As the self-storage industry has matured, multistory projects have increased in popularity. This is the result of many factors: decreasing availability of land, increasing land costs, the rise of climate-control space, and planning and zoning requirements, to name a few. Whatever the reasons, multistory projects have become an integral part of the industry. This article addresses important considerations for new-build, multistory self-storage.

Site Layout and Topography

One of the first things to consider is the layout of the site. As with all development, it is necessary to determine the requirements for building setbacks, green space, landscaping, impervious coverage, etc. These factors can greatly affect land use. If they are not an issue, you can build a square or rectangular multistory building with a 25-foot wide driveway around it, preferably using one-way traffic flow; but in most cases, things will not be this simple.

Another item to consider is site topography. Multistory projects can be built on the side of a hill or inset into a hill, on pieces of land where a standard facility would not be possible or the cost of changing the topography would be prohibitive. For example, you can build a project that uses the natural slope of the property, with a drive across the front and down one side. In doing so, it may be necessary to inset a portion of the building into a hill, using the back wall (which is underground) to retain the earth behind the building. In this case, the retaining wall also acts as the rear wall of the storage area.

It is possible to put a portion of a building below grade or in a basement configuration. This puts the primary point of entry on one of the upper floors. For example, on a steep slope, you can place two floors into the side of the hill below grade and actually enter the building on the third level. If the slope allows, it may also be possible to create split-level loading, whereby you enter the lower level of the building on one side, or drive up and around the end of the building and enter the upper floor on the opposite side. This can eliminate the need for elevators.

It is a foregone conclusion that with multistory buildings, you will have interior corridors. This will take away from your netrentable square footage. A good rule of thumb is you will lose 24 percent of your gross building area to hallways. The efficiency may be a little bit better on the ground level, assuming you have some drive-up units around the perimeter of the building.

Site Preparation

This is always an important issue, even with single-story structures. It is much more so with multistory buildings because of the added weight and wind loading being imposed on them. The weight of multiple levels and horizontal pressures from wind forces are transferred to the foundation of the building. The ability of the soil to withstand these forces must be carefully considered. If the soil has expansive properties, ensure it is properly treated to minimize its ability to swell and push up on the structure. Any reaction to movement in the soil is exaggerated in a multistory building.

Depending on the soil type and its condition, preparing the site can involve excavation of rock, removal and replacement of bad soils, chemical stabilization of soils, installation of piling systems, installation of retaining walls, sub-grade special drainage systems, and a host of other considerations. Although these items can be expensive, the ability to develop a project in an otherwise unproductive area can offset the costs costs.

Buildings

Multistory building is a specialty. For this reason, not all metal-building suppliers are properly qualified to erect these structures. Multistory, like traditional self-storage, is most commonly constructed in steel frame. Most builders limit the construction of light-gauge framing systems to four stories. Levels above four are generally constructed of heavy, class-A structural steel, consisting of columns and I beams.

Builders who regularly construct multistory structures usually install the framework in one of two design formats, with post and purlin on a 5-by-10-foot grid or a load-bearing wall every 10 feet on center. There are one or two other framing systems that are used less frequently. Each has its pros and cons. It is important to discuss the different systems with your building provider.

Designing structures to resist natural forces such as earthquakes and high winds can present engineering challenges. These possibilities, and the design requirements they dictate, can greatly affect the number and placement of steel members, weight of the structure, thickness and consequent cost of concrete flooring systems, and the overall cost of the building. Consult with a qualified architect, engineer or building supplier to determine if your proposed site is in an area of seismic activity or a high-wind zone, such as coastal areas.

The exterior of the building can be treated as a curtain wall. In other words, it is mainly a decorative facade. It can be installed with numerous products, such as metal exterior panels, stucco systems, tilt-wall concrete panels, glass systems, glass block, brick, CMU block, EIFS synthetic stucco, rock, and many other products and finishes. You can also mix and match different finish systems to create a complex and architecturally appealing exterior.

Elevators

Of key importance in multistory building is elevator placement. A common trend is to put elevators in the middle of the building, which forces tenants to bring their goods to an elevator lobby, and then travel down a corridor to their units once on the appropriate level. I prefer to place elevators along the perimeter of the building. This allows tenants to drive up to the loading area and immediately place their goods on a cart. The distance traveled to the unit is the same, but it seems more convenient when the elevator is right where they drive up.

Elevators can be expensive and require a fire-rated enclosure. Many other factors will need to be considered as well, such as emergency-exit stairwells, additional life-safety systems, sprinkler systems, fire-separation walls, placement of mechanical systems, etc. This adds to the cost of the project; however, the facility location generally offsets the additional development cost by allowing higher rents.

The Office and Apartment

One final consideration is the location of the office and managers apartment. Most projects have a separate office and residence. In a multistory site, depending on the available land, you may be able to put these inside the building envelope. Usually, the office is inside the building on the ground level in front of the drive.

Generally speaking, the office area is big enough to require larger spans between supporting members and the use of structural steel. It will also need air-conditioning ducts and other mechanical lines installed under the structural beams. This means the first level will be taller than the typical metal-grid framing system used for storage units. A typical floor-to-floor height on the office level is just a little over 10 feet.

As installation of an apartment will create a similar situation, some might be tempted to put it on the ground floor by the office. I prefer to put it on the top floor, which simplifies some of the structural issues and provides a living space with a very nice view, sometimes even a balcony. Separating the managers living and work space also prevents some of the spillover from work to home life and vice versa, which can help maintain the facilitys carefully crafted business image.

This article touches on a few of the complex issues involved in building a multistory site. The results can be rewarding; but it is important to work with a properly qualified and experienced architect, design team and building contractor who understand the requirements of this building type.

Charles Plunkett is the president and founder of Artistic Builders Inc. and Capco Steel Inc. Both companies, based in San Antonio, Texas, specialize in the design and construction of self-storage facilities, having been in business for more than 19 years and constructing in excess of 20 million square feet of self-storage in 42 states. Artistic Builders handles general construction, while Capco deals in design, supply and erection. Project types range from small, single-story facilities to large, complex, multistory sites. For more information, visit www.artisticbuilders.com or www.capcosteel.com.

