Single-Story Drive-Up Self Storage: An Advantage Built on Experience

How AAA Storage Approaches Self Storage Formats

Over more than 30 years and 90 completed projects, AAA Storage has found single-story drive-up self storage to be the optimal fit for its investment and development strategy. Led by founder John Muhich and Managing Director Paul Bennett, the company has prioritized this format after navigating both design types. According to Bennett, land cost almost always drives the decision: in urban cores where land prices soar, multi-story becomes necessary. However, in the city skirt and suburban locations where AAA Storage operates, single-story drive-up consistently delivers better investment economics.

Single-story drive-up is the traditional, original self storage product. Each unit is accessible directly from the outside, and projects combine both climate-controlled and non-climate units in several sizes—typically ranging from 5x5 to 20x30. This layout is designed to serve a diverse mix of customers, from residential tenants resizing homes to business users needing daily access.

Multi-story self storage is typically fully climate controlled, with smaller, uniform unit sizes. Bennett notes that many operators are forced to rent some units at non-climate prices, since the market cannot always sustain the premium for climate control. Multi-story buildings bring added complexity such as elevators, brick exteriors, interior corridors, and sprinkler systems, making them more challenging and expensive to build and maintain.

Construction, Phasing, and Operations Informed by Decades of Practice

Based on AAA Storage’s data, single-story drive-up development regularly comes in at approximately $100 per square foot. In contrast, multi-story projects average $150 to $160 per square foot, and any deviation in complex construction can quickly erode returns. Simple structures, slab-on-grade builds, and metal panel exteriors keep costs and surprises low. According to the team, the risk of budget and schedule overrun is much greater in multi-story construction.

Operationally, AAA Storage’s experience shows an advantage in simplicity. A drive-up facility requires less ongoing maintenance and capital expenditure. Repair needs tend to be minor—metal panel replacement or surface fixes—compared to the intensive, periodic servicing of elevators and sprinkler systems found in multi-story properties.

Phasing is another significant benefit. Single-story drive-up projects can be efficiently developed in stages: for example, 40,000 square feet built and leased before breaking ground on the next phase. This approach matches real-time market demand, prevents excess inventory, and limits carrying costs during lease-up. Bennett explains that this practical flexibility is often absent in multi-story developments, which require building the entire structure at once—tying up more capital and extending exposure to construction and market risk.

Tenant Experience and Yield on Cost

AAA Storage’s direct tenant feedback and market observations reinforce the operational value of the single-story drive-up format. For business tenants—such as contractors, landscapers, and small service operators—drive-up access provides essential convenience for frequent, often daily, visits. Residential customers appreciate the seamless move-in and move-out, storing items from furniture to vehicles with ease. Bennett notes that larger units almost always rent first—a trend consistently seen in AAA Storage’s lease-up performance.

With homes trending smaller and storage needs growing, AAA Storage also sees increasing demand from families and individuals who use drive-up units as an extension of their home. In comparison, multi-story facilities lag in convenience due to their reliance on elevators and interior layouts, deterring both frequent-use business tenants and households seeking easy access.

From an investment standpoint, AAA Storage underwrites its single-story drive-up projects to a yield on cost target of 9.5%, citing a range between 7.5% and 8% for multi-story facilities—despite only a modest rent premium in many markets. The company’s strategy is anchored not only on cost discipline, but on proven returns: across 90 completed projects, AAA Storage has delivered a 19% IRR to investors.

Focused Expertise with Consistent Results

AAA Storage’s sustained performance and strong investor outcomes stem from a clear commitment: prioritize single-story drive-up projects in growth corridors where land costs, operational needs, and market demand are aligned. By favoring flexibility, phasing, risk discipline, and practical tenant benefits, AAA Storage continues to achieve the outcomes investors and tenants expect in a competitive market.