Rethinking Our Industry: The New Realities of Self-Storage Development

Tyler Jones, Director of Operations for ARCO/Murray’s Self Storage team, is hosting a roundtable discussion on refining construction strategies for today’s market at the Self Storage Association (SSA) Conference and Tradeshow in Las Vegas. Drawing on ARCO/Murrays’ years of experience in designing and constructing over 15M+ SF of Class A self-storage facilities, Tyler provides a preview to his discussion below. He examines the current economic challenges facing the industry, including rising capital costs and declining project starts.

Preview of Tyler’s Roundtable Below:

I’ve recently taken some time to reflect on the “recession-proof” self-storage industry. It’s a term that’s often used to describe the steady stream of investments flowing into self-storage, but I’ve started to question just how valid it is in today’s market. We’ve been designing and constructing Class A self-storage facilities for years and have frequently heard colleagues in other sectors like office, industrial, and multifamily talk about the challenges their industries face during economic downturns. I’ve always walked away from those conversations feeling fortunate to be in self-storage, especially given how resilient we’ve been during this period of inflation, rising capital costs, and declining rental rates.

However, if we’re being honest with ourselves, while we haven’t lost the war, it does feel like we’re enduring some battle wounds along the way. Our team is fortunate to have steady work, but it’s clear that project starts are slipping more frequently than previous years—a direct result of the economic challenges the industry is facing.

As part of our value proposition to understand our clients’ businesses and be a problem solver, we’ve made it a priority to discover what creative levers can be pulled to overcome these obstacles and achieve a timely return on investment. Now more than ever, I believe self-storage developers need to partner with sophisticated experts who can help navigate challenging sites,  dynamic construction costs, and a myriad of other significant challenges faced throughout the project’s lifecycle. The expertise and experience of our team enables us to design and build more cost-effective facilities while refining our construction strategies to meet today’s economic challenges.

Despite the recent difficulties, I’m confident our industry will continue to thrive. We have a strong track record and a close-knit community of talented professionals who will keep pushing self-storage forward. With the technical expertise and proven execution of the team at ARCO/Murray, I believe we’re not only well-positioned for success, but we also arm our clients with resources and support to succeed.

For more on strategy in today’s self-storage market, I invite you to join me for a Round Table discussion at the Self Storage Association conference in Las Vegas on Wednesday, September 4th, at 4:15 pm at the MGM Grand.

We are exhibiting at the Fall 2024 SSA Conference and Tradeshow

We invite you to visit our booth at the upcoming SSA Conference & Trade Show in Las Vegas September 3-6, 2024, BOOTH #322. Join us and unlock more actionable insights into the critical components of successful construction projects and gain a deeper understanding of how we navigate the complexities of today’s self-storage landscape.

Beat the tradeshow rush and save time by scheduling an appointment ahead. Complete the form below and someone on our team with be in contact with you.