By Jeffrey S. Dallenbach

The image of self-storage has changed dramatically over the years. Facility owners and developers are pushing the envelope to build in exclusive and previously non-pursued arenas, including many high-profile locations and downtown settings.

As we build in these areas, project materials, colors and design elements must meet the standards of the socio-economic environment. Consumers want to store in facilities that look like their residence, local coffee shop or high-end retail establishments. But while your customers demand a certain “feel” for the locations they visit, you may be limited in your design choices by local standards, neighborhood associations, planning-development departments and overlay district guidelines.

A self-storage owner’s goal for exterior design is often three-fold: a strong, attractive focal point; easy site maintainability; and a use of color that supports business branding. Each will be driven by local requirements and cost.

Focal Point

The focal point of a self-storage property is the design element that catches the attention of passers-by and identifies the function of the building. There are many techniques that create emphasis at the focal point, which, in most cases, is the leasing office. There’s often a specific element that separates the office from the remainder of the project. This element can be shorter, taller or even a different shape than the body of the building. It can also feature upgraded materials.

One example of a focal-point treatment is glass, which is a dynamic and useful tool in storage- design. It creates the welcoming feeling consumers desire and opens the office to the exterior environment, drawing people into the site. It also creates a link for the facility branding by showing how the colors, materials and signage used inside the office match those on the exterior. 

When choosing building materials for your focal point, those that tie into the local environment tend to make the most sense. For example, if you’re building on the east coast, you might use red brick. If you’re building in Central Texas, you might choose limestone. Some owners and developers seek to achieve a contemporary edginess by applying various types of metal or wood siding. Every location is different, and the focal point should be planned accordingly.

Once the focal point is designed, the remainder of the facility is generally more durable and economic. This makes sense, as form follows function. The office is used to attract attention and serve customers, so it can be dynamic. The rest of the property is more repetitious and simplistic.

Maintainability

The maintainability of the big-box storage portion of the building is crucial. The goal is to use a durable, easy-to-maintain material around the property perimeter. Concrete block or brick creates great longevity. In many cases, these materials are used on the first-floor drive-up locations, and then a more economical product is used for the upper floors.

Upper-floor materials can range dramatically in image and cost. Industrial metal-wall panels can create an edgy, contemporary backdrop. Sometimes stucco wall systems are mandated by local design standards. Since the storage function consumes the bulk of the building area, these exterior materials can drive the cost of the overall development.

In fact, local standards control many aspects of facility design and can inflate the project price tag. For example, in an urban environment, exterior glazing may be required, even though storage buildings really don’t need it. While “the back of the house” is largely functional and simplicity is the most economical solution, some vicinities require upgraded materials such as brick, stone or stucco, and may mandate certain percentages of each.

A requirement for vertical and horizontal articulation may also come into play. This is when the exterior wall must have varying heights as well as offsets in the floor plan to create depth and shadowing. Offsets create dynamic façades and vertical articulation. In some locations, they can eliminate the ability to design a gutter system. Both requirements add to the cost.

Color

In addition to impacting building materials and design guidelines, some municipalities will limit your color selections. This can be problematic, as your palette often affects your facility branding, which typically employs repetition of color on signage, roll-up doors and even large expanses of the building. If your use of color is restricted or even eliminated, the incorporation of color into your buildings can be as challenging as designing the remainder of the project.

Achieving your overall design goals on each project involves give and take. Form, materials and color have an impact on building longevity, visibility and cost. High-profile locations where the municipalities exert extreme control over design have led to a more upscale storage product than we’ve ever seen before. This ever-changing facility image is resulting in a new era of self-storage architecture.

Jeffrey S. Dallenbach, AIA, is a managing partner with Archcon Architecture, a full-service architecture, facility-assessment, project-management and joint-venture construction firm. For more information, call 210.493.2234; e-mail [email protected]; visit www.archconarchitecture.com.

Interest rates can be a lot like the weather: difficult to accurately predict. I’ve lived in Chicago my entire life, and if someone had tried to bet me that I would be wearing shorts and golfing in mid-February, I would’ve taken a large wager and chalked up the opponent’s delusional optimism to a case of the Winter Blues.

