Zoned Out: Self-Storage Bans & The Battle To Belong

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.”

MSM has also been reporting on the most recent moratoriums and bans as well. Here’s a look at some of them and the city’s rationale for them.

April 2023: Cape Coral, FL

The city put a hold on any new self-storage development in 2024. Since then, Cape Coral has done a turnabout, suspending the moratorium if facilities are at least one-mile apart and 500 feet from major intersections.

September 2023: West Gardiner, ME

The city extended an existing self storage moratorium, with a council member stating, “[self-storage] doesn’t help stimulate the local economy and they don’t offer many jobs.”

February 2024: Mandan, ND

After placing a ban in some areas, City Planner Andrew Stromme said, “We know in the future there will be people living in these areas that will be able to benefit from businesses being more neighborhood commercial.”

March 2024: Lewiston, NY

The city’s board of trustees declared self-storage facilities an unpermitted use in business and residential business districts, believing that self-storage “does not fit with the village.”

March 2024: Avondale, AZ

The city of Avondale rejected an Extra Space application stating it “should not be an eyesore in one of the last buildable lots, where we should be putting community enrichment and things that add value.” 

July 2024: Yonkers, NY

Mayor Mike Spano called for self-storage moratoriums, stating, “We know there is a need for them, but this prevents Yonkers from becoming the storage facility capital of Westchester County.”

July 2024: Providence, RI

After instituting a moratorium, Councilman Miguel Sanchez said, “What we’re seeing is this industry gobbling up a lot of land that, in our opinion, should be used for other purposes.”

January 2025: Rockdale County, GA

The moratorium was placed after county officials came across a study that stated, “some types of retail correlate with negative social outcomes, such as crime and decreased property values.” 

Tim Dietz, President of the national Self-Storage Association (SSA), is aware of these conflicts. He told MSM he feels that many city officials simply don’t understand the industry, and the ordinances they put into place reflect this. “Laws that restrict the addition of self-storage generally stem from misconceptions about the industry," he explains. "They don't realize the benefits it brings to communities."

Tim Dietz, President & CEO, Self Storage Association (SSA)

Delusions of Grandeur

One of the most recent proposed bans is happening now in Delta Township, Michigan. The township's Board of Trustees recently passed a zoning ordinance amendment prohibiting self-storage facilities from locating in commercial zones. Township Supervisor Fonda Brewer said, "Self-storage facilities are inactive land uses, provide few jobs, and represent an opportunity cost that could displace more desirable future development.” 

Township Planner Director Peter Menser added, “Industrial zoning may be more appropriate for this land use given that self-storage facilities do not rely as much on high-traffic locations, are passive land uses that provide little spin-off economic activity, and are typically constructed using a building form that might better match those in an industrial area."

Self Storage Association of Michigan Hall-of-Famer Maurice Pogoda, President and Chairman of 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.”

Maurice Pogoda, President & Chairman, Pogoda Companies

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 cafes. 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,” explains 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,” adds Pogoda. “They see themselves as something they’re not.”

Pogoda also addresses the argument that self-storage facilities are ‘inactive land uses.’ “Maybe so, but is that such a bad thing? Self-storage is a very quiet neighbor. There aren't that many people at a storage facility at any one point in time, if that’s a concern. And, cities could easily make it part of their ordinance that the facility can't have 24 hour access, keeping people out past 10pm or so.”

He also makes a point that self-storage doesn’t generate a lot of traffic, which is good for the roads; plus, facilities have a very minimal impact on sewer infrastructure, which is vital when encouraging additional developments in high-growth markets. “You know, not everything has to be a McDonald's, or a shopping center generating huge amounts of traffic and waste. There’s a place for all of us.” 

Dietz agrees. “Officials who promote moratoriums often don’t consider the low impact on congestion. They also don’t think about elements such as the important support self-storage provides to families in transition.”

The late Charlie Fritts, who was president of the Northeast Self Storage Association until his untimely passing last year, told MSM in 2023 when Providence, RI was being hit with moratoriums that he had another hypothesis as to why council members fixated on the lack of employees: Votes. “Businesses don’t vote, people do,” Fritts said. “So, a storage facility moves in, and council members don’t get a whole lot of votes from them. Now, put in a housing complex, and suddenly there’s 300 votes they can work for.”

The Retail Play

Some developers, in order to appease city planners and council members, have offered to make space for a retailer or two within the facility. This puts another storefront on the face of the building, and provides additional employment opportunities. Pogoda says it’s not uncommon now for a retail component to be part of a special use permit. “We had a project in Columbus that we had to put retail in,” recalls Pogoda. “I'm personally not a big fan of retail – I don't particularly like being in that space – but I understand it can help you get into certain areas, especially if you have the right retail. I mean, a Starbucks would be incredible right? Or an urgent care. I’ve seen facilities with veterinary clinics. These all generate traffic which is good for self-storage.”

Scott Zucker, a national expert on self-storage law and development with law firm Weissmann/Zucker, P.C., thinks the retail play is where it’s at. “If you look carefully at self-storage as a real estate product, it creates the unique ability to offer mixed-use capacity. We have seen developments that couple retail and personal services with self storage as well as even multi-family residential options. All of the arguments against self storage can be addressed and resolved with a good design and a flexible planning department.” 

Wrapping self-storage in retail doesn’t always work, however. In 2024, city council members in Rockford, Illinois rejected a deal that would have allowed U-Haul to convert a former Kmart, which had sat vacant since 2018 when the U-Haul bought it, into a self-storage facility that would have included at least two new restaurants or retail shops. Orput Companies, the developer working with U-Haul at the time, also agreed to make pedestrian safety improvements and build green space in the center of the existing parking lot that would improve stormwater detention. 

