By Fred Grauer

In Southern California, as May drew to a close, residents prepared for June Gloom, a time of the year when much of the state prefers to hibernate rather than go outside to wash cars and have fun. People are down in the dumps, the sky is falling and, in general, malaise prevails throughout the land.

Being a frequent visitor to the state, with four of five children as well as several friends and customers living there, I had to wonder about this phenomenon, not out of morbid curiosity but real concern. I have since learned that June Gloom occurs when the ground warms, yet the ocean remains cold. The results of this convergence are gray, overcast skies, uncertain weather and unpredictable sailing conditions. Are we talking about climatic circumstances or the economy? In either case, it doesnt sound like a good time to be venturing into uncharted waters or washing cars.

A Greater Incident

Is June Gloom strictly a weather-driven, regional condition, or is it a general dissatisfaction being experienced by the entire country? Normally, to answer such deep, philosophical questions, I consult my Ouija board. So I did. But not having arrived at any palatable, sensible answers, I decided to seek out the facts.

It didnt take long to confirm the South and Southeast has had rain; the West is going through a drought; employment is up; durable-goods orders are going up; interest rates are still the lowest they have been in years; petroleum margins have improved; net profits in most industries are better; and, most important, the International Carwash Association celebrated its 50th anniversary and had its best annual convention ever. Most car-wash operators volumes and profits are up. So whats the deal?

There is no doubt that, globally speaking, America is not the worlds favorite son. Its easy to blame our poll numbers, which are in the basement, for the countrys unrest. But lets face it: When you are successful in your business, personal or political life, someone is going to dislike you. We still know the weather is plus or minus a degree over last year, and our economy is rebounding nicely; so what is the real cause of our dejection?

I think its the story of Chicken Little all over again. Even though the forecast indicates sun, we have elected to become defensive rather than proactive in all areas of our lives, business included. But unlike the weather, over which we have no control, our economic and political woes are things we can counteract. For those of us who have weathered every storm imaginable, June Gloom is actually an opportunity.

One autumn, years ago, I faced a particularly challenging season. My car washes had suffered from 26 weekends of rain, and I was ready to cut my throat. I called a dear friend and great car-wash colleague, Fred Frattaroli. Freddy and I were commiserating, and he made a statement to me Ive never forgotten: In every seed of adversity, there is a seed of equal or greater opportunity.

Whats the point of all this rhetoric? Its a message to those currently suffering from the gloom: Get real! This is a time of action. Its a great time to start a new businesswhy not a car-wash business, in conjunction with selfstorage or separately? Our government, the same one that brought you freedom of speech and choice, also offers some pretty tremendous tax incentives. But the time on its deal is running short; so be proactive, put a smile on your face as well as your wallet, and invest. Your Chicken Little counterparts will be cogitating, and youll be enjoying a more efficient, profitable business.

Fred Grauer is the vice president, distributor network, for MarkVII Equipment LLC, a car-wash equipment manufacturer in Arvada, Colo. He has made a lifelong career of designing, selling, building and operating car washes. He can be reached at [email protected].

Construction Corner is a Q&A column committed to answering reader-submitted questions regarding construction and development. Inquiries may be sent to [email protected].

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Q: I have heard about cameras that use existing 120VAC power lines for their video signal and power. What are the limitations to these cameras? How many can you have at a single site?

Jerry in El Paso, Texas

A: These cameras are great for locations that are impossible to reach without trenching. However, the technology is not yet perfected. From a technical standpoint, you can use one camera per electrical phase. So, on an average site, you could use two cameras; but realistically, one camera per site is all that is recommended.

I have only seen these cameras in a black-and-white version. Their recording quality is on par with an old analog system. Again, they are great for being able to see that back door or dumpster that isnt accessible by other means, but they are not an alternative to getting a regular coax video system.

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Q: We are adding cameras and a security siren outside our of. ce, running all the components across the roof. My nephew is installing the equipment, and I am concerned about him making holes in the top of my building. What is the proper way to run wiring across the roof and penetrate into the structure?

Becky in Carlsbad, Calif.

A: The answer to this question is related to the type of roof you have, but I can give you a few guidelines. First, I recommend all wiring go through conduit along the roof to protect it from the elements, animals or the occasional HVAC repairman. When running conduit across the roof, dont use nails or screws to secure it to the roofing material. Instead, secure 12-inch pieces of 2-by-4 block to the roof with mastic or tar at intervals of about 10 feet, then secure your conduit directly to the blocks. This will prevent leaks from screw or nail holes.

