Much of the increase in land costs is attributable to a robust real estate marketa sellers market in many locationsand the fact that storage developers are competing with major retailers for sites. Rolled up with the purchase price of land are hard and soft development costs. Hard costs include things like land fill, demolition, grading, traffic access and utilities. Soft costs include environmental testing and monitoring, legal fees for zoning and permitting, engineering and others. These are just a few of the indirect expenses affecting projects.

Financing fees are also increasing. As the Feds have continued to raise short-term interest rates, it has become more expensive for developers to pay back construction loans, says Eric Snyder of Buchanan Storage Capital. In many cases, the interest rate on a long-term, fixed-rate loan is lower than that on a short-term construction loan.

Finally, direct construction costs can diminish returns. Many municipalities now demand more aesthetic facilities with stone, brick, block or siding. These gingerbread additions increase spending. Building requirements for fire, wind, flood, mold and seismic activity also heighten expenses. Understanding the difference between firewalls and sprinklers, for example, and getting good advice from an architect, can aid in strategic decision-making at the early stages of development.

Achieving Stabilization

We hear from many lenders and owners that the self-storage market is generally overbuilt. This is confirmed by the facilities on which we are funding permanent loansthe properties have topped out in the 70 percent occupancy range, admits Snyder. However, we are still funding loans for owners who have capitalized on a unique location and leased up in less than 12 months. In other words, these opportunities are much more difficult to find, but they exist.

While stabilization can be a challenge in some markets, a healthy project, created with the assistance of qualified self-storage consultants and professionals, can achieve absorption. There are several key factors to measuring stabilized occupancy. All these considerations are relative to the strength of the market:

1. How long it takes to reach the target level.

2. How long the target level can be maintained.

3. How much discounting occurs and whether it impacts economic vs. physical occupancy.

4. How much equity is required to fund the construction loan, and the anticipated return on investment.

Thanks to assertive lenders, stabilization is less critical to financing than in the past. Permanent lenders have become much more aggressive in their takeout of construction loans, so a developer only needs to achieve stabilization for three months prior to loan funding, says Snyder. In the past, lenders required 12 months of stabilization prior to funding a permanent takeout loan.

Is It Boom or Bust?

The bottom line is location. A poor location will likely destroy the possibility of rich rewards. Its critical for developers to understand site selection, particularly as it pertains to self-storage. Traditionally successful locations carry new risks in the face of increasing competition, which can result in an overbuilt market.

Most boom busters correspond with institutional-grade sites, which are readily sold to aggressive self-storage buyers. They leave tremendous opportunity for entrepreneurs to find niche markets, developing vertically rather than horizontally, as many institutions are likely to do. Sometimes a sites value has to be created. Developers shouldnt let this opportunity hinder their pursuit, though they should ensure the site is saleable.

The key to development in todays environment is homework, homework and more homework, advises Jim Chiswell of Chiswell & Associates LLC, a self-storage consultant. Site selection cannot be left to chance, or abandoned because you already own the land. Also, it isnt enough to have deep pockets. The basic formula for new-project success is still in place. Opportunities in our industry still exist, but using caution and getting advice upfront from self-storage professionals has never been more important.

The Path Less Travelled

Seeking out conventional markets in which the basic tenants of site selection easily apply is a sound approach. However, if you are flexible, there are less-traveled paths with higher risks but promise for rich rewards. Some of these opportunities include:

• Big-box conversions
• RV and boat storage
• Rural markets
• Lights out stores
• Horizontal-market conversions
• 100-percent climate control
• Mobile-mini hybrids

A reputable consultant should be able to guide you through the labyrinth of risk analysis, alerting you to higher hazards.

Is it too late to set sail with self-storage? Not for hard-working , innovative, research-driven entrepreneurs who are willing to test the principles of supply and demand. Do your homework. Do more homework. Be well-capitalized. Dont rush into transactions. Create value. Build wealth.

RK Kliebenstein is the president and CEO of Coast-to-Coast Storage, a self-storage consultancy firm. From feasibility studies to financing, Mr. Kliebenstein has a wide range of experience and expertise in development and acquisitions. He can be reached at 877.622.5508, ext. 81.

Constructing a self-storage facility is a huge investment, and a customer base is no longer guaranteed. Before you make a million-dollar mistake, consider some of the following issues. The better you build your site, the better you can market it in the future.

Before you even think about construction, youll need to invest in a feasibility study. Some developers ignore this step, which is a bad move. Ive seen people fall in love with a piece of property and build on it, only to discover it wasnt a viable location. Ive seen others conduct their own feasibility studies and regret it. Even if you have a real estate background or youre a veteran storage owner, its always wise to get an unbiased opinion from a qualified expert. No matter who you use, make sure he can provide hard numbers as well as understand the marketing perspective of the property.

