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Move outs - There’s been a lot. We normally can take care of this with move-ins but our rates are too high so we’re seeing that disconnect in real time. See report below on move out reason and infoWhat was sent out for rate increases? Didn't think we were sending increase out, but we received a review from a renter stating they had a $20/month increase. We decided on our last call to do increases, we dialed it back from one large one, to a few groups of increases per our last convos since Cassandra is gone. Budget vs Actual (hopefully we can review August numbers?) we shoot for financials to be ready for review between the 10th and the 12th and have all financials out by the 20th. We are working towards moving that timeline up as we move to DualEntry and Cubby.Marketing ideas to drive traffic -
Website shows “Prices start at $53” for their Fargo location, though the specific unit size isn’t stated .Another source (SpareFoot) lists 10×10 units averaging $90.81/month in Fargo in general—not necessarily at this facility, but indicative of broader market pricing .
5×5: Typically $29–$45/month10×10: Often $69–103/month10×15: Around $102–162/month
Self Storage Solutions may command a slight premium versus Five Star for climate and security, but still undercuts Premiere’s top standard rates (e.g., Premiere’s 10×20 listed at $221–$265).StoreMoor’s lease-up model using a $100 10×10 with 1st month free directly undercuts Premiere’s similar offering at $126.
Self Storage Solutions likely rents 10×10 climate units in the $85–95 range—still notably below Premiere’s $126–152 street rate.Five Star/drive-up rates begin significantly lower—ideal for comparison to non-climate units.StoreMoor’s aggressive pricing with free month packages has strategic value and signals high price sensitivity in the market.Premiere is consistently priced at a premium across all sizes, including small (5×5 climate), mid (10×10 climate), and large (10×20 climate) units.To remain competitive, Premiere needs to align its pricing closer to or just above Self Storage Solutions, especially for similar indoor climate offerings:Consider reducing 10×10 rates to ~$110–120 max, even on upper floors.10×20 climate rates at $221–265 are well above market; a target of ~$180–200 would be more competitive.Smaller 5×5 climate units should be in the ~$60–70 range, not $83–99.
Population impacted: 111 tenants with scheduled increases.Average increase: $19.42 per unit (~15.8%); median $20 (~16.1%).Monthly revenue uplift (gross): $2155 if all increases stick.Annualized uplift (gross): ~$24,468.Timing: Increases are spread, with near-term clusters in Aug–Sep (2025), smaller tails in earlier months.
Occupancy: Plateaued around ~51–52% in August, slipped slightly to 51.0% (392 units) by Sep 8.Net Rentals: Turned negative – August ended with 30 move-ins vs 34 move-outs (net –4). Early September (Sep 1–8) continued with 4 move-ins vs 8 move-outs (net –4).Leads & Conversions: August leads were 43 (72% conversion), but September leads are way down (9 through Sep 8, 22% conversion).1. Current Performance (Aug–Early Sep 2025)Occupancy: Plateaued around ~51–52% in August, slipped slightly to 51.0% (392 units) by Sep 8.Net Rentals: Turned negative – August ended with 30 move-ins vs 34 move-outs (net –4). Early September (Sep 1–8) continued with 4 move-ins vs 8 move-outs (net –4).Leads & Conversions: August leads were 43 (72% conversion), but September leads are way down (9 through Sep 8, 22% conversion).Revenue:August: ~$42.9K collected, up from $33K in July.Sep 1–8: $15.8K collected, trending toward $55K–$60K for September if current pace continues.Economic Occupancy: ~34% in August, ~34% again early September — far below the 50%+ potential.
Performing Well (still leasing):10×5 units (both floors) – nearly full, strong demand.10×15 elevator ($163) – leasing steadily, net +8 units in Aug–Sep.10×20 elevator ($221) – decent demand, net +5 units.Stalled/Struggling:5×5 ground ($99) – no rentals in months.10×10 ground ($152) – net –10 units, occupancy dropped to ~54%.10×15 ground ($189) – no new rentals in 2 months, net –4.10×20 ground ($265) – net –7, last rental over a month ago, occupancy ~42%.10×12 ($142) – no rentals in 7+ months.
Rates vs Competitors:10×10 climate units: Premiere $126–152 vs competitors $109–131.10×20 climate units: Premiere $221–265 vs competitors ~$180–200.5×5 climate units: Premiere $83–99 vs competitors $59–71.Result: Premiere is 10–30% higher than market on many units, pricing out prospective renters despite the “1st Month Free” promo.
