I am curious if anyone has studied the difference in the value of storage units constructed from Steel verus wood frame construction.

Over the last seven years we have built 13 wood framed buildings with vinyl siding and shingled roofs, mainly because one of our ownership group is in home construction and so we had minimal labor costs.

I am interested in finding out if our buildings are worth more, less or equal to a steel building.

Thank you

Hi Mike,

Insurance premiums are normally higher on buildings with frame construction.

Just thought you might want to know!
Best,
Randy

__________________
Randy J Tipton, CIC
President
Universal Insurance
3300 N Central Ave, Suite 1520
Phoenix, AZ 85012
randyt@univins.com
800-844-2101 extension 1153

We operate in an area that has a few over 100 degree days in the summertime, and can be down around freezing a couple of times in the winter. It is VERY easy for me to entice customers to our facility because we have wood frame, insulated construction.

I can easily explain that the metal buildings will heat up significantly in the summer and cool down more in the winter than my facility. I use their experience with their own garage as an example, I explain that the temperature fluctuations will be less than their own garage in my facility, due to ours being insulated, unlike their garage. I have never had a tenant move their belongings into a storage unit because wherever the stuff is currently is either too hot or too cold for it. They get wrapped up in a competitor trying to push their top-dollar climate controlled units and think that it is necessary.

I can't address the value per se, but from a manager's point of view I've found wood construction to be more "valuable". It also feels more permanent, metal buildings look and feel less substantial. A few tenants have mentioned that.