Site Selection

When choosing a piece of land, youll often find you can steal a piece in an undeveloped area or spend a bundle on the premier lot in town. Your best option is usually somewhere in between. Unless you have unlimited funds and can afford to wait several years to break even, avoid the high-priced land in the best location. Instead, take a forward-looking approach and try to anticipate which areas may be blossoming.

When you have a choice to buy more or less land, always buy extra. As long as you can afford it, youll never regret having bought a larger parcel. Inevitably, youll want more space, whether to build another building, add boat and RV storage, or sell off a piece for a profit.

Survey the Competition

Before you build, research your competition. This survey can be completed in a few weeks and should be done concurrently with the feasibility analysis. There are several ways to accomplish the task, but a simple method involves drawing a 5-mile radius around your facility on a map (if youre in a rural area, use a 10-mile radius). Then visit every facility within the area youve identified, pretending to be a potential customer.

Bring a notebook and write down all the things you like and dislike about each site, looking at amenities, physical attributes, staff, etc. Try to determine the level of occupancy at each facility. Most operators wont willingly share this information, but its helpful if they do.

Unit Mix

Unit mix is often a tough issue for new self-storage builders. There are two key things to consider when deciding the number and size of your units. First, which of your competitors unit sizes are almost fully occupied? These are the sizes you definitely want to offer. Keep in mind, however, that every site is different. What works at one may not work at another. Attempt to build with flexibility so you can make adjustments to your unit mix if necessary. This brings us to the next point: If possible, build in stages. This will allow you to gauge demand for specific sizes in your area and add units accordingly.

Amenities

Building amenities into your site will increase your overall construction budget and, ultimately, the facilitys profitability. Consider moneymakers such as individual door alarms or climate control. Ancillary profit centers are always worthwhile. The trick is finding the ones most attractive to your target market. Choose amenities that will lend your site a unique selling point and help you battle your competition.

The Right Manager

A facility manager can make a break or business, so dont treat hiring as an afterthought. Have the right manager in place and trained before you open. You can hire someone with self-storage experience or find someone outside the industry. In some cases, experience can be a con if the manager has bad habits or doesnt possess a marketing mentality. It may be better to employ a novice and train him to your expectations. More important than storage experience is sales experience.

A Marketing Plan

Finally, you need a marketing plan. When it comes to promoting a facility, victory is the result of many small efforts, not just one big push. Some owners think a Yellow Pages ad is all they need. This simply isnt the case. Just as site construction involves a lot more than throwing up a building, a marketing plan includes lots of interconnecting elements. Pay attention to marketing details from the planning stages of your site, and youll greatly improve your chances for success.

Fred Gleeck is an expert in the field of information and seminar marketing. Hes also the author of more than 10 books and an accomplished coach and consultant. To receive his insights regularly via e-mail, send a blank message to [email protected]. For more information, visit www.fredgleeck.com.

Perhaps one of the greatest analogies for the real estate business is the game of Monopoly. During play, there are opportunities for easy money when you pass Goif you dont draw the wrong cards. But getting to Go isnt the objective of the game. Neither is it the goal of developing a self-storage property. Its only critical in the initial stages, when a go or no go decision must be made.

While there are numerous factors that can make or break a self-storage deal, you can never fully evaluate a property until you have a site plan and unit mix. Once you plug construction costs and rental income into your pro forma, you find you have reached a crossroads. Do you continue with development? The journey to a decision can be riddled with obstacles. Many dont interfere with basic planning, but they can create distractions that waste time and money.

Obstacles Along the Way

These days, the fundamentals of site planning are more complex, as development itself has become fancier. For example, the next time you see a couple of construction workers kicking the dirt, you can assume theyre setting up a nuclear densitometer to test the compaction and moisture content of the soil. Take a closer look at those big yellow dirt-moving machinesmost have laser controls as well as GPS systems. Detention ponds are no longer just holes in the ground. New water-quality systems are designed to filter storm-water runoff, detain the initial volume of water, and then discharge it slowly, preventing downstream flooding.

Unfortunately, you cant always rely on past information or even that obtained during preliminary due diligence. Jurisdictional data, too, can be inaccurate. Some states have moved to adopt an international building code, offering hope the development process will become similar in various regions. But alas, many jurisdictions have affixed their own amendments, creating as many divisions as before. Code analysis is, therefore, critical.

The increased requirements of planning and zoning departments, particularly in hot markets, have made the approval process longer and more difficult. An increasing number of authorities are calling for architectural elevations, color renderings and, in extreme cases, actual product and color samples to be submitted with the site-plan application. Some presiding agencies even seek to control growth by delaying new development in 30-day increments, denying site plans or permit applications.

Now that youre aware of some of the potholes on the road to Go, you can settle into planning the layout of your site and designing the unit mix.

Site Planning

Site planning requires a great deal of research concerning zoning restrictions, setbacks and other jurisdictional provisions. Its imperative to have an experienced design-builder or civil engineer with self-storage experience provide guidance regarding the controlling authorities. A regional engineer with knowledge of current zoning restrictions will save weeks and months in your journey.

While hacking out your site 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 their costs. Land cost and coverage go hand in hand. What you pay for the dirt and how much gross square footage you squeeze out of it will affect the financial performance of the facility.

The first items that minimize your coverage are the sites requisite setbacks and buffers. You can confirm these by examining the plat and verifying regulations with the city. But it doesnt stop there. The fire marshal and arborist will also steal valuable space. Check local statutes and with the fire department for fire-lane widths and turn-radius directives. Also verify the compulsory landscape areas and buffers. Sometimes these are disguised by referring to them as pervious cover areas or green space.

Once youve established your sites physical parameters, consider the improvements necessary to fully extend your coverage. By now, you should have determined what utilities are present or how far you have to go to get them. Dont cheat yourself by not using available utility locations to your advantage.

Again, youll need to satisfy the fire marshal by installing the designated number of fire hydrants and lines. Make sure you know the exact requirements: the size of lines, if check valves are needed, and if the fire lines must be looped or can be dead-end. Looping a fire line can double your costs!

Other site improvements include excavation and grading. Will the site require you to move a lot of dirt, or can you design buildings to follow the natural grade? Consider using split-level buildings to take advantage of steep grades. Retaining walls can help capture more space on a steep site, but use them as a last result, as they can be expensive.

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

Now that youve established how much of the site you can use while keeping the fire marshal and 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. Buildings of different widths will yield various combinations of unit sizes, so dont make all your buildings the same. Likewise, dont line your property with single-loading buildings of the same width. The objective is to maximize the financial performance of your facility by achieving the right unit mix.

Unit-Mix Formulation

How do you determine the right unit mix? Some owners have tried the recommended mix of their metal-building supplier, only to find it was suggested because it was the easiest way to erect the building. Others have applied a particular formula because its what other stores used. The best approach is to conduct a detailed analysis of the market, identifying its trends and shortfalls, and carefully examine the existing competition.

The feasibility study conducted during your development process should tell you what you need to know about your competitors and the people living in your market. When it comes to the competition, you need to know the number of facilities as well as their size (including number and type of units), percentage of climate-control vs. regular storage, occupancy level, prices, overall appearance/condition, and staff. Demographic data should include population make-up, income level, renter-occupied housing, level of commercial activity, traffic count, major employers and traffic generators.

This information must be analyzed and compared to historical data from the same or similar markets. Since the source of information is essential, contact a good property-management company that has taken the steps to track its stores and customers. Information regarding storage usewhere people rented storage, the type they chose and whycan be used to establish a baseline unit mix you can later tailor to your market.

For example, if your market has a higher percentage of renter-occupied housing, decrease your average unit size, as renters typically lease smaller units. If there is a larger commercial presence in your area, increase the average unit size. After comparing each category in your baseline mix and making the necessary adjustments, youll have a unit mix specific to your site.

Put It All Together

Now that you have the right unit mix, you can fine-tune the site plan. As you manipulate the layout and building sizes, remember that a good storage project facilitates use. Keep customers in mind:

• Put your largest units on fire lanes (the widest travel paths) in drive-up facilities and near entry doors and elevators in multistory projects.
• Use building setbacks to increase vehicle-stacking room in front of the entry gate.
• Place required parking stalls so customers can easily access the office.
• Put trash receptacles in sight of the office or a video camera.
• Use bollards at the corners of buildings to help customers maneuver their vehicles through the site.
• Dont forget safety and convenience items such as water fountains, vending machines, intercoms and signage.

Proper site planning and unit mix will create an economical facility that can compete in todays competitive environment. What it means for you is the best possible return on investment. By gathering the right information and sticking to the basics, youll find yourself getting to Go and beyond.

Victor Lopez is the president of NDS Construction, a full-service design and construction company. NDS has completed more than 200 projects totaling more than 8 million square feet of storage and has won numerous awards for design as well as Facility of the Year. For more information, call 888.980.8250; visit www.ndsinc.com.

