Hawai'i residents love their stuff, and self-storage companies are making sure they have a place to stash it.

Locally based Hawaii Self Storage opened a new $13.7 million storage facility yesterday across Wai'alae Avenue from rival Public Storage Inc.'s six-story mega-complex.

The new four-story Hawaii Self Storage building is the company's second-largest outlet, with over 1,600 climate-controlled units.

"This is a great location. It draws customers from Waikiki, the University of Hawai'i, Kaimuki and the Kapi'olani area," said Mike Hamasu, director of consulting and research at commercial real-estate firm Colliers Monroe Friedlander Inc.

Daniel Ho, Hawaii Self Storage's general manager, said it's a "coincidence" that his company wound up building its latest outlet across the street from Public Storage's Wai'alae Avenue location.

About a year ago, company executives studied the local market and found that the Kaimuki area was underserved when it came to self-storage facilities, Ho said.

He said the 55,000-square lot was one of the few large parcels available in the area.

"We felt it was imperative to build in this area," he said.

Despite a flood of new storage facility construction in recent years, demand remains strong because of the state's booming real-estate market and large, mobile military population.

That demand has translated into big business. Storage facilities charge an average of about $3 per square foot per month on O'ahu, Hamasu said.

That's as much as double the $1.50 to $1.75 per square foot charged for local office space, Hamasu said.

Ho said he hopes to be as accommodating as possible to local consumers.

For instance, the company decided to build larger units at its new location after customers told them they needed a place to store their surfboards and one-man canoes, he said.

Ho said the company also built smaller, more affordable lockers at its Pearl City outlet because some customers there said they didn't need as much space.

While prices may not vary much from company to company, the addition of new facilities will generate more competition. Customers will see businesses compete based on extended hours, convenient locations, covered parking and improved security.

Founded in 2000, Hawaii Self Storage is a unit of MW Group Ltd., a local real-estate company. In addition to the Kaimuki site, the company owns a 120,000-square-foot store facility in Pearl City and a 180,000-square-foot complex in Mapunapuna.

Hawaii Self Storage said it plans to open five more storage centers by 2008.

Officials at Public Storage's Glendale, Calif., headquarters could not be reached for comment yesterday.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.