When making your penetration into the building for the wire, use a sleeve with a metal flashing that fits snugly over the conduit. Use a lot of mastic or tar around the flashing. Finally, secure a waterproof box to the top of the sleeve, as this is where all of your roof conduit will terminate.

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Tony Gardner is a licensed contractor and installation manager for QuikStor, a provider of self-storage security and software since 1987. For more information, visit www.quikstor.com.

By Victor Lopez

You have probably seen those infomercials selling the best of the '70s and '80s music collection. If you pause to listen to some of the hits being advertised, its probably because you have a fond memory associated with one of the songs. The same kind of association occurs with the great self-storage hits of decades past. There can so many fond memories of hitting a homerun with a storage site, whether because of how quickly it came together or how fast it filled up.

Compared to todays standards, many of those greatest hits of storage included every mistake in the book and still were a success. Memories indeed, as developing a storage facility now requires more effort and resources than ever before to get through the approval phases, battle the rising cost of construction, and navigate the flood of competition. Every step in the development process must be carefully planned and evaluated. This is certainly true when designing your site layout and assembling your unit mix.

Site Layout

This is the first step and requires a great deal of information about zoning regulations, setbacks and other jurisdictional requirements. This is where you want to have an experienced design-builder or very good civil engineer with self-storage experience to get through the process. I always prefer to use a local engineer familiar with all the current zoning regulations and all the routines and people in the planning department. This will save you weeks in getting your site plan approved.

While hacking out your plan, some of the most important considerations are land cost, land coverage, site improvements and building layout. The key is to understand these variables and what they cost to maximize the coverage on your site.

Land cost and land coverage can go hand in hand. What you pay for the dirt and how much gross square footage of building you squeeze out of it affect the overall financial performance of the facility. But it goes beyond just how much you pay for the site, because you always need to consider what you will be able to build and what it is going to take to get there.

The first hurdle in maximizing your coverage is determining the setbacks and required buffers for your site. Examining the plat and verifying additional requirements with the city easily determine these. It doesnt stop there, however. More often, the fire marshal and arborist are stealing valuable space and decreasing your coverage. Be sure to check what is required for fire-lane widths and turning radius for your local fire department. Also determine the required landscape areas and buffers. Sometimes these are disguised by calling them pervious cover areas or green space.

Once you have determined the physical parameters of your site, consider what site improvements are obstacles to maximizing coverage. Earlier in your development process, you should have determined which utilities you have or, at least, how far you have to go to get them. Dont cut yourself short by not using existing utility locations to your best advantage. Again, you will need to satisfy the fire marshal by installing the required number of fire hydrants and associated fire lines. Find out the exact requirements for the line sizes, if a check valve is needed, and if the fire lines need to be looped or if they can be dead-end. Looping a fire line can double your cost!

Another site-improvement consideration is excavation and grading. Will the site require a lot of dirt to be moved, or can you lay out the buildings to follow the natural grade? You might consider using split-level buildings to take advantage of steep grades on the site. Retaining walls can also help capture more useable space on a site with steep grades, but use them as a last result due to the significant cost of some of them.

Finally, storm drainage is a significant factor. Use surface drainage as much as possible to keep costs down, and make sure your civil engineer has carefully determined the requirements for storm-water detention and filtration. Detention ponds can take up valuable space and reduce your coverage. They can also add significant cost if you use concrete ponds or underground detention. Water-quality or filtration ponds will also become costly if not carefully placed and properly sized.

Now that you have figured out how much of the site you can use while making the fire marshal and the arborist happy and spending as little as possible, you can start laying out the buildings. This is where the site plan begins to take shape and overlaps the unit-mix plan. This happens because you know certain width buildings will yield a certain combination of unit sizes. Dont make all your buildings the same width just because a manufacture has a clearance sale on metal buildings. Likewise, dont get yourself in a jam by lining all the property lines with single-loading buildings of the same width. The objective is to maximize the financial performance of your facility and achieve the right unit mix.