Our annual Construction & Development Edition, published each September, divides readers into several camps. On one end of the spectrum are those eager to consume the information contained within: new owners, developers and investors, as well as established operators interested in expansion and emerging building trends. At the other end are those who would gladly gather every copy and burn them all in a big, beautiful bonfire at their next BBQ.

Why? Because they feel the industry is already too populated. They would rather we not encourage new entrants to self-storage, let alone tell them how the whole process works. Why not just pull the money directly out of our pockets! they cry. Its as good as giving away our business!

As a journalist, Im not one who believes general information is proprietary. If readers dont turn to us, they will look elsewhere for the knowledge they seek. And anyway, theres no stopping the influx. The word is out on self-storage and has been for quite a while. So let them come. But let them not muck the waters with bad projects and publicity! Lets teach them to do things right.

Where do we send industry novices? Where does anyone go when they want to learn something? School, of course. Enter the Developers Seminar. While the Self Storage Association has ceased to offer its periodic tutorials on the subject, other industry experts have stepped forward to fill the need.

This month, for example, RK Kliebenstein of Coast-To-Coast Storage and John Wilson of Construction Processes International, both well-known self-storage players, are hosting a seminar for new owners at Caesars Palace hotel in Las Vegas, Sept. 7. Taught by seven of the industrys most recognized vendors, the full-day event is tailored to those interested in developing a new project or learning more about the industry, or small operators who want to grow their business.

The seminar will touch on all the most critical aspects of developing and building self-storage:

• What to expect from an investment
• Market and site selection
• Feasibility and due diligence
• Financing
• Construction costs and essentials
• Site management
• Choosing the right support team

Attendees are promised top-notch information as well as the opportunity to build a strong network of industry professionals and suppliers. For more information, refer to pages 40-41 or visit www.developingself-storage.com.

Theres no magic formula for self-storage success. The processes involved in site selection, market research, zoning, facility design and construction are not secret. All it takes is common sense, research, proper planning, the right professional support, money, and perhaps a little bit of luck. Arm yourself with accurate knowledgeregardless of the sourceand you can do more than construct a facility; you can help build a better future for the industry Heres to better building,

 
Teri L. Lanza
Editorial Director
[email protected]

Charles Chico LeClaire should invent an industry version of Monopoly for self-storage brokers. Over the years, hes sold the storage equivalent of every property on the boardthe Baltic Avenues, Park Places, Marvin Gardens and Boardwalks. His Community Chest runneth over with closed deals and golden profits. In 2004, Marcus & Millichap Real Estate Investment Brokerage Co. named LeClaire its top self-storage sales agent.

A senior investment associate specializing in self-storage and a senior director of the companys National Self-Storage Group, LeClaire joined Marcus & Millichap in 1990. Last year, he recorded the highest sales figure in the groups history, closing 36 transactions worth more than $254 million in 12 states. He also ranked as the No. 6 agent in the firm nationwide.

LeClaires clients include private investors as well as some of the industrys largest public companies. Ive handled accounts ranging from the GE Capital Storage/USA properties to $2 million mom-and-pop individual sales, LeClaire acknowledges. Last year was the best of my career. He is quick to point out, however, that changes to the brokerage community itself played a role in his success.

For many years, the largest players traded portfolios among themselves, and the entrepreneur who had multiple properties for sale would go to those same known players, LeClaire explains. Just 10 years ago, there werent any brokers who worked on a national basis. Now the industry has brokers who can effectively get a portfolio out to hundreds of potential buyers, which increases the competition for property and gives sellers more money than they were able to receive in the past.

LeClaire credits e-mail, faxes and other tools of the Information Age for helping brokers reach a wider audience. If I take a listing, I can now contact the 250 best buyers in a matter of seconds, he says. When I first started, we had our own internal marketing on a nationwide basis, but the listings I took were mostly local properties exposed to local buyers. Just recently, I offered a seven-property portfolio and got about a hundred indications of interest. In the old days, three or four people would have responded and a couple would make offers.

Strong Connections

An avid tradeshow attendee and participant for the past 15 years, LeClaire has developed numerous contacts and relationships that allow him to expand his Denver-based business. But his connections have also had a charitable effect on the home front. LeClaire is a member of Brokers Benefiting Kids (BBK), a group of local commercial brokers who raise money for Colorado childrens charities. Over the past eight years, he has brought in hundreds of thousands of dollars for the organization, mostly by soliciting donations from clients. Five years ago, LeClaires 18-year-old son, Nicholas, passed away, and a memorial fund was established in his name; all monies are donated to BBK.

