You’ve probably heard of storage condos. They follow the same general concept as traditional self-storage but operate on a different business model. They also attract a unique clientele. Read how two developers have tackled this niche segment and why they believe there’s room for growth.
You’ve probably heard of storage condominiums. In essence, they offer unique solutions for the storage of cars, boats and RVs, with spaces ranging from luxurious “man caves” to more utilitarian options that are comparable to traditional self-storage units.
The distinct difference between storage condos and self-storage is the target customer generally owns rather than rents their space (though there are some instances of leasing or subleasing). They can then outfit the unit however they like, often furnishing it with features like a wet bar, mezzanine, pedestrian access door and restroom.
Storage condos are becoming more popular nationwide, but there’s still an extensive, untapped opportunity for developers and investors to build new projects. To gain a better sense of the market, I spoke with two developers who have experience with this product: Adam Pakes of Arizona-based LuxeLocker and John Looney of Monte Carlo Garage Suites in Indian Land, South Carolina.
A man cave at Monte Carlo Garage Suites in Indian Land, South Carolina
Condo Characteristics
Monte Carlo sells storage condos that include a loft or mezzanine and a bathroom, but the company also works with customers to meet specific needs. “We’ll do as little or as much as they want us to,” Looney says. “Some people will have me finish it completely, while others want to do it themselves; so it’s just a mixed bag. But that’s all on top of the base purchase price, which ranges from $150,000 to $575,000 per unit.”
Luxury vehicles inside a condo at Monte Carlo Garage Suites
in Indian Land, South Carolina
LuxeLocker offers three types of units for lease or purchase: standard units with electricity, Luxe Light units with electricity and ambient temperature control, and Super Luxe Light units with full insulation. These offerings meet most customer needs, according to Pakes. He estimates that 40% of units are occupied by RVs, 30% by boats and 10% by cars, while the remaining 20% are split between business equipment and household items.
“I think creating conversations and understanding user goals is probably the most important thing that we need to be doing and focusing on. Then everything else just falls into place after that,” Pakes says. “You’re taking three completely different users and giving them three different options on the same campus, so it draws in as many sets of eyes as possible without limiting who your audience is.”