As competition heats up, self-storage operators are facing a “big shake out.”
That’s according to Darren Kelley, president of Right Move Storage, who spoke to Storable in a recent webinar. Kelley, who has been in the industry since 2000, described the current moment as one of the most challenging operating environments of his career.
Kelley pointed to what he sees as an increasingly bifurcated market, separating those who operate with precision from those who are struggling to adapt to changing dynamics. With rent suppression and rising non-controllable expenses, success now hinges on operational efficiency, data mastery, and a proactive embrace of technology, he said.
For operators—whether managing a single facility or a large portfolio—the message was clear: if you aren’t evolving, you’re falling behind.
The New Operational Standard
A significant portion of this evolution is the integration of AI. Kelley emphasized that AI isn’t about replacing people; it’s about augmenting their capabilities. From summarizing email threads and managing tasks to analyzing security data and identifying potential internal threats, AI allows teams to focus on high-value work rather than manual data entry.
Driving Demand and Efficiency
During the session, a poll revealed that 78% of attendees were most focused on driving demand and move-ins. Kelley offered this advice to smaller operators struggling to compete with large-scale providers: Stop trying to outspend the giants. Instead, master your local market, utilize robust revenue management software, and implement strict operational playbooks.
Key Takeaways for Storage Operators
Whether you are a new owner or a seasoned operator, Kelley offered these insights to sharpen your competitive edge:
- Prioritize Revenue Management: If you aren’t using sophisticated revenue management tools, you are leaving money on the table. You need to understand your market’s true yield, not just competitive “street rates.”
- Leverage AI for Efficiency: Utilize AI tools (like Microsoft 365 Copilot) to automate routine administrative tasks. This frees up your team to focus on customer service and higher-level strategy.
- Adopt a “Test and Learn” Mindset: When implementing new technology, start with a pilot program at a few properties before rolling it out across your entire portfolio.
- Focus on Local Marketing: You can’t outspend the national players, so out-hustle them locally. Understand the businesses within your one-to-three-mile radius and get creative with your community outreach.
- Standardize Processes: Develop and stick to rigorous operational playbooks. You manage processes and lead people; ensure both sides of your business are functioning efficiently.
The path forward in self-storage isn’t about “doing it the way we’ve always done it.” It’s about being nimble, using data to drive decisions, and refusing to settle for mediocrity. As Kelley puts it, “there are plenty of pies to bake—just choose your flavor.”
For the full discussion, check out the webinar recording below:
