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Should You Convert Your Non-Climate Storage to Climate Control? Let’s Talk Numbers, Reality, and Common Sense.

Kevin Harless

Kevin Harless

Chief Executive Officer @ Rocket Self Storage Advisors | Self-Storage Strategist, Developer

Published Aug 13, 2025

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Should You Convert Your Non-Climate Storage to Climate Control? Let’s Talk Numbers, Reality, and Common Sense.

If you own a self-storage facility, chances are you’ve had the thought: "What if I took some of these non-climate units and turned them into climate control? Higher rent, better marketing appeal… easy win, right?"

Well… maybe. Like a lot of things in this business, the math and the market tell the real story.

First — What We’re Talking About

We’re looking at three real-world-sized examples of what it would cost to take existing non-climate space and turn it into climate control:

1. 20,000 sq ft hallway at 80% rentable space (16,000 rentable sq ft)
2. 10,000 sq ft hallway at 80% rentable space (8,000 rentable sq ft)
3. Full 60,000 sq ft facility split into 5 sections, each at 80% rentable space (48,000 rentable sq ft)

Right now, we’ll assume:

• Non-climate rent: $1.20/sq ft/month
• Climate rent after conversion: $1.40/sq ft/month
• That’s a $0.20 increase per sq ft/month in revenue.
• Industry-average AC retrofit install cost: $3.50 per cubic foot with 10 ft ceilings.

Here’s the Math

• 20k sq ft conversion: $700,000 install cost → +$38,400/year in revenue → 18.2 years to pay off
• 10k sq ft conversion: $350,000 install cost → +$19,200/year in revenue → 18.2 years to pay off
• 60k sq ft conversion: $2.1M install cost → +$115,200/year in revenue → 18.2 years to pay off

Yep — no matter the size, your payback period is roughly 18 years based on these assumptions.

Why That’s a Long Time

In storage, we typically want 3–7 years to pay off a capital upgrade. Eighteen years? That’s not a home run — it’s a slow jog to first base. And remember — this doesn’t even factor in:

• Interest on any financing you’d use
• Extra maintenance costs for HVAC systems
• Higher utility bills
• Climate unit repairs (and the occasional angry customer if a system goes down)

But Kevin, What About Charging More?

Good question. If you can raise rates more than $0.20/sq ft/month, the math changes quickly. In some markets, climate commands $0.40–$0.60 more than non-climate — in which case your payback could shrink to 6–9 years. The problem? That’s not every market. In fact, there are areas where drive-up non-climate actually rents for more than interior climate. (Seriously.)

The Market Matters More Than the Math

Before you drop a single duct or buy a single AC unit, do your homework:

• Per capita climate control supply: How much climate space already exists in your 3–5 mile radius?
• Demand: Is your market full of customers storing antiques, documents, or furniture — or is it mostly tools, toys, and lawnmowers?
• Rate gap: What’s the actual average difference between climate and non-climate rates locally?
• Seasonality: Is climate only in demand for certain parts of the year in your area?

Why a Mix Is Usually the Smart Play

Even if your math works, converting everything to climate isn’t always smart. A healthy facility often has both:

• Climate for customers who need it (or think they do)
• Drive-up non-climate for customers who want easy access and a better rate

The truth is — some customers actively avoid climate because they don’t want to walk a hallway or pay for something they don’t value.

Is it Profitable

Climate conversions can be profitable… in the right market, at the right price, with the right rent spread. But in many cases, the “instant win” you think you’re getting is a decades-long payback that ties up cash you could be putting into better, faster-return upgrades.

My advice? Know your numbers. Know your market. And remember — in self-storage, chasing the hottest trend without running the math is the fastest way to cool off your returns.

Unlocking Savings with the 179D Energy Efficient Tax Deduction

When it comes to running a successful self-storage business, every dollar counts. Rising energy costs and increased demand for climate-controlled storage mean owners are constantly looking for ways to cut expenses while improving facility performance. One often-overlooked opportunity is the 179D Energy Efficient Commercial Building Deduction—a powerful tax incentive designed to reward building owners and designers who invest in energy efficiency.

What is the 179D Deduction?

The 179D deduction allows qualifying building owners to claim a tax deduction of up to $5 per square foot for meeting certain energy efficiency standards, as outlined by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE).

The deduction covers three major areas of a facility:

• Building Envelope – insulation, roofing, windows, and doors that help reduce energy loss.

• HVAC and Hot Water Systems – efficient heating, cooling, ventilation, and water heating systems.

• Lighting Systems – energy-saving lighting, such as LED upgrades.

