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  • First Time Builder

    Hi All!

    I am building my first storage building and have a question regarding the layout.

    The background-

    After doing my research every facility within 10 miles is at least 95% capacity (most are completely full).

    5'x10', 10'x10', 10'x15', 10'x20' & 10'x30' were all full. So my idea is to build a 30'x100' with a mix of these sizes and then as I build more buildings to include the most popular sizes.

    I am starting small and not taking on any debt and growing from there.

    I am not sure if anyone has done anything similar but would love any feedback as to any shortfalls in my thinking!

  • #2
    Welcome to the forum from WA!
    Even duct-tape can't fix stupid. But it can muffle the noises.

    WA State

    Comment


    • #3
      Hello from Texas! I don't have any feedback for this particular post, but I'm sure someone will! Welcome to the forums!

      Comment


      • #4
        Here are some templates you can use.

        Storage Startup Checklist 101
        Response to Zagreb, Croatia startup
        1 Why Do Storage?
        2 Why Storage? Why you? I’ll do a separate Topic. Don’t know your financial’s, but you will outstrip your collateralization fast. Develop a relationship with someone you trust and bring them along for the ride. Preferably an Apartment developer. They don’t have to invest in the first project, but you will need them later. Make sure this a solid relationship, otherwise they will cut you out once your successful.
        3 Market/Demand:
        4 Market size See post, if your the “first”, then you don’t care. You have more than enough Market, in a 800,000 Pop city.
        5 Outside or climate controlled? Let your search and “deal” decide. Look for both an outside Land acquisition or an old industrial building. If you get a large enough building, finish it out in stages.
        6 Market location Seek your higher income areas first. Pick along the A2, A3, A4 corridors first. Stay away from the mountains. Do several small locations, no smaller than 1 hectare. Once you have the experience and Financial support, go for a Climate controlled location in an old neighborhood that is high income or rebuilding itself.
        7 Zoning See post
        8 Site location Have several searches and deals going at once, most of them won’t pan out for the price you are willing to pay. This way you “can walk away”. This gives you negotiating power.
        9 Site acquisition
        10 Financing: See “Topic”
        11 Financing-construction Find a banker who knows Apartment building construction
        12 Financing- rent up stage Same as above. You want “interest only” and not principal for a portion of the rent up period.
        13 Financing- long-term If your going to grow, unless you have significant capital at your disposal, find a future business partner.
        14 Business Model I’ll clean up and post one of my spreadsheets later.
        15 Construction: Use local knowledge/availability
        16 Permits
        17 Building type
        18 Building manufacturer
        19 Contractor
        20 Day to day:
        21 Rental Contract Post a “Topic” on this Forum and ask for some copies sent to you.
        22 Rental Rates Zagreb’s GDP per capita is $19,132 versus where I live $60,246 metro area of 1mm. Thus if I say a 10 x 20 “Foot, not meter” unit is $120, then yours would be around $40. Making this simplistic. Get on Sparefoot and pick a US city similar to Zagreb and pick out prices for 10 x 20/15/10/5. Then take 1/3 of that for your price in US $, then convert. Recommend you don’t use this as your starting prices; go after a richer neighborhood and charge higher prices.
        23 Auction rules Post a “Topic” on this Forum and ask for some copies sent to you.
        24 Security system Situational, work with your local security firm.
        25 Fencing situational
        26 Self Service or manager situational
        27 Management software Since the world is internet based, see if you can use one of the Storage management softwares in Zagreb. Do not do this on a spreadsheet or paper. You need to develop a system to grow with.
        28 Marketing:
        29 Website check ClarkstorageLLC, and others on this forum. Take the best from each and make a template, for a better one.
        30 SEO management Since your the only one, you just need Google Map Pins and build up your google ranking under key words.
        31 Marketing Software Sparefoot or similar in your market area. If none exist for Storage, seek out Apartment, home, AIRBNB, Craigslist sites. If you have Craigslist, put an add out there with your offering and price. Different sizes and prices. Get feedback.
        32 Marketing Something you probably already know.
        33 Social Media Something you probably already know.
        34 Insurance: Leave to you for local knowledge
        35 Business
        36 Renters
        Sundry: Leave to you for local knowledge
        Property taxes
        Legal system

