Officials in Warrenton, Ore., will assemble a task force charged with making recommendations on how the city should proceed with self-storage development. The group will be comprised of city and planning commissioners who’ll present their findings during a joint meeting. Issues the task force will examine include requirements for landscaping, setbacks, sidewalks, and retail space along some frontage roads, according to the source.

The city commission approved the task force on Tuesday. The move comes after the planning commission rejected a zoning amendment last month that would have restricted self-storage development to the east side of U.S. Highway 101.

In discussing why planners determined the proposed amendment was too broad, city commissioner Mark Baldwin indicated it would have sent a signal to developers that the city was “closed for this business.”

The city’s examination of self-storage development requirements has been driven in part by Mayor Henry Balensifer, who clarified his stance on Tuesday. He indicated he’s primarily concerned about the appearance of self-storage along frontage road areas that serve as gateways to downtown, not the entire stretch of Highway 101, the source reported.

“I think we need to look at the 20-year vision of what we want our town to look like,” Balensifer said.

Any task-force recommendation ultimately adopted by the city commission would apply only to new self-storage projects, though it’s unclear if that would include any developments already in the application or planning phases.

If you were to ask self-storage developers to name the most difficult aspect to building a facility, most would probably say “finding the right land.” Ideally, you want to build close to dense areas of population, but if you can find a vacant parcel in a mature area, it may be too expensive or small to be financially feasible.

One way to overcome this challenge is to pursue a multi-story project. If the demand is there, building up instead of out allows you to create more rentable square feet on a smaller footprint. What’s more, these properties typically are heated and cooled, which commands higher rent. Here are some other key considerations when developing a multi-story storage project.

Do the Math

Though building vertical incurs higher construction costs, these are ideally offset through increased land coverage and premium rent. Multi-story facilities also typically take longer to break even. Unlike traditional, single-level sites, which can be built in smaller phases as the business grows, a multi-story structure can easily house 100,000 square feet under one roof. This results in a longer, negative period of cash flow during lease-up. Effective marketing can help increase market share and ensure customers find you, but there’ll be a finite number of prospective tenants in any given month, regardless of how much space you build.

The higher stakes of these larger projects make it that much more important to retain the services of an experienced feasibility consultant. Calculations of unmet demand and population growth in your market area will help determine what size facility is reasonable to build. A good consultant can also help guide you in preparing a reasonable forecast of rental rates.

Building Types

These are the primary structural options for multi-story self-storage:

Light-gauge, two- to four-story steel construction. Current building codes allow self-storage structures to be up to three stories of light-gauge steel or four levels if the lowest is a basement. In this type of building, partition walls between storage units are load-bearing steel studwalls. Upper levels will have floorplans similar to those below to ensure loads are transferred directly down through the building. Larger open areas on a lower level, such as a lobby or management office, will use heavy, red-iron beams to eliminate the need for some walls. Elevators and stairwells are typically constructed of fire-rated, concrete-block enclosures. Floors between levels are typically steel pans filled with poured concrete.

Traditional construction with partitions. In some complex projects, traditional commercial-construction contractors will create a building shell. The self-storage manufacturer/builder will then complete the interior-partition buildout. Projects of five stories or more require fireproofing applied to structural members, which isn’t feasible with typical light-gauge construction.

Two-story into a hill. If a property has a natural elevation change of eight or more feet over the buildable area, it may be an ideal property for what’s called “two-story into a hill.” These buildings are designed with an exposed lower level as well as an upper level with ground-floor accessibility. At their most basic, they have drive-up units on both levels, with unit doors on opposite sides. Wider versions will typically feature hallways with interior-access units. Buildings can be ambient temperature or insulated to accommodate heating and cooling.

The type of multi-story building right for a specific project may depend on market demands, land cost and availability of capital. A building may have exterior-access units on the ground level or units accessed entirely from the interior. The latter design won’t be able to serve clients looking for boat or vehicle storage, but it can offer the advantage of covered or indoor loading/unloading areas.

Aesthetics and Curb Appeal

Self-storage customers often put significant value on facility appearance, and municipalities may set architectural requirements in premium locations where multi-story projects are increasingly being built. Thankfully, these types of developments have room for much more creativity than single-story projects.