By RK Kliebenstein

Some people are fortunate enough to have the Midas touch when it comes to selecting self-storage sites. The rest of us, however, need concrete guidelines and a lot of luck. What would constitute the ideal storage site? One that is:

• Properly zoned for self-storage use
• Rectangular
• Affordable
• On a corner of Main and Main

The site would also have:

• A willing, cooperative seller
• 10 acres of land
• Ingress and egress at both ends of the property
• Higher than average incomes
• Better than average density
• Minimal competition, or competition that is full, high-priced, first-generation or otherwise inferior.

The Scientific Approach

In the case of most development, the site will fall short of the mark in one or several of these categories. There are several search tools available to developers who are willing to make a greater than average investment in locating good sites. Keep in mind, however, that even the most sophisticated tools do very little if you do not have proper staff, experienced in self-storage, to operate them.

Demographic Applications and Services. There are demographic software programs that allow you to create layers and filters to search areas according to specific parameters. These criteria might include population density, income, land availability, traffic count, zoning, cost and size. To my knowledge, no single application catalogues all of these factors. One could be created, but it would be time-consuming and require data from a number of dissimilar sources.

There are a number of demographics services that can assist you in gathering data. The best are available online and integrate with mapping applications. Do not bother with those that are driven by ring studies. Markets are rarely circular (i.e., contained in a perfect radius). If there are any, I have yet to see them. There are a few sophisticated, GPS-driven mapping applications that allow easy data importing. The best two are MapPoint by Microsoft and Street Atlas USA by DeLorme.

Just a step down from the GIS interface is standalone chartography, which requires a dynamic link to demographic data. Adding zoning layers and parcel data will be labor-intensive but can be done. The better of these applications will permit you to import data, such as that collected from competitors in an area, from Access or Excel databases.

Computer Hardware. It would be very difficult to use any of these tools if they were only available through your desktop computer. The best solution is to create and gather the data on a desktop machine and network it via wireless connection to a laptop computer for field use.

The laptop should not just have wireless access but allow you to use the Internet even when youre not in a hot spot (like at Starbucks). I suggest a CMDA or similar wireless card. Your desktop and laptop machines must have at least 1 gigabyte of RAM (memory), 100 gigabytes of hard-drive space and fast processors. From there, you can weigh your options for size, weight and screen size. The desktop computer should have at least one 24-inch LCD or plasma display. If budget allows, have more than one. Wireless keyboards and mice are a given.

Digital Camera. This will help you compare features of various sites once youre back in the office. Again, you can debate the issue of physical size and added functions, but you need at least a 3.0 mega-pixel resolution and 1 gigabyte of storage. I personally opt for the Casio Slim Series, which offers form and function in a very small package. Transferring images from your camera to your computer is any easy challenge to address. The new cardto- CD direct transfer looks really inviting.

Transportation. This choice is governed by whether you have your own transportation or are traveling to markets where you must rent. A conversion van is my first choice. It gives you room to set up an onboard office and allows for easy placement of LCD monitors. The generators can provide continuous power. Give me an endless budget, and I would have that previously mentioned desktop computer networked into the van! If this dream machine isnt practical, a good compromise would be a comfortable vehicle with an inverter and plenty of 12-volt power.

Seat of the Pants

Even if you equip yourself with a techno-office and ride, there is still an important component missing. It doesnt even require electricity. It is the H factor, the most fallible of all: the human being. You can invest thousands (or tens of thousands) of dollars and still not be at the top of the game if you do not have experienced eyes and ears to collect, interpret and analyze your data.

There is something that just feels good about the right site; and an experienced professional will be able to create a self-storage success even on a less-than-perfect location. Instinct will tell him traffic patterns, site con- figuration, visibility, access, and site size and price are optimal. In the end, there is no technological substitute for the self-storage development and ownership experience.

Lets take a look at the perfect site selector. Well call this person Sam.

• Sam is 40 to 45 years old, mature enough to have been around the block, but young enough to have the energy to work in the field all day, and then head back to the office for desk time.
• Sam is physically fit, with 20/20 vision and excellent hearing. He/she is one of those blessed individuals with a built-in compass, the type who always knows which way is North, even in the dark and the rain.
• Sam has a doctorate in business administration and a masters in economics. It doesnt hurt that he/she also has a degree in chartography and accounting. For amusement, Sam teaches a Dale Carnegie course.
• The former mayor and chairperson of the city planning and zoning board, Sam comes from a politically connected family. Dad is the current chair of the zoning board; Mom is the head of permitting; and Tina, the sister, is the head loan officer at the largest bank in town. Lets not forget Tom, Sams favorite uncle, who is in charge of personal investments for Bill Gates. He has held this position since he retired four years ago as Warren Buffets personal financial advisor.
• Sam has developed at least five very successful self-storage properties, three of which he/she still personally owns and manages. Two were sold to a major self-storage company backed by an institutional investor, one of Sams former employees.

Do you get the picture? Site selection is easy if you are incredibly wealthy, politically connected or superhuman. For the rest of us, it requires sound research, reliable data, experienced assistance and all the right tools.

RK Kliebenstein is president of CEO of Coast-to-Coast Storage, a self-storage consulting firm that specializes in site selection and feasibility studies. For more information, call 877.622.5508, ext. 81; e-mail [email protected]; visit www.askrk.com.

By Bert Brown

In business, it can be good to think outside the box. The thing to keep in mind, however, is the importance of knowing when to venture forth with new ideas and when to keep things simple. In self-storage, the area of climate control should remain uncomplicated. While the heating and cooling of buildings may seem like a no-brainer, events can turn to trouble when simple is removed from the equation.

Let me relate a story to demonstrate how seemingly ingenious schemes can quickly turn to disaster. Most everyone has had at least one close encounter at which they look back in wonder at having escaped without the loss of life or limb. For me, the first such incident occurred when I was about 8 years old.

Like most of my near-death antics, this one took place with my brother, five years my junior, at my side. We grew up in the suburbs of Atlanta, in what most would consider the country. Our father kept a garden, and every spring before tilling the soil, he would burn off the remnants of the previous years growth. I was captivated by his annual ritual. And during this particular year, after hearing my father remark to my mother about his plans to burn off the garden, I was eager to help.

With my little brother in tow and my father away at work, I began planning the job. The same ingenuity that caused me to disassemble my presents before my parents awoke on Christmas morning must have been what led me to use my fathers sprayer for the easy application of gas to start the fire. While my father traditionally used a cup or two of gasoline to start it, I must have used several gallons. I ignited the garden by throwing a lit newspaper, just as I had seen him do. The plot burst into quick flame and went out. My 8-year-old mind theorized that I must need more gas!

