Don't Compete on Price Alone

The challenge with open air is differentiation. If your only advantage over the lot down the road is price, you're in a race you don't really want to be in. The way to win in open air is to add amenities— air station, rinse station, lighting, paved entrance— that justify a rate premium without the capital investment of covered structures. Type 2, you got covered carport structures. This is the most popular upgrade path in that vertical. Single slope metal carports over individual spaces. No walls, no climate control, just roof protection. Tenants get weather protection for their vehicles. Operators get a 40 to 60% rent premium. The ROI math on covered structures is very compelling. A $12,000 carport structure generating an additional $120 a month in rent pays back in 8 to 9 years on the premium alone. And the full space rent is significantly higher. Most operators add covered in phase 2, funded by their existing cash flow.