Unit Mix

Designing a unit mix can be one of the most elusive tasks in the development process, especially for the first-time developer. All too often, the newcomer to the industry is looking for the instant unit-mix packagejust add buildings and doors and start leasing. Unfortunately, there is no quick answer for the eager entrepreneur, and some resort to buying up the standard building package with the unit mix that works best for the installer.

However, there is a methodical approach that makes use of all of the information gathered during a proper market study. Designing your unit mix is best accomplished by taking a baseline mix and tailoring it to fit your specific site according to market conditions and demographics.

There are few ways to determine a baseline unit mix. Any good property-management company keeps a database of operating information from all of its stores and thoroughly analyzes it to arrive at a unit mix that works for a given set of market conditions. This is the baseline mix. Without the benefit of these statistics, however, a first-time developer can go to state or national industry associations to see what information is available.

The data is usually compiled from many facilities throughout a given region and, in some cases, it is difficult to integrate operating statistics with a specific set of market conditions. As a last resort, you can collect field information from existing facilities in similar markets and compile your own baseline mix. The important thing is to have a starting point, relative to a certain market type, expressed in terms of average unit size. Understand, however, the vast majority of units are smaller, not larger, than average size.

Making Adjustments

The next step is to examine your target market and build your unit mix by adjusting the baseline according to existing competition and the different elements in your trade area. For example, the ratio of commercial to residential composition will affect your mix. A typical market will have 75 percent residential tenants and 25 percent commercial.

If there is a larger commercial presence in your market, increase the average unit size. Keep in mind that more commercial activity doesnt increase the net demand in your market; it just means you will need more large units. Similarly, if your market has a big medical- or professional-office presence, you will need to increase the average unit size of your climate-controlled units. Doctors and lawyers rent these units to store records.

During your market study, you should have identified the location, size, rental rates, occupancy and other details of your competitors. Use this information to adjust the average unit size to account for shortfalls in your market. For example, if theres not a single available 10-by-20 standard or 10-by-15 climate-controlled unit anywhere near your site, put those in your mix. On the other hand, if no one across the market is renting a certain size unit at all, stay away from it.

The Role of Demographics

Further adjustments to the average unit size will come from your demographic report. The most significant component of this report is owner vs. renter housing. People who own their own homes will rent larger units and usually keep them longer. Those renting apartments move around more often and have less stuff; therefore, they will rent a smaller unit for a shorter time. Adjust your mix to include more of the smaller units if your market has a higher percentage of renters than your baseline market. Conversely, if your market has a higher percentage of homeowners, adjust your mix to include more of the larger units.

Age, income and marital status of your tenants will affect your unit mix as well. A single male between 18 and 25 will typically rent a smaller unit, while a married person with three kids will rent a larger one. If your target market has a lot of young, single people, adjust your average unit size accordinglyyou will need more small units. Those in higher income brackets will rent more climate-control units. Again, it is important to remember these demographic factors do not necessarily increase the net demand, but will affect the sizes of units that are requested more frequently.

A final note: Just as there is no magic formula for unit mix, there is no way to design a guaranteed mix. The steps outlined above are derived from years of trial and error as well as consistent information-gathering and analysis. Just as you should involve a civil engineer or experienced self-storage design-builder in the site-planning process, you will do well to hire a consultant or involve an experienced property manager to help design your first unit mix.

A good way of having some insurance for your unit mix is to phase in your facility. Building in phases allows you to adjust your mix based on the demand you experience during operation of the initial phase. Also remember to select a building design that allows flexibility in case you need to move partition walls to adjust unit sizes.

The Whole Enchilada

Until this point, neither your site plan nor your unit mix should be finalized, because as you begin filling each building footprint with the sizes and quantities to match your unit mix, you will find you need to adjust the building shapes to get the best fit. Likewise, you may have to adjust your unit mix to accommodate the buildings on the site plan. Further adjustments to the plan will probably come as you go through the approval process with your local jurisdiction.

As you roll with the punches throughout this process, make sure to monitor how changes affect ratios for coverage and site improvements as well as the averages for unit size and rental income. Because you have designed your facility with the most economical improvement costs and tailored your unit mix, the end result will be an approved site plan with the best potential income stream that will maximize your return on investment. And thats a greatest hit!

Victor Lopez is president of NDS Construction, a design-build company that has specialized in self-storage and metal-building systems for more than 18 years. For more information, call 210.477.1227; e-mail [email protected]; visit www.ndsconstruction.cc.