Thankfully, I didn’t make such a bet. If I had, I would’ve lost big. Surprisingly, for almost a week in February, the temperature in the Windy City hovered around 65 degrees, topping out above 70 one day. I certainly didn’t see it coming, and it’s now abundantly clear that I have no business forecasting the weather.

Given my profession as a mortgage banker, I’m probably better suited to predicting interest rates for the self-storage industry. But I learned long ago there’s no upside in trying to forecast such a thing. Even the most seasoned economists can’t accurately estimate the speed and magnitude at which rates will change. There are simply too many complicating factors that can and will affect the outcome.

After many years of smooth sailing on the seas of self-storage finance, with historically low rates and little volatility, real estate investors are now left wondering what the future holds and how pending changes might impact their portfolios. Between the presidential-election outcome and indicators from the Federal Reserve, they know low rates likely can’t last. What might that mean for self-storage borrowers in the year ahead?

Headwinds Predicted

In 2015, the Federal Reserve began to signal that incremental increases were on the horizon. Yet between 2015 and 2016, there were only two modest 0.25 percent rate increases, both at the end of each year. This year, the federal funds rate is likely to continue rising, but it’s important to remember that the benchmark index is only one component of a borrower’s cost of funds; the other component is the risk premium spread.

Much like with broader weather patterns, to gain proper perspective, it’s often useful to revisit the past as a point of reference. Notably in 2007, the average all-in mortgage rate for self-storage assets originated via commercial mortgage-backed securities (CMBS) loans was roughly 6 percent. At the time, the corresponding federal funds rate ranged from 4.25 to 4.75 percent, and the 10-Year Treasury ranged from a low of 3.88 percent to a high of 5.12 percent over the course of that year. Comparatively, a sample of CMBS loans originated in 2016 had an average coupon of 4.8 percent, with the fed funds rate at or around 0.25 percent, and a corresponding range of 1.37 percent to 2.59 percent for the 10-Year Treasury.

	2007	2016
Average CMBS Coupon	6.0%	4.8%
Average 10-Year Treasury	4.63%	1.84%
Implied Spread Premium	1.37%	2.96%
Sources: DBRS Group of Cos., U.S. Department of Treasury

This clearly illustrates the inverse relationship between the forces that affect risk premium spread and the underlying indices that have generally existed through time. The good news for borrowers is CMBS spreads clearly have room to come in as the Fed considers rate increases, and the benchmark indices for CMBS (treasuries and swaps) respond accordingly.

Be Prepared for Changing Conditions

The bottom line is nobody can accurately predict when the Fed will increase rates or where things will shake out, but the general sentiment is rates are rising. With that in mind, a constructive approach is to formulate a strategic game plan to take advantage of what should still be a great year of historically low rates, relatively speaking. Below are some points to consider as you think about the year ahead.

