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  • Office Rental?

    I have seen a few self storage facilities locally offer air conditioned offices about the size of a 10x10 unit for rent. These offices usually rent for about $250/mo (our normal 10x10 rate is around $100/mo), offer no long term leasing (month-to-month), and have all utilities included (electric, wi-fi, keypad access, conference room, some have break rooms). Any comments/thoughts?

  • #2
    We have something similar. But much bigger-we have 10x20 warehouse in the front and a 10x15 office in the back. It has free internet, electricity and a/c in the office. They also have the option of 24 hour access and use of our conference room. We actually like them-usually long term tenants and they never give us issues.
    An apple a day keeps ANYONE away if you throw it hard enough.

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    • #3
      I have always been surprised by these units that are used for that. I guess they are in demand because of the price and what is offered for that. The list you volunteered for $250 a month, I assume, would be less than in a brick and mortar building and those are likely not month to month. Someone saw a need and came up with the storage facility option. Now, are these actual units or are they inside of the facility main building or another building on site? Or are they inside a climate controlled building that has storage as well as these offices?
      "Never let the inmates run the asylum!"

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      • #4
        Originally posted by pacnwstorage View Post
        I have always been surprised by these units that are used for that. I guess they are in demand because of the price and what is offered for that. The list you volunteered for $250 a month, I assume, would be less than in a brick and mortar building and those are likely not month to month. Someone saw a need and came up with the storage facility option. Now, are these actual units or are they inside of the facility main building or another building on site? Or are they inside a climate controlled building that has storage as well as these offices?
        Our is the mixed one-it has A/c down stairs that backs into the office side, and the front is drive up. Upstairs is regular storage. We charge an arm and a leg for ours.
        An apple a day keeps ANYONE away if you throw it hard enough.

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        • #5
          Here we have a couple different types. We have a 25x75 warehouse space-- just a huge open space to work out of and those are going for around $1,000 a month. Then we have office/warehouse spaces that have a small office in them along with a good size warehouse--those are around $1,400 a month. I'd rather just have nothing but storage though because when one of those move out, it hits you hard in occupancy numbers

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          • #6
            Originally posted by dreid View Post
            Here we have a couple different types. We have a 25x75 warehouse space-- just a huge open space to work out of and those are going for around $1,000 a month. Then we have office/warehouse spaces that have a small office in them along with a good size warehouse--those are around $1,400 a month. I'd rather just have nothing but storage though because when one of those move out, it hits you hard in occupancy numbers
            Should have them classified differently in the system so as not to effect so bad. Do you have to be zoned differently for these spaces?
            "Never let the inmates run the asylum!"

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            • #7
              Those are sometimes done to win approval for zoning. For example, the city is concerned about appearance and lack of job creation.

              Steve

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              • #8
                Most of the office rentals in this area that are in storage rentals are targeting startups and other small micro businesses (SMB's). These offices offer a place to get work done away from home, are usually cheaper than a business incubator, and if you need storage, you can just walk down the hall. Some of these offices that are being built have "mini-storefronts" with glass doors directly to the outside and a secure door in the back to the rest of the facility.

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                • #9
                  Originally posted by pacnwstorage View Post

                  Should have them classified differently in the system so as not to effect so bad. Do you have to be zoned differently for these spaces?
                  No, the entire property is zoned as commercial for storage and warehouses. We've had to explain to our bosses that a big dropoff in occupancy can be attributed to these spaces being vacated-- one moved out because they outgrew the facility and had something built for them, another moved out with no notice (and no deposit returned either cuz they left it a mess) and another one moved out because their business slowed down and they didn't need the additional space. Now we're gonna lose another office/warehouse space because there's not enough parking (that's the reason they gave us) so they're probably going to be out before the new year, but we might have someone lined up soon to take over the space once they move out. We'll have to see

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                  • #10
                    At another company that I used to work at, we offered customers complementary works stations at our storage facilites. We didn't rent them out, but you'd be surprised how big a feature a desk, chair, phone and wifi can be for commercial customers.

                    As for charging monthly fees for small offices, here is very successful example

                    https://www.wework.com/

                    WeWork is a fantastic company that not only lets you rent small office areas, but you end up being able to share social and professional services that have only been available to larger companies. Not only do they make money on the spaces, but also on the offered services.

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