Almost two months ago, we posted a blog titled Hong Kong, Statistics, and New Design. Last time we looked, self-storage executives in Hong Kong were figuring out how to break through the market, while dealing with high costs and spatial allowance issues. Since the time has come for more industry updates, we thought we’d let you know how Hong Kong is doing – but it’s not all about them! We’ll also reveal what’s really up with the self-storage market in Brazil and educate you on some domestic building code changes.
Valet-Storage Style in Hong Kong
Hong Kong has seen an upswing in the valet-storage market since the beginning of the year. For those that haven’t heard, valet-storage is a smaller, more localized approach to self-storage.
Here’s what happens: instead of charging per unit, companies charge their clients per box. Cost per box is obviously significantly lower than cost per unit. When a client has their box ready, the company picks it up. Then, the box is stored in a facility with all the other clients’ boxes, but only company operators have access to this area. When a client wants their box back, the company ships it to them.
In markets like Hong Kong, valet-storage is a golden approach. Not only does it help save the client money, but it saves space as well, cutting down on square footage costs for the company. For more information on this matter, click here and here.
The Self-Storage Scene in Brazil
Here’s the thing: Brazil is currently facing an economic downturn. But what does that mean for the country’s self-storage industry? Well, it’s actually going to be just fine.
For the most part, self-storage in Brazil has been growing and will continue to grow. Many companies have solid backing, smart ideas, and a fresh approach. They’ve been changing their strategies to suit a recessive economy.
According to David Blum, an international self-storage consultant, the industry in Brazil will remain “recession-resistant, just as it was in the US.” For more details on the economy of self-storage in Brazil, be sure to check out Blum’s article.
Domestic Building Code Changes
Back here in the US, we’ve got some new codes to take note of. There’s no telling when they will take effect in each state, but self-storage developers should be on the lookout.
The first thing: sprinkler systems. Once this change is in effect, buildings over 2,500 square feet will be required to have an automatic sprinkler system. This could increase building costs, but they don’t have to be astronomical. Many builders will choose to separate their buildings by three-hour firewalls in order to avoid installing multiple sprinkler systems.
The other change: insulation. Insulation specifications will be the same as that in a residential home, and have continuation requirements. It isn’t projected that this will greatly affect cost, but it is a significant change nonetheless.
For more specifics, read Jaime Lindau’s article here.