April 30, 2008

4 Min Read
Development Basics for First-Time Self-Storage Builders in Canada

Although there are numerous ways one can take on a first-time self-storage project, the scope of this article is to guide you through the maze of development challenges.

The Perfect Site

The first step to building your facility is to find several potential locations you consider ideal for a new self-storage site. Each property will have its own pluses and minuses. First, you need to verify with all local municipalities that the property is zoned for self-storage. Even if the municipality says the property is not zoned for storage, the deal is not dead. It may require obtaining a variance from the local committee of adjustment. The process can take as little as a few months to a few years depending on the committee’s schedule. Due to the time and cost associated with this requirement, the site has to be exceptional to warrant going through this process.

Is there potential for another facility being built within a 5-kilometer radius of your proposed site? Verify the demographics of your nearby competition, the population density and commercial marketplace. Each of these items helps determine if the site is viable for storage.

Why even discuss site selection when this article is dealing with construction? If the site location is inappropriate for self-storage success, then building the project is a waste of time and money.

Surveys, Studies and Permits

Once the site choice is narrowed to one or two potentials, evaluate the general condition of the property. Does it have an existing structure that can be converted into self-storage? What do the grounds provide? Do the grounds need significant clearing of brush or debris or is it marshy or paved?

Even if the site is in good condition, well-drained and has no water issues, you should invest in an environmental study and legal survey of the property. The investment of time and money on these two items is well spent. When looking for financing, you will need an environmental study showing there are no contamination issues that need to be resolved. This item alone may be a deal-breaker because lenders consider any project as a risk and will not loan money until the site is environmentally clean.

Determine Your Design

After obtaining a site review that includes all soil reports and a survey, you have chosen the property with the greatest potential. At this stage you should meet with your design team to identify the size of the project, scope of work, a start and finish date and, most important, a budget.

Determine the size of the facility and decide on your amenities. Each design decision, such as if you are offering heated or non-heated storage, will have an affect on the budget.

Once your design team has generated all the drawings, apply for the building permit and other required approvals, such as electrical, site servicing and development. Be prepared that all of these approvals cost money and time even if you are prepared to do it yourself. Do not underestimate the time and effort that will be needed to go through this stage. Being thorough will determine how smooth things will go with the various government agencies.

While your project is going through the approval stages, determine actual cost of the various components and construction trades necessary to take the project to completion. You can obtain quotes yourself or have your design team obtain them.

The Construction Phase

Once you have your building permit and selected your various trades and suppliers, it’s time to move to the construction stage. When construction begins, you must contact each various agency to coordinate inspection and approval stages. Allowing time for inspection and permitting is critical. Moving on without first having necessary inspections and obtaining approvals can delay your project and ultimately cost you time and money.

Before Opening Day

The last stage to confront is the occupancy of the facility. At this stage you will need to make sure you have your occupancy permits from the municipality governing your facility’s location. You should also obtain any final certificates of payments to ensure there are no liens against the property by a trade or supplier. You will want to ensure that all payments have been made so the opening of your building goes smoothly.

This general review of project-development stages should provide an overview to your first self-storage building. There are various subcomponents to deal with within each stage that will require your time and attention. Whether you choose to hire a group to coordinate your project or a turnkey project team, you must make sure you devote enough of your own time to the team so your project results are the most they can be.

David Hornblow is construction manager and administrator for the Ontario-based Canadian Metal Manufacturing Inc. Established in 1999, the company has been primarily focused on the self-storage industry since 2003. For more information, call 888.951.1762; visit www.canadianmetal.ca.

Subscribe to Our Weekly Newsletter
ISS is the most comprehensive source for self-storage news, feature stories, videos and more.

You May Also Like