Occupancy: Likely to fall further to ~49% (≈380–385 units).Revenue: ~$55K–$60K in September (up from Aug due to tenants rolling into paid months).Net Rentals: Expected to remain negative, with more move-outs than move-ins.Economic Occupancy: May rise slightly to ~38–40% as more promo tenants convert, but still far below potential.
Recommended Adjustments:Lower rates on stalled units: 10×20 ground to ~$225, 10×15 ground to ~$160, 10×10 ground to ~$130–135, 5×5 ground to ~$85, 10×12 to ~$120–125.Maintain rates on high-demand units (10×5, 10×15 elevator).Keep “1st Month Free” but refine terms (e.g. 2-month minimum stay, or 50% off first 2 months for large units).Optimized Outcome:Projected 20–30 additional units leased by end of September.Occupancy could climb to 55–57% (420+ units).Monthly Gross Potential Income (rent roll potential) would increase to $65K–$70K, vs ~$43K actual in August.Sets up October collections in the $60K+ range, improving economic occupancy to 50%+.
Do not maintain current rates – they’re suppressing demand and fueling occupancy losses.Make targeted rate cuts on stalled unit types to re-ignite leasing.Promote aggressively: market new “Fall Rates + 1st Month Free” as limited-time through Sep 30.Focus on occupancy now – filling units at sustainable rates will drive long-term revenue higher than keeping them vacant at inflated prices.
Week of Aug 1–7: Modest positive net rentals (early August saw some carryover move-ins from July’s momentum). Occupancy rose slightly above 50%.Week of Aug 8–15: Net rentals flat to slightly negative as higher move-outs offset new move-ins.Week of Aug 16–23: Clear slowdown – move-ins declined, and occupancy plateaued ~51%.Week of Aug 24–31: Net –4 units (end-of-month move-outs surpassed new move-ins), bringing occupancy down to 395 units (51.4%).Week of Sep 1–8: Net –4 units again, reducing occupied units to 392 (51.0%).5×5 units: The 5×5 climate units on the elevator-access floor remained effectively full (88.9% occupied). Only 1 move-in and 1 move-out occurred (net zero change) Aug–early Sep, mainly because there was very little availability to begin with. In contrast, 5×5 ground-floor units (priced at a premium) saw no move-ins at all in this period – in fact, the last time a 5×5 ground unit was rented was over 210 days ago. One remains vacant (83.3% of 5×5 ground units occupied) and it hasn’t attracted a renter since the price hike. This suggests the ~$99 rate on a 5×5 ground unit is too high relative to the $83 elevator 5×5 (customers either choose the cheaper 5×5 upstairs or skip this size). Demand for 5×5 is limited, and at the current pricing, the ground-floor 5×5 is essentially stalled.10×5 units: These small 50 sq. ft. units still leased relatively well. The elevator-access 10×5 (priced ~$113) is 98% occupied (49 of 50 units filled) with only one vacant. It had net +3 move-ins (no move-outs) since August, showing strong ongoing demand at that rate. The ground-floor 10×5 (priced higher at $135) isn’t far behind: ~92% occupied (24 of 26 units filled) with net –2 units (1 move-in vs 3 move-outs) in Aug–Sep. Notably, the 10×5 ground units did see a few vacates (likely some short-term promo users leaving), but overall occupancy remains high. Both 10×5 types are nearly full, indicating these small units are popular – though the slight net loss in the ground 10×5 category suggests the $135 rate might be at the upper limit of what customers will pay (some tenants moved out and only one new customer took a ground 10×5 in that period).10×10 units: A clear divergence emerged between elevator vs. ground-floor 10×10s. The climate-controlled 10×10 on upper floors (~$126 standard rate) continue to attract new renters – occupancy is only ~39% (98 of 250 units), but there were 9 move-ins in Aug–early Sep, nearly offsetting 10 move-outs (net –1). Importantly, move-ins are happening frequently (last one 2 days ago as of Sep 8), showing that at $126, the 10×10 is priced near market for second-floor climate units. In contrast, the ground-level 10×10 (priced at $152) has struggled badly. Its occupancy fell to ~54% (26 of 48 units) after 11 move-outs and only 1 move-in (net –10) in Aug–Sep. The last rental of a 10×10 ground unit was a week ago, but prior to that there was a wave of exits. Many tenants who initially occupied ground 10×10s (likely at promotional or lower introductory rates) moved out once rates went up, and new customers aren’t back-filling those vacancies at $152/month. This unit type is clearly overpriced relative to the value perceived – customers