Renovating Your Way to Sustainability: Making Eco-Friendly Upgrades to Your Self-Storage PropertyRenovating Your Way to Sustainability: Making Eco-Friendly Upgrades to Your Self-Storage Property

If your self-storage facility is aging, renovations are likely on your mind. While you might pursue any number of projects—fresh asphalt, a new HVAC system, technology integration—here’s one you should definitely consider: environmental sustainability. How can you “go green,” and how will your business and customers benefit?

“When sustainability is practiced, everybody wins. Being mindful of the limited resources from the earth isn’t only responsible but allows for us to have reserves for future needs,” says Melissa Anderson, account manager for Forge Building Co., which specializes in pre-engineered metal buildings for industrial and commercial applications.

There’s no doubt that eco-responsibility is on consumers’ minds. According to a survey by TheRoundUp.org, 78% feel it’s important, and 55% are willing to pay more for products and services from eco-friendly brands.

Not only can a green focus help your self-storage facility rise above in a crowded market, sustainable features will save the business money in the long run. Plus, it can elevate your asset value. This means more favorable terms when seeking financing or investors, and a stronger market position if you plan to sell.

“In today’s market, eco-friendly facilities enhance brand reputation, meet the expectations of eco-conscious customers and investors, and can lead to cost savings over time,” says Jose Herrero, director of facilities and maintenance for 10 Federal, which operates more than 70 self-storage facilities in the Southeast.

Related:Storex Self Storage in Sunbury, England, Becomes UK's First Known Commercial Deployment of 'Green,' Low-Carbon Cement

If you’re gearing up for renovations at your self-storage property, now’s the time to think about traveling the sustainability route. Learn more about the benefits, the many options available, plus how to weigh the costs vs. the return on investment.

Big Benefits

The benefits that come with sustainability have been a driver for developments by StorCo Storage, which operates three facilities in the Midwest. “Focusing on eco and environmentally friendly upgrades to a facility helps us maintain our buildings to the highest standard and remain aesthetically appealing while new storage is being built in the area,” says James Reid, CEO of StorCo’s parent company, Investa Group.

While developing its conversion project in St. Peters, Missouri, StorCo focused heavily on environmental enhancements to the building envelope, lighting, HVAC and plumbing. In fact, the property received a Cirrus Low Carbon verification. The confirmation is part of a PACE Equity program that combines a green-building designation with Commercial Property Assessed Clean Energy financing. The facility is expected to save 3,985 metric tons of carbon and 44% of electricity costs compared to a building constructed at “baseline code.”

Related:Community Solar Simplified: The System That Can Help Self-Storage Operators Generate Energy and Income

Saving on operating expenses is a critical factor for self-storage sites that were built a decade or more ago. “Older buildings, often designed without sustainability in mind, can be significant energy consumers. By implementing eco-friendly changes to our storage facilities, such as lighting and HVAC projects, we not only extend the life of the property but also make a tangible impact on reducing energy consumption and greenhouse-gas emissions,” Herrero says.

Creating an eco-friendlier environment can also benefit self-storage employees and tenants through better air quality and lighting. In addition, businesses that embrace these initiatives are often recognized in the community. “Eco-friendly buildings set a positive example, encouraging other businesses and residents to pursue sustainable practices,” Herrero adds.

It can also have a great impact on your ability to attract new customers and retain existing ones. “Advertising an eco-friendly facility often appeals to a greater number of customers and may be the difference in a customer’s buying decision,” Reid says. “Upgrading a facility shows your current customers that you care about every aspect of your business.”

Related:Achieving Net-Zero-Carbon: Advanced Self Storage of Maple Ridge, British Columbia, Becomes a Canadian Pioneer

Big Opportunities

One of the best reasons to consider sustainable renovations for your self-storage property is there are a plethora of options at various price points. Following are common updates.

Lighting. Older properties often have outdated fixtures and bulbs that burn out frequently and are expensive to replace. When it’s time for an overhaul, many operators choose LEDs, as they’re far more efficient than fluorescent or high-intensity discharge options. On average, they use up to 75% less electricity. Maintenance is also greatly reduced, as these products last longer. In addition, motion sensors and timers can save energy. Swapping out dim or problematic light fixtures also improves property safety and security.

“We only install LED lighting at all our locations and often retrofit newly acquired sites that have outdated, low-efficiency lighting,” says Benjamin Macfarland, CEO of SROA Capital, a private-equity real estate firm that operates the Storage Rentals of America self-storage brand.

Roofs. Solar panels are the most popular option for self-storage facilities for a variety of reasons. These buildings have vast, flat rooftops, making them ideal candidates. The biggest benefit, of course, is a reduction in energy costs, sometimes up to 40%. Facilities with solar-panel systems also typically have higher appraised values.

But solar panels aren’t the only eco-friendly roof option. Energy consumption can also be reduced by applying “cool” paints that deflect infrared light. These special coatings can reduce roof-surface temperature by as much as 38 degrees and the building interior by up to 46 degrees. Cool roofs also meet today’s Energy Star requirements.