I renewed my efforts with the sprayer; and all was fine until I lit upon one small, smoldering twig. Suddenly, I was desperately running for safety, pulling my little brother through walls of fire. The smell of burnt hair is something you never forget. Neither is the memory of your brother looking up at you with big, buggy eyes, eyebrows singed and hair frizzled to a powder.

At that point, I remembered the pressurized metal gas can was still in the burning garden. Thinking of it as a bomb that would level the house and maybe the neighbors, I dashed back and grabbed it. Later, I buried it deep in the woods to hide the evidence. Surprisingly, I never heard a word about it from my parents. Perhaps one thought the other had taken the task (though I have no idea what they thought of my brothers eyebrows and hair!). I managed to escape with my life and without reprimand. But looking back, had I just kept it simple, the experience could have been far less terrifying.

The Importance of Trained Professionals

The most common problem in climate- controlled self-storage facilities is a failure to keep things simple. HVAC systems are often over-engineered, making them inefficient and expensive to maintain. A properly designed system can provide a significant return to a site developer by decreasing his initial investment as well as operating and maintenance expenses. Increasing profits by decreasing overhead will have direct and positive impact on the overall value of a project.

The simplicity of climate control must start with a qualified HVAC contractor or engineer. Unfortunately, many architects, engineers and contractors lack the skill and knowledge to properly calculate loads and size equipment for the varying needs of self-storage. While many contractors are experienced in installing a typical residential or commercial system based on rules of thumb, many are not qualified to engineer a system specific to our industry. A qualified professional will be familiar with ACCA (Air Conditioning Contractors of America) Manual N, commercial load calculations, which covers important principles such as heat transfer, R-values, U-values, air infiltration and lighting as well as physical characteristics of a structure.

Consider All Angles

In a little town in north Georgia is a house my family sold to the Atlanta Historical Society some years ago. It served as a hospital to Union troops during their march to burn Atlanta in the Civil War. I recently visited the house for a family get-together on an extremely hot, humid day. While there, I could not help but notice how comfortable it was inside. While the house had no form of air conditioning, it was a comfortable retreat from the miserable Southern heat. Much thought had been put into its design. The builder had learned by the art of trade to consider common wind and weather conditions, landscaping and tree coverage, and characteristics of the structure that could contribute to creating the most comfortable environment possible.

In self-storage, it is important developers ensure similar consideration is given to the HVAC design during project development. While finding a qualified person to complete the Manual N load calculation is a first step, it is equally important the designer be familiar with the needs of your particular site. Be sure to clearly define the desired result. Even if the engineer professes experience in the industry, dont assume he is familiar with the unique requirements of climate-controlled storage.

Climate Control for Marketing

Climate-controlled storage is not defined by a constant, maintained temperature. The typical range is from 55 degrees to 83 degrees. The purpose of climate control is to eliminate the exposure of stored goods to extreme climactic changes in the environment. Of course, any operator can change this temperature range to suit a specific marketing purpose.

One example of this might be in the case of pharmaceutical clients. Some of these tenants products have a limited temperature range for storage. You might want to accommodate these customers by narrowing your defined temperature window in some units. Take into consideration, however, whether doing so will drastically affect your utility expenses and if the revenue generated will justify the increase. If so, the temperature adjustment might serve as a promotional tool to satisfy a specific market.

For some operators, humidity is the most important and challenging condition. As a general defining rule, a storage buildings relative humidity should be kept below 50 percent to deter mold and mildew growth. A variety of people and goods will be moving through the facility and, coupled with air movement, that could introduce mold spores to the environment. While this cannot be avoided, a well-maintained facility will sustain proper humidity levels, controlling the moisture on which mold thrives.

Air-Handling

A significant issue yet to be discussed is air-handling. Because of the wide temperature range used in self-storage, it is very common to over-engineer the duct work for conditioned and return air. This is a common area of unnecessary expense, as minor temperature changeshot or cold spotsshould not be of great concern. Remember, the desired result is simply to keep all areas within the acceptable temperature range.

However, do not overlook the need for air movement throughout the entire area. Most industry partitioning and hallway systems provide gaps that allow air circulationusually a typical 8-inch gap between the hallway and divider system and ceiling. These gaps should be noted and used for air circulation in the facility design. Air-handling is paramount in controlling humidity.

While many residential homes require 1 ton (12,000 BTU) of cooling capacity for every 700 square feet, self-storage usually requires 1 ton per 1,200 to 1,500 square feet. (This is only a general rule of thumb.) When you downsize the HVAC unit, it must move a greater volume of air. This requires longer, fewer cycles, which are less burdensome on the equipment, helping to extend its life and minimize maintenance. The greater volume of air also allows more moisture to be removed during the cycle period, allowing better dehumidification. Finally, because more power is required to start and charge the system during every cycle, a typical HVAC unit is more efficient when operating 70 percent of the time during run season.

At the Very Least

For most developers, this is very rudimentary information. The premise behind it is you can achieve desired results via extremely simple means. A system can be straightforward in conception, so long as it has balance in its design.

By defining the requirements for climate-controlled self-storage to a qualified mechanical engineer or contractor, you are shaping a crucial part of the project success. There is a substantial return to be realized in the planning of the mechanical system. The designer should provide you many options, but once he understands the desired result, decisions will be fewer and of lesser consequence.

When I was eight, I achieved my goal and burned off the garden. While I escaped serious injury, the methods and equipment I used demonstrated my inexperience and poor judgment. I placed myself at a greater risk than necessary. At best, I should have been older and wiser; at the very least, I should have kept it simple.

Bert Brown is director of marketing for Janus International Corp., which manufactures a complete line of storage-facility components, ranging from roll-up sheet doors to self-supporting hallway systems. For more information, call 770.562.2850; visit www.janusintl.com.

Storage Planogram

By Bill Meyers

Self-Storage continues to evolve into a total service approach, and as a result, customers are looking for facilities that can do it all. Consumers want to save time, and they appreciate the advantages and convenience of one-stop shopping. If you begin thinking of your facilitys office as a retail store, you will be on the road to creating the services your customer desires while improving your bottom line.

