by Tony Gonzalez
August 9, 2011 6:46 PM
There is an old saying that claims that variety is the spice of life; to keep things interesting you have to change it up. The same can be said when it comes to the self storage industry except variety is not necessarily the spice in self storage life. It is the sustenance.
The self storage industry is a pretty straight forward one. People need a place to keep their stuff and self storage facilities provide it. As straight forward as it is, on the surface it would seem pretty difficult to add some diversity (the spice) to what a self storage facility does.
However, any business major will tell you that if your entire business centers around doing one thing and one thing only, you are setting yourself up for failure in case demand for that one thing falls. That is likely why many self storage facilities work diligently to create multiple streams of income when possible.
Coffs Harbour Hi-Tech Self Storage in New South Wales, Australia, is a perfect example of this concept. Recently the company purchased a piece of land that used to have a huge cement silo on it. Minus the silo, the space now serves as the home of Coffs RV Storage.
“Owners of RVs can choose between total lock-up, carport or open stand storage,” Karen Windows, the managing director, said.
Previously, the facility had specialized in personal self storage and document storage.
In the United States, many companies have begun to specialize in document storage to add some diversity to what they do. LifeStorage Centers, LLC, in Chicago recently started to provide record storage and management services.
“It was a natural fit for us to adopt record storage into our business plan,” said Matt Clark, Vice President of Operations for LifeStorage. “We are expanding our storage options and services to better accommodate our clients’ needs and lead the charge in changing how records storage management is utilized.”
A more unique way of creating additional income has nothing to do with the main purpose of a self storage facility—telecommunication. Companies like AT&T, Verizon, Sprint, and T-Mobile need someplace to place their equipment in order to insure the best service and coverage to their customers.
Self storage facilities often have the perfect type of layout to add some telecommunication equipment to the property. With the favorable zoning classifications and proximity to business and residential areas, self storage facilities are favorable options for the telecom companies. It’s basically a win-win situation.
The self storage industry has been one of the few to do well while the economy has been doing poorly. When the day finally comes that the economy becomes vibrant again, having these different types of income streams can be the difference between staying open or folding.
Sources Used:
“Secure site for recreational ‘toys.’” The Coffs Coast Advocate; 09 August 2011.
“Generating Revenue Through Telecommunications Equipment: Options for Self Storage Property Owners.” Inside Self Storage; 08 August 2011.
“Chicago Self Storage Company now Offers Record Storage and Management Services.” Self Storage Industry News; 03 August 2011.