Georgia self‑storage operators urge change to local property‑tax valuation, cite customer needs and community role

Megan, owner of A and G Storage, Cliff Height, president of Space Shop Self Storage and partner at Stein Investment Group, and Jane Sauls, owner‑operator of Little Vine Storage, presented to the Small Business Development Committee on the size, community role and tax concerns of the self‑storage industry.

The presenters said the industry is mostly small, family‑run operations that provide local jobs and serve households in transitional or emergency situations. "We really are small mom and pop," Megan said, describing customers who use storage after death, divorce, displacement, disasters, bankruptcy or military deployment. She highlighted national and Georgia usage statistics — "in 2005, about 8.95 percent of our population used storage. In 2024, it jumped to 12.6 percent," she said — and noted common items stored include mattresses and seasonal decorations.

Why it matters: presenters argued the industry supplies neighborhood employment, repurposes vacant commercial property and offers a low‑infrastructure land use. Cliff said his development work has repurposed long‑vacant properties and estimated his firm employs about 150 people in Georgia. Through the Georgia Self Storage Association (GASA), he said owners also run education and charity efforts (he cited an $11,000 fundraising total for the Sparrow Foundation).

Taxation and policy ask: Jane Sauls urged committee members to avoid valuing self‑storage facilities for ad valorem property tax using an income‑capitalization (income stream) approach. "What we will be asking you all to consider now and going forward is to not use the valuation method on the income stream and to only use the actual building cost and less the depreciation," she said. Sauls noted Georgia recently authorized electronic lease signatures through House Bill 934 and pointed to Indiana Code §6‑1.1‑4‑46 as an example of a state statute that removed the capitalization valuation method for self‑storage.

Market pressures and costs: presenters said expenses — particularly taxes and insurance — are a significant portion of operating costs (presenters cited roughly 25% of the cost base). They also identified rising construction costs and lengthy entitlement timelines as development pain points that can make projects financially difficult even when rent rates appear healthy.

Members’ questions and answers: committee members asked about occupancy, climate‑controlled units, auction practices, length of stay and the market for buying and selling facilities. Cliff said occupancy varies by market, from low‑80s in population‑loss areas to mid‑90s and occasional 100% occupancy in high‑growth markets. On climate control, presenters said demand "depends" on the market and unit mix; climate control often commands a 15–20% premium in many markets but pricing can invert when supply patterns differ. On collections and dispossession, presenters said their managers prioritize outreach and that auctions are rare — less than 0.5% of units statewide — and often used only after aggressive efforts to help customers retrieve belongings.

On turnover, Cliff estimated an industry average length of stay of about 14–16 months, with some urban facilities seeing averages of multiple years. On owners exiting the business, Jane explained that storage properties are brokered and sold like other commercial real estate, typically valued on income and return metrics, and that brokers work with buyers to assess management needs and capital availability.

What’s next: presenters offered to provide ZIP‑code level data and local member contacts to committee members who want more market detail. No formal committee action or vote occurred during the presentation.

The committee closed by thanking the presenters and inviting them to remain for follow‑up conversations.