Storage facilities: hot business
The private storage facility business is cashing in on those who have run out of space

BY Brad Riles
DBJ Contributing Writer

Is it possible to have too much storage space? Apparently not.

The latest trend among business developers has brought the emergence of the storage unit, otherwise known as mini-storage, to several towns across the Delta, as well as America.

“We just kind of fell into (the business),” said Lee Kirk, who co-manages Commerce Mini-Storage in Greenwood along with his brother and sister, Greg and LaBeth. The siblings operate the store for their father, Bobby, he added.

McNeer Mini Storage in Cleveland can account to the growing number of storage units as they were well ahead of the pack when they opened nearly 30 years ago.

“If it is a business that appears to be something that really does well, a lot of other people want to get in it,” said Ron McNeer, general manager of the family-owned and ran business.

“(McNeer) was the first one in Cleveland and added slowly over the years,” he said.

While Mississippi Delta towns and communities only make up roughly 10 percent of the state’s population, it is not directly related to how much “stuff” that 10 percent owns.

The number of storage units in America has grown by 13,000 over the last decade, according to the Self Storage Association. That’s right, this business has garnered so much attention that it has its own association.

What used to go in closets, attics, basements and garages is now being placed in storage units, which seem to be popping up alongside roadways everywhere.

However, just like any business, it comes with challenges and one of the major challenges is making money, or in the storage unit business, collecting money.

“It is pretty labor intensive when it comes to collecting,” said Kirk, but added that most people are pretty good about paying on time.

“It has been a really good business,” Kirk said.

Security is also another concern among storage owners

“We have someone here 40 hours a week letting people in and out,” said Kirk of Commerce’s gated storage units. He added that customers provide their own locks for each unit.

“I would say the biggest and most important issue is just location,” Kirk said. “If you don’t have a secure fence around your storage units, you are going to have constant thefts.”

Customers are also more appreciative of the extra steps that are taken in providing the best security, whether it is through location or security systems.

“We have gone through some links to secure the units a little better,” McNeer said and added that they are in the process of adding another storage unit in another location.

For all those priceless items that seem to show their age more than others, storage units are now being equipped with climate controlled systems, which helps prevent condensation or rotting from the constant temperature changes.

“We just recently expanded to the climate control units,” Kirk said.

“It is heated, cooled and air tight to keep moisture out for people who have nice furniture,” he said. “It’s like being in your house.”

“Pharmaceutical companies use them. They like them because their medicines have to stay at a certain temperature.”

McNeer said their facilities also include climate-controlled units, which are used by some businesses to store products or even work out of.

Being in a college town helps with business, he said, as students sometimes store furniture when they are out of school and are making the transition from apartment-to-apartment.

While some are used for business purposes, Kirk said about 90 percent of his renters use them for personal belongings and the turnover is pretty constant among renters.

There is always going to be turnover with people moving in an out, Kirk said, “but sometimes we do not have any available.”

McNeer added that the turnover is pretty quick with customers, but you do have some that occupy units for a long period of time.

The overhead costs of storage units are pretty basic and straightforward as someone simply needs land and builders.

“The major costs in starting a storage unit business are land and construction of the units, according to Kirk. “Though you would be surprised at how economical just the basic units are,” he added. DBJ