seem unwilling to pay ~20% more just for ground-floor access when an upstairs 10×10 is available for much less. As a result, the facility lost a substantial number of 10×10 ground renters post-rate increase.10×12 units: This intermediate size (120 sq. ft., all elevator access) has essentially halted under current pricing. Occupancy is 4 of 6 units (66.7%), and not a single 10×12 was rented in over 7 months (last move-in was ~215 days ago). In Aug–Sep, there were 0 move-ins and 0 move-outs (net 0) – basically no activity. At a $142 rate, 10×12 units are priced higher than a 10×10 but close to a 10×15, which likely makes them a hard sell. Customers either opt for the cheaper 10×10 or jump to a 10×15 if they need more space. The lack of any move-ins despite some vacancies indicates the $142 rate is not aligned with demand for this odd size.10×15 units: Performance diverged here as well. Upstairs 10×15 units (second-floor, $163) saw robust demand – occupancy climbed to ~46.7% (64 of 137 units) after 11 move-ins against 3 move-outs in Aug–Sep (net +8 units). Move-ins occurred regularly (last one just 5 days ago), suggesting the $163 rate for a climate 10×15 on an upper floor is still attractive to many customers. However, ground-floor 10×15 units ($189) stagnated. Occupancy slipped to ~53% (35 of 66 units) with 0 move-ins and 4 move-outs (net –4) during Aug–Sep. Tellingly, no new customer has rented a 10×15 ground unit in nearly 2 months (58 days since last move-in). This indicates the ~$189 price point for a 10×15 (15% premium over upstairs) is too high in this market – renters either take the cheaper upstairs unit or perhaps get a larger unit for a similar price elsewhere. The ground 10×15s began losing occupants once their rates rose, and virtually no one is taking them now.10×20 units: A similar pattern emerges for the largest units. The second-floor 10×20 units ($221) are seeing decent leasing activity – about 52.8% occupied (47 of 89 units) and had 6 move-ins vs 1 move-out plus a couple transfers (net +5) in Aug–Sep. In fact, one was rented just a day ago, showing there is demand for large units when priced slightly lower. Meanwhile, the ground-floor 10×20 units ($265) are performing poorly. Occupancy has fallen to ~42% (34 of 81 units). Between Aug 1 and Sep 8, 9 move-outs and only 2 move-ins occurred (net –7). The last rental was over a month ago (37 days). At $265 – which is the most expensive standard rate on site – these units face extreme price resistance. Many initial tenants (likely those who took advantage of the free month) cleared out, and virtually no new customers are willing to pay this rate. The ground 10×20 has the highest vacancy count (46 units available) and was the largest contributor to the facility’s occupancy loss post-rate hike.
Small units (5×5): Premiere’s 5×5 climate units are posted at $83/month for upper floor and $99 for ground floor. By contrast, a competing facility in Fargo (Five Star Storage on 34th Ave) offers indoor 5×5 climate units around $59–$71 per month (depending on access level). This means Premiere’s 5×5 rates are roughly 40–68% higher than a peer facility’s for similar climate-controlled space. It’s no surprise the one remaining 5×5 vacancy at Premiere’s ground floor hasn’t moved – customers can find much cheaper 5×5 options in the area.Standard 10×10 climate: Premiere charges $126 (elevator) to $152 (ground) for 10×10. Competitors’ climate 10×10 rates are notably lower. For example, Five Star Storage shows indoor 10×10 climate units at $109/month (standard access) and even their highest tier 10×10 (best access) is $131. Premiere’s ground 10×10 rate ($152) is ~20% higher than the competitor’s top price for a 10×10, and even the $126 upstairs rate is slightly above the competitor’s comparable offering. This pricing gap has likely driven value-seeking customers elsewhere, contributing to the high vacancy and move-outs in Premiere’s 10×10 units.Large units (10×20): With a $265 asking rate on ground floor 10×20, Premiere is far above typical market rates. Many facilities in Fargo offer non-climate 10×20 drive-ups around $130–$150, and climate-controlled 10×20 units (if available) generally range in the $180–$220 area. For instance, the competitor’s climate 10×20 (interior) is advertised around $199/month (estimate based on their pricing tiers) – significantly below Premiere’s $265. Thus, Premiere is pricing its largest units at least ~$40–$80 higher than market equivalents. This explains the near-total collapse of demand for those units when rates went up.
