How Unused Warehouse Space Can Be Turned into Profit
Warehouses are often built with more space than is actually needed. This gives your company room to expand as you win more clients and contracts. But it also means many companies are paying for more floor space than they can actually find a use for.
One solution that smart companies turn to is self-storage unit construction for their unused space. Rather than let it go to waste, converting and renting out this space lets you generate an additional passive revenue stream for your business.
Here are some valuable reasons you might want to consider self-storage unit construction for your empty floor space.
Self-storage is on the rise
There are many reasons why the self-storage industry is booming:
- Modern houses are getting smaller
- People tend to prefer a minimalistic look
- Fewer people own homes, so move around more
- With rents on the rise, many businesses are short of space
This means that in many areas where property is expensive, there’s a great demand for services such as self-storage. People can easily run out of space in their own home or workplace, and it’s a great way to make more.
Keep reading: The dos and don’ts of offering self-storage services
What makes self-storage unit construction profitable?
It’s easy to set up
One advantage of turning your warehouse into self-storage space is that it’s easy to set up.
There are lots of solutions of all sizes that make storage units easy to install. And whether your space is the size of a cupboard or a generously sized room, there are many ways to use all your available space. So you can maximise your profits from any unused space on your property.
It’s secure
If people are going to be storing their things in your warehouse, then security is key, so when you’re having lockers or units installed, quality is important.
Most firms also have extra security from patrols to CCTV, which ensures that should there be a break in, there will be police at the scene as quickly as possible. The security you choose will depend on many factors, from opening hours to any potential security issues that your site might have. And don’t forget that units will each require sturdy locks, preventing anyone but the tenant from entering.
It’s practical
When you’re offering self-storage, you need to ensure that the space is practical and fit for purpose. It needs to be clean, dry and free from mould. So you should ensure you have proper units installed that have been designed for this application.
You may wish to offer shelving within your units, which you can charge extra to rent. This makes it easier for people to organise their belongings.
Have a think about what your customer base might be. Will it be mostly private customers moving home, or local businesses who’ll use your service? This will help you to add features that appeal to your target market, so you can fill as much space as possible and start bringing in that extra income.
It’s low effort
When people keep their belongings in your self-storage units, they want to know it’s kept safely under lock and key. They don’t want you accessing their unit while they’re not around, which means there’s no need to provide cleaning or other services.
All you need to do is leave their belongings alone.
As such, you get to generate additional income with almost no effort required. Just be there for the tenant to collect and clean out the unit before the new tenant moves their belongings in, and that’s it.
There’s a high occupancy rate
Individuals, small businesses and even large corporations have a use for self-storage units. And with such high demand, you can expect a good portion of your offering to be occupied at any time.
That means you can earn back the money you invest in self-storage unit construction quickly. After that, anything else is pure profit.
Storage tenancies are long
The typical intended length of usage of self-storage facilities in the UK is 1-2 years for both domestic and business customers. And a massive 47% of business customers plan to use them for 1-4 years.
This long occupancy and low turnover rate lets you generate consistent revenue with very little hassle of changing tenants.
It’s a closely studied industry
Each year, the Self Storage Industry Association UK (SSAUK) produces an annual industry report. This includes a wealth of data such as industry insights, an economic overview and customer demographics.
With such a valuable resource to guide your self-storage service, it’s easy to adjust your approach to maximise value, customer interest and profitability. Self-storage unit construction isn’t a shot in the dark – it’s a data-driven strategy for boosting your annual revenue.
Get quality self-storage unit construction at competitive prices
Do you have unused space on your premises that could be earning you money? Then contact Racking + Shelving Ltd for high-quality self-storage unit construction in Northern Ireland or mainland UK, all at a competitive rate.
Get in touch online or call us on 028 9442 9037 to speak with one of our friendly storage professionals.