The organization holds a benefit at the end of the year, which is nothing more than an outdoor cookout, some games, and a silent auction for things the brokers or our clients or customers have donated, LeClaire says. Im probably the largest individual fundraiser.

Predictions

Low interest rates have bolstered the popularity of self-storage as an investment, as has the increased recognition of the sector as an acceptable institutional product. LeClaire predicts greater consolidation of the industry, though he believes the disparity between the Treasury 10-year and prime rate will correct itself before June 2006, evening the playing field for local players.

The big question is: Will LeClaire beat himself at his own game, topping 2004s winning figures this year? Im a salesman. Im always optimistic, he says. This is probably one of the best times there have ever been to sell, because buyers are willing to pay at cap rates lower than theyve ever been. On the same hand, its one of the best times to buy, because the cost of funds is at a historic low. Its a good time to be a broker. With a laugh, he adds, Heres my phone number. Call me now!

For more information, call 303.320.1300; e-mail [email protected]; visit www.marcusmillichap.com;

Longevity

A standing-seam roof provides long-term performance. Its snap-together and field-seamed versions are engineered for strength, durability and weather-ability. The accompanying photos show 3-inch trapezoidal systems that have weathered unfriendly environments for more than 25 years. With virtually no wear, their maintenance costs are nominal.

Standing-seam roofs are typically made of 24- or 26-gauge steel manufactured from high-strength Galvalume, a special type of hot-dip galvanized steel sheet with a coating of 55 percent aluminum, 43.4 percent zinc and 1.6 percent silicon. These roofs are produced to ASTM A792/A792MAZ50 or AZ55, and their seams feature factory-applied mastic to ensure a water-tight seal.

Design Flexibility

A majority of self-storage buildings are made with steel columns and roof purlins on very low slopes. When using a concealed-fastener roof system, the panels snap or are seamed together over a sliding clip fastened to the purlins below. To provide maximum efficiency, the floating clip can only be installed when the tab is centered in the clip base.

The advantage to roof panels that interlock over floating clips is they have the ability to expand and contract as the temperature changes, instead of pushing and pulling at the fasteners as in a screw-down roof system. Because the standing-seam roof floats, it has a longer lifespan. In addition, with no exposed fasteners inside the building envelope, theres no way for water to penetrate.

On structures other than standard storage buildings, such as a managers residence, office or canopies, a steeper slope is often used to provide a more appealing look. This opens the door to several roof-panel options. On a steeper slope, a vertical seam panel is the ideal choice. It offers simple installation, and the trim work is efficient, maintaining the integrity of the overall system.

Aesthetics

As the self-storage industry has matured, the architectural designs required by planning boards and development covenants have become more sophisticated. First-generation styles are giving way to multistory buildings and structures with features such as glass corners and brick or stucco exteriors. The accompanying photo shows what can be done with a standing-seam roof system. With coordination between client, architect and manufacturer, almost any design can be accomplished.

Low Maintenance

When it comes to roofing, almost any properly installed system will work well for the first year, but what happens as the facility ages? Unlike flat built-up roofs that require frequent maintenance, a standing-seam roof will offer 20 years and more of trouble-free performance with little or no time or expense. Theres no need to constantly replace fasteners or caulk penetrations. The only necessary maintenance is to keep the roof clear of debris.

In addition to saving money on maintenance fees, a standing-seam roof minimizes energy costs. Because its installed over an adjustable clip, it doesnt crush the insulation, helping preserve the insulations R value and keeping HVAC costs to a minimum.

Code Approvals

The permitting process can never be taken for granted. The last thing you want to hear before your permit gets signed is your building doesnt meet all the codes and specifications for your area. Standing-seam roofs have been designed for high-profile projects in any location. For example, the 3-inch trapezoidal panel has been approved by Under-writers Laboratories, Dade County, Fla., Factory Mutual, Corp of Engineers, ICBO (International Conference of Building Officials) and ASTM (American Society for Testing and Materials).

Warranties

A 20-year materials warranty is customary for a standing-seam roof system, considerably longer than the standard protection for builtup and single-ply roofs. Long-term warranties are even offered for weather-tightness on standing-seam roofs, including those with a 1/4:12 slope. Most reputable manufacturers wont offer such a warranty for a screw-down system, as it will almost always leak, no matter how well it is installed.

Certified Installers

When choosing a roof installer, you can use one certified for your specific product. Although the systems appear to be similar from vendor to vendor, each has a particular design. A certified installer will have attended the manufacturers school and installed a certain number of square feet of the product. In addition to certification, ask for documentation of the installers license and insurance.

