Carmel NY & Cashmere WA Consider Self-Storage Moratoriums

Municipal officials in two communities recently moved to restrict the development of new self-storage facilities, reflecting a broader trend of local governments reconsidering how and where the property type fits into their long-term land-use plans.

In Cashmere, Washington, the city council on Feb. 23 adopted an emergency moratorium on new mini-storage developments in certain areas of the city, including the downtown core. The measure passed on a 4–1 vote, with Councilmember John Perry casting the lone dissent.

The temporary pause on new applications will give city planners time to review zoning rules and determine whether storage facilities should be allowed in areas the council would prefer to reserve for higher-intensity commercial activity and housing.

City attorney Julie Norton drafted the ordinance at the council’s request following discussions about the growing presence of storage uses and their potential impact on commercial land.

Director of Operations Steve Croci said the urgency was driven by new interest in building mini-storage downtown.

“If we wait, there might be downtown mini-storage,” Croci told council members, explaining that the moratorium allows the city to continue updating its development code before projects move forward that could be difficult to undo.

Supporters of the pause emphasized that the action is less about a specific project and more about long-term planning priorities. Councilmember Jeff Johnson noted that downtown parcels are limited and could otherwise support businesses or residential development that generate greater economic activity.

“If you’re taking a lot in the downtown area that could be developed for a commercial business or for residential, those have higher value to the city,” Johnson said, adding that mini-storage typically produces little sales tax revenue.

The moratorium applies only to new proposals and will not affect existing facilities. Under the ordinance, the city must hold a public hearing before the measure can be extended beyond its initial six-month period.

Meanwhile, officials in Carmel, New York, are considering zoning changes that would effectively limit future self-storage development in the greater Carmel, Mahopac, and Mahopac Falls area.

Under proposed revisions to the town’s zoning code, self-storage facilities would be permitted only if they were already in existence or approved prior to March 1, 2025.

Town Supervisor Mike Cazzari said the change is intended to “grandfather existing or pending facilities rather than opening the door for new structures.”

The proposal is part of a broader zoning update that also includes tighter regulations on signage. Political signs would be allowed only within 15 days of an election and would need to be removed within five days after the polls close. Promotional banners would also require permits and security deposits.

Another proposed change would affect multi-family housing developments, requiring such projects to be built on at least five acres, located along a state highway, avoid lakefront property, and remain limited to two stories.

The Carmel Town Board is expected to hold a public hearing on the proposals this spring before deciding whether to adopt the revisions.

In MSM's 2026 Self Storage Outlook, we asked several industry experts for their thoughts about municipalities that put moratoriums on self-storage development. Here's what they had to say:

Sarah Beth Defazio, Universal Storage Group: It seems like some municipalities are genuinely trying to prevent oversupply, while others simply don’t understand the industry and its economic benefits. If you feel your community is unfairly targeting self-storage, get involved. Join your state association, contact legislative representatives, and speak before city councils. Be prepared to provide decision-makers with accurate information on demand, traffic impacts, tax contributions, and community benefits. That can make a tremendous difference.

Maurice Pogoda, National Storage Management: I don't believe moratoriums are ever in response to existing supply. When city leaders say no, it’s out of sheer prejudice against our property type; they don’t think storage belongs on their main streets. But today’s facilities are as nice as anything, and they meet a very real need. Of course, mixed use is always an option and you’re more likely to get approval with this strategy, but managing those spaces can be a pain in the butt.

David Cramer, National Storage Affiliates Trust: I think it can be helpful to limit the amount of overbuilding, but in general we are not in favor of increased regulation.