a regular unit and neither can live ammunition.
5. Event & Party Planners Use Storage Units Until Specific Holidays & Events Come Around
Businesses providing services for annual events necessarily have irregular schedules and need a place to store gear for almost the entire year, with party planners facing similar issues. In all these cases, renting a self storage unit can be ideal for a wide variety of specialist items.
Top 5 Ways Event & Party Planners Can Leverage Self Storage:
- Holidays such as Christmas or Diwali require décor that must be stored almost all year round
- Parades organized for Mardi Gras, Carnival, Thanksgiving and such, can involve large floats and figurines
- Specialist cooking equipment such as large vats and chocolate fountains are needed only for catered events
- Weddings are a multibillion-dollar industry but tend to take place on weekends during warmer seasons
- Smoke and bubble machines, drapes for cordoning off spaces, party lights etc. are only needed for parties but can otherwise be kept in a storage unit
Party planners may need to stock a wide range of items, but not anything as large as parade organizers’ gear, and so could rent small 5×5-foot storage units — even regular families might want to store props for special occasions in one. Some cultures have a celebration so significant, planning next year’s event starts as soon as this year’s is over, like the Rio Carnival, so participants can visit their storage unit year-round to try out new ideas.
Self Storage: A 1.8B Square-Foot Flexible Solution Across the Country
Businesses of many types and sizes can leverage self storage to secure the extra space they need. The service’s flexibility means units can be leased short- or long-term, and can be rapidly swapped to provide the exact space required at any time, reducing costs. With the advancements the sector made in the past few years, it further adapted to business needs and now offers more than 1.8 billion square feet nationwide.
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POSTED IN: Commercial Real Estate, National
Eliza Theiss is a senior writer reporting real estate trends in the US. Her work has been cited by CBS News, Curbed, The Los Angeles Times, and Forbes among others. With an academic background in journalism, Eliza has been covering real estate since 2012. Before joining PropertyShark, Eliza was an associate editor at Multi-Housing News and Commercial Property Executive. She has also contributed extensively to CommercialEdge. Reach her at [email protected]
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