The self-storage industry’s reputation as a passive, hands-off investment is not just wrong – it’s becoming a competitive liability, according to one industry veteran who has made operational excellence central to his business strategy.

Brandon Grebe, CEO and co-founder of Uplift Development Group, argues that the “it runs itself” mentality that once defined self-storage is now a recipe for underperformance in an increasingly sophisticated market.

He emphasizes that self-storage is an active, operational business rather than a passive investment. He notes that to remain competitive – especially against large REITs – operators must implement top-tier management practices and leverage advanced technology.

The Owner-Operator Advantage

Grebe’s thesis centers on what he calls the alignment advantage of owner-operators versus third-party management companies. After bringing property management in-house following a major portfolio transaction in 2024, his company has been able to implement what he describes as best-in-class operational systems.

Grebe highlights that owner-operators have a unique advantage because their interests are fully aligned with the property’s success, giving them a stronger incentive to optimize performance than third-party managers.

This alignment has allowed Uplift to invest in sophisticated technology platforms that might be cost-prohibitive for third-party managers operating on thin margins across multiple client portfolios.

The Human-Technology Hybrid Model

Rather than pursuing full automation, Grebe advocates for what he calls a hybrid approach that combines human management with advanced technology. This strategy runs counter to industry trends toward complete digitization.

Grebe emphasizes the continued importance of human management in self-storage, noting that fully automated approaches have proven less effective. His company combines human managers with AI-assisted systems to handle routine customer tasks, such as gate access issues and online payments, allowing staff to focus on higher-value interactions.

This technology integration is designed to reduce back-office administrative burden while maintaining human touchpoints where they add value.

Competing with REIT-Scale Resources

The operational sophistication Grebe describes reflects broader changes in self-storage competition, particularly the need for smaller operators to match the technological capabilities of large, publicly traded companies.

His company has invested in what he calls “best in class technology as far as property management software, AI related software, digital marketing software,” supported by experienced operational leadership including a Director of Operations with previous experience overseeing over 100 properties.

This level of operational investment represents a significant shift from the traditional self-storage model, where minimal staffing and basic systems were often sufficient to generate attractive returns.

The Post-COVID Reset

Grebe suggests that the industry’s operational requirements have fundamentally changed following the COVID-19 pandemic, which initially drove exceptional performance across the self-storage sector.

Grebe notes that self-storage performed exceptionally well during the COVID-19 pandemic, emerging as one of the top-performing asset classes. However, the sector has since undergone a market reset, distinguishing operators who have adapted to higher performance expectations from those relying on outdated methods.

Technology as Competitive Moat

The operational capabilities Grebe describes – from AI-powered customer service to sophisticated digital marketing – represent what he views as necessary investments to remain competitive rather than optional upgrades.

“We leverage that with best and fast technology,” he says, describing systems that allow customers to resolve issues, make payments, and access facilities without human intervention when appropriate.

Whether this level of operational sophistication becomes the industry standard will depend on how successfully companies like Uplift can demonstrate superior performance through their technology-enabled, owner-operator model. For now, Grebe is betting that the days of passive self-storage management are definitively over.