Occupancy: By September 30, occupancy is likely to erode slightly further, ending in the high 40s% range (around 48–50% of units occupied). With net rentals already –4 in the first week, and assuming similar weak net activity through the month, Premiere could lose on the order of 10–15 more net units in September. This would take occupied units from 392 (as of Sep 8) down to roughly 380–385 by month-end (about 49% physical occupancy). Essentially, move-outs are expected to continue outpacing move-ins under the current rate structure. Many of the tenants who moved in during the summer “free month” promotion will be coming up on their lease anniversaries in September; if a significant number of those face steep rate bills in month two, they may opt to move out, further contributing to attrition. New move-in volume, meanwhile, will remain modest – likely in the range of 12–15 move-ins for the whole month (vs. 30 in August) – given the slowdown in leads and conversions we’ve observed. Overall, net occupancy will likely decline by a few percentage points from August’s level.Rental Revenue: Despite soft occupancy, September’s total revenue is projected to increase compared to August, because more tenants will transition from their free month to paid status. We estimate total rent receipts for September will land around $55,000–$60,000 (vs. $42,851 in August) given current trends. Through Sep 8, ~$14.4K in rent had been billed/collected MTD, which extrapolates to ~$54K by month-end. Additionally, a number of units that were in their free period in August will start paying rent in mid/late September, contributing additional revenue. Offsetting this, however, will be the loss of rent from units that vacate during the month (and any new move-ins won’t pay until October due to the free month). On balance, we expect a moderate uptick in economic occupancy (from 34% in Aug to perhaps ~40% by late September) as more paying tenants are on the books. The Gross Potential Income (GPI) if fully occupied at current rates remains $126,088/month, but only roughly 35–40% of that will be realized in September under status quo conditions. The gap – due to vacancies and discounts – will still exceed $70,000 in unrealized potential, similar to August.Lead Funnel and Rentals: Lead activity will likely stay suppressed. With Google and sparefoot listings still showing high prices, we anticipate only a trickle of new reservations throughout September (perhaps ~20–25 reservations vs. 52 in August). Conversion rates will remain low (under 50%) as price-sensitive customers shop around. As a result, move-in volume will probably be half of August’s. Move-outs, on the other hand, could surge around the end of the month – many promo tenants’ leases expire then, and if they intended only to use the free month, they will depart. We may see a spike in move-outs the final week of September. Net rentals for the full month are thus likely to be negative (in the range of –5 to –15 units). In short, if nothing changes, September will continue the trend of low move-in flow and steady attrition.
Strategic Rate Reductions: We recommend targeted rate decreases on the unit types that have stalled under current pricing, particularly the large ground-floor units. Bringing these rates closer to market levels should stimulate move-ins and occupancy, even if at slightly lower rent per unit. For example: reduce 10×20 ground units from $265 to ~$225–$235; reduce 10×15 ground from $189 to ~$160 (near the $163 upstairs rate); and trim 10×10 ground from $152 to ~$130–$135 (competitive with peers at $109–$131). These cuts of roughly 10–20% put our prices in the range that local customers consider reasonable, and should draw in tenants who were turned off by the previous premiums. Similarly, the 5×5 ground unit could be dropped from $99 closer to $85 – currently it’s more expensive than some 5×10s in town, which is an imbalance. The 10×12 units (virtually un-rentable at $142) should be repriced closer to $120–$125 to find a market niche between the 10×10 and 10×15. Meanwhile, high-performing categories (e.g. 10×5, 10×15 elevator) can retain current rates or even inch up a bit once they approach full occupancy, as demand for those has proven solid. Overall, this dynamic pricing approach – cutting prices on oversupplied units and holding firm on in-demand ones – will improve occupancy without unnecessarily sacrificing revenue on popular sizes.Leverage Promotion with Adjusted