The standard and most economical material for exterior walls is corrugated steel, but developers are raising the bar of modern self-storage design. Insulated panels, brick, and fiber-cement panels with either a brick or wood appearance dress up many projects. For structures in which unit doors wouldn’t normally be visible, large windows designed to showcase doors within a hallway can help make the business instantly recognizable. Towers, parapet walls, and indoor loading areas have become increasingly common features used to increase the appeal.

Multi-story buildings are significantly more complex than traditional single-story structures. Accordingly, they’ll take longer to design, permit and build. An architect with self-storage experience can be an important member of your development team, helping to speed up the design process and bringing together ideas for serious curb appeal.

Design for Accessibility

With the exception of two-story-into-a-hill structures, multi-story buildings typically include one or two elevators. Having two will reduce wait times for tenants during busy days, but more important, the extra lift also serves as a backup in case of mechanical problems. These should be located near a main entrance or, if possible, a canopy or loading dock. Automatic sliding doors are increasingly common for main entrances. Carts should be available for client use.

If the building includes an office, the ideal location is usually within eyesight of the loading dock but accessible from outside any secured area. Some properties include a conference room for tenants to use, which is an attractive perk for commercial customers. During the design phase, consider leaving space for an automated kiosk, which can be beneficial in renting units and processing payments after hours, particularly in urban or college markets.

Safety Concerns

Building codes vary, but at a minimum, expect to install sprinklers or firewalls in any project beyond 12,000 square feet. In multi-story, sprinklers are common. Include them in your budget and investigate if the water supply to the property is sufficient to serve them.

The upper levels of multi-story buildings most commonly consist of a steel deck pan filled with concrete. Simple steel decking has been used; however, there’s a risk of having liquid spills from upper floors drip into lower units, resulting in an uncomfortably loud property. One option is to use a pre-finished resin composite, which can be laid over steel decking.

Operational Impact

Multi-story properties with interior-access units often employ two managers to keep up with the operational demands. Halls and restrooms will need regular cleaning. Offering temperature- or climate-controlled units also means more mechanical equipment to maintain.

Though multi-story projects aren’t the answer for every market, they are an increasingly common segment of the maturing self-storage industry. They require more planning, more capital and more time to develop. However, in the right market and location, they can be the best option to maximize rentable area.

Steve Hajewski is marketing manager at Trachte Building Systems, which designs, manufactures and erects a full line of pre-engineered and customized steel self-storage systems, including single- and multi-story, portable storage, interior partition and corridor, and canopy boat/RV. He also owns a self-storage facility in Wisconsin and is a frequent contributor on Self-Storage Talk, the industry's largest online community. For more information, call 800.356.5824; visit www.trachte.com.

The New Hampshire Self Storage Association (NHSSA) is hosting an annual holiday party, Dec. 5, at the Concord Country Club in Concord, N.H. The event at 22 Country Club Lane begins at 5:30 p.m. with cocktails and appetizers, followed by dinner at 6 p.m.

The party will feature a recap of the association’s activities for the year, presented by NHSSA President Katie Russell, general manager of Budget Storage in Brentwood, N.H. It’ll also include an “ugly sweater contest” with the chance to win a prize.

Registration is required at nhssa.net, where attendees can also choose their entrée. The cost to attend is $25 for members and $35 for non-members.

Founded in 1998, the NHSSA provides resources, education and legislative advocacy for self-storage operators in New Hampshire.

Storage First, a self-storage operator in Douglasville, Ga., was voted as the region’s “2017 Best Self-Storage Facility” by readers of the “Douglas County Sentinel.” The annual poll allows residents to select their favorite businesses and services in the county, according to a press release.

The facility at 2477 Fairburn Road offers climate-controlled and traditional units, moving carts and a rental truck for customer use, and moving and packing supplies for sale, according to the company website. It also features video cameras for security.

The property is managed by Absolute Storage Management (ASM), a self-storage owner and property-management firm. Founded in 2002, ASM manages 88 self-storage facilities, 16 of which are owned and operated in joint ventures with the company. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; Jackson, Miss.; and Nashville, Tenn.

Self-storage rental rates declined an average of .7 percent across the United States in October, according to the monthly Self Storage Rent Index maintained by Storage Seeker, an online self-storage directory and price aggregator. The decline marked the third consecutive month of rate drops, following a .8 percent decrease in September and a 1 percent decrease in August.