When your storage prospects visit your facility, their decision to rent with you can be based on their first impression upon entering the driveway or office. How is your curb appeal? Is the parking lot free of debris, and is the office clean? What kind of impression does your security make? Finally, what is the status of your retail offerings? Your customers know you rent storage space; but you might also offer rental trucks and equipment, boxes for storage or shipping, locks, and packing and moving supplies. Why not have them organized like a miniature retail store?

Think about what the average consumer experiences when he enters a department or discount store: He sees a sea of merchandise, categorized by department, also called a planogram. In most cases, the customer does not directly enter the area in which he needs to shop. Depending on the store, he may pass the perfume snipers, the shoe department, mens or ladies apparel, or even the shopping-cart corral. This same concept will give your self-storage store an advantage you dont want to lose.

Now youre probably thinking, This guy has no idea how little space I have for all this stuff! On the contrary, I realize an average storage facility has limited retail space. However, a planogram approach can be your key to success as a storage merchandising professional. It is the best way for you to maximize the space you have available, and show customers your small-scale lock, packaging-supply and moving-and-storage departments.

By using a planogram, you create mini departments in which your customers can shop while in your office. An 8-by-6-foot floor or wall space can generate $12,000 to $24,000 annually. The same can be done with countertop displays or freestanding floor displays. Either method creates places for customers to browse.

For example, your lock department will show good, better and best choices customers can touch and see. In this way, you can help them decide on the quality of lock they need. If they intend to store with you, theyll need to pack and move their goods to your facility.

Why not show them your moving and storage supplies department, which might include protection kits for fragile items; covers, tarps and storage bags to protect large items; and tie-down products to secure things in transit? And your box department will contain more than just boxesit should also include tape, markers and labels.

Make your self-storage facility the neighborhood destination for moving, storage and shipping supplies. Your customers will tell their friends and neighbors where to go to purchase these items, and youll have people stopping in even if they dont need to rent space. Think about it: You are close to home; you have fast, easy parking; and they will find it easy to shop with you because your planogram is organized into clearly defined departments. By making the shift from office manager to retail-store owner, you become better at selling your core product: storage space.

Bill Meyers is an account manager at Supply Side Inc., which distributes packaging as well as moving and storage supplies. The company has developed merchandising programs for many leading companies including Storage USA, the U.S. Postal Service, Kinkos and Mail Boxes Etc. For more information, call 800.284.7357 or 216.738.1200; e-mail [email protected].

By Amy Brown

When constructing a new facility or expanding a current one, it is critical to include insurance in the planning of the project. Construction sites involve unique risks that may not be included in a standard business-insurance policy. It is important to research the potential hazards of a project prior to breaking ground.

Facilities under construction are vulnerable to damage from the elements and other threats. For example, they are an easy target for thieves looking to steal tools or materials left on site. They may also increase an owners risk of liability. Construction sites are considered attractive nuisances. That is, they contain items and conditionssuch as machinery, dirt piles, open pits, tools, and building components and materialsthat make them appealing to explorers. Liability could be placed on the owner or controller of the premises in the event of an accident, regardless of whether the person was trespassing.

Storage owners should take precautions to safeguard their construction sites. The best way to avoid accidents is to block access to the site with a locked fence and signs that indicate trespassing will not be tolerated.

Builders Risk

Builders-risk insurance is a specialized policy designed to cover the property-loss exposures associated with construction projects. This coverage protects the owners investment from direct physical loss to the storage buildings during the progress of construction. Coverage may be written for the completed value of the project and can be extended for facilities under expansion. Buildings under construction may be included, and then endorsed to finished operations.

The insurance-requirements section of the construction contract should specify who is responsible for purchasing the builders-risk insurance and exactly what coverages to include in the policy. In some cases, the builder may be responsible for providing coverage. In others, it may be the storage owner/developers responsibility.

It is important to read and understand the details of a builders-risk policy, as such policies can vary significantly. Property coverage will depend on the wording of the Property Insured and Property Excluded sections. Both should be read carefully to understand what is covered, as well as the amounts, limits and restrictions.

Property covered by a builders-risk policy can include all fixtures, materials, supplies, machinery and equipment to be used in the construction. Scaffolding, false work, fences and temporary structures may be also covered. It is important to know where property coverage will take place, as there may be limits on property that is off site or in transit. Some policies may exclude theft, wear and tear, ordinance or law, machinery, testing, workmanship or materials, design error, collapse, flood, earthquake, etc.

Knowing what perils are excluded from the policy will help an owner avoid surprises if a loss occurs. It also provides him the opportunity to purchase any available endorsements for additional protection.

Disclaimer: This article was written as a guideline to aid in minimizing risk in self-storage facilities. The information contained in this document is intended to be of general interest and does not address the circumstances of any particular individual or entity. Nothing in this document constitutes legal advice, nor does any information constitute a comprehensive or complete statement of the issues discussed or the laws relating thereto.

Universal Insurance Facilities Ltd. offers a comprehensive package of coverages specifically designed to meet the needs of the self-storage industry. For more information, or to get a quick, no-obligation quote, call 800.844.2101; e-mail [email protected]; visit www.vpico.com/universal.

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Protect Yourself With Insured Contractors

During facility construction, accidents resulting in property damage or injury to tenants, employees or the general public can happen, even with the most reputable company. Hiring contractors with proper insurance coverage is a good way to protect your facility from vendor-liability exposures.

The best way to prevent blame is to take appropriate measures when hiring contractors. Seek out reputable firms that are licensed, bonded and insured. Get references from business associates or friends who have had good experiences. Request from the contractor a certificate of general-liability and workers-compensation insurance.

A certificate of insurance is evidence the vendor is insured by a financially stable company and carries adequate amounts of coverage for the service being performed. It should contain information on the insurer, insurance agency, types of insurance, policy numbers, effective dates, limits, certificate holders and any special provisions. Check to see the vendors policy limits are at least equal if not greater than those for your facility and the policy effective dates are current. Hiring licensed professionals with proof of insurance may drastically reduce your liability in a vendor-related claim.

By Rob Wright

When self-storage owners move into the final stages of building a new facility, the construction crew becomes critical. Why? The erection of the buildings is the final piece of the puzzle. Everything accomplished up to that pointfinding the right site, lining up the financing, completing the building-code and permitting processes, preparing the land, choosing the building manufacturer and management teamis all for the end goal of getting the facility up and running. In the end, it comes down to the construction crew.