Why This Matters for Self-Storage Owners

Self-storage facilities—especially climate-controlled buildings—are excellent candidates for this deduction. These properties require significant energy use to regulate temperature and humidity, making efficiency upgrades both cost-saving and tax-advantageous.

Key Benefits:

1. Significant Tax Savings
For example, a 50,000-square-foot climate-controlled facility that meets the standards could qualify for up to $250,000 in deductions. That’s real money back into your business.

2. Lower Operating Costs
Energy-efficient HVAC units, LED lighting, and improved insulation mean lower monthly utility bills. Since storage facilities often operate 24/7, these savings compound quickly.

3. Increased Market Appeal
Today’s customers care about sustainability. Highlighting your facility’s efficiency not only improves your brand image but also helps attract tenants who value environmentally conscious businesses.

4. Protection Against Rising Energy Prices
With energy costs on the rise, investing in efficiency now creates long-term stability in operating expenses.

5. Support for Sustainability Goals
Upgrading your facility helps position your business ahead of future energy regulations while reducing environmental impact.

What Owners Should Know

• Certification is Required: A licensed third-party professional must certify your facility’s efficiency improvements.

• Partial Deductions Are Possible: Even if your building doesn’t fully qualify, improvements to specific areas (like HVAC or lighting) can still earn partial deductions.

• Retrofits Count Too: The 179D deduction applies not only to new construction but also to upgrades and renovations of existing self-storage facilities.

The Bottom Line

For Alabama self-storage operators, the 179D Energy Efficient Tax Deduction represents a strategic way to cut costs, improve profitability, and future-proof your facilities. By investing in energy efficiency today, you not only enjoy tax savings and lower operating expenses but also position your business as a leader in sustainable storage solutions.

As always, be sure to consult with your CPA or tax attorney to understand how this deduction fits into your overall financial strategy.

Copper Storage Group (CSG), an affiliate of property-management company Copper Storage Management (CSM), has launched a self-storage investment fund. Open to accredited investors, it’ll pursue acquisitions of underperforming properties nationwide. Sites will be remotely managed and operated under the Copper Safe Storage brand name, according to a press release.

CSG was launched by leaders of CSM and consulting firm Self Storage 101. The executive team has more than eight decades of combined industry experience. It includes Terry Campbell, Bill Copper, Bob Copper, Brett Copper and Jacob Copper, the release stated.

“We’re excited to introduce our self-storage investment fund as a strategic entry point into a thriving market with significant potential for returns,” said Bob Copper, principal of the fund. “Backed by our extensive industry experience and proven track record, we’re thrilled to get started on this profitable journey with our investors.”

The CSM team has about 100 years of self-storage experience and remotely manages more than 190 facilities nationwide. Company services include a call center, collections, customer service, day-to-day bookkeeping, lien sales, marketing and more.

Copper Storage Group Launches Self-Storage Investment Fund (insideselfstorage.com)

Update 9/9/23 – Five self-storage operators were named among “America’s Best Customer-Service Companies” for 2024 by “Newsweek” magazine and data-research firm Statista. CubeSmart, Go Store It, Life Storage, SecurCare Self Storage and SmartStop Self Storage were chosen in the “Storage Centers” category as part of the “Personal Services, Home Care and Maintenance” sector. The campaign included 724 brands across 166 categories.

In terms of ranking, SmartStop took the top spot among self-storage operators with a score of 84.35, followed by CubeSmart (82.94), Go Store It (81.88), SecurCare (79.67) and Life Storage (78.98). It’s the third time SmartStop has been ranked the highest in the storage sector. It’s the only self-storage company to rank No. 1 multiple times since the survey launched six years ago, according to a press release.

“We believe storage shouldn’t be complicated or stressful for our customers, and this prestigious recognition reaffirms our dedication to delivering seamless, stress-free storage solutions,” said H. Michael Schwartz, chairman and CEO of SmartStop. “This award underscores our team’s dedication, expertise and passion for making a positive difference in the lives of our customers.”

Founded in 2013, Go Store It operates 87 self-storage facilities across 16 states. It’s owned by Charlotte, North Carolina-based Madison Capital Group LLC, a vertically integrated real estate investment firm that also acquires, develops, operates and owns suburban multi-family properties

Self-Storage Operators Honored for Customer Service (insideselfstorage.com)

Expectations for self-storage performance in 2023 are more in line with the fourth quarter than the first nine months of 2022. The leasing season usually starts in April/May and ends in August/September, but last year, operators from nationwide started to see elevated move-outs in early September. Dips in occupancy are often expected that time of year, but over the previous few years, there was very little seasonality. As a result, the late 2022 dip came as a surprise to many operators and investors.