The index displays the percent increase or decrease in prices for the top 50 “major markets.” Springfield, Mass., showed the largest average decline in October at 17.9 percent, while units in Elizabeth, N.J., posted the largest increase at 15.8 percent.

After Springfield, the top five cities showing price reductions were Jersey City, N.J. (12.7 percent); Somerset, N.J. (9.6 percent); Plymouth, Mass. (7.4 percent); Norfolk, Va. (6.7 percent); and St. Louis (6.6 percent). In all, 13 cities in the top 50 had declines of more than 5 percent, with 11 below 3 percent.

The largest price increases behind Elizabeth were Yonkers, N.Y. (15.8 percent); Tulsa, Okla. (10.5 percent); Manchester, N.H. (6.3 percent); and Miami Gardens, Fla. (5.8 percent). No other cities in the top 50 posted average rate increases above 5 percent, though 39 cities showed bumps of less than 3 percent and 17 below 1 percent.

Launched in December 2016, the index tracks self-storage rent changes at same-store units in about 3,000 cities across the nation, according to the company.

Based in Dover, Del., StorageSeeker.com allows consumers to compare self-storage unit prices at different facilities, while also providing some discounted rental rates or move-in specials when a unit is reserved online, according to a press release.

Since opening in 2011, Giba Storage has grown aggressively to keep pace with the demand for self-storage in Westmead, South Africa. Nestled inside the Giba Business Park, the facility has expanded from 56 units to 220, and still has ample space for future development. In addition to storage, the operator is meeting yet another need in the region: clean energy.

Last year, Giba Storage added solar photovoltaic (PV) panels to the rooftops of several of its buildings. The 150 kilowatt peak system feeds into the property’s electricity grid and supplies power to the business park, which strives to provide an eco-friendly environment for light-industrial and commercial tenants. The goal is to add panels to every roof as demand for electricity increases.

“We currently have just over 30 tenants in Giba Business Park, all of whom are using electricity in various quantities,” says Giba Storage CEO Chris Harburn. “They all make use of our own prepaid meters, so we actually have a captive market to sell our ‘green’ electricity.” 

Part of Nature

Giba Business Park sits in Giba Valley, an area famous for its diverse recreational activities. It’s known locally as Clifton Canyon, and since 2007, it’s become popular with the public thanks to the opening of the Giba Gorge Mountain Bike Park. Outdoor offerings include boot camps, horse trails, venture groups, mountain-bike rides, organic produce, restaurants and conferences.

The park’s location has been the driving force behind its design as a sustainable environment with low-impact eco-practices. It’s built on a large plot of land that’s also home to the Stockville Quarry, a decomposed granite quarry, which is being rehabilitated. Waste from the quarry was even used in the construction of the storage facility.

“Our whole environmental management plan for the quarry was to rehabilitate the quarried areas into level platforms for future industrial use,” Harburn says. “We’re about 70 percent through this process and have about three to four years left of life in the quarry depending on demand.” 

Funding the Goal

Unfortunately, lenders didn’t immediately see the potential and benefits of the solar project. Giba Storage began raising funds to install the panels just a year after opening, but struggled to find backers. “After fighting for three years, we eventually found someone who would fund the first-phase installation—at a huge expense,” Harburn says. “For us, it was more important that we got started. Once we had a system up and running, we felt we could then go to the banks with a working model.”

The system was installed in September 2016, with the first “green electricity” fed to the park’s grid just a month later. The system consists of 567 panels and six inverters. To date, it has produced 158.72 megawatt hours, which is the equivalent of planting 207 trees and saving 62,023 kilograms in carbon-dioxide emissions.

“We’ve borrowed just over R2.5 million at expensive rates, but once we’ve run the system for at least a year, we feel we could raise additional finance at a much better rate and extend the system to cover the rest of the roof space,” Harburn says. “Our long-term plan is to then cover the roof space on some of our existing factory buildings. All future factories we develop will be designed with the solar PV in mind.”

While there’s still work to be done, the overall goal is to offer an eco-driven sustainable business park where people from all walks of life can work and play together. For more information, visit www.gibastorage.co.za.