The self-storage market demands an attractive, trouble-free, durable roof product. Available in many styles and colors, a standing-seam roofing system meets that need and is here to stay. When designing your facility, consider the investment being made and use the best materials on the market.

Stephen Wilson is the Southeast regional sales manager for Miller Building Systems Inc., which designs, supplies and installs a full line of pre-engineered metal buildings, including single- and multistory, climate-controlled self-storage, modular buildings and rigid-frame structures. Wilson has 25 years of experience in the manufacturing and sales of pre-engineered steel buildings. For more information, call 888.323.6464; e-mail [email protected]; visit www.millerbldgs.com.

A rabbi was once asked to answer the ancient Zen question: What is the sound of one hand clapping? He responded, Had you done a good job clapping with both hands, this wouldnt be a question. As in any business, there are sages and fools in our industry. Between tradeshows, seminars, magazine articles, associations, etc., theres a lot of information out theresome good, some bad. Sometimes theres more than you need or want to know. So how do you find the right place to start?

Before Thought

Every week, self-storage builders get calls from excited novices who say, Im ready to go! Lets get started! When asked for details about land, financing, concurrency, building size, etc., their response is, I dont know. But hurry up and get started! Heres where we can apply the Zen concept of before thought, otherwise known as What in the world wasnt I thinking?

A metal-building manufacturer may not be the best initial point of contact. While he usually wont mind visiting with you about storage and construction, a responsible vendor will refer you to an industry consultant for a feasibility study and pro forma. If land and financing are already in place, a good design-build general contractor with storage experience is the best starting point.

The next round of excited phone calls builders receive is from people who say, Such a deal I got on this piece of property! Its perfect for storage. But they still need to answer some pertinent questions. Is the land properly zoned? Are there good access, egress, visibility and traffic count? What is the buildable area, taking into consideration setbacks, easements, wetlands, retention, etc.?

These are questions to be answered before you commit to buying a property. If you have a good premonition about a particular piece of land and the price is right, by all means, tie it up. However, always stipulate that a final agreement is contingent upon necessary details. Leave yourself a way out. This is where an experienced consultant can help provide answers before you buy.

Zen Masters (Catching Two Fish)

A good pro forma will tell you how many square feet of storage space you should build; and a thorough market study will reveal the type and size units that will provide the best return in your area. Now youre ready for a site layout. Should you get in touch with the building manufacturer now? Not yet, Grasshopper.

Building a self-storage facility is a fulltime job. Before you begin, consider how much you will be involved and whether to hire professional support. Local subcontractors and suppliers can provide input on building design, but at some point you need a guru to pull it all together. An experienced design team will add cost to your project, but it will also add value. Experts can help you avoid unforeseen pitfalls and reveal timesaving shortcuts that reduce spending.

Some new builders boast about how they cut costs by not using an architectat least at the beginning of the project. By the end of the endeavor, theyre complaining about how much all the problems cost them. Its one of those tough Zen lessons: Sometimes we spend money while trying to save money.

Theres also an old Chinese proverb that says, The man who tries to catch two fish at the same time usually catches neither. When determining how much you will be involved with building construction, consider the time that will be taken away from your other businesses and ventures. Remember the last time you bought a piece of unassembled furniture to economize? Several hours into assembly, you wished you had help, or at least better instructions. Now imagine that on a much grander scale.

The Path

Actually building a project is the easy part. Getting to the point of readiness can be difficult. Even once you have your demographics, feasibility study, pro forma, financing, plans and specifications, youre still not ready to build if you dont have the right permits.

In some areas, the permitting process is very simple and takes only days or weeks. In others, it can be an arduous process, taking months or even more than a year. A design-build general contractor and local design professionals can help expedite the course, but you need to know how long its going to take and allow for that time in your schedule and financing.

One Master

Youre finally ready to build. At this point, a good general contractor will hold a preconstruction meeting with all of the subcontractors. During this gathering , a scheduleand more important, a hierarchywill be established. Youll make clear who is in charge and determine the role you will play. Youll also create a plan for coordinating all the work.

Its natural for subcontractors to feel their particular part of the project is more important than the others. Usually, one or two will try to take charge. If one master is not established beforehand, overzealous players can end up costing you money.

True Enlightenment

As with many life questions, we already know the answers. The key is having the discipline and focus to use this knowledge. Zen masters practice mindful walking , mindful sitting, and mindful eating . What this means is they are totally focused on the task at hand, dedicated to its successful completion. Be patient. Carefully plan and coordinate as much as possible before you build. I wish you great success at mindful building.

