SAN FRANCISCO—As Amazon is doing with the retail world, new players in the storage realm are working to cut out the middle man and capitalize on consumers' desire for instant gratification. This is leading to new luxury amenities in the self-storage world.
Some of those features include pick-up and drop-off services, tracking inventory for ease of maintenance on the customer, and moving/delivery services, which is particularly valuable in large cities where residents frequently do not own vehicles.
An example of a company experiencing rapid expansion with these types of services is Closetbox. Utilizing valet self-storage, Closetbox is now offering services in 38 states, focusing on urban areas. Storage rent is flexible and proportional to the belongings stored.
Closetbox professional movers wrap, pad and protect belongings. Then, boxes and heavy furniture are carried to a commercial storage moving truck and transported to secure storage. Closetbox's storage facilities are monitored 24/7 and all items are locked in individual vaults. And, belongings are packed for long-term storage.
Beyond moving services, Closetbox also stores belongings that may not fit neatly into daily lives, such as heirlooms, seasonal clothes and holiday decorations.
As a result of these types of services, industry expert Ben Rishwain, vice president and director of retail and investment sales at Transwestern, predicts that storage facilities could soon begin moving away from city centers and into city outskirts, capitalizing on less expensive land and rents. Not only will this lead to an increase in these valet-style amenities, but it will also free up valuable land in constrained markets across the country. He shared some of those insights in this exclusive.
GlobeSt.com: The ways that Amazon is affecting retail is vast. Are we in danger of being over-Amazoned?
Rishwain: Some researchers state that Amazon is now used by almost half of America's households. As long as there is a need and Amazon can accommodate it, then the only danger is the changing landscape of shopping preference.
GlobeSt.com: How are self-storage facilities using the Amazon model to gain storage customers?
Rishwain: Some self-storage companies, like PODS, MakeSpace.com and Closetbox use the pickup and delivery method or help you pack.
GlobeSt.com: If storage facilities begin moving away from city centers and into city outskirts, isn't that how they first started?
Rishwain: Over $1.4 billion in self-storage transactions commenced in 2017 across the country, and the average price per square grew by 2.1%. San Bernardino and Brooklyn have historically been the most active markets during the last seven years. However, Las Vegas, Scottsdale and Phoenix have seen quite a bit of storage investor interest lately.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
