The Self-Storage Economy

David Wessel’s article in today’s WSJ “In Modern Era, Self-Storage Has Right Stuff” has more than a clever title. It’s a great example of unearthing an unusual trend that sheds new light on an recognized issue. In this case, Wessel identifies a quirky new way of benchmarking Americans’ growing standard of living: the enormous increase in storage space, as well as the number of people depending on it.

Some highlights from the article:

The US now has enough space to contain our entire population - every man, woman and child (though the article doesn’t say anything about Fido).

At $15 billion in revenues, the storage industry now has movies in its rearview mirror (a truly odd thought: that we pay more for space than for a previously-mainstream type of entertainment).

Most people who rent space already have space in their homes - just not enough of it.

Abandonded shopping centers are being converted to storage spaces.

Storage crosses income lines - both rich and poor seem to indulge.

What interests us about all this - aside from the basic facts - is a nuance that the article doesn’t cover: what’s the best way to run/profitably provide customer access to storage spaces? JF in particular wonders, because he’s seen at least two different models operating here in Manhattan. In one, favored by Manhattan Mini Storage, access is as automated as possible. There’s usually a de minumus number of attendants, electronic keys that direct elevators only to your storage-unit’s floor, lots of cameras and something like a timeclock to record comings and goings. And God help you if you actually need administrative assistance, because there’s usually a line of other people waiting for the one clerk on duty to assist.

On the other end of the access-model spectrum, there’s Chelsea Mini Storage. This, “America’s largest mini-storage facility” with “over 1,000,000 square feet of space,” is a very different animal. While they probably have cameras, it’s an operation with a surprisingly large staff - with which you MUST interact every time you go in or out. No electronic cards: you sign in, and then are given a sticker. That sticker has to be worn into the elevator, where the operator records the number on it and takes you to a floor. When you leave, the elevator guy takes the sticker back and notes the time. And you are likely to see guards wandering around the hallways. All told, the impression is of a large building that is routinely patrolled. Of course, this is also the same facility in which an African immigrant was shot by a misguided cop.

But shootings aside, I wonder which works better? The people-centric model, or the automated one? A standard business mentality would argue in favor of automation - but the lines I always experienced at MMS must, in some way, hinder business or business development. I’ve never had to wait at Chelsea. An interesting question.

JF

One Response to “The Self-Storage Economy”

  1. Zach says:

    Great article. The storage industry really is taking off. Our site, storagespy.com, has really seen a great increase in momentum. The majority of people seem to be drawn to storage facilities where there is a high level of security, such as a 24 hour guard, cameras, etc. But everyone is different. Some prefer to maintain a level of anonimaty.

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