Its up to the crew to get the buildings up and operational on schedule. Delays can mean lost revenue for the owner. The sooner units can be leased, the better. For this reason, the choice of construction company is critical. Those who have been in the business a few years probably have established relationships with companies on which they rely. But what about those new to the industry or who have had a bad experience in the past and want a new option? Realistically, an owner doesnt have a lot of choices; but the decision he makes can have a significant impact on how soon his property is profitable.

Independent Crews vs. Pools

An independent construction crew (a dedicated crew for a single company) can provide complete professionalism and dependability on a project; but there are challenges to consider. First, an independent crew may not be available when an owner needs it. It can run into weather delays or other unforeseen events that keep it on a job site past the anticipated completion date. On the other hand, it may finish a job early and attempt to move on to an owners project before he is prepared. Second, not all self-storage buildings are alike, so theres the possibility the available crew will not be familiar with the owners particular building design. In that case, crew members may have to undergo on-the-job familiarization training, which can result in delays as well as frayed nerves.

Someone once said there is strength in numbers, and that adage applies appropriately to construction crews. Having a pool of 10 to 20 crews available rather than relying on a single team goes a long way toward getting buildings up on schedule and keeping a nervous owner happy. Sometimes, extenuating circumstances prevent an owner from knowing exactly when he will need a crew; but when the time does come, he needs to move quickly. One of the advantages of having several crews available is schedules can be shifted and teams moved around to accommodate individual project needs.

Manufacturer Crews

There are also advantages when crews are tied to the manufacturer providing the buildings. To begin, manufacturers can ensure their crews are properly trained, certified and experienced at erecting their particular products. Familiarity breeds successthere is no time or effort lost on learning how to erect an unfamiliar building. Should new construction techniques arise or equipment or tools be upgraded, crews can be made aware of them in a timely manner. Finally, if engineered drawings are changed, the crew is the first to know about it.

A manufacturers crew is a part of a team of professionals dedicated to making sure things run smoothly on site. The team generally includes an inside sales rep, a project manager who coordinates things from the manufacturers plant, and an on-site field superintendent to supervise the construction process through completion. There is no need for the owner or manager to ride herd on the crew. When the construction phase is completed, the superintendent conducts a walk-through with the owner to ensure everything is completed to his satisfaction.

Any reputable manufacturer will have warranties on its products as well as the work of its crews. This means the company is accountable and stands behind its work. If construction or maintenance issues arise, they will be addressed appropriately.

In construction, the more options an owner has available, the smoother his self-storage project will be. Pools of construction crews and manufacturer-trained teams are just two of the possible advantages he should seek.

Rob Wright is director of construction management and customer support for BETCO Inc., a single-source manufacturer of self-storage buildings since 1984. The company offers engineering design, manufacturing of all metal-building components, shipping and construction. For more information, call 800.654.7813; visit www.betcoinc.com.

The New Jersey project was expanded and the unit mix enlarged, with some of the 5-by- 10s converted to 10-by-10s. The South Florida project now has more than 3,000 units of various sizes, including climate-controlled units. The Texas project has maintained its original mix, charging $50 per month for each unit. The property is full, but if it had a better unit mix, its value would be more than 50 percent higher.

Storage owners should avoid having all one unit size or a mix not designed to fit their particular markets. At the same time, all properties should include some climate-controlled units. One of the best approaches is to phase a project, which allows the owner to create a unit mix that matches rental demand.

Using Demographics

The first step in determining a proper unit mix is to analyze an areas demographics. If you feel uncomfortable doing your own research, purchase a market study from a professional. This can be used as a tool for obtaining financial commitments as well as raising your own confidence before building. The cost of a market study is quickly offset by the information it provides and may serve to prevent costly mistakes.

Demographic information can be obtained in a variety of ways. Utility companies have huge amounts of data. Real estate companies and chambers of commerce also have information on who is moving into and out of an area. These organizations are generally willing to share.

If you gather your own data, first determine the areas population. In urban areas with high-density population, the market area should be relatively small, with a 2-mile radius; in a rural area, the radius should be taken to 5 or even 7 miles. If the project is in an area that attracts customers from farther away, take customers locations into consideration.

When gathering data, visit and survey all the competitors in the area (of course being friendly, honest and courteous). Leave no project overlooked. A newer project may not yet be in the Yellow Pages or in a particularly visible area, so it is important to use as many avenues of research as possible. An area map will be useful in locating all local storage properties. Once all demographic information is collected, many of the answers for your proper unit mix will be apparent.

Looking at the Data

Once you have your data, here are some things to consider:

• Income: As a starting point, household income should be slightly above the national average of $39,000 per year. Higher income levels indicate prospective customers may already have enough storage space in their homes. On the other hand, lower incomes indicate there is not enough disposable income to afford self-storage. High-income tenants tend to rent larger units for longer periods.
• Education: As a general rule, an average minimum of a high school education is necessary to indicate a good storage market. Better education levels indicate upward mobility and the chance for career moves that will enhance storage opportunities. This is one of the best self-storage indicators.
• Family Size: Smaller families indicate a larger amount of disposable income, which can indicate a need for self-storage. Larger families spend most of their income on basic living requirements and have less disposable income.
• Climate: Areas of large climate variation and humidity tend to be excellent for self-storage. Humidity greatly increases possibilities for climate-controlled storage. Areas of extremely cold or hot climates are very harsh for stored goods. Even in areas of moderate climate, owners report climate-controlled units rent best once clients see the advantages.
• Housing: Single-family homes offer the best potential for self-storage, particularly those with single-car garages and no basements. Multifamily homes offer good potential if income level is high and garages are not provided. University housing provides an excellent market but tends to be seasonal. Most college towns are good sources of tenants, but the unit mix tends to be made up of many smaller units. Military bases are always a good source of tenants, as customers are usually mobile and use large units; but make sure the installation is permanent and not subject to closing.

An Average Mix

The average unit size ranges between 90 and 130 square feet. Unit-mix percentages for the standard project are: 15 percent 5-by- 10s; 40 percent 10-by-10s; 25 percent 10- by-15s; 10 percent 10-by-20s; and 5 percent 10-by-25s. This leaves 5 percent available to be divided into larger or smaller units. Some 5-by-5s should be used as low-cost price leaders. Larger units are necessary for commercial customers and tenants storing an entire house worth of possessions.