By Bret Ellis

The most important aspect of self-storage construction is proper planning. Building should be treated like any other business venture and pursued with a complete understanding of the process. You have to plan before you can determine your costs. Identifying the key elements of your project and providing sufficient information to achieve your vision is difficult and should be given its due course.

The construction process for self-storage is similar to any other type of project management. The better prepared and informed the players, the more likely they are to reach a cost-effective outcome that reflects the initial concept. There are three components to development that will yield a successful storage site:

• A clearly defined scope of work
• A clearly defined schedule of values
• A clearly defined line of communication

Scope of Work

Preplanning is not limited to blueprints; however, construction plans are the most effective means of delivering an owners program to the builder, local municipalities and product vendors who will be involved in the project. Poor plans can create a domino effect that leads to delays, extra costs and even a final result that does not meet the owners desires.

A fatal mistake made by many inexperienced developers is to skimp on the architectural package. Neglecting to prepare an adequate design can have tremendous impact on the overall project. In fact, architecture is one of the most common sources of extra costs and claims in the construction industry, neck in neck with civil costs at 30 percent.

A complete architectural design package defines the exact scope of work expected from the builder and the final product you expect. Think of contract documents as an instruction manual for ensuring your vision of the facility is what actually gets built. They are the translation of your ideas into a universally accepted format for construction. The plans and specs are the medium through which your facility will be built and are a crucial part of your business plan. Following are some guidelines to creating a quality set of construction documents:

• Commit the funds. Architectural fees average between 2.75 percent and 6.25 percent of overall construction costs (exclusive of land value).
• Pick the right architect. Has he worked in the industry before? Talk to past clients and references. Was the architect prompt in responding to problems? Did the developer incur extra costs due to shortcomings in the contract documents? Talk to the contractors who built the architects projects and ask about the quality and completeness of the plans and specs.
• Instruct the architect of your intent. Define your program and its requirements by specifying what you want to build. Try to provide a complete description of the physical attributes of the facility. Include services to be provided, any special construction issues, amenities to be offered, aesthetic expectations, and any specific ideas you have with respect to the final product.
• Create an exit plan. If you need to walk away from the project for any reason, you need to be able to do so amicably and without undue costs. To achieve this, always ask your architect to divide his fees into the following categories: code research, schematic drawings, civil package, architectural and engineered drawings, permitting, and site visitation and conflict resolution (usually an hourly rate).
• Participate in the process. Define milestones in the design process and conduct a thorough review. If you need assistance in plan interpretation, bring help along. A qualified general contractor or construction manager can often identify shortcomings in the contract plans and specs that could later turn into change orders and extra costs. It is important to conduct this review often enough so your designer doesnt get off on a tangent, which could produce the need for corrections and the redrawing of plan sheets. A good architect should welcome this review process, as he will want to get it right the first time. Redrawing does not make money for an architectural firm.
• Question everything. Code interpretation is difficult at best. Looking at issues from all angles allows for different interpretations.
• Contract the work. There are several prewritten contract documents supplied by the American Institute of Architects (AIA) that can be used with your architect and contractor to protect all parties. They have been tried and tested in the courts and are an excellent method of defining the scope of work, methods of payment, time frame and general conditions of the project. To get a listing or more information, visit www.aia.org.

Schedule of Values

A schedule of values is the tool used by the design and construction industries to break down the construction estimate into understandable, separate items of work. The numbering system used is called the Construction Standard Index (CSI). It is globally accepted in construction and will be consistent from coast to coast. The CSI-formatted schedule of values allows for a better understanding of the costs to be incurred and a more thorough bid review. Insist that the potential contractors use the format of your choosing (or your architects) to assist you in the selection process.

There are several distinct advantages to requiring the schedule of values from potential contractors. The developer can use it to look for potential cost savings or overruns in the estimate. For instance, if your foundation costs are coming in twice as high as projects previously built, you may need to re-evaluate the design. Short or under-bid items should also raise a red flag, since they can lead to delays or even additional costs. Its important to realize the lowest bid is not always the most cost-effective. Often, a bid that is substantially lower than those of the competition indicate items of work were missed in the estimates.