• Rates are still historically low. Interest rates may be on the rise after years of unprecedented lows, but the Fed has been forthright in telegraphing its plan to gradually increase rates. Instead of trying to perfectly time the best-case, low-interest-rate scenario, consider the “bird in the hand” approach. Rates are low, and an opportunity may still exist to lock in a long-term, fixed-rate debt product at an attractive rate.
• It’s still a healthy lending environment, one favorable for borrowers. The capital markets are firing on all cylinders, and there are many options. This is a stark contrast to the lending landscape in the immediate aftermath of the Great Recession. Lending options include banks, credit unions, CMBS, life companies, private capital and the Small Business Administration.
• There are strong commercial real estate fundamentals. These have continued to recover over the last few years, and the outlook remains solid. Self-storage rent and occupancies are robust as highlighted by the public real estate investment trusts, and capitalization rates are historically low, so borrowing capacity has seldom been higher. In addition, self-storage made a strong showing as a recession-resistant asset class during the last downturn, evidenced by a relatively inelastic demand profile.
• There could be regulatory regression. President Trump recently signed an executive order to integrate regulatory-reform officers into certain federal agencies. While it’s too early to say whether these task forces will be effective, it’s worth considering that the goal of these groups will be to curb excessive regulation. Remember that uncertainty surrounding the implementation of the latest Dodd Frank Wall Street Act requirements was a major contributing factor to a choppy, if not lackluster year of issuance in the CMBS market.
• Inflation isn’t all bad. Property owners generally benefit from an ability to push rents during times of inflation, which results in higher net operating income. Self-storage owners can benefit from the short-term nature of their leases, which means they can theoretically push asking rents to offset the increased cost of borrowing and operating expenses if inflationary pressures take hold.
• There will be gradual increases, not spikes. Although the Fed has finally made good on its promise to begin raising interest rates, it thankfully hasn’t been forthright in telegraphing its plan. The policy thus far has been to foreshadow these increases, giving the market time to absorb them. If the economy continues on a path similar to 2016, it should mean the Fed will gradually raise rates in 2017 as well.
• Watch the floating-rate debt. Borrowers with existing floating-rate loans are more susceptible in a rising rate environment. For a borrower who’s been using floating-rate debt to take advantage of the low rates, now might be the time to consider adjusting that strategy and locking into a longer-term, fixed-rate product.
• Be mindful on construction loans. For borrowers who plan to build and borrow floating-rate construction debt, be sure to “stress” the interest rate over the term of the loan. Similar to the vulnerability of traditional floating-rate debt holders to rising interest rates, floating-rate construction debt is also at risk. Would-be developers may sleep more soundly knowing they’ve over-estimated the breakeven interest carry and operating soft costs during the term than the alternative, which likely means a capital call to you or your investors.

Know When to Seek Shelter

The outlook remains favorable, but it’s extremely important for borrowers and investors to stay informed of changing conditions. Interest rates may officially be on the rise; however, this has been in the long-term forecast for some time and should hardly come as a surprise.

The silver lining is the economy is on solid footing, values remain high, rents and occupancies are strong, and capital is plentiful. The truth is that much like the weather, we don’t know exactly what tomorrow holds. Regardless, barring an unforeseen natural disaster, the near-term outlook for borrowers remains favorable.

Based in Chicago, Shawn Hill is a principal at The BSC Group where he advises clients on debt and equity financing and loan-workout services for all commercial property types nationwide, with an emphasis on the self-storage asset class. For more information, call 312.207.8237; e-mail [email protected]; visit www.thebscgroup.com.

The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have released financial statements for the quarter that ended March 31, 2017. In general, all five entities showed gains in key areas, particularly funds from operations (FFO) and net operating income (NOI), while also achieving increases in occupancy.

"Solid first quarter results have us well-positioned as we enter the high-volume spring and summer rental season," said Christopher P. Marr, president and CEO of CubeSmart, noting the REIT’s managed portfolio increased 12.7 percent during the quarter. “We remain focused on maximizing property level cash flow through operational excellence and disciplined capital allocation."

Joseph D. Margolis, CEO of Extra Space Storage, expressed similar sentiments regarding the REIT’s performance. "We started the year with an excellent first quarter,” he said. “We experienced the benefits of a highly diversified portfolio with certain markets accelerating, while others moderated.”

CubeSmart

CubeSmart reported FFO per share of $0.36 during the quarter, a 12.5 percent year-over-year increase. Same-store NOI at its 432 facilities grew 6 percent year over year. The company attributed this to a 5.4 percent growth in revenue and a 4.1 percent increase in property operating expenses. Same-store locations contributed 93 percent of the REIT’s property NOI during the quarter.

The operation gained 50 basis points in physical occupancy compared with the same quarter the previous year. The same-store physical occupancy was 92.7 percent as of March 31. The company’s total-owned portfolio, representing 476 facilities and comprising 32.9 million square feet of rentable space, had a physical occupancy of 90.7 percent at the end of the first quarter.

CubeSmart opened one wholly owned storage facility in North Palm Beach, Fla., during the quarter behind a total investment of $9.7 million. The REIT didn’t acquire any storage facilities during the three-month period but has two properties under contract for $22 million, four properties under contract to purchase at certificate of occupancy for $61.1 million, and one wholly owned and six joint-venture projects under development.

