phone: (866) 562-2580
REQUEST A QUOTE
CONTACT US
SUPPORT
Menu
Free Pack
REQUEST A QUOTE

New Year, New Thinking: A Look Ahead for Owner-Operators 

Feb 04, 2025

It’s no secret that every presidential election year can cause upheaval in capital and real-estate markets. But despite the U.S. experiencing a tumultuous election cycle, many self-storage owners are cautiously optimistic about the brief respite in declining rental rates, as well as occupancy levels.   

Read on for several positives in our industry that are actively taking place – and offer the potential to set you up for success in 2025.

It’s commonly known that our industry experienced a boom during the pandemic, leading to some of the highest rental rates and occupancy levels we’ve ever seen. This boom led to increased development activities across all market types – urban, secondary and tertiary alike. As a result, this brought more attention and resources to an asset-class industry that historically has been considered "behind the curve" in technology, innovation and more.

As these enhancements and new products have become available, the self-storage experience has become far more elevated for both owners and tenants. And now facilities can take advantage of those advancements in technology platforms, products and services to address some of their most pressing issues such as using tech to fortify units from break-ins by installing higher security doors and Nokē Smart Entry keyless entry, keypads and electronic locks.  

  • Another positive for the industry? Americans are sitting on the largest amount of home equity we have ever seen at any one time. With the median value currently sitting at roughly $300K, according to CoreLogic, the best way to access this capital is by reinvesting it in the form of residential improvements, which often leads to renting a storage unit as homeowners make improvements to their homes.  
  • Stability is key. Rental rates in some top urban markets are beginning to experience some stability, likely due to market consolidation, employing unique pricing strategies, limited offerings and increased demand due to urbanization trends including population growth due to lifestyle and/or job changes.    
  • Something to ponder: How are you handling existing customer rate increases (ECRI)? Are you deeply discounting with a move-in special and shortly after accelerating the rate? Or are you using technology to drive the decision of when and how much to increase the rate? Perhaps you are getting creative and applying some mix of both. As REITs and larger private operators are experimenting with new revenue management strategies, many owners and operators are pondering what method will work best for their markets in keeping customers while growing revenue. Some operators are leveraging facility improvements to elevate the customer experience, which in turn allows them to charge premiums for these investments for increased revenue. And other operators, like National Self Storage, for instance, have found ways to successfully monetize smart locks, turning their investment in Nokē Smart Entry into a $3M increase in portfolio value.

What’s Next  

If you’re not currently considering expanding your facility and/or taking on a new construction project, you may be like many owners and operators nationwide who are assessing their immediate must-dos to increase their ROI and stay competitive with the new supply in many markets. As we all know, tenants make decisions to rent for a variety of reasons, but the curb appeal of your site is one of them. You’ll want to formulate a plan to handle the necessary repairs on currently unrentable units, address the safety and security of your site and ensure you’re doing all you can to stand out in your market in order to increase occupancy rates and revenue. 

If you’re unsure where to start when considering which improvements make sense for your facility or facilities, consult with the professionals. For example, at Janus, our Facilitate division is expert at helping you keep up with repairs and preventative maintenance. And our R3 division helps transform facilities with a mix of offerings to fit your needs, including replacing your storage unit doors, optimizing your unit mix and idle land and adding a more robust security solution. Thinking about building a new facility? We help there, too, with our SmartReady™ package that provides the blueprint to lay the groundwork for a true smart building before the ground is even broken.  

At Janus, we’re far more than an award-winning door provider. We’re a total solutions provider ready to help you decide on your next move.  

 

About Our Expert

Janus_BIO_2025-01_TheresaTheresa Gallas is the Director of Industry Engagement for Janus International, bringing over 15 years of expertise in technology, construction, real estate, access control, data-driven decisions and facility improvements within the self-storage sector. Prior to joining Janus in 2019, she worked with the Storage Business Owners Alliance, co-founded List Self Storage and served as past chair of the Self Storage Association’s Women’s Council. She is currently a board member of the Self Storage Association of Michigan as well as multiple non-profit organizations.

icon

Subscribe by Email