The schedule of values is highly effective in managing monthly draw requests. If your schedule indicates your contractor is 80 percent complete in item 04-200, Unit Masonry, it is easy to verify by on-site inspection whether this is accurate. Without the breakdown, many items might get overpaid in advance, and your ability to manage the project is decreased. AIA forms G702 and G703 are the preferred documents for draw requests. When used together, they provide for accurate billing and payment procedures using your schedule of values, retainage practices and previous billings to ensure you pay the right amount against the contracted sum.

Line of Communication

Construction management is the marshaling and allocation of resources required to build the intended project as outline in the contract documents. These resources include labor, materials, equipment, architectural and engineering services, time, and money. The process involves organizing a wide variety of skilled workers and specialists; leading them in the implementation of the plan; monitoring progress against baseline objectives; and making adjustments to ensure the original goals are achieved. Its not an easy task. But as in any field, the better informed the team members, the more apt they are to succeed.

Proper methods of communication must be determined and consistently used so all players in the project know what is expected of them, when it is expected, and how they are to accomplish it. Verbal communication doesnt work adequately for construction, especially when it is provided at field level. A tradesperson standing 5 feet deep in concrete will not always remember the owner told him to tell the superintendent to tell the project manager that the paint for the office walls should be tan. Issues important enough to be stated in the field are important enough to write down.

Over the years, a series of communication tools has been adopted by the industry to clarify issues, stipulate intents and outline costs. Your architect and contractor should be familiar with most of them and welcome their implementation. The terms differ as you cross the country, but the intent and content remain the same:

• Requests for Information (RFI)The RFI typically represents communication between the contractor and the architect. Information regarding plan interpretation, differing site conditions, and general construction requests is addressed in this format. As an owner, you should request to be copied on all this correspondence to stay informed and understand the ongoing issues that could affect your project.
• Requests for Pricing (RFP)An RFP is originated by you or your architect when you need to know what an addition to the project will cost prior to beginning the work.
• Cost Proposal (CP)This is the reply to the RFP from your contractor. You can insist these proposals are also broken down into a schedule of values.
• Change OrdersThese are issued after cost proposals are agreed upon and authorized for construction. Change orders become a legal contractual document, and again, the AIA is a good source. It is also important for an owner to realize change orders can actually save money in some instances. Credit or no-cost change orders are common in construction and, in some instances, are necessary to keep a project on budget. Creative construction management or value engineering can help identify these issues.

Along with understanding and using the proper method of communication, it is important to ensure the right people are being properly informed. Before the project begins, always determine who will be the representative and main contact for the contractor, architectural firm and owner. Make sure they are available, prompt, authorized to make necessary decisions, and have adequate knowledge to perform their designated tasks. For instance, the architects draftsman is not qualified to make design decisions that relate to structural issues, code requirements or life-safety issues.

Construction is a complicated process that can often lead to disputes. Following the three rules outlined above does not guarantee your projects will be free of challenges, but it will reduce the number of problems you have and greatly enhance your ability to address and resolve issues when they arise. This simple concept of properly planning your project, organizing your costs, and informing participants is nothing new. Businesspeople use this practice every day to succeed in their ventures. Why should one of your largest investments be treated any differently?

Bret Ellis is president of New Orleans-based Ellis Contruction Inc., a full-service general contractor licensed to work in Alabama, Florida, Georgia, Louisiana, Mississippi and Texas. The company provides feasibility studies, preconstruction work, design/build and general contracting, and construction management. For more information, call 800.924.0036; e-mail [email protected]; visit www.ellisconstruction.com.

By Jim Chiswell

Most of you can probably empathize with my feelings of being ripped off every time you buy ink cartridges for your office printers. I know it is a cost of doing business, but it still upsets me to pay hundreds of dollars a year for some black or colored dust.

If you share my sentiments, I have found a source that may interest you: a company called LaserMonks. Thats rightreal monks selling ink cartridges for printers! The Cistercian Abbey was founded more than 75 years ago on 500 acres in the rolling hills of Wisconsin and is home to a small group of contemplative clergymen. Let me share some of their story from their website:

Each monastery puts one monk in charge of the communitys temporal needs and activities. Among this persons duties as Steward of Temporal Affairs is developing and managing ways to support the group and its charities. Contrary to popular understanding, monasteries are self-supporting. A part of their day is given to some sort of remunerative work from which they support their modest living needs in the monastery; then they use the rest for charitable work. This particular group looked into various income projects, from growing Shitake mushrooms and raising Christmas trees, to building a golf course and conference center.