L. Bruce Mc Cardle is the eastern division manager for Mako Steel Inc., a supplier and installer of storage buildings from coast to coast. More than 80 percent of the companys business comes from repeat customers or their referrals. Mr. McCardle enjoys working with first-time facility builders from design through grand opening. He has been involved in almost every aspect of the metal-building and construction industry for more than 20 years. Look for his presentation at the upcoming ISS expo in Miami. For more information, call 888.795.7594; e-mail [email protected] ; visit www.makosteel.com . 

Metal has also changed the face of self-storage, whose early construction began with block walls, block or sheetrock partitions, built-up roof systems, and small swing doors. Now, metal roofing and cladding are the most widely used components in the industry. Steel provides more than a quick, economical method of construction; it requires less maintenance than other materials. It also offers flexibility when it comes to framing, exteriors and roofing.

Framing

Self-storage facilities can be constructed of factory-primed red iron or galvanized steel members in a variety of designs. Metal members come in several shapes and sizes, which result in as many framing methods. Some of the most popular systems include load-bearing, post-and-purlin, beam-and-purlin, clearspan, rigid-frame or a combination thereof.

All these options vary in quality, so choose your supplier carefully. Metal comes in different gauges (thicknesses) and tolerances. Most suppliers use steel with a minimum 55 ksi yield strength to meet engineering requirements. The higher the yield, the stronger the steel; therefore, yield strength correlates with cost.

One way to ensure youre getting the proper steel is to request its mill reports. A qualified architect or engineer can also help determine the quality and applicability of materials. Every municipality has its own building codes and requirements, so make sure your supplier can meet those standards.

Exteriors

Most steel frames work well with popular exterior finishes such as block, EIFS (synthetic stucco), stucco, brick, concrete tilt wall and cladding. Wall applications come in a variety of profiles based on preference or architectural requirements. They can be multi-rib with various spacing, smooth finished, embossed, textured, corrugated, colored and insulated.

Metal wall panels come in an assortment of finishes and colors that can give a building a unique look. Pre-painted systems use Kynar or siliconized polyester over a galvanized or Galvalume substructure. Some wall panels can even be used for structural support to achieve required engineering values.

Cladding is the most economical product for exterior wall finishes. Its a low-maintenance product that lasts much longer than many other materials and can be used in conjunction with other products to achieve architectural appeal.

An aerial shot of Castle Hill's metal roof and building.

Roofing

A metal roof is one of a self-storage owners best investments. It can come in an array of styles ranging from the less-expensive screw-down roof to a high-end standing-seam roof. Metal roofs can be galvanized or pre-finished with color or Galvalume. Because of its level of performance, Galvalume is the most common finish. It offers durability and has been proven to outlast G-90 galvanized steel up to four times. It also provides excellent reflectivity. When properly combined with insulation, it can result in a cost-effective, energy-efficient roofing system.

Your Supplier

Its important to know your metal supplier stands behind its products. Ask for a sample warranty and read it carefully, as warranties vary from one vendor to another. In addition, there are separate warranties for Galvalume and pre-painted products.

Its also wise to check your suppliers references. Know how the company performs in the supply and erection of its buildings, as well as how it addresses problems and warranty issues.

Just Metal?

Is metal just metal? Not anymore. For self-storage, its the quickest, most economical method of construction. In todays market, building with steel provides more flexibility than ever, with multiple options for framing, aesthetics and roofing. Developers and contractors are getting the best value for their projects by using metal components.

Justin Farris is the sales director for Capco Steel Inc., which specializes in the design, engineering, supply and erection of metal-building systems for the self-storage industry. Based in San Antonio, the company is licensed from coast to coast and has built more than 22 million square feet of self-storage in 42 states. Capco supplies and erects metal framing, roofs, partitions, wall cladding and canopies for projects ranging from simple conversions and single-story buildings to complex five-story structures. For more information, e-mail [email protected]; visit www.capcosteel.com.

Safeguard Juniata in Philadelphia

She companys mission is clear: To be a quality supplier and installer of building products to the self-storage, industrial and commercial markets, says Chris Woodward, president and owner of SS-20 Building Systems Inc. The Bradenton, Fla.- based supplier believes business is earned by delivering outstanding quality and service on each and every job.

Woodward, who has 27 years of experience with metal buildings, has developed a pre-engineered, structural-steel building system for several industries, including self-storage. We realized early on there had to be a better and faster way to build a multistory building for the self-storage market, he says. Since its founding in 1995, the company has completed projects totaling millions of square feet throughout the United States.