Move-in activity during the last quarter of 2022 was on pace with historical averages. It’s safe to say that the increase in self-storage demand that accompanied the COVID pandemic is over; though drivers such as displacement, home remodels, migration, divorce, home/office downsizing and retirement persist in fueling it. The industry will continue to show its resiliency and maintain high occupancies in 2023, though it’s now likely to return to more normalized seasonality in line with pre-pandemic performanc

    Absolute Storage Management 1630 Bonnie Lane Suite 106 Memphis, TN 38016 AbsoluteMGMT.com

FOR IMMEDIATE RELEASE August 26, 2019

Absolute Storage Management Reports 2019 Second Quarter Results

MEMPHIS, Tennessee –Absolute Storage Management (ASM), a leading third-party management company for self-storage facilities in the United States, announced operating results for the three months ended June 30, 2019.

2019 Highlights for Three Months Ended June 30, 2019:

 Increased same-store revenue by 2.5% vs. the same period in 2018.

 Reported Same-Store Net Operating Income ("NOI") increase of 3.1% compared to the same period in

2018.

 Acquired three (3) management contracts: one (1) operating facility and two (2) facilities at the completion of construction.

2019 Highlights for Six Months Ended June 30,2019:

 Increased same-store revenue by 2.8% vs. the same period in 2018.

 Ended the time period with 90.7% Square Ft. Occupancy compared to 91.2% same period in 2018.

 Added gross of 10 stores to third-party management portfolio.

ASM’s 2019 same store pool consists of 68 stabilized properties managed since January 1, 2018. The income growth that these properties displayed is a direct result of ASM’s expertise in revenue and occupancy management, and the overall NOI growth is aided by consistent expense monitoring and economies of scale.  “Our adaptive and locally focused team continues to produce outstanding results, even in increasingly competitive markets. Out team has done a phenomenal job.” Scott Beatty, CEO. 

ASM actively manages 131 properties in 14 states. Over the three-month quarter ending June 30, 2019,  ASM gained management of the following properties: Pelham Road Self Storage in Greenville, SC; Canton Storage in Canton, GA; and Old Ellis Storage in Roswell, GA.  Absolute Storage Management

Absolute Storage Management (ASM) is one of the largest private, third-party self-storage management company in the United States. Founded in 2002, ASM’s headquarters are in Memphis, TN with regional offices in Atlanta, GA; Charlotte, NC; Nashville, TN; and Jackson, MS. The company’s mission is to grow successful partnerships with customers, team members, and investors by delivering excellence in service. 

For further information and news about Absolute Storage Management, please go to the ASM website at

www.absolutemgmt.com. Contact Jasmin Jones at jasmin.jones@absolutemgmt.com.

CLEARLAKE CAPITAL-BACKED JANUS INTERNATIONAL NAMES INDUSTRY VETERAN RAMEY JACKSON AS CEO Janus Founder, President and CEO David Curtis to Retire and Serve as Co-Chairman of Janus Board of Directors Temple, GA and Santa Monica, CA – August 23, 2019 – Janus International Group, LLC (“Janus”), the leading global manufacturer and supplier of turn-key solutions and new technologies for the self-storage, commercial and industrial markets, backed by Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”), today announced that long-time Janus executive and industry veteran Ramey Jackson will succeed David Curtis as Chief Executive Officer, effective September 2, 2019. Mr. Curtis, who announced his retirement, will remain with the company in the role of Co-Chairman of Janus’ Board of Directors. Mr. Jackson is an accomplished veteran of the self-storage industry with more than 20 years of relevant experience, and he has served in many executive and leadership roles within Janus, most recently as Vice President of Sales. “I am honored to serve as the next CEO of Janus, and I want to thank David, Clearlake and the entire team at Janus for the confidence they have placed in me to lead this incredible organization,” said Mr. Jackson. “The self-storage business is undergoing exciting changes, as new technological solutions are developed and applied, and Janus looks forward to offering the most innovative, customer-friendly options.” "Ramey is an executive with the knowledge, experience, commitment and vision required to lead Janus into the future, and we look forward to partnering with him as we work together to take Janus to the next stage of growth,” said José E. Feliciano, Co-Founder and Managing Partner, and Colin Leonard, Partner, at Clearlake. “On behalf of Clearlake and the Board, we want to thank David for his exemplary service to Janus, wish him well in his well-deserved retirement and look forward to his continued contributions as Co-Chairman.” Mr. Curtis founded Janus in 2001 and served as the Company’s Chief Executive Officer since inception. He has over 35 years of executive experience within the industry, having founded and led multiple companies at the forefront of the self-storage and commercial sectors. "I am proud of the incredible global platform we have built with the best employees in the industry,” said Mr. Curtis. “Janus is just getting started in its growth trajectory, and I am excited to watch Ramey execute on our compelling growth plan to pioneer new technologies like access control, while expanding our core business lines. Ramey is a proven and respected leader in our organization who has delivered strong results through an unwavering commitment to our customers and people.”  ### ABOUT JANUS Janus International Group, LLC is the leading global manufacturer and supplier of turn-key self-storage, commercial and industrial building solutions including: roll up and swing doors, hallway systems, relocatable storage units, and facility and door automation technologies. The Janus team operates out of several U.S. locations and five locations internationally. More information is available at www.janusintl.com. ABOUT CLEARLAKE Clearlake Capital Group, L.P. is a leading private investment firm founded in 2006. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are industrials and energy; software and technology-enabled services, and consumer. Clearlake has managed over $10 billion of institutional capital since inception and its senior investment principals have led or  co-led over 100 investments. More information is available at www.clearlake.com.