An income source based on a necessary consumable itemlike toner and ink cartridgeswas exactly what the monastery needed: a solid, consistent, revenue stream that would not be affected by difficult economic times. Everyone has to have toner and ink to print, especially businesses. And everyone wants to save money. Add to this the fact the monks use their profits to support their efforts in serving God and Neighbor as well as for good works and you have the ultimate win-win situation.

The manufacturers the group approached were elated with the possibilities. They suggested the monks market to schools, churches and other nonprofit organizations in addition to businesses, saying, Look, youre monks. You have an image and long tradition of being trustworthy and providing top-quality products. Youre offering a great product at a great price. Once people hear about you, its an easy decision. Why would anyone pay more money, when they can have quality products for less, from monks who use the income to help others?

LaserMonks launched its e-commerce website selling high-quality, guaranteed products. The site went from selling $2,000 worth of goods in its first year of operation to more than $500,000 in 2003. The group completely guarantees all of its products. If for any reason you are not satisfied with your purchase during the first six months, they will replace your item, credit your account or refund your money. LaserMonks does not yet sell cartridges for all printers, but it already has a huge selection. Next time you find yourself ready to buy printer supplies, jump over to www.lasermonks.com and see if they can help. You will be saving money and contributing to a good cause.

SSA Appoints Chief Staff Executive

Congratulations go to Michael T. Scanlon Jr., who was elected as the new chief staff executive for the national Self Storage Association (SSA). In my opinion, Scanlon joins the organization at a critical time in the history of our industry. The skills hes developed in his past positions in association management, lobbying and the private sector can all be applied to his new post, which started July 1.

Scanlon has already initiated a new strategic plan for the SSA, including a partnership with the Self Storage Council of state associations to develop new initiatives in the fields of advocacy, data generation and publishing. The need for a closer working relationship between the national and state associations has never been greater. Our industry continues to be under legislative and regulative microscopes, and it is only through coordinated group efforts we will remain strong.

I am happy to welcome Scanlon to this vital leadership position. The very best thing we can do to help him is make the commitment to get all of our industry colleagues into the associations. I have talked to some people who think membership fees are too high. Yet, if every current member got just one new person to join, we would double the size of our organizations. Remember, if your competitor is not a member, you are, in effect, carrying him. Wouldnt it be better to see his name on the new-member list and know his check is already in the bank?

Coming to a Bookstore Near You

A book titled Self Storage is coming to a bookstore near you. This fictional story has been written by Gayle Brandeis, who won Barbara Kingsolvers prestigious Bellwether Prize in 2002 for The Book of Dead Birds: A Novel. The new publication takes place in Riverside, Calif., and is set in the world of self-storage auctions, according to the books publicity. No exact publication date for the book has been released.

Anyone who believes our industry is still flying under the radar needs to change his thinking. Self-storage has been used as backdrops in several movies and television shows. One of the final episodes of the popular TV series Alias featured several scenes in which one of the principal characters visited anothers selfstorage unit and discovered a small arsenal of weapons. There is consistent newspaper and magazine coverage of our industry, and not all of it is favorable.

While Brandeis upcoming novel may not reach the No. 1 spot on the New York Times Best Seller List, I can only hope there are some positives in the book. We have a great story to tell. As an industry, we help millions of people and small businesses every day, making lives easier and better organized. I hope we can continue to stress these benefits every chance we get.

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the selfstorage industry. In addition to being a member of the Inside Self-Storage Editorial Advisory Board, he contributes regularly to the magazine and is a frequent speaker at ISS Expos and various national and state association meetings. He introduced LockCheck, an inventory data-collection system, to the self-storage industry. He can be reached at 434.589.4446; visit www.selfstorageconsulting.com or www.lockcheck.com.

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.

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By Tron Jordheim

I like to play a game whenever I travel to a seminar or conference. I open the local Yellow Pages and call every storage facility with a display ad, from the biggest to the smallest. When someone answers, I try one of my two acid tests to see what response I get.