On Feb. 14, the company declared a dividend of 27 cents per common share, which was equal to the dividend issued the previous quarter. The dividend was paid on April 17 to common shareholders of record on April 3.

CubeSmart owns or manages 832 self-storage facilities across the United States. Its operating portfolio comprises 55.9 million square feet.

Extra Space Storage Inc.

Same-store revenue increased 5.8 percent and NOI rose 9.2 percent compared to the same period in 2016. FFO was $1.03 per diluted share, resulting in 19.8 percent growth compared to the first quarter the previous year.

Same-store occupancy was 92.2 percent as of March 31, which was a 0.88 percent increase compared to the same period in 2016.

During the quarter, the company acquired two wholly owned facilities for approximately $25.5 million. It also acquired two facilities at the completion of construction through joint ventures for about $16.2 million.

The company paid a quarterly dividend of 78 cents per common share, which was equal to the previous quarter. It was paid on March 31 to common shareholders of record on March 15.

Headquartered in Salt Lake City, Extra Space owns or operates 1,441 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 980,000 units and 109 million square feet of rentable space.

Life Storage Inc. (Formerly Sovran Self Storage Inc.)

Total revenue increased 29.5 percent over the previous year, while operating costs increased 32.4 percent, resulting in an NOI increase of 28 percent. Same-store NOI increased 3.2 percent year over year. FFO for the quarter was $1.26 per fully diluted common share, compared to $1.16 for the same period in 2016. Adjusted FFO was $1.26, a 3.3 percent increase.

Net income attributable to common shareholders for the first quarter was $20.4 million, or $0.44 per fully diluted share. For the same period in 2016, net income attributable to common shareholders was $28.3 million, or 73 cents per fully diluted common share.

Revenue for the company’s 435 wholly owned facilities increased 3.2 percent year over year, helped by an increase in average occupancy of 20 basis points and a 2.7 percent increase in rental rates and other income. Average overall occupancy for the quarter was 90.9 percent, with units renting for an average of $13.23 per square foot.

The REIT acquired one property during the quarter in Chicago at certificate of occupancy for $10.1 million. It comprises 78,000 square feet. Five additional properties were acquired by two of the company’s joint ventures for $135.5 million. Four of the facilities are in California and one is in New York. Life Storage contributed $19.8 million toward the transactions.

Subsequent to the end of the quarter, the company approved a quarterly dividend of $1 per common share, which is a 5.3 percent increase compared to the previous quarter.

The company also announced that all but seven of its owned and managed facilities are operating under the Life Storage name. The overall cost of its rebranding project was less than the projected $22 million, according to company officials.

Based in Buffalo, N.Y., Life Storage operates 675 self-storage facilities in 29 states under the Life Storage and Uncle Bob’s brands. Its portfolio of owned and managed facilities comprises more than 45 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share was $0.29 during the first quarter, a 16 percent year-over-year increase. Its net income was $7.2 million during the quarter, a 50 percent gain compared to the $4.8 million it reported for the same period in 2016. Same-store NOI was $28.1 million, up 9.1 percent.

Same-store revenue was $41.2 million during the quarter, a 6.6 percent increase from a year ago. This was driven by a 6.9 percent increase in average annualized rental revenue per occupied square foot. Average occupancy was 88.3 percent as of March 31, down from 88.7 percent last year. Same-store average occupancy was 88.7 percent, which was equal to the same period last year.

The company acquired five self-storage properties during the quarter for $31.9 million. The facilities are in five states and comprise about 300,000 rentable square feet in more than 2,200 units. NSAT also completed the addition of Orlando, Fla.-based Personal Mini Storage as its eighth participating regional operator.

On Feb. 23, the company declared a quarterly dividend of $0.24 per common share, which was paid on March 30 to holders of record on March 15.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas throughout the United States. The company has ownership interest in 456 storage facilities in 23 states. Its portfolio comprises approximately 28 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage Inc.