        Comment


        • #5
          More templates. Cant send excel. .xls worksheets on this forum.
          This is an example, for discussion only.
          A. Project Cost estimate from ground up.
          B. P/L revenue stream
          C. Valuation Buy/Sell
          Adjust all of the above to your local market and situation.
          A. Self Storage Project Worksheet
          Drive up Storage
          Notes:
          Land $200,000 4 acres at $50,000/acre
          Survey $7,000 Site, elevation and building layout
          Fence $30,000 Black chainlink
          Gate system $25,000 Automated rolling 20ft
          Engineer if needed; $30,000 to $60,000
          Dirt work $15,000 Slight roll, no dirt brought on site
          Building demo if needed, $15,000 to $60,000
          Electrical- site $7,000 building lighting and office if needed, LED.
          Electric poles if needed; $2,000 per pole. First is free if nearby.
          Security $10,000
          Storm drains if needed; $50,000 to $150,000
          Water if needed; $5,000 just plumbing
          Water line ?? if an extension could be $10,000 up to $150,000
          Fire Hydrant if needed, $3,000
          Sewer if needed: $5,000 plumbing
          Sewer Line if needed; $10,000 up to ????
          Buildings $1,180,800 Phase 1 2 acres
          Office if needed, plain storage unit 20x30; $25,000 insulated.
          Office setup if needed, $5,000- computers, printers, HVAC, frig, cabinets, etc
          Footings if needed. ??????
          Roads
          Gravel if needed, ?????
          Asphalt if needed, ?????
          Concrete $676,133 6 inch Cubic yards, framed, poured, sawn,
          Retention Pond if needed, part of dirt work cost, less land for buildings
          Landscaping $5,000 I like trees and bushes. Less sterile
          Road Sign $15,000 For highway 55mph billboard sign
          Total $2,170,933

          Comment


          • #6
            Key is to do the entire layout for your location, before you do the first building. Just to see how it will all fit.
            This is an example, for discussion only.
            Layout Phase 1, 2 acres
            Assume the 4 acres is square. Setbacks- front/side/rear Assume roads are not allowed on this.
            Driveways- 25 foot
            295 Buildings-15/ 30/40 foot
            590 Turnarounds- 50 foot
            Green change or fill in info
            5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Not using 10’s for ease, definitely put in.
            10 Rental Revenue:
            10 Entrance # units Unit Size Rental rate months Gross
            10 205 15 80 12 196800
            10 164 20 100 12 196800
            10 Gate 10 60 12
            10 393600
            10
            10 @ 90% occupancy 0.9
            10
            10 Units Splits Splits Splits Splits @ 90% occupancy 354240
            10 15 1 15 15 20 20 15 15 20 20
            10 2
            10 3
            10 4
            10 5 Building installed cost
            10 6 Units Avg cost
            10 7 205 3200 656000
            10 8 164 3200 524800
            10 9
            10 10 Average total cost 1180800
            10 11
            10 12
            10 13
            10 14 Feet**************************************** Yards**************************************** Cubic Yards
            10 15 Concrete Estimate at 6 inches: 6 inches
            10 16 Turn around 275 50 0.5 91.67 16.67 .17 254.63
            10 17 Turn around 275 50 0.5 91.67 16.67 .17 254.63
            10 18 Entrance 25 50 0.5 8.33 16.67 .17 23.15
            10 19 Driveways 410 25 0.5 136.67 8.33 .17 189.81
            10 20 Driveways 410 25 0.5 136.67 8.33 .17 189.81
            10 21 Driveways 410 25 0.5 136.67 8.33 .17 189.81
            10 22 Driveways 410 25 0.5 136.67 8.33 .17 189.81
            10 23 Driveways 410 25 0.5 136.67 8.33 .17 189.81
            10 24
            10 25 Cubic yards roads 1481.48
            10 26
            10 27
            10 28 Get a local Quote: Cost framed/poured/sawn 456.389452332657
            10 29
            10 30 Driveway costs $676,133
            10 31
            10 32
            10 33
            10 34
            10 35
            10 36
            10 37
            10 38
            10 39
            10 40
            10 41
            10
            10
            10
            10
            10
            10
            10
            10

            Comment


            • #7
              Originally posted by lukewood View Post
              Hi All!

              I am building my first storage building and have a question regarding the layout.

              The background-

              After doing my research every facility within 10 miles is at least 95% capacity (most are completely full).

              5'x10', 10'x10', 10'x15', 10'x20' & 10'x30' were all full. So my idea is to build a 30'x100' with a mix of these sizes and then as I build more buildings to include the most popular sizes.

              I am starting small and not taking on any debt and growing from there.

              I am not sure if anyone has done anything similar but would love any feedback as to any shortfalls in my thinking!
              Do you have space for a larger building? I understand not wanting any debt at first. But there are a lot of cost savings with going with a larger building at the onset. First and foremost you should make a site plan for your entire site and submit it for approval at the beginning. You don't have to build it all at once, but it is easier if all the buildings are approved at once.

