Semi-Permanent Structures: Can they benefit your property?
February 4, 2022 in Management News
Semi-permanent structures look almost identical to drive-up (non-climate) storage units and can offer a host of benefits to the property owner. Are they right for your property? Read on to find out!
Benefits of Semi-Permanent Storage Structures
The first major benefit is the time to order and construct. Anyone who has been through the development or expansion process understands that it can often take a year or more to finish the construction of a typical building. Semi-permanent structures, on the other hand, will typically arrive in 6-8 weeks and take a couple of weeks (depending on the number of structures ordered) to set up. This means you can start renting and receiving your investment back very quickly. Given the high occupancies of many self-storage properties, you want to take advantage of the demand as quickly as possible and these structures offer that better than other options.
The structures are very flexible in terms of where they can be located. Have 50’ feet of space that is vacant? You could have 5 new units to rent. You can put these structures where you normally wouldn’t put a building.
Generally, there is a tax benefit to purchasing semi-permanent structures. They are usually eligible for accelerated depreciation vs. a normal building. Be sure to talk to your CPA about tax benefits for semi-permanent structures at your facility.
Drawbacks to Consider
These structures typically will cost slightly more than a traditional foundation and building. Absolute Storage Investment recently purchased these units, and the cost came in around $48/sq. ft. installed. Of course, the more you order, the better the price/sq. ft.
Local Planning Restrictions
You will need to check with your local planning authority to find out if these structures are allowed on your property. Even if they are, for some areas these types of structures could yield some additional scrutiny and possible costs.
For example: when we installed some of these units at a property in Missouri, we were required to do some additional landscaping which added on an additional cost.
In the long run, the benefits of a semi-permanent structure could outweigh any drawbacks you might encounter. Have more questions or want to talk to someone about getting started with semi-permanent structures for your facility? Contact our team today for feedback and references!
LOOKING FOR A COMPANY TO MANAGE YOUR SELF STORAGE PROPERTY?Contact Jasmin Jones
(833) 463-6276 x 715