Not long ago, the Northeast was packed with so many available sites for self-storage that a developer could throw a dart at a map and choose his spot. Not so today. The development market for self-storage has matured to the point where its competing alongside other real estate projects in the area. Site selection requires careful evaluation and market studies. Couple this with increasing land costs and some developers are concluding single-story development isnt always feasible.

Whats the answer?

One alternative is more multistory projects. They offer many opportunitiesand their share of challenges. First, how many levels should be built? The cost difference between two stories and additional levels must be evaluated. The name of the game is still getting as much rentable square footage on a particular site as possible. To do this, type and number of levels needs to be determined.

Cost Differences

Foundations have to be viewed differently. Certainly, they must include full footings instead of floating slabs. Concrete costs can increase dramatically when second- or third-floor slabs are included.

Then there are decisions regarding elevators or material lifts. Stairs must be installed, and local fire regulations reviewed in detail. Fire exits and emergency alarms must also be researched. The developer must be aware that costs in the fire suppression area can be considerable. Certain states require a wet or dry fire-sprinkler system; others simply demand a fire wall separating a specified number of square feet. On the other hand, some states have only minimal requirements for additional levels.

Energy Code

Energy code compliance can increase building costs. Many states require owners to meet an energy calculation when engineering a multilevel self-storage project. Areas such as exterior non-climate sections of a building must be properly insulated and separated from the climate-controlled sections of a building.

Electrical costs substantially increase with the use of multi-hallway buildings. Hallway lighting generally utilizes a sensor system. In addition, electrical exterior lighting, camera systems and door alarms can make the electrical subcontractor an important part of a project.

Engineering and inspection fees become more of an issue when levels are added. The cost for monitoring the concrete, steel and elevators all add to the bill. HVAC costs and design require a more complex plan. Even dehumidification in interior climate-controlled buildings must be researched extensively.

Exteriors

Heres something else to think about: Multistory projects require extra attention to the exterior of the buildings. Lately, developers are opting for a variety of fronts such as brick and split-faced block. Theyre also increasingly using stucco-face structures built with an EIFS system, similar to that used on many big-box retail stores today.

The difficulty of zoning approvals in many Northeastern areas is forcing developers to maximize prime locations and increase rental rates.

Trend Grows

In the final analysis, the trend toward multistory projects will continue to grow because of rising land costs and a dwindling number of properties. Developers should prepare themselves for this kind of venture, however. When they see costs exceeding those of single-story buildings, they must understand theyre looking at a different type of construction. Multistory is a major project that can become more expensive and increase start-to-finish time by several months.

That said, the multistory alternative to single-story construction makes sense. If youre planning to develop in the Northeast, do your homework, understand what youre getting into, and proceed with the knowledge that the only thing constant in the self-storage business is change. 

Henry J. Tracz Jr. owns Northeast Marketing Co. in Burlington, Conn., and is a sales consultant for BETCO Inc., a single-source manufacturer of self-storage buildings.