In this economic climate, many self-storage owners are looking to increase income by maximizing available space, often adding new buildings to existing facilities. As with most projects, it’s not always as easy as it appears. One of my favorite, worn out, “old guy” construction axioms is, “Building is the easy part; it’s getting to that point that can be rough.”
Just because you’ve already built and established a self-storage facility, don’t make the mistake of thinking there may not be some due diligence to be done before you add on. There are also some proverbial speed bumps to cross whenever you start new construction at a location where business has to go on as usual.
Let’s take a look at a few of the bad and good side effects of adding to an existing site and, hopefully, help you avoid some of the “gotchas.”
The Bad (It Could Happen)
Verify whether any of the original zoning ordinances, development agreements, codes or covenants indicate a maximum land use or maximum total building area allowed on the site. In some jurisdictions, you may not only have to build your new buildings to current codes and requirements, you may also have to update your existing structures to meet them.
If you’re considering the addition of boat and RV storage, some jurisdictions may consider this to be a different building use or occupancy, apart from the storage of household goods. If your local zoning ordinances or building code is interpreted as such, rezoning or special-use permits may be required.
Also, confirm that the existing electrical service to the site is large enough to handle the power requirements for the new buildings. Water-service size and water pressure may need to be considered if additional fire-sprinkler protection will be required. Waste-line sizes may be affected if rest rooms are added.
If possible, find an alternate route for construction and delivery vehicles to access the site so they aren’t driving through the existing facility. You’re opening yourself up to a lot of liability when you expose current customers and their belongings to the possibility of “construction-related” damages.
Fence the outside perimeter of the construction site, and cut off access between the current facility and new construction area. Post the appropriate warnings and signage where they are visible to current customers.
Another consideration: Where are the new construction materials going to be stored? Is there adequate room for a secured “stack lot” of contractors’ and subcontractors’ trailers and materials? If not, the general contractor will need to carefully phase the delivery of materials based on available space. It’s often prudent to negotiate a deal with an adjoining property owner to use part of an empty lot or parking area during construction. However, in doing so, you’re adding them, their building, its contents and their customers to your list of liabilities.
Like a good neighbor, somebody is going to get upset. You may hear: “Your paint overspray got on my car,” “Your dust ruined my air-conditioning unit,” “The vibration from your equipment cracked my driveway,” “The noise is causing my dog, Fluffy, to have anxiety attacks,” and my all-time favorite, “You caused my roof to leak.” These may look like amusing little anecdotes but, believe it or not, these are actual complaints from neighbors of new construction sites. You can’t make everybody happy; do what you can to head it off, but just be ready.
The Good (It Could Also Happen)