There are various reasons to build a multi-story self-storage project, including a lack of available land or the high price of land in a particular area. If you’re considering the development of a multi-story facility, there are pros and cons to be considered. Every project must be carefully evaluated for its individual circumstances, and the factors involved can be complex.
A multi-story building may cost more per square foot to construct than a single-story. On average, 25 percent of the building’s square footage will be non-rentable space, taken up by corridors, entry ways, staging areas, elevator shafts and stairwells. It’s important to compare the construction costs and lost floor area to those of a single-story facility, which will likely not have the same issues. If a single-story facility incorporates climate control, there will be loss of floor space to corridors, but not normally on the same scale as with multi-story.
It’s generally anticipated that because a multi-story project can be located in a more desirable area, it should be able to demand higher rents. Multi-story facilities usually offer climate control as well, which also translates to a better bottom line. Though multi-story has a potentially higher investment, the higher income may provide a better return when compared to a typical drive-up, single-story project.
Many developers appreciate multi-story building because it offers a higher barrier to entry as well as the opportunity to have a larger investment in a single property. Because the amount of time and effort involved is roughly the same as for a simple single-story project, a multi-story facility seems to maximize that input.