(...and/or RV/boat parking world)
A semi-regular newsletter in which I share 3 things storage related, and all images are AI-generated.
- RV/boat parking: Covered vs. uncovered - In self-storage, there are primarily two distinct product types: climate-controlled and non-climate-controlled (or ambient). Generally, climate-controlled units attract a 10-30% premium over non-climate controlled, though that number can vary widely. However, in the RV/boat storage world, there are three distinct product types: uncovered, covered, and enclosed. While enclosed may get a 20-30% premium over covered, in many markets, uncovered spaces rent for a fraction of covered/enclosed spaces. I've seen multiple markets where a typical 35' covered space rents for $150+/mo and an uncovered space rents for $45/mo. [Insert typical disclaimer that all markets are different]. So... if you're building an RV/boat parking facility, know that uncovered spaces can greatly decrease your earning potential. In most cases, it’s worth finding some more money to at least offer covered parking.
- Why are uncovered parking spaces so cheap? Building off the last 'thing', uncovered parking spaces are cheap for a few reasons. The first is that uncovered spaces are often seen as an ancillary use—either for self-storage or some other business that has excess land. It's not the main business and it's treated as such. A lot of times, the business owner will set a flat price at $50/mo for uncovered spaces, fill it up, and then won't think about it again. They are not shopping competition and adjusting rates accordingly. Secondly, barriers to entry for uncovered parking are extremely low. Assuming your zoning is ok (or that your local code enforcement is lazy), you can basically start an RV/boat parking business with uncovered spaces for nothing. So if you do stumble upon a market with decent rates for uncovered parking, just beware that it won't take much for additional competition to flood the market. All that said, uncovered RV/boat parking is a great interim use for your land if you have bigger future plans in the works.
- COVID-19 killed seasonality in RV/boat parking - Another recurring theme we're discovering as we talk to more and more RV/boat parking facilities across the country: seasonality is dead. Before Covid, RV/boat parking facilities could count on summer (or winter in hot climates) being slow because that's when tenants took their toys out. When Covid came, along with the explosion of RV/boat sales, demand for RV/boat storage soared. Now, it's commonplace for tenants to continue paying rent on their empty units just to hold their space until they get back from their summer adventures.
If you have any comments/questions or want to talk through your project, message me here or on our website.
Hope you have a great rest of your month!
