Inside Self-Storage

SEP 2018

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

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SINCE FORGE BUILDING COMPANY OPENED IN 2007, WE HAVE BEEN DESIGNING AND ERECTING QUALITY SELF STORAGE ALL OVER THE UNITED STATES WITH A STRONG PRESENCE IN THE PACIFIC NORTHWEST. w w w . f o r g e b u i l d i n gs . co m 34 8 W P a r kc en t er Bl vd , # 20 0 Boi s e, I D 83 7 06 P. 20 8. 62 9. 29 5 2 j a m es @ f o rg eb u i l d i n gs. c om Ch e c k u s o u t o n … P r o fe s s ion a l S te e l B u ild in g s Design/Engineering Single/multi-story Boat & RV Warehouses Re-roofing In-house installation from weather, trades can begin to work comfortably and effectively. Challenge your contractor to investigate and price different methods of construction that can result in your building being under roof and dried-in as quickly as possible. Another important consideration is comfortable access. In multi-story environments, the elevators are the main access point for tenants above the first floor. Designers should consider how units are accessed to avoid loading/ unloading bottlenecks, and take care to create comfortable space around elevators. In most cases, more than one lift is necessary. If your lone one breaks, so does the whole operation. Though not all projects are created equal, when elevators are added, you should automatically consider a third floor because it doesn't dramatically impact cost per square foot. Anything more than that, though, changes everything. The overall construction type alters once you exceed three floors, requiring additional fire rating and driving up costs. A creative way to deal with this is to add a partial mezzanine to the first floor. Building codes allow something like 30 percent of a floor to be covered with a partial mezzanine. For a drive-through facility that requires a first level of maybe 18 feet high, this can add rentable space without dramatically impacting the overall cost per square foot. Materials can also present a challenge. Steel and exterior sheathing can be primary cost drivers. Glass, metal, brick, block, EIFS (exterior insulation and finish systems), insulated panels, roof style and design all factor into the investment weight of these projects. With political discussions of trade wars and tariffs, costs are volatile. A three-story building that might have been built for $60 per square foot in 2016 might be as much as $70 per square foot today. Those figures aren't carved in stone, though. The volatility of the international market means everything could change tomorrow! Regardless, the uncertainty around costs must be planned for by the contractor and investor. External market forces and construction costs require developers to carry larger contingencies in their development budgets. Even with all the potential challenges, the self-storage industry will continue to erect more and more multi-story buildings. You'll find them precisely where market demand meets profit. Benjamin Burkhart is owner of StorageStudy.com, which provides feasibility studies and development consulting to self-storage developers and owners nationwide. He can be reached at 804.598.8742 or info@storagestudy.com. LEARN MORE Learn more from author Benjamin Burkhart in the video "Landmine-Aversion Therapy: How to Avoid Detonating Your Self-Storage Dream," available in on-demand and DVD formats exclusively at iss-store.com. 36 ISS I September 2018 www.insideselfstorage.com

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