Self-storage facilities are a lucrative, high-demand opportunity for investors due to their recession-resistance. This means they are typically able to survive economic downturns and provide stability without fail, regardless of economic cycles. Due to increased investor interest, the self-storage market has saturated, causing opportunities in this stabilized asset to become more scarce. Instead of growing unit count, operators have been forced to invest in existing facilities with turnaround potential.
The driving force behind the fractured performance of self-storage facilities lies behind operational deficiencies, leading to decreased profitability potential. This, paired with the dire need to reduce facility maintenance expenses has influenced operators to transform facilities with energy-efficient, cost-effective LED lighting solutions and meet operational excellence.
Traditional lighting fixtures pose several risks to investor profitability, specifically relative to operation, such as; energy usage inefficiencies; significant light quality output depreciation; reduced lifespan; costly and complex repairs; and environmental concerns. LED lights are engineered to meet the highest industry standards, reducing energy costs and improving energy efficiency by up to 65%.
How LEDs Save & Control Self-Storage Operation
LED lighting solutions influence storage facility recovery. They are built to last and are a low-maintenance, energy-efficient alternative to legacy lighting systems. As LED lighting technology has evolved, smart control lighting solutions have been introduced, enhancing additional energy efficiency and maintenance cost savings. The proper LED lighting solution provides high-quality light output for optimal visibility throughout facilities, improved existing security, and tenant safety.
LEDs produce significantly less heat output than traditional light fixtures, mitigating HVAC system operation stress and costly repairs. In turn, this limits energy consumption for climate-controlled storage facilities and reduces energy expenses.
The outperforming, long-lasting technology of LED lights contributes to impactful maintenance savings, profitability, and utility rebate options that cover environmentally safe lighting upgrade projects.
Previously, businesses would write off qualifying equipment over time through depreciation rather than the preferred method for business owners of writing off the entire purchase for the year purchased. The Section 179 Deduction (179D) allows business owners to do just that on energy-efficient commercial building upgrades, making it a reliable deduction for storage facility investments.
The unwavering benefits of LED lighting solutions are unmatched making it a no-brainer value-add for investors. Let’s recap.
Top 7 Storage Facility LED Lighting Upgrade Benefits:
• Cut Energy Costs: Reduced energy expenses and improved energy efficiency
• Improve Safety & Security: High-quality light output for optimal visibility, safety, and security
• Facility Maintenance Excellence: Minimal maintenance requirements due to life hours in excess of 100,000 plus or 10+ years
• Outperforming Technology: Long-lasting engineering contributes to significant maintenance savings and maximized profits
• Environmentally-Friendly: Eco-friendly engineering that is safer for the environment, attracting wider tenant interest and long-term lease potential
• Cover Upgrade Expenses: Utility rebate options to cover environmentally safe lighting upgrade projects
• Enhance Climate Control Efficiency: Minimized heat waste limiting HVAC system strain and energy consumption for climate-controlled storage facilities
Transforming to a Turnkey Energy Efficient Storage Facility
There are various light fixture options to light the way for indoor and outdoor storage facilities. Outdoor self-storage lighting consists of wall packs, flood lights, and parking lot lights while indoor facilities typically compliment the space with high bays, low bays, canopies, and strip lighting.
Indoor LED Storage Lighting Solutions
Indoor LED lighting solutions for self-storage facilities improve facility functionality while minimizing operational costs. They provide bright, uniform light coverage efficiently and ensure a safe storage environment. The proper fixture solution will vary depending on placement. A Lighting Expert will recommend a tailored lighting solution to align with space requirements.
Low bay light fixtures can be installed above aisles and corridors. They are ideal for illuminating narrow spaces while high bays are ideal for open spaces containing shelving and storage racks or large storage bays. Low bays and high bays can be equipped with smart lighting controls to further enhance the efficiency of a facility. Motion sensor smart lighting controls are typically installed to improve energy efficiency in high foot traffic zones. Selecting the proper low bay or high bay fixture will depend on the ceiling height of the facility.
Canopy light fixtures are ideal for enhancing tenant visibility at storage unit entry points, assisting with navigating the facility on overhang structures, and illuminating loading zones. They are engineered to withstand harsh environmental conditions with their weatherproof, corrosion-resistant materials.
Strip lighting fixtures distribute linear light coverage to mitigate shadows within storage units and aisleways, reducing the risk of tenant accidents and improving ease of storage and organization within units. Their compact design makes them an ideal solution for small, low-clearance spaces.
Outdoor Storage Facility LED Lighting Solutions
Many locations follow dark sky ordinances to ensure light is not emitted horizontally. Distributing light toward the ground prevents light pollution while protecting the night sky. Partnering with a Lighting Expert who understands local area codes is key to achieving the proper lighting solution for a turnkey investment.
Wall pack light fixtures are commonly mounted to the side of facilities while providing both indoor and outdoor installation potential. They are ideal for illuminating walkways, and access points, and reducing the risk of potential tenant accidents. The high-quality light provided by wall packs detracts from trespassers and complements security cameras to provide clear security footage visibility.
Flood light fixtures are engineered to illuminate large, open spaces and can be paired with surveillance systems to enhance security. They are commonly mounted to light poles and the side of the buildings. Due to their high-performance light output and ability to brighten walkways and loading areas efficiently, flood lights prevent accidents and amplify tenant safety.
Parking lot lights are ideal for illuminating outdoor tenant activity zones, specifically, access roads, facility perimeters, and building exteriors. The high-intensity light distribution provided by shoebox lights improves visibility and enhances tenant safety while eliminating dark zones where theft is commonplace.
Maximizing Return on Investment with LED Lighting Solutions
Despite the oversaturated attraction to investing in self-storage facilities, the global self-storage market is expected to grow at a compound annual growth rate of 5.9% from 2024 to 2030 to reach USD 83.20 billion by 2030 (Grand View Research, 2023). Therefore, upgrading a turnaround potential investment to an energy-efficient, cost-saving LED lighting solution is paramount for reaching operational excellence and maximizing profitability.
There are other ways beyond lighting solutions for storage facilities to maximize return on investment. Ceiling fan installation circulates air efficiently in high-traffic and reception areas without overworking HVAC systems to further enhance building efficiency.
Due to the uniform, high-quality light coverage provided by LEDs, storage facilities transform into safer, more secure environments. This, paired with the reduced energy consumption, allows investors to align with business goals, maximize profits, and set the stage for a successful turnaround investment.
Author Biography
Chelsea Jones, Digital Marketing Manager at LED Lighting Supply, brings over seven years of experience developing customer-focused strategies. Specializing in content creation and digital campaign development, Chelsea helps streamline buying decisions by providing customers with the necessary resources to make informed decisions. Her insights have been featured in leading industry publications, including Commercial Construction Magazine and T&D World, where she shares valuable information on the commercial, industrial, and sports lighting sectors. Outside of the office, Chelsea enjoys playing piano, attending yoga sessions, and spending time with her dog, Zeus.
References
Grand View Research. (2023, December). Self-storage market size, share & trends analysis report by type, by application, by region, and segment forecasts, 2023 - 2030. Grand View Research.