Revenue for same-store facilities increased 4 percent, or $20.9 million, in the quarter, as compared to the same period in 2016, primarily because of higher realized annual rent per occupied square foot. Cost of operations for the same-store facilities increased 3.9 percent, or $5.7 million, during the period compared to the previous year.

FFO was $2.34 per diluted common share, compared to $2.10 for the same period the previous year. NOI increased $21.1 million compared to the same period in 2016, including $15.2 million for same-store facilities.

The company acquired four self-storage facilities during the quarter for $23 million. The properties are in Minnesota, New York, North Carolina and Ohio. Together they comprise 200,000 net rentable square feet. It also completed two new development and various expansion projects that added 500,000 net rentable square feet to its portfolio for $89 million.

The company reported a regular common quarterly dividend of $2 per common share, which was equal to the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on June 29 to shareholders of record as of June 14.

Based in Glendale, Calif., Public Storage has interests in 2,354 self-storage facilities in 38 states, with approximately 155 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

The Cheboygan County, Mich., Planning Commission recently approved special-use permits for two self-storage projects. Robert Andrews, owner of Mullett Lake Self Storage in Inverness Township, intends to add a 1,230-square-foot building to his existing facility at 6123 N. Straits Highway. The other project will be a partial conversion with some new construction at 1771 and 1829 S. Straits Highway in Tuscarora Township. Property owner Edward Shovan intends to manage the facility himself, according to the source. Both permits were granted unanimously, pending approvals of additional project requirements.

Though Mullett Lake is an existing facility and in a commercial zone, the addition of a new structure required a special-use permit. The building will be the same size as the other storage structures at the site, the source reported. The permit is conditional pending approvals of building-code requirements and a sedimentation permit.

The Shovan project required special-use approval for outdoor boat storage and indoor self-storage. The commission also granted a change-of-use plan for an existing 5,760-square-foot building from private storage to indoor self-storage. The developer also intends to build a new 7,200-square-foot indoor-storage facility on the property. Boats will be stored outside to the rear of the site, according to the source.

Surveyor Brian Fullford told the commission the Shovan project would fulfill a need for storage in the area.

The change of use and special-use permit were approved on the condition building-safety, lighting and signage requirements are met.

Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage locations across North America, received approval last week from the Anthem Community Council to double the footprint of its facility in Anthem, a master-planned community in North Phoenix. The expansion will be built on an empty 4-acre parcel at 42202 N. Vision Way, just north of the existing facility, which is on the west side of the street.

The new buildings will be designed to mirror the current site, with the two parcels joined as one, according to the source. The plans call for 93 new storage units and more than 100 vehicle-parking spaces.

Located in Anthem Commerce Park, the facility backs up to West Ravine Lane in the Desert Terrace neighborhood. There’s roughly 125 feet of open space between the storage property and the homes, the source reported.

U-Haul announced a similar expansion for its facility in Mt. Juliet, Tenn., last month. The company purchased a 1.02-acre property adjacent to its existing site at 14535 Lebanon Road. The expansion will add 400 units as well as rent U-Box portable-storage containers. Construction is expected to be complete next spring.

Established in 1945, U-Haul has more than 44 million square feet of storage space at its owned facilities throughout North America.

UK Storage Co. Ltd., which operates 12 self-storage facilities in England, is converting a derelict factory in Yeovil, South West England, to self-storage. The former Standard & Pochin Ltd. building at 94 Lyde Road was once used to manufacture fans but has been empty for a decade, according to the source.

The structure has been gutted and a house on the property has been demolished to make way for parking and better access to the site, said John Lamb, commercial manager for UK Storage. The roof has been replaced and new entrances to the building have been added.

"We can now offer a bright, modern warehouse with individual rooms for people to store in,” Lamb said. "It's very rewarding to see the changes and, hopefully, people in the local area will be glad to see the changes, too."

Founded in 2005, UK Storage has properties in Bristol, Cornwall, Gloucestershire, Plymouth, Somerset and Wiltshire Counties. In addition to traditional storage, all of the facilities offer document storage. Some properties also provide office space for rent.