In a 10-2 vote, the project was denied. Alderman Mark Bonne, who opposed the deal, said, “No matter how much you dress this project up, [self-storage and truck rental] represents a disappointing trend of second-rate use for what should be prime commercial property."

Alderwoman Gabrielle Torina, who was in favor of the development, didn’t mince words when expressing her disappointment. “I guess since we don’t envision a U-Haul there with this tenant, we just envision an empty lot,” she said, adding that she doesn't foresee another big box retailer moving in, leaving the space vacant indefinitely. “So we’re voting on not to develop at all.”

Officials decided this empty lot, which has remained vacant since 2018, was a better look for Rockford, IL than a self-storage facility with retail and green space. 

Pogoda says it’s very short-sighted of the Rockford council members. “Classifying self-storage as second-rate is ignorant of what self-storage is, its uses, and its place in the community. If this property had been vacant since 2018 or before, the market has spoken about what is the best use. It will likely remain vacant for a very long time.”

He is not wrong. MSM looked into the lot today and found that while U-Haul, which owns the property but cannot convert it, is selling moving supplies under an unofficial banner. There have been no takers on the property. "We're still trying to work with the city to make this self-storage," said the rep on the phone when contacted.  

The (mostly unused) Rockford, IL property today

Pogoda recalls converting a former Kmart in Charlevoix, MI to self storage in 2022 after it had sat vacant for years. “We did a beautiful development and have had many people in the community thank us for taking away a blighted property and doing something tasteful and nice with it,” says Pogoda.

Toledo Torpedoes Development

The city of Toledo, Ohio also has a municipal code amendment regarding self-storage heading to the council’s Zoning and Planning Committee for approval. Two facilities in development have already been paused due to a moratorium. “The concern about storage units mostly comes from business owners,” Toledo City Council President Carrie Hartman said. “The question is always, ‘Is this a good use of the space?’”

Tom Gibbons, director of the Toledo Plan Commission, has a somewhat different outlook, believing that they typically inhabit otherwise vacant spaces. “They take up space that really isn’t getting used,” said Gibbons. “If something does come along, and it’s making [the space] a better use, then it’s pretty easy to clear the site. It’s not tough to take down a square box.”

With facilities throughout Ohio, Pogoda also has some thoughts on these conversations. He says that while Gibbons seems to look more favorably at allowing self-storage development to proceed, the idea that new properties can simply be torn down is outdated; self-storage doesn’t look like the ‘square boxes’ of yesterday. 

“Back in the day, sure, that's what self storage often was – a land play. You’d set it up to make some money until a better use came along. But the facilities built today are built to stay. They’re not eyesores; many of them beautify the area.”

Pogoda also says he’d be willing to bet that no more than 100 facilities have ever been torn down to put something else in its place – and those that have been were probably because the city used eminent domain to acquire the property in order to put in a highway interchange or similar. 

“Something else to think about,” adds Pogoda. “Tenants are paying more to rent than in the past, to offset construction costs, and when they are shelling out that kind of money they don’t want to be going back and forth into an industrial zone. They want the facility to be on the main drag, just like the owners do. A good location makes it more convenient and more safe.”

Devil’s Advocate

The argument could be made that moratoriums crack down on overbuilding. And, that argument has been made in the past, even by those in self-storage circles. "While creating further impediments to an already difficult development process is not something we would normally welcome, given some of the irrational developments by newcomers to the industry, we actually welcome the restrictions," Michael Legacki, Senior Acquisitions Manager at Hampshire Capital told Radius+.

Of course, that was 2020. That year, demand for self-storage spiked to unprecedented levels as working and living spaces changed rapidly. Occupancies averaged 96.5 percent at the time, and average rent prices soared. So of course, developers rushed into the space to build new inventory.

“Some markets are overbuilt, but that can happen when there’s a temporary frenzy in a hot spot,” Joe Shoen, CEO of U-Haul, told MSM in our 2025 outlook story. “But there’s still a lot of room to grow in the storage business.”

Pogoda feels the same. He acknowledges that while some unskilled developers may have tried building willy-nilly during the pandemic boom, contributing to some oversupply, he thinks the market reset has solved for this. “Post-pandemic, construction costs skyrocketed, maybe 40-50 percent higher than it was before. This has really helped weed out the ‘newbies’ that are inexperienced or haven’t done their homework. Ultimately, this is good for the industry.”

Final Thoughts

The recent spate of moratoriums and bans makes it clear that the battle to exist will persist, but self-storage industry leaders and those who support them will continue to push back. “As with any business sector, greater inventory benefits the consumer through lower prices and more options,” says Dietz.

Pogoda believes that in time, bans will be lifted and moratoriums may cease as self-storage continues to grow in acceptance. “The industry has changed, and our behaviors have changed, especially since the pandemic. Self-storage has become part of people’s lifestyle and their needs.”

Until that day, though, Pogoda says cities will have a fight on their hands. “The Self Storage Association of Michigan will push back. My son, Daniel, is on the board and I know he's well aware of these situations. And they’re doing what they can to not let these bans and moratoriums stand.”

Dietz says the SSA will also continue to advocate for the industry on a national level. “Since 2004, the association has influenced nearly 500 laws that have redefined the regulatory landscape.”

It’s a safe bet that they won’t stop until unfair bans and moratoriums stop too.

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Brad Hadfield is the MSM web manager and a staff writer.