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Should You Convert Your Non-Climate Storage to Climate Control? Let’s Talk Numbers, Reality, and Common Sense.

Kevin Harless

Kevin Harless

Chief Executive Officer @ Rocket Self Storage Advisors | Self-Storage Strategist, Developer

Published Aug 13, 2025

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Should You Convert Your Non-Climate Storage to Climate Control? Let’s Talk Numbers, Reality, and Common Sense.

If you own a self-storage facility, chances are you’ve had the thought: "What if I took some of these non-climate units and turned them into climate control? Higher rent, better marketing appeal… easy win, right?"

Well… maybe. Like a lot of things in this business, the math and the market tell the real story.

First — What We’re Talking About

We’re looking at three real-world-sized examples of what it would cost to take existing non-climate space and turn it into climate control:

1. 20,000 sq ft hallway at 80% rentable space (16,000 rentable sq ft)
2. 10,000 sq ft hallway at 80% rentable space (8,000 rentable sq ft)
3. Full 60,000 sq ft facility split into 5 sections, each at 80% rentable space (48,000 rentable sq ft)

Right now, we’ll assume:

• Non-climate rent: $1.20/sq ft/month
• Climate rent after conversion: $1.40/sq ft/month
• That’s a $0.20 increase per sq ft/month in revenue.
• Industry-average AC retrofit install cost: $3.50 per cubic foot with 10 ft ceilings.

Here’s the Math

• 20k sq ft conversion: $700,000 install cost → +$38,400/year in revenue → 18.2 years to pay off
• 10k sq ft conversion: $350,000 install cost → +$19,200/year in revenue → 18.2 years to pay off
• 60k sq ft conversion: $2.1M install cost → +$115,200/year in revenue → 18.2 years to pay off

Yep — no matter the size, your payback period is roughly 18 years based on these assumptions.

Why That’s a Long Time

In storage, we typically want 3–7 years to pay off a capital upgrade. Eighteen years? That’s not a home run — it’s a slow jog to first base. And remember — this doesn’t even factor in:

• Interest on any financing you’d use
• Extra maintenance costs for HVAC systems
• Higher utility bills
• Climate unit repairs (and the occasional angry customer if a system goes down)

But Kevin, What About Charging More?

Good question. If you can raise rates more than $0.20/sq ft/month, the math changes quickly. In some markets, climate commands $0.40–$0.60 more than non-climate — in which case your payback could shrink to 6–9 years. The problem? That’s not every market. In fact, there are areas where drive-up non-climate actually rents for more than interior climate. (Seriously.)

The Market Matters More Than the Math

Before you drop a single duct or buy a single AC unit, do your homework:

• Per capita climate control supply: How much climate space already exists in your 3–5 mile radius?
• Demand: Is your market full of customers storing antiques, documents, or furniture — or is it mostly tools, toys, and lawnmowers?
• Rate gap: What’s the actual average difference between climate and non-climate rates locally?
• Seasonality: Is climate only in demand for certain parts of the year in your area?

Why a Mix Is Usually the Smart Play

Even if your math works, converting everything to climate isn’t always smart. A healthy facility often has both:

• Climate for customers who need it (or think they do)
• Drive-up non-climate for customers who want easy access and a better rate

The truth is — some customers actively avoid climate because they don’t want to walk a hallway or pay for something they don’t value.

Is it Profitable

Climate conversions can be profitable… in the right market, at the right price, with the right rent spread. But in many cases, the “instant win” you think you’re getting is a decades-long payback that ties up cash you could be putting into better, faster-return upgrades.

My advice? Know your numbers. Know your market. And remember — in self-storage, chasing the hottest trend without running the math is the fastest way to cool off your returns.