Terms: The “1st Month Free” promotion has been a double-edged sword. It did drive a lot of initial move-ins, but also encouraged short-term use and abrupt move-outs (some customers essentially got a free month and left). To optimize GPI, we suggest tweaking this promotion to capture more value. For instance, require a two-month minimum stay to fully redeem the free month, or switch to a “50% off first month” deal for the largest units. This ensures we at least collect partial rent from new large-unit customers while still offering an incentive. If we keep “First Month Free” through September, we should use it in conjunction with the new lower rates to maximize occupancy gains by month-end – but with an eye on retaining those tenants into October (when they’ll start paying). By ending the sale on Sep 30 (as currently advertised), we create urgency for customers to move in now at the lower rates and get the free month. This could meaningfully bump move-ins in the latter half of September.Projected Occupancy and Rent Roll Gain: With the above rate adjustments effective immediately (mid-September), we anticipate a surge of new rentals on the previously stagnant unit types. Many price-sensitive prospects who didn’t convert earlier may seize the chance now. Conservatively, suppose we fill an additional ~20–30 units by Sep 30 by virtue of these changes (e.g. a handful of those 10×20 and 10×15 ground vacancies get taken, plus some 10×10 ground and odd-sized units). This could lift occupancy to around 55–57% (420+ units occupied) by the end of the month, reversing the decline. Gross Potential Income (monthly) – which we define as the rent that would be collected if all occupied units paid their standard rate – would improve significantly going into October. For instance, adding 20 occupied units at an average rate of ~$140/month would raise the monthly rent roll by ~$2,800. If 30 units are added at ~$130 average, that’s ~$3,900 more. Based on these estimates, we project an optimized GPI for September of roughly $65,000 – $70,000 (monthly rent revenue potential). This is the rent roll we could realistically achieve with ~55% occupancy at the new, more competitive rates (still well below the theoretical $126K at 100% occupancy, but a notable improvement over the ~$43K rent actual in August). In other words, by end of September the facility’s economic occupancy could rise to ~50+% of potential, versus 34% in August – a substantial boost in efficiency.September Revenue Impact: In terms of actual revenue collected in September, the immediate effect of rate cuts will be limited (since new move-ins won’t pay rent until later). We may even see slightly lower pro-rated income from any tenants who would have paid at higher rates but now pay less. However, the real payoff comes in October and beyond: the larger occupied rent roll (resulting from September’s leasing push) will translate to higher rental revenue once those free periods lapse. As a rough indicator, if we manage to convert 20–30 new tenants to paying status next month, that’s on the order of $3K–$5K in additional monthly revenue from October forward. So while September’s collected revenue might remain around $55K (unchanged by the end-of-month move-ins who are free), the optimized strategy sets us up for an October rent collection potentially in the $60K+ range. Additionally, by curbing the exodus of promo tenants (through better retention tactics and more palatable rates), we protect the existing revenue base.Unit-Type Performance Improvements: We expect the adjusted rates to quickly stimulate interest in those idle unit types. For example, a climate 10×20 at ~$229/month + first month free is a compelling deal relative to competitors (who charge ~$200 with no free month) – we should fill several of those 46 vacant 10×20s by positioning it as the best deal on large climate storage in Fargo. Likewise, a ground 10×15 at $159 matches the current upstairs rate and undercuts any competitor’s climate 10×15 (if available); this should revive move-ins for that size, turning the net rental trend positive again. The 10×10 ground units, once dropped to the $130s, will be directly competitive – we can market them as “Ground Floor 10×10 now same price as Upstairs!” to convert those who value easy access. Overall, each unit type’s occupancy should start trending up again, improving the facility’s overall occupancy mix and revenue diversity (instead of having whole segments sitting empty).
