U-Haul Acquires Existing Building for U-Box Storage in Chattanooga

Rhea-AI Summary

U-Haul acquires property in Chattanooga to expand storage operations, repurposing a building for U-Box containers. The move aligns with sustainability initiatives and growing demand in Tennessee.

Insights

Market Research Analyst

The strategic expansion of U-Haul's storage capabilities in Tennessee is a calculated move to capture the growing demand in a state that is experiencing significant inbound migration. The repurposing of an existing structure for a U-Box warehouse represents an efficient use of capital, likely to result in lower overhead costs compared to new construction. This cost-saving measure can enhance the company's operating margin and potentially improve profitability in the long-term.

Furthermore, the investment in storage infrastructure is a direct response to consumer behavior trends, where convenience and flexibility in moving and storage services are highly valued. The pay-for-what-you-use model of U-Box containers is aligned with the contemporary sharing economy and this customer-centric approach may lead to increased customer loyalty and market share growth.

Environmental Sustainability Expert

U-Haul's emphasis on sustainability through its adaptive reuse of existing buildings is a significant component of its corporate social responsibility strategy. By converting an old paper recycling center into a storage facility, the company not only prevents the environmental impact associated with new construction but also contributes to urban renewal. This approach can enhance U-Haul’s brand image as an environmentally conscious company, which could resonate with eco-friendly consumers and result in a competitive advantage.

The company's shared-use business model and sustainability initiatives, such as the U-Box Load Share program, reflect a broader industry trend towards resource efficiency and carbon footprint reduction. These initiatives can potentially attract environmentally conscious investors who are looking for companies with sustainable business practices.

Financial Analyst

The acquisition of the new property by U-Haul and its subsequent conversion into a U-Box warehouse is a capital investment that may impact the company's financials. Investors will be interested in the cost of acquisition and conversion, the expected increase in storage capacity and how this expansion aligns with demand projections in Hamilton County. The strategic location in a high-growth area could lead to revenue growth, but it will be important to monitor how the capital expenditure affects cash flow and debt levels in the short term.

Additionally, the company's sustainable initiatives, while potentially beneficial for long-term brand value and customer loyalty, may involve upfront costs. Investors should consider whether these initiatives will translate into tangible financial benefits, such as tax incentives, operational cost savings, or a stronger market position that could lead to higher returns over time.

CHATTANOOGA, Tenn., Feb. 14, 2024 /PRNewswire/ -- U-Haul^® announced plans to utilize an existing building to house portable storage containers after its acquisition of a nearly 2.6-acre property at 1721 Central Ave. in Chattanooga.

The 76,890-square-foot building, formerly a paper recycling center, will be repurposed for a U-Box^® warehouse. The building will provide space to store hundreds of mobile containers and enable U-Haul to better meet demand for its storage products in Hamilton County.

The property, now U-Haul Storage at Central Avenue, was acquired on Jan. 2.

"Tennessee ranked in the top five again on the U-Haul Growth Index, meaning the Volunteer State continues to be a very attractive place to live," stated Clay McQuade, U-Haul Company of Knoxville president. "Every day people are moving to Tennessee. To manage increased demand for our storage products, we needed this extra space to expand operations."

Reserve a U-Box container on the U-Haul app or contact Reservations at 1-800-GO-UHAUL.

U-Box containers provide 257 cubic feet of storage and one-ton capacity. This generous space enables furniture, boxes and other belongings from up to one-and-a-half rooms (on average) to be shipped and stored safely inside each container. Customers can order as many containers as they need and only pay for what they use.

Customers can have the containers shipped to their door or have them stored in a secure U-Haul facility until they know where they are going and when they are needed. If plans change, U-Haul never charges a fee to alter the date or cancel a reservation.

"U-Box provides an easy and secure moving and storage solution," McQuade added. "Portable moving containers are increasingly popular. U-Haul customers crave convenience. That's what we're here to provide."

Acquisition of the U-Haul Storage at Central Avenue property was driven by U-Haul Corporate Sustainability initiatives: U-Haul supports infill developments to help local communities lower their carbon footprint. The adaptive reuse of existing buildings reduces the amount of energy and resources required for new-building materials and helps cities reduce their unwanted inventory of unused buildings.

U-Haul continues to benefit the environment through its shared-use business model. Truck and trailer sharing enables communities to share moving equipment so that families and individuals don't need to own large-capacity vehicles to transfer belongings. Sustainability initiatives like U-Haul Adaptive Reuse (the preserving and repurposing of existing buildings for new stores), truck modifications to improve fuel economy, and plastic Ready-To-Go Boxes^® that are shared hundreds of times before being recycled are among the many ways U-Haul promotes green business. U-Box Load Share, the Company's latest sustainability program, was just named the 2023 Best in Biz gold winner for the Most Environmentally Friendly Service of the Year.

About U-HAUL

Founded in 1945, U-Haul is the No. 1 choice of do-it-yourself movers with more than 23,000 rental locations across all 50 states and 10 Canadian provinces. The enhanced U-Haul app makes it easier for customers to use U-Haul Truck Share 24/7 to access trucks anytime through the self-dispatch and self-return options on their smartphones through our patented Live Verify technology. Our customers' patronage has enabled the U-Haul fleet to grow to 192,200 trucks, 138,500 trailers and 44,500 towing devices. U-Haul is the third largest self-storage operator in North America with 967,000 rentable units and 83.3 million square feet of self-storage space at owned and managed facilities. U-Haul is the top retailer of propane in the U.S. and the largest installer of permanent trailer hitches in the automotive aftermarket industry. Get the U-Haul app from the App Store or Google Play.

Contact:

Andrea Batchelor
Jeff Lockridge
E-mail: publicrelations@uhaul.com
Phone: 602-263-6981
Website: uhaul.com

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SOURCE U-Haul International, Inc.

FAQ

What property did U-Haul acquire in Chattanooga?

U-Haul acquired a 2.6-acre property at 1721 Central Ave. in Chattanooga.

What will the building be repurposed for?

The building will be repurposed for a U-Box warehouse to store mobile containers.

What are the dimensions of the building?

The building is 76,890 square feet in size.

How much storage capacity do U-Box containers provide?

U-Box containers provide 257 cubic feet of storage and one-ton capacity.

What sustainability initiatives drove the acquisition of the property?

U-Haul's Corporate Sustainability initiatives, focusing on infill developments and adaptive reuse of existing buildings, drove the acquisition.