When it comes to the overall appearance of your facility, image truly has an important impact on your success. In today’s business environment, perception becomes reality to most people, so whether you like it or not, your tenants and prospects alike look at your facility with a critical eye and if they don’t like what they see, it will surely affect your bottom line.
One of the most important facets of your facility’s appearance is the condition of your buildings. Even if your landscaping is relatively attractive, the curb appeal of your buildings is the key.
From the Customer’s Viewpoint
Picture this: a tenant comes by to deposit or retrieve inventory from their unit it’s difficult to open or close the rollup door or its paint looks faded. What kind of impression does this leave? Or prospects drive by your facility thinking about where to store their valuables and the facility appears unkempt and shabby, when earlier they had passed another facility that looked newer and more appealing. Where will they eventually go?
The answer to these questions is simple. Customers notice the appearance of your facility because they want to make sure their valuables are in an environment that is safe, clean, dry and attractive. In fact, did you know that 60%-70% of self-storage decision-makers are women? They tend to be very discriminating and demanding and the better they feel about the appearance of your facility, the more likely they are to rent from you.
To fully understand the impact of your building’s appearance on the mindset of self-storage customers, you must realize that today, they have options and choices. It’s called competition. If they don’t like the looks of your facility, they can go elsewhere, without ever leaving their neighborhood.
Here’s a good rule of thumb when it comes to your facility’s apprearance: If your competitior’s buildings look better than your’s, it’s time to refurbish.
The State of the Economy
Another more practical reason to consider refurbishing now is the state of the economy. If you have had to put planned expansion or new construction on hold, a viable alternative is to refurbish your existing buildings to make them look like new. It will cost less than new construction and has other advantages as well. For example, refurbishing your buildings may increase rental rates and occupancies, reduce maintenance, eliminate roof leaks and the cost may mean a tax write-off.
This preoccupation with facility appearance and image on the part of customers is a relatively new phenomenon. It hasn’t always been this way. To get a proper perspective, a little industry history might be in order.
Self-Storage Beginnings
Anyone who has been in the self storage business for a few years will tell you that in its formative years, it didn’t have the best reputation, as businesses go. In fact, it didn’t have much of a reputation at all. Not too many people even knew self-storage existed.
But as the business moved from the west coast eastward during the 1960s, more and more people began to see rows of cinderblock or tin buildings popping up. Sure, they were on the wrong side of the tracks, because no self-respecting neighborhood wanted these unattractive, and in some cases eyesores, polluting its landscape.
As a result, self-storage facilities were relegated to the industrial and commercial sections of town. And in spite of it’s modest, somewhat questionable and unheralded beginnings, people from all walks of life began to recognize the value of self-storage. Whether folks were moving, getting divorced, downsizing, or simply needed extra space for their extra possessions, finding a suitable storage facility at a reasonable price, became important.
Predictably, the business grew because there was a public need, and when businesses grow, people pay attention. That includes potential customers as well as potential investors. Wall Street began to take notice, because entreprenuers soon discovered that self-storage was a much better investment than most real estate. So many of these new investors developed multi-facility locations in several cities.
But the majority of investors in the business, close to 80%, are Mom and Pop operations, small business owners looking to supplement their retirement income, or folks who are already involved in business and are looking to invest in another business that won’t take up 100% their time. Plus, (and here’s the best part), the business can produce positive cash flow in one to three years.
A New Day in Self-Storage
Over time, the self-storage business moved from being a marginal investment to where it is today — a business with a good ROI, but a business with stiff competition in some areas. One that now operates from well-designed, state of the art complexes, often times in upscale neighborhoods and retail environments, offering the latest technological features. These are the reasons why facility image has become so important.
So, here is a reminder: Look closely at your buildings for signs of deterioration. From a very practical point of view, look at your competitor’s buildings too. If they appear pristine and new, it’s all the more reason to level the playing field and reburbish your buildings to equal or exceed their appearance. Remember, if your facility has a few years on it, now might be the right time to consider a facelift.
Statesville, NC – BETCO, Inc. and BVFR & Associates, LLC have formed an exclusive alliance that helps BETCO self-storage customers, who qualify, secure favorable construction financing. This breakthrough is welcomed news for real estate developers, who have been suffering from a tight credit environment for the past few years.
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