Media Contact: For Janus: Christine DeBord 770-562-2850 marketing@janusintl.com   For Clearlake: Blicksilver Public Relations Kristin Celauro 732-433-5200 kristin@blicksilverpr.com   Jennifer Hurson 845-507-0571 jennifer@blicksilverpr.com

Janus International Group, 135 Janus International Blvd, Temple, GA 30179, 770-562-2850

PINNACLE STORAGE PROPERTIES ANNOUNCES THE ACQUISITION OF STORAGE PLUS OF OLD KATY AND STORAGE PLUS OF LIVINGSTON

Houston, TX – July 11, 2019 – Pinnacle Storage Properties, based in Katy, Texas, proudly announces the acquisition of two more Texas properties, Storage Plus of Old Katy and Storage Plus of Livingston.

Pinnacle has strategically placed Katy facilities in three different sub-markets.  Storage Plus of Old Katy, located at 5310 E 5th St., in Katy, TX, is Pinnacle’s third addition in the Katy market. Storage Plus of Old Katy’s 142,476 square feet of space provides 531 units to serve customer needs. Along with Storage Plus of Katy and Storage Plus of Katy Kingsland, these properties offer a total of 240,000 sq. ft. of storage space.

Old Katy provides a variety of unit options; state-of-the-art security; climate-controlled storage; and vehicle, boat and RV storage; as well as free wi-fi, delivery acceptance, and print/copy/scan services for our business tenants. 

Storage Plus of Livingston, located at 4414 US Hwy 190 W., in Livingston, TX, has an existing 260 non-climate controlled units, totaling 46,100 square feet of storage space. Pinnacle’s strategy of purchasing under-managed, under-enhanced, and under-developed facilities, then updating these properties, will increase Livingston’s value with an expansion of 35,050 square feet of climate-controlled space while implementing best practice management.  The expansion is scheduled to be completed by late summer of this year.

In addition to climate-controlled storage; vehicle, boat and RV storage; and state-of-the-art security, Livingston will be offering delivery acceptance, free wi-fi, and print/copy/scan services to business clients.

“Pinnacle Storage Properties is excited to be adding these properties to our ever-expanding portfolio, which includes over 20 locations across Texas, Oregon and Washington, consisting of approximately 7,500 units totaling over 1,000,000 sq. ft. of rentable space. Livingston is a great fit for our portfolio and ideally located between New Caney and Nacogdoches.” Pinnacle Storage Properties continues to grow and is positioned to double in size within the next year.”  States John Manes, Pinnacle Storage Properties Partner and CEO.

Robby Dunn, Pinnacle’s Chief Investment Officer, states, “Adding these properties to our growing portfolio gives us the opportunity to make a positive impact on these communities as we add value by updating the property and execute best practice management strategies. We look forward to working with our potential customers, employees, and other small businesses in the area. We continue to remain aggressive in our continued acquisition of self-storage properties.”

