With across-the-city-or-country moves, downsizing, inheritances or side gig overflows, Oklahoma and the country at large are experiencing a rise in storage unit business in recent years.
“Self-storage is a need-based industry,” says Herb Dierking, division vice president of Oklahoma and Texas at Extra Space Storage. “As the customer need increases, so does the amount of facilities in an area. Self-storage has steadily become more common worldwide and has been gaining popularity in the U.S. since the early 1970s. This trend is often linked to U.S. culture, which values both practical and esoteric possessions.”
As for Oklahoma, Dierking believes the rapid growth of self-storage here is tied to overall expansion in the Midwest. As the population grows, so does the demand for storage space – especially in areas where there is a lot of movement into a city.
The reasons why people rent storage units, says Dierking, vary depending on the customer.
“The most popular reason for storing is because of a housing move – moving to a new city or to a new home,” he says. “The second most popular reason to store is due to a lack of space – many homeowners and apartment dwellers need the extra space for items that aren’t used every day. Some other uses we see are people in life transitions, such as getting married or divorced, or customers using storage as a staging area. People also rent parking spaces, which are used for boats or RVs. Businesses often rent units for overflow and inventory. Pharmaceutical and marketing companies store promotional materials and supplies. The reasons for renting really run the gamut.”
Working at a storage unit business means a self-driven manager wears many hats, says Dierking. They handle customer service, minor property maintenance, security checks and safety inspections. They keep facilities clean, make follow-up customer calls, and manage various administrative tasks throughout the day.
Pricing is similar from company to company, with a rise in cost for climate controlled units.
“Our units range in size from small, 5×5 lockers to larger, 12×40 spaces and beyond,” he says. “The most popular sizes are 5×10, 10×10, 10×15 and 10×20. Some units are climate controlled, others have drive up access. There’s a range of options. Pricing depends on those factors and more, including market conditions, supply, demand and seasonality.”
While you may not think twice when passing a storage facility, Dierking says the industry itself is unique, because it spans multiple disciplines.
“While it’s primarily a property management business, it also involves customer service, sales, marketing, administration and legal compliance,” he says. “While it can seem like a simple business model – three walls and a door – it is actually very dynamic.”
While the majority of renters are responsible, there are always those who abandon their possessions or don’t pay rent as required. So – what happens to those belongings? As depicted on reality television, sometimes the answer is an auction, open to the public with no more than a peek from outside the unit, to clean out and acquire the contents.
“Auctions aren’t our primary focus,” says Dierking. “In fact, we do everything we can to avoid them. However, when customers default on their rent, we sometimes have no choice but to follow state laws for processing the units for auction. This allows us to free up the space for a new paying customer.”
Dierking continues: “One little known fact about storage auctions: self-storage companies cannot make a profit from them,” he says. “When the unit is sold, the funds can cover any debt the customer may have to the storage company and any additional money is returned to the customer.”