Reduce Rates on Stalled Unit Types: Immediately lower street rates for the large and premium-position units (10×10, 10×15, 10×20 ground floor, and 10×12 elevator). These categories have proven oversupplied at current prices, as evidenced by long vacancy durations and zero recent move-ins. Even a 10–15% cut should stimulate demand. Monitor the pickup in leasing after the reduction – if move-ins resume (e.g. a few 10×20 ground get rented next week), we know we’ve hit a better price point. The goal is to find the pricing sweet spot where these units start moving again, even if at lower rent, since any rent is better than sitting empty. We should also be prepared to offer additional incentives for these units if needed – e.g. “Free lock with rental” or flexible lease terms – to entice hesitant customers.Hold or Slightly Raise Rates on High-Demand Units: Conversely, do not lower rates on units that are leasing well. The 5×5 and 10×5 units are nearly full; we can maintain their rates (or even test a modest increase of a few dollars on the elevator-access versions) to maximize revenue from those who clearly value the space. For the 10×15 elevator units, given the strong move-in activity at $163, we should hold that steady – it’s driving occupancy growth for that size. Essentially, we adopt a differentiated pricing strategy: lower prices where we have an abundance of empty units and little demand, keep prices firm where occupancy is high and demand is steady. This will improve overall occupancy without sacrificing the revenue we’re already capturing efficiently in some segments.Adjust the Promotional Strategy: The “First Month Free” promotion should be continued through September as a leasing incentive, but with some refinements. It clearly helped fill the facility quickly during launch, and we can use it now to accelerate refills of vacant units after the rate drop. However, we need to mitigate the downsides. We recommend instituting a minimum stay requirement or a discount alternative for large units. For example, for 10×20 and 10×15 units, consider a “2nd Month Free” instead of first, or “50% off first two months” – this way the customer has to pay something upfront and is encouraged to stay at least 2 months. This will reduce the number of “freebie hoppers” who leave after 30 days. We should also track tenants who signed up under promotions and implement timely follow-ups before their free period ends, perhaps offering retention discounts if they are thinking of leaving. By increasing the stickiness of promo tenants, we convert more of them into paying customers (improving that conversion rate from ~40% to hopefully 60–70% staying into month 2).Monitor Competitor Rates Regularly: The Fargo storage market is competitive, and price visibility is high via aggregators like SpareFoot. We should keep our rates within a competitive range. The analysis shows we were pricing 15–20% above peers on many units – too much of a premium for this market. A better approach is to price at or slightly below the top competitor for each unit type, and highlight our facility’s newness and climate control as differentiators. For instance, if Five Star is asking $130 for a climate 10×10, we might price ours at $125 (especially for elevator access) to be seen as a great value for a brand-new facility. Competitive pricing will increase our lead volume – more inquiries and reservations – feeding the funnel that has dwindled. In essence, we recommend a pivot from a high-price, low-occupancy strategy to a market-price, higher-occupancy strategy.Marketing Emphasis on Value: Update our marketing messaging to emphasize the new lower rates + free month as a package. For example: “New Fall Rates – Climate 10×20 now $229 (was $265) + 1st Month FREE!” This kind of message can re-attract customers who may have been scared off previously. Since the promotion ends Sep 30, heavily promote it in the coming weeks via our website, Google My Business, and sparefoot listings to drive urgency. We should also mention if our rates are now the “lowest in town” for certain sizes – if true – to recapture those bargain hunters.
250907 Fargo Meeting Notes
An overall summary of how the new manager is doing. - He’s doing great. He is learning a few of the little quirks about the facility but he’s taken AMAZING ownership of what’s there. He’s gotten those unrentable units resolved, is following up with leads and delinquent tenants like a pro.
@Andrew Aue
@Jacob Penird
Table 1
Reason for Move Out
Count
Don't need storage anymore
30
No Reason provided
4
Vacated without notice
3
Price is too high
2
Transferring
1
TEST
1
Moving
1
There are no rows in this table
Table 2
MOVE DATE
Don't need storage anymore
Moving
Price is too high
TEST
Transferring
Vacated without notice
Total
8/2/25
0
0
0
0
1
0
1
8/4/25
2
0
0
0
0
0
2
8/6/25
0
0
0
1
0
0
1
8/7/25
1
0
0
0
0
0
1
8/8/25
1
0
0
0
0
0
1
8/11/25
5
0
0
0
0
0
5
8/14/25
1
0
0
0
0
0
1
8/15/25
2
0
0
0
0
1
3
8/16/25
0
0
1
0
0
0
1
8/19/25
1
0
0
0
0
0
1
8/20/25
1
0
0
0
0
2
3
8/21/25
4
0
0
0
0
0
4
8/22/25
1
0
0
0
0
0
1
8/23/25
1
0
0
0
0
0
1
8/28/25
1
0
0
0
0
0
1
8/29/25
0
1
0
0
0
0
1
8/31/25
4
0
0
0
0
0
4
9/2/25
2
0
0
0
0
0
2
9/3/25
2
0
0
0
0
0
2
9/4/25
0
0
1
0
0
0
1
9/6/25
1
0
0
0
0
0
1
There are no rows in this table
Move_Outs_by_Date_and_Reason.xlsx
582 B
Competitor Rate Comparison
1. Self Storage Solutions (Most Comparable — Indoor Climate)
Insight: Self Storage Solutions likely positions their entry-level climate units in the mid-$50s to high-$80s depending on size and amenities. The “start at $53” rate may refer to smaller non-climate units, while 10×10 climate options may be closer to ~$90.