Building With Beams n Tubes

SS-20s patented freestanding system is based on a 10-by-10-foot grid system of stackable tube columns. The revolutionary building design improves quality and shortens erection time, as once the first-floor design is complete, no additional layout is requiredit is repeated for each subsequent floor. Heres how it works:

In most cases, poured-in-place anchor bolts are not necessary, so the project begins with a clean slab. First-floor slabs are laid out and chalked for column locations, then drilled for wedge anchors. Columns are set on the slabs and the wedge anchors installed. The crew then sets the second-floor mezzanine beams as well as any necessary cross-bracing. Next, the exterior pour angle is installed, and the floor decking is laid. The columns extend through the deck to the finish elevation of the second floor, making it an easy pour for the masonry contractor. Once the second floor is poured, the crew installs the second-floor columns, which are simply dropped into the lower columns to a predetermined depth. Following completion of the final floor, the system accepts standard roof deck or purlins and a standing-seam roof system.

Since divider partitions are not required with the SS-20 system, floors are wide open for other trades to work, which speeds construction. Earlier completion means reduced financing charges and an earlier revenue stream, adding value to the project.

Steeling Against Tough Times

When choosing a building system for a client, SS-20 concentrates on the overall cost of construction, not just the cost of steel. However, the 2004 surge in steel prices impacted all U.S. metal builders. Last year was the toughest we have ever had to endure, says Woodward. Fortunately, because of the companys relationship with its suppliers, it was able to manage the increase in price and decrease in availability. SS-20 purchased steel in advance to ensure orders were covered and customers would not be inconvenienced.

Our customers would tell you SS-20 treated them very fairly during an extremely difficult time, Woodward says. Every single project we had on the books before the increase hit was honored and completed.

Service Is the Key

Safeguard Germantown in Philadelphia

Constructing the building is the easy part, Woodward says. The self-storage industry is growing at a rapid pace, and the biggest challenge is acquiring land for growth. He adds that there are even areas trying to minimize self-storage expansion by making the permitting process longer and more expensive. In the end, the companies that will land the jobs are those that offer outstanding product and service.

Regardless of the positions for which they are hired, all new SS-20 employees begin in the field with project training, learning how important it is for a product to be delivered correctly and on time. One of the primary things they are taught is how to handle problems. None of us is naive enough to think there are not going to sometimes be problems. Whats important is how we address them, Woodward says. If a problem is dealt with properly and in a timely fashion, the customer will not remember the issue but how quickly it was resolved.

SS-20 customers build one to 12 projects a year. The company plans to grow at a reasonable rate so it can continue to deliver quality product with good service, Woodward says. We are not interested in being the biggest; we are interested in being the best. Moderate growth allows you to take care of your customers and is rewarding to both parties.

For more information, call 941.746.8170; visit www.ss20bldg.com.

"The Payment Advisor" is a monthly Q&A column to which readers can submit questions about card transaction systems, electronic funds transfer, check acceptance and processing, wireless transactions, international funds transfer, and other payment issues. To participate, e-mail questions to [email protected]. Also watch for quarterly articles on related topics.

When should I start thinking about payment acceptance for a new facility?

The sooner the better. As soon as you have decided to build a new facility, consider how you will handle payments. One of the major issues to contemplate is how your management system will integrate with the available payment options. Does your software have an integrated payment module? Does the system handle checks and credit cards? Does it handle debit as well as traditional credit cards? Does it offer a choice of payment-service providers?

How does facility location relate to the types of payments I should expect?

Based on population, some areas have a greater likelihood of cash transactions. These days, areas with a higher probability for cash dealings are migrating to the use of debit cards. Since debit cards link to an actual banking account, they are easier to secure than credit cards, which represent an open line of credit.

How do the regulations set by MasterCard and Visa for credit-card acceptance affect facility construction?

The rules and regulations related to the acceptance of payment cards require detailed facility planning, as they involve security issues. The physical structure of the building must take into consideration operation policies and protocols, as well as the transmittal of credit-card information.

What other payment-related items should I consider when planning a new facility?

Carefully evaluate the communications systems available in the area, such as satellite and high-speed Internet, as these will affect your payment options. You should also know in advance if you will be locked to a single communications provider or have multiple choices for service.

Ross Federgreen is a co-founder of CSRSI, which provides an integrated approach to the analysis, design, implementation, deployment and management of electronic transaction services and systems. Since 1999, the company has helped more than 350 public and private institutions reduce the cost of acquiring money and minimize the liability exposure related to payment transactions and customer data. For more information, call 866.462.7774, ext. 1; e-mail [email protected]; visit www.csrsi.com.