Single- vs. Multi-Story Construction in Canadian Self-Storage

The Multi-Story Option

In today’s market it is becoming increasingly difficult to acquire large parcels of land for a storage facility in ideal locations. Older buildings in densely populated areas that will sustain a high occupancy in storage are at a premium. These existing buildings need to be multi-storied or have single-story height clearance to convert into two or three stories.

If you have only a small real estate resource to work with, a multi-story project may provide the best option. The greatest benefit is the ability to create more rentable square feet using less land to maximize real estate value.

In most multi-level building conversions, extensive site plans are not required because the conversion is inside an existing building. If you are developing a new multi-story project, it is much easier to gain approval with one multi-story building than several buildings on a site to achieve the same rentable space.

Costs for materials and labor can be reduced with multi-story construction due to floors being 10 to 12 feet apart, with less distance for crews to cover. Once the facility is operational, ongoing maintenance costs may be reduced as you would have less snow removal and only one roof to maintain.

Multi-story construction can still give impressive exposure by using the height of the building for distant visibility as a communication tool in marketing signage. Additional consumer benefits include heated or climate-controlled units (since the building needs to be heated anyway), indoor protection from the elements, consistent lighting 24 hours a day, and added security. An intercom system with soothing music can be piped through interior hallways to add ambience.

Converting an existing building into a new multi-story self-storage project is not without challenges. There are often additional building codes to deal with, plus the cost of installing elevators or lifts. Most buildings require an extensive sprinkler system. Obviously, you will require more wiring with motion-sensor lighting that will go on any time a customer is present.

The number of customers who can be serviced at one time may be limited. Your customers will not be able to drive up to their units and load or unload immediately on arrival. Some may not appreciate the distance they have to travel to transport their items from the loading area. And with less land, you may not be able to offer vehicle storage.