A self-storage facility is being built on a lot abutting Evergreens Cemetery in the Bushwick neighborhood of Brooklyn, N.Y. The three-story Delta Storage project at 1517 Bushwick Ave. will occupy the entire block. The parcel is near gas stations, auto-repair shops and some homes, and has been vacant for decades, according to the source.

The facility will comprise 68,557 square feet of climate-controlled space. Security features will include motion-sensor lighting, individual door alarms and video cameras. A rendering from Sage-Design Build Inc., a construction-management advisor on the project, shows metal siding, large windows and decorative details such as a screen and paneling, the source reported.

Scarano Architects PLLC was originally the applicant for the project but was later replaced by Flushing, N.Y.-based David Silberman P.E. The land is owned by Knopf Leasing Co. of Red Bank, N.J.

The neighborhood is experiencing new construction, including self-storage in areas zoned for industrial uses. Delta Storage is one of a handful of projects that have been permitted in a commercially zoned area. City planners recently proposed requiring a special permit for storage facilities in industrial-zoned areas to encourage factories and jobs, the source reported.

The Bushwick site is Delta’s first in the state. The company operates two self-storage facilities in Bayonne and Jersey City, N.J.

Update 5/4/17 – The Sokol family has completed its conversion of the former Sokol’s Market grocery store and opened Queensbury Storage for business. The family did much of its own interior demolition and remodeling work in preparation for the installation of 68 units, according to the source. The facility features electronic access using key fobs and video cameras for security.

The conversion required the removal of four layers of ceiling tiles and the installation of a new roof. Some grocery-store remnants remain including shopping carts, which customers can use to transport items to and from their units, the source reported.

Brothers Michael and Tim Sokol will oversee the self-storage operation.

---

6/17/16 – The owner of a former grocery store in Queensbury, NY, is seeking a zoning amendment to convert his now vacant property to a self-storage facility. Matt Sokol hasn’t been able to secure a new retail tenant for Sokol’s Market space at 340 Aviation Road since the family-owned supermarket closed in February 2013. He and his attorney, Michael Borgos, discussed the proposed storage development with the Queensbury Town Board in workshop meetings on May 18 and June 13. For the project to move forward, the board would need to amend the city’s zoning to allow interior self-storage units as a special-use, according to the source.

Sokol’s plan is to leave the majority of the building’s exterior as is and add self-storage units to the interior, keeping them invisible from the street. The front windows would be frosted or painted over with murals. Customer would load and unload their goods at the back of the property, the source reported.

“We mean something totally different from what we all view as traditional self-storage,” Borgos said. “We want to keep the look the same and preserve the architectural heritage of the neighborhood.”

During the planning meetings, board members voiced their concerns about the building’s aesthetics. “If we’re going to do it, we want to do it in a way that what you see from the road is something that is respectful,” said William VanNess, councilman for Queensbury’s fourth ward.

They also discussed how the zoning change might affect other commercial developments in the area. Doug Irish, councilman for the third ward, suggested interior storage should only be allowed for existing buildings in a neighborhood-commercial zone. Land in more intensive commercial areas should be reserved for developments that bring in a higher assessment, VanNess added.

Town supervisor John Strough asked the town’s lawyers to review the language for the proposed zoning change to ensure the amendment would be restricted to interior self-storage units, and prohibit retail or industrial warehouse use. “You don’t want it to be a warehouse [with] trucks going in and out of there every day,” he said.

A public hearing will be set after the zoning-amendment language is approved by the board, Strough said.

Sokol is also considering a former fire house on Ridge Road in Queensbury as a possible storage-development site, Borgos said.

Sokol’s Market opened in the neighborhood in the 1970s. It offered weekly grocery delivery to community residents. Increased competition and economic pressures were factors in the business’ closing, Sokol said.  

By Bryn Huntpalmer

More than ever before, converting to green practices in self-storage is as much a smart business move as it is an ethical stance. Companies that are willing to shrink their carbon footprint can save money while building trust with customers. Though initially there may be financial sacrifices that affect your bottom line, the right kind of changes will ultimately increase prosperity and improve your public image. Here are 10 ways to “go green.”