The first test is The Information Question, where I ask, How late are you open today? You would not believe how many people only tell me the store hours and let me off the phone without even asking why I need to know. If I were a current tenant, they should want to know if I need assistance when I get to the office. If I were someone on the collections list, they should want to confirm I know the correct amount to pay my bill. And if I were a rental inquiry, they should want to give me more information than the office hours! As a prospect, I want to talk to someone who will actually help me determine my storage needs and sell me a unit.

There are other questions that work well for this experiment, such as: Do you sell boxes? Do you rent trucks? Do I need a lock to store with you? You may think I am joking about this, but so far, about seven out 10 people fail the test. You can increase the number of rentals at your store by simply making sure everyone who calls you either already rents from you or knows why he should.

It Is Useless to Resist Us

The other acid test is The Weak Resistance Test. In this version, when the person answers the phone, I simply inquire about storage. I am not looking for good sales technique, only waiting for the person to provide the price of a unit. When he finally does, I tentatively say, Oh, thats a little more than Im looking to spend. Surprisingly, few people have a suitable response to this statement. They usually give up, saying something along the lines of, OK, thanks for calling. Come and visit us if youd like. Good-bye.

Again, seven out of 10 of my test subjects fail to ask for more information. They dont even know if the price is $1 or $100 more than I can afford. In my experience, a $10 difference in price between two storage facilities is not a deal-breaker if the more expensive property provides real value or is more conveniently located. The trick is the opportunity to build that value.

A simple, effective response to this test would be something like, Oh, I can understand that. What had you hoped to spend on your storage unit? You may be surprised by the answers. Some people used storage years ago and have no idea where prices are today. Some get quoted a price for a smaller unit at another store and do not realize the difference. Or perhaps you quoted a price for a climate-controlled unit, and the store they called five minutes ago quoted them on a standard. You will not know if you do not ask, and you will lose the opportunity to justify your price and potentially make the sale.

Dont Make an Acid Test of Yourself

Dont fool yourself into thinking a caller isnt serious just because he doesnt make a decision right away or immediately visit your store. Not everyone in the market for a storage unit begins the conversation by saying, I need storage or asking, How much is a storage unit? Assume everyone who calls you is a buyer until you have asked a few good questions. The caller could be a mystery-shopper or a Yellow Pages representative confirming information. But odds are 99 percent of your callers are current tenants or prospects.

Finally, dont think your callers are too cheap to rent from you. Very few people actually know what storage costs and any price you quote could cause sticker shock. Keep in mind that even $10 a month is more than it costs a person to store his goods in his own basement, hold a garage sale, or put his stuff in the trash pile. When a prospect questions your price or compares you to a less expensive facility, it presents a great opportunity to sell your site and unleash your knowledge and sales potential.

Remember that people dont store with a storage facility; they store with the people who work there. You can rent to more prospects if you prepare yourself and take a lesson from these acid tests. You never knowthe next time your phone rings, it might be me! Good luck and good selling.

Tron Jordheim is the director of PhoneSmart, which serves the self-storage industry as an off-site sales force that turns missed calls into rentals. This rollover-call service serves as a backup to store managers. Mr. Jordheim has started several successful businesses from scratch, and assisted with acquisitions as general manager of the Mid-Missouri Culligan Bottled Water franchise. For more information call 866.639.1715; e-mail [email protected].

Under normal circumstances, there wouldnt be too much to say in a letter introducing our Annual Construction Issue besides the usual: Buildings are going up. People are renting spaces. Here is information on selecting a site, choosing a contractor, multistory construction, climate control, etc.

But these are hardly normal circumstances, are they? Self-storage among other industries has been tossed by the throes of what many have referred to as the crisis in steel. Over the past year, our industry publications and conferences have been rife with editorials and meetings about how to weather this storm. And builders and owners alike keep looking for that eye in the storm.

In an update released by the United Steelworkers of America (USWA) in March, steel companies lost $11 billion between 2000 and 2003, and continue to report net and operating losses. Fourteen steel companies have filed bankruptcy since 200244 since the beginning of the crisis in 1997. Eighteen U.S. steel-making facilities, or nearly 15 million tons of steel-making capacity, have been shut down or idled in the past four years, causing 55,000 steel workers to lose their jobs since January 2000.

In the self-storage industry, the concern has been over the increasing cost of building materials. According to the USWA, the rise in steel prices has been driven by increases in input costs (scrap metal, natural gas, coke and iron ore), reduced steel inventories, decreased domestic steel capacity and the weakened U.S. dollar. The spot price for hot-rolled steel rose 38 percent from a low of $260 per ton in July 2003 to $360 per net ton in February 2004.