This mix is a guide and will work for conventional or climate-controlled units. Variations can be used to fit lot sizes and local design requirements. The important thing is to be flexible. Phasing allows the opportunity to adjust the mix to the percentages of units that rent best. As a project fills, requests for larger units will push the average unit mix higher.

For example, commercial tenants generally require large units. If their goods are in any way perishable, they will also require climate control. In fact, the government now requires climate-controlled storage for pharmaceuticals and similar products. Storage of these items in a residence, garage or basement is no longer acceptable as quality control cannot be guaranteed.

All facilities, new builds or conversions, should include some climate-controlled units. Climate control currently makes up about 40 percent of the total self-storage market. Rent premiums for this type of storage range from 25 percent to 60 percent over the cost of conventional rentals, while operating costs average 10 cents or less per square foot per month. The temperature in these units ranges between 40 degrees in winter and 90 degrees in summer, with humidity at 60 percent to 65 percent.

Rising land costs, declining land availability, and government-imposed building restrictions all make multistory projects a good building option. For similar reasons, conversion projects have gained popularity. In some cases, column spacing and other obstructions may dictate the unit mix, though it generally only affects a small portion of the units.

To get the right unit mix, an owner must first study the demographics of a selected area, noting traffic patterns and local competitors. It is always preferable to build an upscale property with a variety of unit sizes. Higher land costs may require multistory development of an already climate-controlled building. Higher rents will offset the higher cost of developing this type of property. In all cases, the unit mix will remain about the same.

Dan Curtis is president of Atlanta-based Storage Consulting & Marketing, which provides feasibility and marketing studies to potential self-storage owners. Mr. Curtis is a frequent contributor to

Inside Self-Storage as well as a speaker at numerous industry conferences. For more information, call 404.427.9559.

By Louis Gilmore

For decades, the basic formula for successful self-storage development was, If you build it, they will come. Facilities built in the '70s and '80s lacked architectural flavor and used cookie-cutter-style buildings. They remained rented without challenge or objection. Today, however, we operate in markets with an average of seven competitors in a 5-mile radius. There is almost always a new face on the block, and you better bet the new face looks better than the old ones. As competition heats up, facility aesthetics become a greater factor in renters decision-making process. Modern facility designs include materials like brick, stucco and glass. Structures are accented with dormers and mansards, giving the renter a sense of class.

They Made Me Do It!

With a little help from your friends, i.e., the elected officials in your town, you may find your office looking more like the Louvre, your landscaping like Augusta National, and your signage like a mile marker. Gone are the days when you could just throw up a building you won at a tradeshow. Todays planners require submittal packages that include material samples, color selections and architectural elevations.

It is not uncommon to face written restrictions such as, No doors shall be visible or Buildings shall not have a flat roof. Often, you will see a contradicting requirement, like a full landscape buffer in front of buildings accented with split-faced block piers. Youll spend money to make the buildings look great, then youll have to hide them with shrubs and berms. The beautiful storage facility across town may not have been funded by the shade-tree committee, but the owners sure feel the costly effects of the boards ideas.

I Did It Myself

It is refreshing to see the new generation of self-storage developers working to smash the boring box concept. Owner/developers are voluntarily creating a brand image by putting money and effort into the curb appeal of their stores. Major operators or franchises in our industry, such as Storage USA, Shurgard and Uncle Bobs, have created an image for themselves with icons such as lighthouses or unique color schemes. Single-store developers have copied these concepts, creating attractive appearances that give a franchise feel without the fees. While many will argue there is no brand loyalty in the storage business, the investment in image is, without question, consumer-oriented.

The Office Is the Showcase

A storage prospects decision to rent a unit is ultimately made in the office. This is where he formulates his perception of your business and decides whether to trust you with his valuables. It is where he may abandon you, if his expectationsbased on information in your Yellow Pages ad or websiteare not met. Prospects will be frightened away by a lack of security, old technology, neglected maintenance, foul odors, even poor lighting. At the same time, his perception of your facility can easily be improved right from the start.

Modifications and upgrades to the office can include replacing the shag rug with tile flooring, clearing out the clutter, adding windows, replace ceiling tiles, switching to a flat-screen monitor, or incorporating some plants. The office environment should assist the manager in overcoming any objections renters have without involving explanations or comparisons to other facilities. At all times during the design and decoration of your office, consider whether you, as a tenant, would be comfortable.

What Can I Do About It?

Antiquated facilities are not easily revitalized or reshaped. Often, a comprehensive refurbishment of the entire property is required. A facility that has been around for 20 years is a prime candidate for repaving, office renovation, repainting, new doors, landscaping, modernized signage, and upgrades to gates, keypads, cameras and monitors. The hottest trend in renovations is adding climate-controlled units to the mix. Reconfiguration of existing buildings with the addition hallway systems, insulation and HVAC equipment can recharge old bins into first-class storage.

Whether you are planning a new project or budgeting money to restore an existing one, there is always a way to improve your facilitys image. Take a good look at what tenants see when they approach your business. Is it a face anyone could love?

Louis Gilmore is sales manager for Pennsylvania- based Miller Building Systems Inc., which has designed, supplied and installed selfstorage buildings since 1976. The company specializes in climate-controlled and multistory buildings. It recently introduced a division that renovates existing buildings and provides solutions to aging structures. Services include re-roofing, door repairs, climate-control conversions, and roof and wall coatings. For more information, call 800.323.6464, ext. 104; visit www.millerbldgs.com.

By Michael Trunko

More and more often, self-storage owners are purchasing their buildings directly from a manufacturers authorized builder, eliminating the middlemen. Until recently, this approach was primarily used by experienced operators who wanted to expand their facility or build a new one.

Today, however, even first-timers are opting to go this route. HCI Steel Building Systems Inc., with its in-house engineering and manufacturing abilities, can listen to an owners concept and turn his idea into a reality. The company is capable of handling all the details of the construction process, from drawings through erection. Having all materialsstructures, roofing systems, wall panels, etc.designed, fabricated and delivered by one company offers many benefits. It not only saves money, but can also ensure a quicker and smoother project.

