Climate controlled units are many times an indication of a modern sophisticated facility. They cost more to upkeep but usually will be rented out for higher rates. A climate controlled unit gives renters peace of mind that their belongings will be kept at a safe temperature year round which can prevent mildew or mold from forming.
However, that is not to say that non-climate controlled units are not profitable and in high demand as well. They are typically cheaper to rent then their climate controlled counterparts, and for renters looking to just park some of their unwanted stuff that isn’t susceptible to damage from mold or extreme temperatures.
The average price per square foot for climate controlled units* was $1.46 in Q1 2021 while the average price per square foot in Q1 of 2022 was $1.67 with there being a 14.4% increase from 2021 to 2022.
The average price per square foot for non-climate controlled units* was $1.33 in Q1 of 2021 while the average price per square foot in Q1 of 2022 was $1.56 with there being a 16.86% increase from 2021 to 2022.
While the average price per square foot was more for climate controlled units, the percentage increase from 2021 to 2022 was higher for non-climate controlled units, showing that having a good mix of climate and non-climate units depending on your market could help you maximize your facilities profit outputs.
*Based on the average of all 10x10 units from the Public REITS
Pros and Cons of Self Storage SBA Loans vs. Traditional Loans
Decide wisely between SBA and traditional loans for your self-storage business. SBA offers lower down payments, but traditional loans provide lender reliability. Make informed investment choices for your storage facility.