We are consdering redeveloping a vacant grocery store which would be climate-controlled 1 story space. We think that we will be able to give tenants the ability to drive in & through (or at least back in/out of) the bldg so that they would be protected from the weather when accessing their units. However, all of the competing properties in the trade area (a relatively rural, blue-collar suburb of a bigger city) are 1st-story drive-up storage.

Does anyone have any thoughts or experience on how well we can compete, and whether we would be at a competitive disadvantage due to the different type of units that we would be offering?

I would be the first to tell you that I have no experience in this area, but if this is marketed correctly you will have all the others jealous of your operation!

I think you have a goldmine there!

__________________
Wayne Docktor
Manager
All American Self Storage
Palmdale, CA.
webmast@all-americanselfstorage.com
www.all-americanselfstorage.com

jafski:

I have been involved in several projects over the years that involved the ability for customers to drive into the storage building. you are going to face several very significant issues. The first is fire code and the attitude of your building department and local fire chief about allowing vehicles filled with gasoline inside a confined space. While I assume the building you are converting already has a sprinkler system, it was never designed (sized) to deal with a gasoline fire. Unless there is an enlightened attitude within your community for our industry, it could be an almost impossible task to get approval.
The second issue is pure economics. Let's say that the Fire Chief says OK, but I want a 15 or 18 or 20 foot wide interior drive aisle. When you calculate the total net rentable square footage times the average rental rate that you will be eliminating from gross potential revenue, this can be a very sobering reality check. You also might discover in doing these calculations that you can not achieve a sufficient average rental rate to justify the scope of the project you are considering.

If however the building is large enough to still produce an acceptable return, you can give yourself a major competitive advantage. The bottom line is that is is all a make of customer access and convenience. Being totally out of the elements hot - cold - rain - snow plus the added security implications for a female customer are big pluses in my marketing book.

The drive in option also has the potential of turning a deep building (translate that into "the customer will have to travel over 150 feet of hallways to get to their unit) into a user friendly environment.

It is not an easy decision from many perspectives, but it can clearly distinguish you from the competition. Bet of Luck and keep us posted on your progress.

__________________
Learning Never Ends

MJ444 knows his stuff.

__________________
Over 1000 towers served and growing.

Thanks to MisterJim, towerguy and Autodoc for your responses.

We are working on a prelim site plan right now. Based on MJ's advice, I will immediately meet with the Fire Dept to see what they will allow.

Our backup plan has to been to utilize the existing loading docks in the rear of the bldg and cut similar dock access into the front of the bldg. This would obviously allow us to have more SF of rentable space.

Not sure yet, what the rentable will be if we are allowed to have the drive-thru access.

Will keep you apprised of our progress and how things turn out.

Thanks again

Hi Jafski,

I suggest getting your insurance professional involved as soon as possible. In the self-storage insurance business, you are talking about a "conversion" - a building that was created for another purpose and is being converted to self-storage. Conversions will require more underwriting information from you. Your insurance provider will want to know everything - from the general contractor that is doing the work, his insurance, the updates on sprinkler systems, roof, electrical and HVAC. Will your GC insure it while under construction? Be prepared to go through a more lengthy evaluation on insurance - and potential higher insurance costs. Try to minimize this by getting your insurance person in at the ground level. The project sounds exciting - look forward to hearing more!

__________________
Randy J Tipton, CIC
President
Universal Insurance
3300 N Central Ave, Suite 1520
Phoenix, AZ 85012
randyt@univins.com
800-844-2101 extension 1153

RandyT,

Thanks for that advice. I spent 10 yrs in the P&C business, so I should have thought of myself! But I didnt. Will keep everyone posted on our progress on all fronts.

Mister Jim DOES know his stuff! Grocery stores can make great and easy conversions, and ususally, they are small enough to convert to climate control with a covered loading area. This can be accomplished with firewalls, as can a drive-through, where only the air in the drive through is exchanged and gasoline fire protected, and not the entire building. You will then need doors from the drive through area to access the space. If the store is a typical grocer, say 25,000 sq ft, and has a 3 acre parcel, this might be a good climate controlled building with direct access space constructed in the generous parking area. I hope this is helpful.

__________________
RK Kliebenstein
Leader,
Coast-To-Coast Storage
P: 561.963.4004x81
U: www.askrk.com or www.HowToInvestInSelfStorage.com
E: rk@askrk.com

Conversions can be a great place to start with a climate-controlled self-storage project. You may even find an easier approval process from your municipality because you are making use of a deserted building and the roll-up doors inside will not be seen from the street. You might even be able to use a mezzanine system to get a second floor of rentable units if the ceiling space is high enough. I'm a site planner with some experience drawing plans to convert deserted "Big Box" retail buildings. Contact me for a sample of my work.

Steve Smith
SteveSmith@ByteOne.com

How are you coming with your site plan? Good news or bad news from the Fire Department? Keep us informed!
Best wishes,
RK

__________________
RK Kliebenstein
Leader,
Coast-To-Coast Storage
P: 561.963.4004x81
U: www.askrk.com or www.HowToInvestInSelfStorage.com
E: rk@askrk.com