Regardless of the swell in materials cost, as long as investment opportunities are ripe, self-storage construction is not likely to cease. However, the professional environment must change. Communication, not cost, is the cornerstone of new business relationships. Owners must be flexible and prepared for the punches that will come with new building: changes in costs and fluctuating budgets. On the other end, it becomes the responsibility of suppliers to keep customers apprised of any alterations to materials and bids, always providing options when possible, and being compassionate to owners frustration.

In short, focus on building relationships over structures, and trust over profits. The rest will come in time. If you can maintain flexibility and a positive attitude, you stand a greater chance of culminating your business transaction with a handshake rather than a more colorful gesture that says, Build this, buddy!

Best wishes for all your builds,

Teri L. Lanza
Editorial Director
[email protected]

By Brad North

One effective way for self-storage owners to combat competition in their markets and enhance the profitability of their facilities is to create an appropriate atmosphere of order and discipline in their operations. This will not only hold staff accountable for their actions, it can motivate them to achieve their goals and objectives. One of the biggest differences between good storage operators and great ones is their ability to create such an environment.

Most owners need a better system to make their teams responsible for achieving results. For instance, it is imperative to track and measure key areas of a facilitys sales programsuch as how many callers and walk-in prospects are being converted into rentersto improve the business in the long term. Everyone involved in the selling effort should be aware of this conversion rate and what is expected in terms of future outcomes. This will give each person a scoreboard, showing him where he stands on the performance scale. Its important everyone be involved in setting the standard and creating the consistency needed to achieve long-term success.

One Month at a Time

One method of creating accountability is to set goals within key areas of the business. For example, you might set a monthly goal for unit rentals that is realistic but challenging. This will give your team an objective to work toward and help set the expectation in terms of acceptable and exceptional performance. Employees tend to like monthly goals, as they are more immediate and easier to track. If the staff has a challenging month, it can wipe the slate clean for the following month and look forward to refocusing its efforts.

Providing a monthly storage goal also creates a way to measure results and pinpoint areas for improvement within the sales program. Once weaknesses are recognized, additional training can be administered to rectify them. This can take accountability to a higher level and ultimately create an atmosphere of order within the organization.

Under Review

Most storage operators have a subjective review process for evaluating employees performance. This takes away from the semblance of control and often causes employees to be complacent in their jobs. For example, if a facility manager does not clearly understand his job description and what is expected, he will probably not perform as well as he would if he had control over his own destiny and the outcome of his performance review.

If appraisals are handled objectively, owners can develop much needed consistency in their operations and increase employee responsibility. For instance, consider a monthly audit/review that becomes a part of the annual performance evaluation. Areas to measure might be monthly storage goals, telephone mystery-shopping scores, sales-conversion ratios, customer referrals and key-influencer referrals. Also examine administrative functions and other key areas of the business. It is important to measure items the employee can impact through his own efforts. This will give him a sense of control over his outcomes.

Success as a Journey

As self-storage markets across the county experience saturation, the average operator must find new methods of improving efficiencies and creating employee accountability. Economic occupancies have decreased, largely due to operators reactionary tendency to give away the store when competition moves into their markets.

The philosophy behind a self-storage operation and the mindset of its owner determine its outcome. In other words, if the attitude of the team is to be proactive and find ways to improve, it will weather any storm. If handled properly, adversity can take operational performance to an entirely new level. The question is not whether competition will continue to increase, but how to deflect its detrimental effects.

Success is a long-term journey. Its running your business consistently and well. Unfortunately, many operators feel they have already arrived at their highest level of success. They become complacent and stagnant, and the competition passes them by. Always remember that success is not a finite destination but a continual effort.

Brad North is the founder of Advantage Business Consulting, which specializes in on-site sales, marketing, feasibility and operational training for the selfstorage industry. He has produced two live videos and a workbook titled Maximizing Your Sales and Marketing Program, which can help managers improve their sales and marketing efforts. He also launched A TelePro, a mystery- shopping service that assists in educating, evaluating and improving the phone-sales performance of self-storage professionals. For more information, call 513.229.0400 or visit www.advantagebusinessconsulting.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.