Worth Its Salt

Most brokers and suppliers farm everything out to a number of different vendors, says Gary Lundgren, owner of Alaska Mini-Storage. When too many suppliers are involved, and levels of communication go from person to person and supplier to supplier, mistakes and delays can occur during the process. Lundgrens company, based in St. Croix, Virgin Islands, has been developing property and operating real estate in Alaska since 1963. He has been in the self-storage industry since 1978 and currently owns six facilities.

Alaska has only about a six-month window for outside construction, roughly May through October, so you dont have a lot of room to deal with delays, Lundgren comments. We didnt start our Fairbanks project until July 2003, which meant we had about three months to get as much of the project completed as possible. We hoped to complete 90,000 of the 170,000 square foot facility before the severe cold weather hit.

We knew that the total amount of square footage we could complete in such a short period of time relied heavily on the suppliers capabilities, Lundgren admits. We couldnt afford delays because of materials or missed deadlines. Therefore, we took great care in choosing a supplier for this project. Many factors were taken into account when we compared suppliers and proposals.

Lundgren not only considered costs, but also the quality of the companys workmanship, reliability and willingness to meet strict deadlines. In the end, it came down to two companies, but only one of them proposed to design and fabricate everything internally in its own manufacturing plant.

HCIs team offered us a better production and delivery schedule at a better price than any of the competition, states Lundgren. We were already into the building season and, in their proposal, they committed to design the facility, fabricate the material and deliver everything on a fast-track basis. None of the other companies could compete in terms of time or price.

Founded in Alaska in 1981 as a manufacturer of pre-engineered steel buildings and metal panels, HCI designs, engineers and fabricates the material for all of its customers buildings in house. In 1986, the company moved to Arlington, Wash., and, in 1996, built a new, 90,000-square-foot facility. Today, HCI is one of only 26 manufacturers in the United States to have the AISC-MB certification for quality of workmanship.

One-Stop Suppliers

Most self-storage owners have a vision of what they want when building a new facility or expanding an existing one, says Lee McDaniel, vice president and general manager of HCI. They usually know they want a certain unit mix of 5-by-5s, 10-by-10s, 10-by-20s, etc. Based on this, we prepare drawings, do the engineering and detail work, provide sealed drawings for building permits, fabricate the steel, and ship the material to their sites. We often assist owners in finding a qualified erector to put up the facility.

The companys buildings are typically based on 5-foot modules in width and length. They are available with single- or double-sloped roofs, may have inside corridor access, and can have single- or multiple stories and climate control.

We buy steel directly from the mills. We do all of the manufacturing and engineering ourselves, and we ship the ready-to-assemble material to the job site, says HCI President Joe Holden. You dont have extra layers of people and suppliers, which is where mistakes can be made. You also eliminate extra layers of markup. By doing everything in house, we are as competitive on the East Coast with a multistory, climate-controlled building as we are in our own state.

Timing Is Everything

HCI not only designed and fabricated all our material in house, it provided assistance in finding a qualified erector for the project, Lundgren says. Since we were getting the material on a fast-track basis, we needed an erector who could put up the buildings in-kind. It wouldnt do us any good to have the material arrive on time, then have delays in putting it up.

Lundgren hired Farrell Contractors, an authorized HCI builder based in Boise, Idaho. I wasnt too concerned about the short time frame for construction, says company owner Hayden Farrell, who specializes in self-storage. I knew my guys could complete the 90,000 square feetas long as there were no delays in getting material and the weather held out. How much you can complete depends a lot on your supplier. With the Fairbanks project, HCI had everything bang on for us, and there were absolutely no holdups because of material.

Farrell, originally from New Zealand, was impressed by the quality of HCIs material and workmanship. He also appreciated the fact that practically no material was left over at the end of a job.

Toward the end of the project, Lundgren learned another benefit to working with a one-stop supplier: Last-minute changes did not pose any problems. He gave HCI preliminary design criteria, and the companys engineers were able to turn them into drawings within a few days. The company then instantly began fabrication of the material. Less than one week later, the material was on its way to Alaska, and there was no delay in construction.

Ease of Erection

While Farrell and his crew were initially going to build only 90,000 square feet, the smoothness and punctuality of the project enabled them to build 136,000 square feet. In addition to timeliness, he says, The material went together well, and it all lined up perfectly. These buildings are extremely easy to erect.

HCI recently completed a 37,500-square-foot, three-story project in Sacramento, Calif. The crane time totaled only 26 hours, approximately one-third the usual time required for this type of project. The erector, who was very experienced, had budgeted 75 hours for the job. Needless to say, he was pleased.

Our buildings go together quicker and smoother because we are accustomed to manufacturing buildings to very high tolerances, says Holden. Our first customers back in the early 1980s were the Army Corps of Engineers and oil companies in Alaska. They demanded a high level of quality and conformance to exact specifications. All the details and connections are designed for ease of going together in the field.

Its important erectors not have to fight the parts as they go up. We can fabricate buildings up to 600 feet clear-span with 80-foot side walls. You dont want to be fighting steel when you are up there. You want the connections to go together very easily.

Surpassing the Goal

Lundgren has an additional 34,000 square feet of buildings to erect at the Fairbanks project next year, with construction beginning in May 2005. I look forward to it, because this was a great experience, he says. Everything went together perfectly. There were no hitches, no problems and no surprises. Everybody makes promises in business, but not everybody can deliver, Lundgren says. This is a supplier and erector that delivers what it promises and in the time it promises. HCI not only met all the deadlines on the fast-track schedule, it actually exceeded them! For more information, call 800.255.6768; visit www.hcisteel.com. 

Michael Trunko is an Ohio-based writer specializing in construction and related topics. He can be reached at [email protected].

By Tyson Hermes and Erik Hermes

The self-storage market has begun to saturate in many areas of the country. As a result, developers have found it necessary to put facilities on premium property. New developments on highly visible, easily accessible sites are able to contend with the competition by providing something many first- and second-generation facilities cannot: convenient, modern amenities. These do come with a catch, however: cost. Developers may ask themselves, How do you justify a traditional self-storage development on a high-priced, 5-acre site? The answer is simple: Dont use 5 acres. Build up, and use less land.