2. Five Star Storage & Other Local Facilities (Non-Climate/Drive-Up)
From SpareFoot and other listings in Fargo:
3. Summary Rate Comparison Table
Table 3
Unit Size
Self Storage Solutions (Climate, Est.)
Five Star / Drive-Up
StoreMoor (Climate + Free Month)
5×5
$53–70 (non-climate)
$29–45
n/a
10×10 (Climate)
~$90 (average)
$69–103
$100 + free first month
10×15
Approx. $120
$102–162
—
10×20
Likely ~$130–$150**
$122–152
—
There are no rows in this table
Notes:
Key Takeaways for Pricing Strategy
Executive Summary (Existing-Customer Increases)
📊 Current Performance (Aug–Early Sep 2025)
2. Unit Type Performance After Rate Increases
Pattern: Smaller and upper-floor units continue to lease; large and premium-priced ground floor units have stalled or lost tenants.
3. Market Positioning
4. September Projection (Status Quo)
5. Optimized Strategy & GPI
6. Recommendations
Performance of Premiere Storage – Fargo After August 2025 Rate Increases
Overview of Post-Rate Increase Performance (Aug–Early Sep 2025)
In August 2025, Premiere Storage – Fargo implemented significant street rate increases across unit sizes. Since then, key performance metrics indicate a slowdown in demand and occupancy growth. Physical occupancy plateaued around ~51% of units (395 units occupied on Aug 31) and even declined slightly to 392 units (51.0%) by Sep 8. Despite higher rental rates, net rentals turned negative – August saw 30 move-ins vs 34 move-outs (net –4 units), and early September continues this trend with 4 move-ins vs 8 move-outs in the first week (net –4). This reversal from July (when occupancy was rapidly ramping up) suggests that the rate hike dampened demand, reducing new rentals while prompting more move-outs.
Lead funnel volume also declined under higher prices. August generated 43 total new leads (inquiries/reservations) with a strong ~72% conversion to move-ins, aided by aggressive promotions. In early September, however, lead activity dropped to single digits, with conversion falling below 25% (only ~2–3 move-ins from ~9 leads in the first week). Fewer prospects are entering the funnel, and a smaller fraction are willing to move in at the current rates. This indicates price sensitivity in the market – the higher street rates have made customers more hesitant, despite the ongoing “First Month Free” promotion.
Notably, revenue collections have grown month-over-month, but largely due to existing tenants and the tail of initial lease-up rather than new customer growth. August’s total rental revenue collected was ~$42.9K, up from ~$33K in July (when the facility opened). By early September (through Sep 8), ~$15.8K had been collected, trending toward ~$55–60K for the full month if current occupancy and payment patterns hold. However, economic occupancy (revenue as a % of potential) remains very low – only ~34% of gross potential income in August – due to extensive free-month discounts and vacant units. In short, the rate increases have boosted the theoretical rent per unit, but actual realized revenue is far below potential because many units remain empty or in promotional status.
Impact on Occupancy and Net Rentals
Weekly Occupancy Trend: After climbing rapidly in July (thanks to initial lease-up and promotions), occupancy stalled in August under the new pricing. At the end of each week in late August, occupancy hovered around ~50% and began to slip. For example, the facility was ~52% occupied in mid-August, then 51.4% on Aug 31, and 51.0% by Sep 8. Week-over-week, net rentals were negative in the latter half of August and first week of September. The table below summarizes net rentals and occupancy changes:
Overall, the facility lost a net 8 units from Aug 1 to Sep 8 (from 400 down to 392 occupied, including move-outs of many promo tenants). This is a stark contrast to July’s growth and indicates that the high rates are not sustaining occupancy gains.
Unit-Type Leasing Performance: The impact of the rate increases becomes even more apparent when examining performance by unit size/type. Some unit categories have continued to lease well at the new prices, while others have virtually stalled out or even lost occupants. The chart below shows net rentals (move-ins minus move-outs) by unit type from Aug 1 to Sep 8:
Net rentals (move-ins minus move-outs) by unit type from Aug 1 – Sep 8, 2025. Positive values indicate a net gain in occupied units; negative values indicate a net loss. Larger ground-floor units saw the biggest net losses, while smaller and upper-floor units still gained.
