Posted by Brad Hadfield
Self-storage remains in the crosshairs of some city officials. Due to concerns over aesthetics, oversupply, a lack of job creation, or all of the above, they’re restricting self-storage facilities to industrial zones, or instituting moratoriums or outright bans on new development. Once moratoriums or bans are instituted in one city, others seem to take notice, and the dominoes begin to fall.
Over the last six years, there have been self-storage moratoriums or bans in cities across at least 15 states (some have since lifted, while most remain in place). In 2020, Radius+ highlighted a number of them, in cities as large as Birmingham, Alabama to smaller towns like Coon Rapids (MN), Milford (CT), Nampa (ID), and Vancouver (WA). Other cities didn’t outright ban self-storage, but they did put in place ‘stipulations.’ For example, in Denver, self-storage is restricted within a quarter-mile of any light-rail train station and in Sacramento, they’re outlawed in the area of Stockton Boulevard and Broadway to make the space “more walkable.”
Self Storage Association of Michigan Hall-of-Famer Maurice Pogoda, president and chairman of Farmington Hills, Mich.-based Pogoda Companies, can only just shake his head at these types of statements. “I try to take off that hat of self-interest to see things from these city and council members’ perspectives,” says Pogoda. “Try as I might, I just don’t get it. I mean, 35 years ago, sure. Self-storage was mostly rows of garage doors and not particularly attractive, but we’re so beyond that now. Today’s self-storage facilities can go up against some of the most beautifully designed buildings in any industry.”
Pogoda also thinks, in this particular case, that Delta Township is trying to liken itself to the more picturesque small town Michigan cities of Petoskey, Birmingham, and Rochester, which are lined with boutique shops and cozy cafés. These delusions of grandeur are causing them to lift their nose at the idea of self-storage. “No offense to Delta Township, but that’s just not going to happen. Those other cities originated naturally, organically, and then they grew,” says Pogoda. “Since then, they’ve been good shepherds of those areas and making them even better. But areas like Delta Township should be welcoming self-storage. Our product today is nicer than most anything else they have. This could also be why other cities are implementing moratoriums or bans. They see themselves as something they’re not.”