Hartford Business Journal

www.HartfordBusiness.com • September 30, 2019 • Hartford Business Journal 7 er parked in a driveway all winter,'' said Fritts, who is president of Storage Investment Management Inc. (SIMI). But their appeal is dimming amid questions about their relative economic-devel- opment value to communities, said Julie Nash, Milford's direc- tor of economic and community development. Milford and other communi- ties nationwide are realizing that self-storage facilities are not always the high- est and best use of land, especial- ly undeveloped acreage, within their borders. This shore- line community of 53,000 was growing inun- dated with stor- age facilities, and Milford had got- ten word more may be coming, Nash said. Nash said she calculated that Milford har- bored enough self storage for more than every resident to rent, based on the industry standard of roughly seven square feet per capita. "There was a proliferation of storage units going up," Nash said. "They are valuable spaces, but they don't contrib- ute jobs. We need to make sure we're making the best use of our land.'' Milford's location off I-95, between New Haven and Bridgeport — two cities with little developable acreage — make it attractive even to shore- line residents living outside Milford to use the town as their personal closet, observers say. Fritts said SIMI's Bridgeport stor- age facility benefits from New York City clients who come long-distance to pay suburban Connecticut storage fees that average 40 percent less than the Big Apple's. Typical storage users live less than four to five miles, or within 15 minutes, of one, he said. "We want people to come in,'' Milford's Nash said, "but we don't want to be a dumping ground for their stuff.'' Michael Leg- acki, acquisition manager for The Hampshire Cos., the diversi- fied New Jersey landlord/owner of Parkville's Extra Space Storage, said his company deems Milford's self- storage market overbuilt and won't operate there. Legacki said he welcomes communities' extra scrutiny of his industry, which he says has too many players and in- vestors chasing too few salient development opportunities. Still, he defends self storage "as a huge positive for communities,'' claiming that nationally most stor- age facilities consistently have occu- pancy rates above 90 percent. "Clearly, it's a service the commu- nity needs,'' Legacki said. Fritts also countered criticism that self-storage centers don't contribute meaningful economic development and jobs in a community. "I don't think that's fair,'' he said. "We pay real estate taxes like every- body else." PDS has been meeting the needs of the construction industry since 1965. Our dedicated team of design and construction professionals welcomes the challenge of serving its past and future customers on their most demanding projects. TD Bank | Wallingford, CT PDS Engineering & Construction served as General Contractor for the latest, freestanding TD Bank facility. The original goal was to obtain Gold-level certifi cation; however, the rating was ultimately updated to LEED Platinum due to the sustainable credits relating to the site, energy and materials. This fast-tracked project was completed on schedule in only 119 days after receiving notice to proceed. Project Features: - Mechanical, Electrical & Plumbing - Millwork - Metal Fabrication - Aluminum-Framed Entrances 107 Old Windsor Road, Bloomfi eld, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS SPOTLIGHT ON: S LEED PLATINUM PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD Supply and demand of self-storage space in CT Construction Vacancy (Sq. Ft.) Rate 2015 73,400 6.8% 2016 274,800 8.7% 2017 604,100 7.9% 2018 1,035,000 9.4% 2019* 623,800 9.8% * Forecast Sources: Marcus & Millichap Research Services, Yardi Matrix, Union Realtime Average self-storage facility rent CT U.S. (per sq. ft.) (per sq. ft.) 2016 $1.14 $1.18 2017 $1.19 $1.20 2018 $1.21 $1.16 2019* $1.23 $1.15 * Forecast Note: Average rent is estimated based on rates for a 10- x 10-foot, non-climate-controlled self-storage unit. Sources: Marcus & Millichap Research Services, Yardi Matrix Hartford Planning and Zoning Commission Chair Sara Bronin says self-storage sites are an impediment to the city's efforts to "be equitable, thriving and vibrant." PHOTO | HBJ FILE WE PROVIDE CT BUSINESS LEADERS WITH THE INFORMATION THEY NEED TO SUCCESSFULLY RUN THEIR BUSINESS. ARE YOU IN THE KNOW? SUBSCRIBE BY GOING TO WWW.HARTFORDBUSINESS.COM CLICK ON "SUBSCRIBE"

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