As the data shows, smaller climate-controlled units and those on upper floors continued to see demand, whereas larger, ground-floor units saw significant move-out loss and minimal new move-ins under the higher rates:
In summary, unit types that continued to lease well despite higher rates were the smaller sizes and those with lesser convenience (upper-floor units). These had either maintained high occupancy or even added tenants (e.g. 10×5 and 10×15 elevator units, and to a lesser extent 10×20 elevator). On the other hand, premium-priced ground-floor units – especially mid/large sizes (10×10, 10×15, 10×20) – saw demand dry up. Many experienced no new rentals for weeks or months, and significant net occupancy losses occurred as earlier tenants departed. This clearly highlights that the August price increases overshot what the Fargo market can bear for those unit types.
Street Rates vs Market Rates Analysis
A review of current street rates against local market prices confirms that Premiere Storage – Fargo’s rates are at the top end (or above) of the market, which has contributed to the slowdown in leasing. According to the facility’s listings and competitor data, Premiere’s climate-controlled rates (even after offering web specials like “First Month Free”) are significantly higher than nearby facilities for comparable units:
In essence, Premiere Storage positioned itself at a premium price point, likely banking on its new, high-end facility features to justify higher rents. However, the Fargo self-storage market appears quite price-competitive. Customers have multiple other options (several Five Star facilities, SpareFoot listings, etc.) offering climate-controlled space at lower rates. The “sticker shock” from Premiere’s August increases sharply reduced its competitive appeal, resulting in fewer inquiries and conversions. Even though Premiere offers a generous “First Month Free” deal, many prospective renters may not even get to that point – the base rates alone can deter them from reserving. In reviews, one tenant explicitly complained about rates “increasing $20 a month” and called it excessive for a no-frills storage facility, highlighting customer pushback on price.
September 2025 Projections (Status Quo Pricing)
Given the current trajectory through early September, we can project September’s likely outcomes if current pricing and promotional strategy continue unchanged:
In summary, by maintaining the current elevated rates and free-month promotion through September, we expect physical occupancy around ~50% with ~380–390 units occupied, and total monthly rental revenue on the order of $55K (roughly 38–40% of full GPI). The facility will essentially tread water or decline slightly in occupancy while generating some revenue growth purely from prior move-ins converting to paid. However, this approach leaves a lot of income on the table due to high vacancy, and the negative net rental trend raises concern for the coming months.
Optimized September GPI and Revenue Potential (With Adjusted Strategy)
To improve performance, an optimized approach would adjust pricing by unit type to better align with market demand while leveraging the promotion smartly. Below we outline a strategy and its projected impact on Gross Potential Income (GPI) and revenue:
In summary, the optimized GPI for September (and going forward) – achieved by smart rate adjustments and promotion management – is on the order of $65K+ per month in rent, which is a ~50% increase in revenue potential compared to the current trajectory. The key is that by end of September we would have a larger portion of units occupied (even though many new ones are still in their free month), creating a much healthier rent roll for Q4. The first-month-free promotion, when coupled with market-aligned rates, can be used to rapidly fill vacancies without the severe attrition we saw before, as new customers will feel they’re getting both a good price and a free month. The trade-off of slightly lower rates is more than made up by the volume of paying tenants gained. Essentially, we’d be shifting from the current state – half the building empty at very high rates – to a more balanced state of higher occupancy at moderate rates, which maximizes actual revenue.
Recommendations: Maintain, Adjust, or Change?
It’s clear that maintaining the current pricing strategy is not sustainable if the goal is to grow occupancy and revenue. The data strongly supports making targeted rate adjustments by unit type to boost performance:
By implementing these recommendations, we expect to boost occupancy and stabilize net rentals in the coming weeks. More occupied square footage will naturally increase ancillary revenue too (insurance, admin fees, etc., which were already trending up). The improved occupancy will also create a better customer experience (a lively, active facility tends to spur word-of-mouth, versus an empty one).
In conclusion, maintaining the current high-rate strategy is ill-advised – it is suppressing demand and leading to occupancy declines that threaten long-term revenue. Instead, a targeted rate reduction and promotional optimization strategy should be adopted immediately. This will enhance September’s performance (especially in terms of occupancy and setting up future revenue) and optimize the facility’s Gross Potential Income. By aligning rates with market reality and encouraging longer stays beyond the free month, Premiere Storage – Fargo can accelerate lease-up again, improve its economic occupancy from ~34% toward 50%+, and ultimately generate more actual revenue even at slightly lower price points. The data clearly shows that a fuller facility at moderate rates will outperform a half-empty facility at high rates in terms of income. Our recommendations aim to achieve that optimal balance, positioning the facility for steady growth through the rest of 2025.
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