Pinnacle Storage Properties is a privately held, national real estate owner-operator focused on the acquisition, development, and management of self- storage assets.  Their investment strategy is to purchase under-managed, under-enhanced, and under-developed assets in suburban and secondary markets.  They take a grassroots, off-market approach in selecting the best deals that deliver stable cash flow and long-term appreciation opportunities.  With nearly 25 years of combined self-storage experience, they have established an industry wide reputation for superior performance derived from core values; honesty, integrity, and respect.  For more information on Pinnacle Storage Properties, see https://pinnaclestorageproperties.com/ 

Kurt Power
Pinnacle Storage Properties
Tel: 913-375-4782
Email:  kurt@pinnaclestorageproperties.com
Website: www.pinnaclestorageproperties.com--

PINNACLE STORAGE PROPERTIES PROUDLY ANNOUNCES THE ADDITION OF KURT POWER TO ITS EXECUTIVE TEAM Houston, Texas, July 12, 2019 – Rapidly expanding Houston, Texas-based Pinnacle Storage Properties is thrilled to announce the addition of Kurt Power as VP of Investor Relations. Mr. Power comes to Pinnacle with a wealth of experience in real estate investment, marketing, and account management. His last 4 years were spent at Think Realty where he was positioned as National Account Manager. During his tenure at Think Realty, he helped build the company from the ground up into a national and international brand. He initiated the lead on expanding the Think Realty brand into China while hosting two international conferences in Shanghai. The vehicle that propelled Mr. Power in his early career was the fitness industry, where he mastered the skills of focusing his time and energy to help others. This makes him a perfect fit with the culture of Pinnacle Storage Properties. As VP of Investor Relations he will oversee communication with current investors, informing them of all project updates. He will also be adding new investors and managing relationships with the goal of helping investors secure their future and the future of their families. Kurt will also be engaging in social media marketing activities. “I am excited, humbled and grateful to be a part of the Pinnacle team, and I look forward to contributing to the continued success of Pinnacle Storage Properties. It’s invigorating to be with a company that has incredible focus, extraordinary self awareness, and a dynamic plan for business success,” states Mr. Power.  “We are very excited to welcome Kurt to Pinnacle Storage Properties,” said John Manes, Pinnacle CEO. His work ethic, diverse experience and impressive management skills align perfectly with our core values of integrity, honesty, and respect, making him the perfect fit to head up Investor Relations.” Pinnacle Storage Properties is a privately held, national real estate owner-operator focused in the acquisition, development, and management of self-storage assets.  Their investment strategy is to purchase under-managed, under-enhanced, and under-developed assets in suburban and secondary markets. They take a grassroots, off-market approach in selecting the best deals that deliver stable cash flow and long-term appreciation opportunities. With nearly 25 years of combined self-storage experience, they have established an industry wide reputation for superior performance derived from core values; honesty, integrity, and respect. For more information on Pinnacle Storage Properties, see https://pinnaclestorageproperties.com/   Media Contact: Kurt Powers Pinnacle Storage Properties Tel:  913-375-4782 Email:  kurt@pinnaclestorageproperties.com Website:  www.pinnaclestorageproperties.com

Scott Worden joins CallPotential as Business Development Manager

New hire, Scott Worden, represents CallPotential at the CSSA Napa Owner’s Conference

FOR IMMEDIATE RELEASE: Chicago, IL Wednesday, May 8th, 2019

CallPotential, award-winning customer relationship management (CRM) and communications software developed for self-storage, is pleased to announce the addition of Scott Worden as Business Development Manager. Worden will be joining Director of Business Development, Peter Spickenagel this week at the California Self Storage Association’s (CSSA) Napa Owner’s Conference.

“Scott is highly regarded for his client-first approach”, said Phil Murphy, CallPotential Founder/President. “He brings great energy and experience in the self-storage technology sector. We are enthusiastic he will be representing CallPotential and feel fortunate to welcome him to the CallPotential team.”

In his new position, Worden will use his passion for innovation and developing positive client relationships to expand CallPotential’s client base. Previous industry experience includes positions with other self-storage technology providers. Worden excels at creating and executing business development strategies that result in increased sales and profitability. Worden holds a B.S. in Marketing and Management from the University of Oregon.

“CallPotential is a high-impact platform” said Scott Worden. “I am excited to have the opportunity to be part of the CallPotential team and contribute to the company’s next phase of growth.”

Scott Worden will be representing CallPotential at the California Self Storage Association’s Napa Owners Conference May 8th and 9th. To reach Scott emailscott@callpotential.com or call 602-536-9026

About: CallPotential’s award winning CRM and communication platform integrates seamlessly with self-storage operators property management software allowing systemization and automation of lead management and collection management processes using omni-channel communication tools like text messaging, email, live and recorded calls, and live chat. CallPotential also empowers owners to run their own internal contact centers without investing in expensive hardware or hiring additional labor. These products combine powerful insight, transparency and control into operations. To learn more about CallPotential visit www.callpotential.com or call 877-552-2557