The premium for multistory construction is only slightly more than that of traditional single-story facilities ($1 to $2 more per square foot, depending on the market and topography). The money spent on elevators, stairwells and sprinkler systems can be offset by less roofing, insulation, asphalt paving, storm-water systems, fencing and land. Amenities that appeal to tenantssuch as automatic sliding-glass doors at entrances, motion-sensor light switches, rounded hallway corners, and digital video recordingcan be added at relatively little cost. Finally, the high-profile look of a multistory facility is more appealing to many planning commissions. It has enabled developers to petition municipalities that have previously said they would never allow self-storage.

The success of a multistory facility doesnt come easily. It starts with a good plan on a great site. There are code considerations, design necessities and increased responsibilities that come with multistory construction. There are also key criteria that should be met. Not all of them are critical, but the ideal site would meet as many as possible.

Site Selection

Easy access, dense local population and a lack of competition help make a facility a success. Some things to look for in a site are:

• The site should see a traffic count of 15,000 cars or more per day.
• The nearest competitor should be at least 3 miles away.
• There should be higher than average household income within a 5-mile radius of the site.
• There should be popular retail outlets such as Wal-Mart or McDonalds within 1 mile of the site on the same street.

Code Requirements

Many important code-related questions can be answered quickly with the help of a construction manager familiar with the self-storage industry. Some things to ask are:

• How high will the local municipality allow you to build? It is preferable to have at least 35 to 40 feet for three floors. Keep in mind, an elevator penthouse usually projects at least 4 feet above the roof.
• How many floors are allowed? How many square feet are allowed per floor? This depends on state and local codes.
• What about emergency travel distance? In the event of an emergency, an exit or stairwell must be available to all tenants and employees within 250 feet. Review the footprint of the building to see how many egress stairwells will be required.
• What is the allowable square footage without a fire separation? State and local codes will only allow a certain amount of open area before requiring fire-separation walls.

Design Necessities

Once local authorities accept the site plan, its time to work out the design of the building. Put yourself in your customers shoes. Make the facility inviting and easy to use. The following items should be considered:

• Unit MixThis works the same as in any self-storage development; however, you want the larger units to be closer to the entrances (and dock, if applicable).
• Exterior Access UnitsBe sure to include these, as they are still a selling point for many customers.
• Elevator PlacementOn the first floor, the elevator will require a 10- by-10-foot shaft and a 10-by-10-foot equipment room.
• HallwaysThe layout should have no more than 150 feet maximum travel distance for customers from an entry point to their units, keeping in mind the distance to elevators for upper floors. Traditional facilities are able to attain 75 percent to 85 percent rentable space. In a multistory site, 65 percent to 70 percent is more common once you account for the rental office, hallways, elevators, stairwells and mechanical rooms.
• Climate ControlThe amount of heating and cooled space depends on the local climate. Generally, multistory sites require a higher percentage of climate-controlled space than traditional self-storage. However, a 100 percent climate-controlled facility will turn away some customers who dont want to pay for it.
• HVAC SystemSplit-system vs. rooftop-units, ducts vs. circulation fans, fresh air requirements and humidity control are considerations that can affect the floor-to-floor height.
• Sprinkler SystemThe choices are wet or dry sprinkler systems. Both suppress fires with water. The wet system keeps water in the pipes at all times. The response in the event of a fire is almost immediate. The dry system maintains pressurized air in the pipes. In the event of a fire, water is released into pipes to the activated sprinkler heads. The initial response is delayed by about 15 to 30 seconds. The system selected depends on climate and percentage of heated storage space. Wet sprinklers are acceptable throughout the facility if it is in a climate that doesnt freeze or is all heated. More than likely, a dry system will be necessary in the unheated areas to avoid frozen water in the pipes.
• Office Size and PlacementThis depends on personal preferences and the retail sales an office generates. The recent trend is to make the offices spacious, well-lit and inviting with nice finishes.
• Gate PlacementCustomers should be able to access the office without going through the gate. However, the gate should be situated so all who access exterior units must pass through it.
• WindowsLarge storefront-type windows facing the street are an excellent way of showing the public what is inside the building, plus they act as free advertising. Windows are a necessity inside the facility, especially at the end of hallways or near elevators, to alleviate the feeling of being in a maze.
• Color-Coded FloorsSince the upper floors will likely have the same layout, consider using different colors on the unit doors for each floor. Customers tend to remember their door color more than their floor number.
• Loading AreasDock access is convenient for some customers, but not a requirement for most. Providing carts for tenants will make elevator use more acceptable. Allow a staging area and wider hallways near the elevators for tenants moving items to the upper floors. Review the size of the entrance door and elevator door or any other pinch points to ensure whatever can fit through the entrance can also fit on the elevator and down the hallways.

Potential Drawbacks

Phasing. With traditional self-storage, the facility can be constructed one building at a time. This is called phasing. The ability to construct the facility in phases allows you to limit your investment and risk. The unit mix can also be adjusted to match the market as new buildings are completed. With multistory facilities, phasing is not possible, as the entire shell of the building must be completed on the first day of operation. Thus, more cash is required in the beginning for the additional working capital. In addition, the unit mix and layout should be planned very carefully because adjusting the units later can be costly.

Schedule. Drawing preparation, permit processing and construction time are longer with multistory building. Allow four to six months for drawing preparation and permits and eight to 10 months for construction. The schedule varies greatly depending on the municipalitys familiarity with multistory selfstorage and the building system selected.

Managers Responsibilities. Multistory buildings are more complex than traditional self-storage and, therefore, add greater responsibility to the managers role. This includes checking wet and dry sprinkler systems, maintaining elevators, inspecting and maintaining smoke detectors in elevator shafts and ducts, maintaining hallways and stairwells, and securing the facility at the end of each day.

Operating Costs. Multistory buildings may experience higher operating costs, including utility costs (gas and electric). This depends on the amount of heating, cooling and lighting in the facility. Elevator maintenance, sprinkler maintenance and yearly inspections may also be higher.

Multistory self-storage is beginning to fill a niche that has not previously existed. With proper planning, a good manager and cooperation from local municipalities, multistory facilities can be built in communities and cities previously unwilling to allow self-storage. This is done by literally taking self-storage to the next level.

Tyson and Erik Hermes are brothers and owners of Hermes Construction Co. Since 1980, theyve specialized in the design, development and construction of self-storage facilities. For more information, call 859.781.7198; e-mail [email protected]; visit www.hermesconstructionco.com.