The Next Level

Multistory gives self-storage development a lift

By Tyson Hermes and Erik Hermes

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

The premium for multistory construction is only slightly morethan that of traditional single-story facilities ($1 to $2 more per square foot,depending on the market and topography). The money spent on elevators,stairwells and sprinkler systems can be offset by less roofing, insulation,asphalt paving, storm-water systems, fencing and land. Amenities that appeal totenantssuch as automatic sliding-glass doors at entrances, motion-sensorlight switches, rounded hallway corners, and digital video recordingcan beadded at relatively little cost. Finally, the high-profile look of a multistoryfacility is more appealing to many planning commissions. It has enableddevelopers to petition municipalities that have previously said they would neverallow self-storage.

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

Site Selection

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

Code Requirements

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

Design Necessities

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

Potential Drawbacks

Phasing. With traditionalself-storage, the facility can be constructed one building at a time. This iscalled phasing. The ability to construct the facility in phases allows you tolimit your investment and risk. The unit mix can also be adjusted to match themarket as new buildings are completed. With multistory facilities, phasing isnot possible, as the entire shell of the building must be completed on the firstday of operation. Thus, more cash is required in the beginning for theadditional working capital. In addition, the unit mix and layout should beplanned very carefully because adjusting the units later can be costly.

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

Managers Responsibilities. Multistorybuildings are more complex than traditional self-storage and, therefore, addgreater responsibility to the managers role. This includes checking wet anddry sprinklersystems, maintaining elevators, inspecting and maintainingsmoke detectors in elevator shafts and ducts, maintaining hallways andstairwells, and securing the facility at the end of each day.

Operating Costs. Multistorybuildings may experience higher operating costs, including utility costs (gasand electric). This depends on the amount of heating, cooling and lighting inthe facility. Elevator maintenance, sprinkler maintenance and yearly inspectionsmay also be higher.

Multistory self-storage is beginning to fill a niche that hasnot previously existed. With proper planning, a good manager and cooperationfrom local municipalities, multistory facilities can be built in communities andcities previously unwilling to allow self-storage. This is done by literally taking self-storage to the next level.

Tyson and Erik Hermes are brothers and owners of HermesConstruction Co. Since 1980, theyve specialized in the design, developmentand construction of self-storage facilities. For more information, call859.781.7198; e-mail [email protected]; visitwww.hermesconstructionco.com.