Inside Self-Storage

JUN 2019

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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For example, site-work costs might change due to soil conditions or weather-related problems. These big-ticket costs may swing about 30 percent or more from the time you signed the contract with your general contractor to the moment of project completion. Metal-building suppliers can't simply offer fixed prices for their components if steel prices jump. These fluctuations can add as much as 15 percent to the total cost. The takeaway is to simply be prepared for any unforeseen cost adjustments. This is especially true during periods of high demand for construction material and labor. When building self-storage, it's best to remember that it'll cost more and take longer than you'd like. For our most recent project, we added 10 percent to the final per-square-foot cost. Also, add roughly six months to the original timeline. Cost and time overruns are becoming common in the self-storage building process. It's vital to monitor the situation to keep it from spiraling out of control and negatively impacting your project. Jeffrey B. Turnbull is president of Kodiak Mini Storage II LLC. He's been involved in the self-storage business as a developer, operator and owner for more than 20 years, and is currently developing a new store in Charlotte, N.C. He's a licensed attorney in North Carolina, and a past president of the North Carolina Self Storage Association. He's a regular contributor to "Inside Self-Storage," and a speaker at various industry events. To reach him, e-mail turnbull1031@aol.com. Lucas J. Turnbull is a former project manager for Kodiak Mini Storage II LLC. He helped manage the construction of a new 65,000-net-rentable-square-foot facility in Charlotte, N.C. A graduate of Clemson University, he's a licensed real estate broker in North Carolina. He's now a commercial real estate broker at Gambrell Real Estate Consulting LLC. To reach him, e-mail luketurnbull@gambrellrealestate.com. • Permits: Zoning, survey, land disturbance, electrical, mechanical, plumbing, environmental, department of transportation • Insurance: General liability, job- or business-specifc policies, builder's risk, wind, food, inland marine for materials purchased but not installed • Blueprint drafting and reviews: Architects, engineers, bid set, client review, review times • Site preparation: Excavation, labor and machinery costs, erosion control and monitoring • Foundation: Soil condition, stability of ground, compaction requirements • Exterior: Windows, doors, seismic zone and insulation (sound or temperature) requirements, design and review boards • HVAC: Building type, height, occupancy and other special system requirements; load requirement and manufacturing • Interior: Floor-to-ceiling heights, spatial area, special fnishing requirements Source: BuildriteConstruction.com, "Construction Budgeting 101" Basic Budget Considerations June 2019 I ISS 35

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