If you’re feeling even more adventurous, consider a green roof, which is partially or completely covered with vegetation. The thermal-insulative qualities naturally reduce solar gain and can lessen the cooling/heating burden on the mechanical systems, according to Stephen Overcash, managing principal at ODA Architecture, which specializes in lifestyle storage. In addition, it can serve as a stormwater-management device, reducing or eliminating the need for above- or below-ground water retention.

Landscaping. Vast lawns and an abundance of flowers and shrubs are lovely to look at but expensive to maintain, particularly in dry regions. Often, a better route is to explore native plants and practice xeriscaping. You might also opt for rock landscaping, which can be eye-catching but doesn’t require water.

Shade trees, on the other hand, can benefit your site. “Landscaping and deciduous trees provide shade and help block direct sunlight, reducing mechanical costs and ongoing utility costs. Shade trees in parking lots provide a healthier environment for the users, reducing the heat-island effect,” Overcash says.

HVAC. This is one of a storage facility’s biggest energy expenses, both for daily operation and when it comes to replacement. Older or insufficient units will draw more power, which means a bigger electric bill. Moreover, when your system isn’t working properly, it puts your tenants’ stored goods at risk.

“Modern, energy-efficient HVAC systems can drastically reduce energy usage while improving indoor air quality. These systems can be further optimized with smart thermostats and zoning controls,” Herrero says.

Water retention and management. Though a self-storage facility uses less water than other commercial and retail buildings, there are still opportunities to implement eco-friendly measures that can benefit the environment and the community. “Since climate-controlled storage facilities have low water usage, it’s impractical to re-use rainwater. [However,] it is practical for the water held in retention ponds to be used for irrigation for landscaping,” Overcash says. “There are new permeable-paver systems that slow run-off down across parking lots and can eliminate underground retention in urban locations.”

You must also pay attention to city and state requirements. For example, some municipalities require water retention and bio-retention, which means the water is cleaned before it’s released back to the public, Reid notes.

Recycling. While self-storage facilities don’t generate a ton of waste, be mindful of the products you carry in your retail store. Many operators have made the move to more sustainable items including recycled boxes and packing materials. SROA recently partnered with biomaterials manufacturer INOArmor to offer 100% biodegradable packing products at its 650 facilities. The new offerings are made from natural silk cocoons, which have a dome structure and provide impact absorption, enclosed in polyhydroxyalkanoates, a type of bioplastic produced by bacteria and other micro-organisms through microbial synthesis.

Technology. There’s an abundance of tools on the market today that can automate building temperature and humidity, control lighting, and regulate and track energy consumption. “We feel a strong obligation to embrace technology improvements that help improve efficiencies while also complimenting various green initiatives,” Macfarland says. “In many instances, the updated technology available is better for the environment and comes in at a more attractive price point.”

Big Costs?

Every self-storage renovation comes at a cost, but if your property is already in need of these upgrades, why not make them more effective and efficient? “While the initial costs of eco-friendly renovations can be substantial, the long-term return on investment often more than compensates for the expense,” Herrero says.

You need to keep the continuing savings in mind when looking at those upfront costs. For example, a new HVAC system will be pricey, but it’ll lower the property’s electric bill for years to come. The same can be true of changing the entire site to LED lighting, which lasts longer, requires little maintenance and consumes less energy. Xeriscape landscaping means a reduced water bill and less maintenance.

Adding solar panels can help self-storage facilities offset high energy bills. Some sites have even reached “net-zero energy,” meaning they produce enough energy to cover their consumption. Often, excess solar energy can be sold back to the grid for a decent profit while benefiting nearby homes or other businesses in the community.

You might also find cost savings through pilot programs, rebates and other initiatives supported by the city, county or state and private entities. “Different states and municipalities have different green-incentive programs. These typically have a huge impact on where these upgrades are done the most. That is, if there is a financial incentive for a specific type of upgrade, then this will be seen more prominently in that market,” Anderson says.

Less Maintenance

All self-storage building components require maintenance, but for some, the upkeep is less frequent and less expensive because they simply last longer. To ensure your upgrades are efficient and maintain optimal performance, conduct regular inspections and servicing, Herrero advises.

“For example, solar panels should be cleaned periodically to maintain efficiency and production. Energy-efficient HVAC systems require routine filter changes and system checks to keep them running smoothly,” he notes. “While eco-friendly components often require specialized maintenance, they’re generally designed for durability and long-term use, which can offset the need for frequent repairs or replacements.”

Making the Move

There are many routes to eco-friendly self-storage renovation. For some operators, it’s more cost-effective to wait until equipment fails, then replace it with a greener version. Others prefer to single out one area on which to focus their efforts and budget. Another approach is to tackle a whole-facility transformation.

For many, the best time to introduce sustainable products is during scheduled renovations when components are already being updated or replaced, Herrero says. “This approach minimizes disruptions and allows for a more seamless integration of sustainable technologies.”

You also need to consider how upfront costs can be offset through grants and other incentives through government programs or private companies. Often, these have an expiration date. There could also be tax savings and lowered insurance premiums following these kinds of renovations that could necessitate moving forward now rather than later.

“It’s always a good time to have a game-plan to integrate strategies that are good for the environment and help reduce operational costs,” Overcash says. “If competition is getting fierce, the timing of the changes should be escalated to stay competitive.”