Why Steel Rules in Self-Storage Construction (and What Investors Should Know Today)

Self-storage stands out among real estate categories for one primary engineering reason: nearly all facilities are built using steel. That fact isn't simply a design quirk—it's a strategic advantage worth understanding, whether you're studying storage investing or considering joining a course on this niche. Below, I'll walk you through why steel construction remains dominant, how it benefits owners, and what you should emphasize when evaluating storage deals.

The Structural Case for Steel

Steel behaves differently from wood or masonry—and in storage, that difference matters.

  • Dimensional stability: Steel doesn't warp, shrink, split, or swell with moisture. That means fewer surprises—no bowed walls or warped ceilings. 
  • Non-combustibility & fire performance: Because steel isn't combustible, it doesn't fuel a blaze. That brings added safety and, in many cases, more favorable insurance terms. 
  • Strength-to-weight efficiency: Steel lets you span wider open bays and reduces the number of interior columns—ideal for flexible unit layouts and easier tenant access. 
  • Resilience in extreme conditions: In areas prone to high winds, earthquakes, or heavy loads (e.g. snow), properly designed steel structures offer more consistent performance. 

In short: steel gives you a structure that behaves reliably through seasons and stresses.

Over Time: Maintenance & Cost Benefits

While the upfront cost of steel may sometimes appear higher than wood or masonry, the lifecycle economics typically favor steel for storage facilities.

  • Lower ongoing upkeep: Unlike wood, which must be painted, sealed, or treated regularly, steel buildings usually only require occasional washing and inspection. 
  • Faster build / lower labor burden: Many storage builders use prefabricated steel kits that assemble quickly on site. That cuts labor hours and speeds revenue generation. 
  • Insurance and risk advantages: Because steel is more resistant to fire, pests, and structural degradation, insurers often view these properties more favorably, sometimes translating to lower premiums. 
  • Longevity: With proper coatings and design, steel storage buildings can last for decades—often longer than wood or conventional alternatives. 

Thus, over time, steel's durability and lower maintenance can offset its higher upfront costs—resulting in better net returns.

What This Means for Investors & Students

If you're assessing storage opportunities—or preparing to do so—the steel construction aspect is a nontrivial factor. Here are the key takeaways to highlight:

  1. Don't assume all metal is equal
    Cold-formed steel and structural (hot-rolled) steel differ. Investors should understand which one is used, where, and why.
  2. Check warranties and coatings
    The quality of protective coatings or finishes—and their warranties—will influence long-term durability.
  3. Stress test extreme scenarios
    In regions exposed to storms, seismic activity, or wildfires, confirm that the steel structure is engineered for those loads.
  4. Include steel advantages in your underwriting
    Lower maintenance, better insurance, and fewer structural surprises should show up in your financial models.
  5. Use construction speed as a competitive edge
    Faster build times mean you can lease units (and cash-flow) sooner than with slower, traditional builds.

Conclusion

When assessing self-storage investments, steel construction is more than a construction detail—it's a competitive pillar. Its reliability, safety profile, and long-term economy make it uniquely suited to storage. For students of this sector, grasping the “why” behind all-metal buildings is essential. In our classes, we go well beyond financials: we dissect engineering, risk, and structural decision-making so you enter deals with eyes wide open.

Frank Rolfe has been an active self-storage investor for around two decades, with self-storage units in many states throughout the U.S. His nuts and bolts knowledge of what makes for a successful self-storage facility has led to a three-decade career without a single failed property.