1. Perform a Commercial Energy Audit

You can take wild stabs at cutting your energy use and hope for the best, but it’s hard to patch up holes without knowing where they are. You may throw away money to fix an issue that isn’t much of a problem, while the culprit air leak or inefficient HVAC system gets off the hook. Performing an energy audit will help determine your energy weaknesses and how best to allocate resources for improvements. Even if you’re not yet sold on the idea that going green will save money, an energy audit will show where you can shave costs.

2. Add Motion-Sensor Lights

You want your facility to be well-lit and safe for customers at any time, but lighting empty hallways and units can lead to quite a bit of wasted energy. Motion-sensor lights solve this problem. In addition, using LEDs will ensure your bulbs use less energy and require less frequent replacement. There’s no downside to automating your lights and updating to more efficient bulbs.

3. Use Seasonal Climate Control

Your customers are protective of their belongings, and with reason. Shielding their personal possessions from heat and cold is essential. But there’s no reason to waste energy to heat or cool a storage space during a season of stable temperatures. Consider installing an energy-efficient system that only kicks in when the temperature rises or falls to an extreme degree.

4. Install Solar Panels

Once you’ve cut your energy load by making your facility more energy-efficient, consider installing solar panels. Because of their simple architecture and few obstructions (i.e., tall trees), most self-storage facilities have a solar-friendly layout. With a smart setup, you can produce more energy than your facility uses. Depending on local and utility regulations, you may be able to sell the excess clean energy you’ve produced back to the grid and earn profit.

5. Use Low-VOC Paints and Finishes

Businesses tend to focus on energy efficiency because it saves money, but there are other important aspects to being green. Most building finishes and paints contain volatile organic compounds (VOCs), which lower indoor air quality and pose health and environmental risks. If your facility is full of VOCs and gets little ventilation, the toxic vapors will permanently attach themselves to customers’ belongings. Instead of getting the standard products for your property, look for low- or no-VOC products.

6. Use Green Cleaning Products

Cleaning products are full of harsh chemicals that are harmful to the environment and human health. There aren’t always strict regulations governing disclosure of these chemicals to the public. Ammonia, phosphorous and other chemicals wash down the drain and negatively impact the environment. Thankfully, there are many effective green-cleaning products your company can use to keep facilities sparkling clean. Go the extra mile and use organic soaps and cleansers.

7. Incentivize Clean Commutes

Reward employees who find ways of getting to work besides driving their own car solo. Set up a company carpool program and promote other alternative methods, such as the bus or local subway. Make your work start and end times flexible so staff can take public transportation without worrying about punitive measures for minor tardiness.

8. Have Green Office Parties

The trash waste created by a company event can add up. However, if you make it a priority, you can cut down on waste in almost every aspect of event planning, from choosing food that’s locally sourced and responsibly packaged to renting pop-up recycling and compost bins. Avoid plastic and paper in favor of reusable or compostable tableware. Avoid pre-packaged products, such as bottled water or individually wrapped snacks.

9. Place Plants in the Office

Plants take in carbon dioxide and other gases from the air and release oxygen. They literally clean the air, which means placing them around the office can reduce the circulation of harmful chemicals from paints, finishes and other sources of toxins. They can even make your employees healthier.

10. Unplug Unused Devices

Leaving a printer plugged in all day every day probably doesn’t cost your business much. But add a few dozen electronic devices to the mix, and these so-called “energy vampires” may be sucking up more power than you think. In fact, devices that stay plugged in all the time can account for up to 10 percent of your energy bills, even if you turn them off.

Strategic Changes

An energy auditor can give you more detailed advice about the exact changes your company needs to make. When it comes to hiring eco-friendly contractors and buying green products, investigate the validity of “green” claims so you make decisions that truly help your business and the earth.

Bryn Huntpalmer lives in Austin, Texas, where she currently works as editor-in-chief of home- and business-improvement website Modernize, which aims to empower property owners with the expert guidance and educational tools they need to take on big projects with confidence.