Nuvo Development LLC is building a five-story self-storage building in the Brooklyn neighborhood in Jacksonville, Fla. The company paid $1 million for the .73-acre parcel at the northwest corner of Myrtle Avenue and Elder Street on which to construct a 91,700-square-foot facility. Jacksonville Self Storage will resemble an office building and include a small parking area with a "drop-off and loading zone" between the rear of the structure and Interstate 95, according to a source. The project is scheduled to be complete next year.

In connection to the self-storage development, affiliate IP Nuvo Jacksonville LLC, plans to buy a .08-acre lot behind the existing lot on which to build a real estate sales office. The city acquired the land in 2007 through a tax deed. Nuvo has agreed to pay $16,000 for the property, a source reported.

The smaller property was among three parcels approved for sale last week by the Strategic Implementation Committee of the Downtown Investment Authority (DIA). The parcels have been referred to as “piano keys” due to their size and proximity to other thin, privately owned sites, according to a source. One lot is just 4 feet wide.

The vacant land around the piano-key sites and behind the self-storage project is owned by the Florida Department of Transportation, which uses it as a buffer from I-95.

Since the secondary lot is being purchased for less than $25,000, the DIA’s approval will be forwarded to the mayor’s office for final authorization, instead of the city council.

Nuvo has seven self-storage projects under construction in Florida and Virginia, with eight others in the pipeline, according to its website. Projects include a mixed-use self-storage and office complex in Palm Beach Gardens, Fla.

Nuvo Development, an affiliate of Winter Park, Fla.-based Nuvo Co., offers architecture, development and engineering services to the self-storage industry. The company is led by CEO Gary Cardamone, who founded the Stor-A-Way brand in 1999 with his brother Rich Cardamone. The brothers sold the properties in 2007.

MakeSpace Labs Inc., a business specializing in valet-style self-storage services in Chicago, Los Angeles, New York City and Washington, D.C., has made several changes to its management team. The company named a new CEO, hired a chief marketing officer and placed a head of logistics and operations.

Rahul Gandhi, co-founder and chief operating officer, has been named CEO, taking the place of co-founder Sam Rosen. He’ll be responsible for continuing the company's growth trajectory, deploying operational efficiencies across markets, penetrating core consumer segments and accelerating product innovations, according to a press release.

"Sam and I co-founded MakeSpace to bring radical, consumer-focused innovation to the storage industry," Gandhi said. "The reaction to our service has been incredible, with tens of thousands of customers using MakeSpace for their storage needs. We're proud of what our team of hundreds of employees across our four markets has built, and I'm excited about what lies ahead. I thank Sam from the bottom of my heart for his collaboration and the board for their support."

MakeSpace also hired Richard Mumby as chief marketing officer and Jesus Flores del Bosque as head of logistics and operations. Mumby previously led marketing at Bonobos, Gilt Groupe Inc. and PAX Labs Inc. Flores del Bosque previously managed logistics for L'Oréal and Amazon's fulfillment centers.

"As we redefine an industry, we need to continue strengthening our brand leadership, and Richard brings more than a decade of high-growth marketing leadership experience to our business, having created, commercialized and scaled several breakthrough consumer brands,” Gandhi said. "With over 10 years of logistics and supply-chain experience, Jesus accelerates our path in building an insurmountable competitive advantage in logistics and operations. His experience using technology to solve complicated warehouse and supply-chain problems translates perfectly into how we think about scaling our own operations."

MakeSpace first offered its storage services in New York City in 2013, then expanded into Chicago, Washington, D.C., and Los Angeles. The number of items stored with the company recently surpassed 1 million, and its annual revenue growth has topped 150 percent, the release stated. The company raised another $30 million in venture-capital investment in April to help improve service in its markets. Its latest round of investors included 8VC, Harmony Partners, Summit Action and Upfront Ventures.

"MakeSpace has grown tremendously since its post-hurricane Sandy inception," Rosen said. "As the company rapidly scales, delivering an industry-redefining customer experience is critical, and Rahul's exceptional skills as an operator make him the right person to lead MakeSpace into the future. While no longer involved with the day-to-day at MakeSpace, I cannot wait to watch Rahul and the team continue to transform the storage industry."

Based in New York, MakeSpace offers door-to-door service for customers’ stored goods and creates a visual catalog of each box stored in its warehouse. Customers have access to the catalog through a cloud-based platform and mobile app, which allows them to keep track of their items and request them when desired.