Future-Proofing with Upgrades & Expansions | Self Storage Virtual Workshop

Gabfocus Episode 74 | Future-Proofing with Upgrades & Expansions

With shiny new competition entering the market, you have to make sure you're staying competitive! If your self storage facility looks like it was built 30 years ago and hasn’t been touched since, customers are going to choose someone else.

Your storage facility doesn’t need to be knocked down, though! Self storage upgrades and expansions are much cheaper and quicker than building new, and can have the same effect on your bottom line. Learn all about facility expansions, which upgrades are worth the investment, and how to vet vendors.

Featured Speakers: Nigel Kreft
Moderators: Tommy Nguyen & Melissa Huff

Category: Construction & Repairs
Focus: Owners & Operators
Aired: July 22, 2025
Duration: 1:08:24

Overview

If you don't have time to watch the whole session, here are some of our favorite parts:

00:00 - Introduction
3:30 - What are the signs that you should upgrade or expand your self storage facility?
8:30 - Is there a best time of the year for construction upgrades?
13:10 - How do you balance short-term ROI with long-term ROI?
17:10 - What self storage facility upgrades and updates should you make regularly?
22:50 - What’s important when upgrading your roof?
24:15 - What should you consider when doing structural repairs?
25:50 - How can you upgrade your fencing?
27:30 - How can you upgrade your self storage gate and access system?
31:00 - What updates should you make to your HVAC or climate control system?
33:00 - What types of landscaping should you consider at your self storage facility?
35:40 - When should you expand instead of acquiring or building?
37:40 - What are common construction pitfalls?
40:30 - What do you need to include when estimating an expansion cost?
46:50 - What is the per square foot cost of expanding self storage in 2025?
53:00 - Is a feasibility study worth it for an expansion?
56:00 - What are red flags when it comes to construction vendors or contractors?
1:00:10 - Which 3 facility upgrades are most worth the investment?

Gabfocus Takeaway

It is difficult to compete against new competition right down the road if their facility looks shiny and new and yours looks like it was built 20 years ago! Luckily, you don't have to knock it down and start over because upgrades, updates, and expansions can have your facility looking brand new! Each facility has different needs, but hiring a vendor or contractor that specializes in self storage upgrades and construction can help ensure that all your bases are covered. Make sure that you communicate with your customers when planning construction on your property, and make sure that you have a set schedule for your updates that your contractor is sticking to. Investing in expansions and upgrades will future-proof your facility for years to come!

What are Gabfocus Sessions?

Gabfocus Sessions are virtual workshops for self storage owners, managers, and operators. Brought to you by the team behind Gabfest: StoragePug and Lighthouse Storage Solutions.

Each session features hand-picked industry pros who will dive deep into relevant topics surrounding our industry, share best practices, and explore trends in the market. It's our hope that these sessions help you navigate your self storage business better during these uncertain times.

Want to learn more about self storage? Join us on select Thursdays for Gabfocus.

Questions Answered in this Session

What are the main reasons you should consider upgrades, updates, or expansions?
Is there a right time or season for upgrading & expanding at your facility?
What are the top upgrades or improvements operators should be considering?
Which upgrades & updates provide the best ROI?
What facility upgrades or updates should you consider making regularly?
What's your best advice for updates and upgrades at your facility?
What are the signs you should consider expanding vs. building new or acquiring?
What are common expansion & construction pitfalls?
What do you need to include when estimating an expansion cost?
How much should you budget for unplanned expenses?
How do you vet construction vendors?
What are the pros and cons of different materials for your expansion?
How do you decide on the mix & type of units for your expansion?
What does an expansion timeline look like?
What's your step-by-step guide for expanding?
What are the signs that you should be asking your contractor or construction vendor more questions or for more updates?
Which 3 facility upgrades do you feel are not worth the investment?

Resources from this session

Awesome Quotes

“Once your operation is in place, you can become more dynamic with your pricing, but that requires data. You need some method of being able to record the data that you need to know whether your price is in the right place - whether you need to move it up or start giving some concessions.” - Warren Lieberman

“I never want to downplay to what someone else is doing. I'm better than they are, then I'm going to be worth a higher price. That's what value is. If you go out to a restaurant and get really good service, would you go back? Yes! What if it was pricier? You'd still go back because you got better service and a better product.” - Jim Mooney

"It's good to be informed on your competition. I don't want to ignore them, but I don't want to respond too strongly to them either." - Warren Lieberman

"We did a survey of 10,000 facilities on their pricing. We found out that two-thirds of those operators didn't change the price of a single unit of the course of a month." - Warren Lieberman

“Rate increases and value pricing are the number one ways to grow your revenue.” - Jim Mooney

"Tenants in more convenient units tend to be less price sensitive." - Warren Lieberman

"The size of the unit is only one aspect of what people are willing to pay for." - Warren Lieberman

Highlights

Foundational marketing strategies to have in place - whether leasing up or stabilized:

Website
Set up listings (Yelp, Google My Business, Apple Maps)
Social Media
Establish Local Partnerships

Lease up marketing strategies:

Lead Generating Strategies (like digital ads)
Aggregators (Sparefoot, Storagefront, etc.)
Awareness Campaigns (like billboards, flyers, and sponsorships)

Your average customer value
Find the average stay length of all tenants. Next take your economic occupancy and divide by how many units you have. That will tell you what the average customer pays.

Multiply the average length of stay by what the average customer pays, and that's the average value of a customer.

For example, if a customer stays for 12 months and pays $100 per month, then their value is $1,200.

Your average lead value

Figure out your closing rate (or conversion rate) i.e. how many leads do you turn into tenants? Multiply that by your average customer lifetime value to figure out what your leads are worth.

Pro Tip: see which lead sources are converting the best. It may be that certain sources have a higher conversion rate, so those leads are worth more to you than a source that barely converts.

Typical Lease-up timeline

According to our panelists, it's typical to see a 3-4% increase each month, putting your facility at 36% after the first year, and 72% after the second.

Alternately, you can look at your lease up goals through the lens of your units, aiming for 20 units rented per month.

For Nick and StorageMax, they pro forma their economic occupancy at 85% with their sweet spot at 92%.