              Look into the costs on the buildings the size you are looking at and then look at your costs if you double the size, I think you will find your total cost per sqft may decrease enough that it might make sense to take on some debt at the onset to take advantage of better pricing.

              Comment


              • #8
                My best suggestion is to design your buildings so units can be converted as needed. A double-ended 10x20 can become two 10x10s and command more dollars per square foot. Yes, you're purchasing a second door but the cost savings will pay for themselves when you can rent out smaller (more rent per square foot) down the line.

                Conversely you could convert or rent out, in side by side pairs, his and her 5x10s reduced to a 10x10 rate if you're flush in smaller units and customers are seeking larger. Just be prepared to go with the flow and be flexible as feasible when the need arises. As you rent up, keep in mind pairing up side by side units for a future marketing promo. Welcome to the forum and good luck!
                Gina 6k
                twitter.com/GinaSixKudo
                VM: Four-Oh-Eight- Seven-Eight-Oh-Eight-Oh-Seven-Nine
                [email protected]



                You only live once, but if you do it right, once is enough!
                I am not an attorney, just an experienced manager who is willing to share what I have learned. Your thoughts, practices or opinions may vary and neither of us may be right.

                Comment


                • #9
                  Wow, thank you so much for that Excel template and the feedback!

                  Also, I do have a site plan and there is room for larger buildings, which will come in the next phase. I have also designed the building so that the sizes are able to be altered.

                  Comment


                  • #10
                    Building with cash as you go sounds great but you may also find it limits your ability to meet market demand and you will spend more money developing in small phases.

                    My own property is in a city of 5000 people and I have grown my occupancy at an average rate of about 1,200 sq ft per month this year. So, if I built your building, I would have it full in just over two months.

                    When you building something like this, there is a certain fixed cost and effort involved, and you may find that it is worth borrowing a portion of the project cost in order to be able to build it bigger up front as long as demand warrants. Interest rates are currently very low, and SBA loans make it possible for even first time developers to get started.

                    I would also suggest that rather than plan to move walls around, you move rates to make certain units sizes more or less attractive, and also adjust your overall unit mix with future expansions. New developers seems to think that adjusting walls in order to rent every last unit sounds like a good idea. In reality demand changes throughout the year, and your property will be full enough that the opportunity to move walls goes away quickly unless you a fixing a major mistake in unit mix.

                    You are on the right track to be looking at building 30' wide buildings. 30 and 40' wide structures are the most popular and give you the ability to have a unit mix.

                    Comment


                    • #11
                      There is something being communicated that is not relating. Let me try to clarify.

                      Your building a 30 x 100 unit building. If your property size can only handle this and another unit, don't do it, to small of an investment.

                      Rough estimate: Change and add the figures as you know them:
                      $11,880 Revenue- Using just 10 x 15's, assume small town market $55 per unit, 90% full. 20 units x 12 months x $55 x90%= $11,880

                      $50,000 Two acres of land.
                      $64,000 20 units x $3,200
                      $10,000 dirt work and levelling
                      $ 5,000 Rock road
                      $ 7,000 Electric
                      $ 7,000 Security system
                      $25,000 Fence
                      $ 2,000 Electric service pole
                      $0 Interest- cash only

                      Expenses:
                      $?????? Property tax
                      $?????? Insurance
                      $?????? Electric, grass cutting, etc.
                      $?????? Income tax, etc.


                      How does the above correlate to the size and type of buildings your starting with?
                      a. Length of building. You would like to at least build the building as long as your drive. Is your drive 100 foot considering all setbacks and turn around space?
                      b. Break even- you would like to build at least enough units to Break even. Not at 90% full, but at around 65% full. You don't want to get to break even and then build more buildings. Based on the above, you probably won't get payback for about 30 years. You can take some of the above costs out, but the point is still the same.
                      c. Build more buildings- You have to refinance. Your equity/cash is tied up in the current building unless you wait about 18 years to build up cash. You need a new appraisal for $2,000. If your market is any good, in 18 years your existing or new competition will already have built more. Making it more risky for you to build. Also your property will be worthless since it is to small for an investor to buy with all of that competition 18 years later.


                      Document your costs.
                      Prepare a preliminary P/L.
                      Work back wards and determine the number of units you need for Break even at 65%. Break even to me, is all expenses (insurance/property tax/grass cutting/income tax) are covered; plus your principal and interest payments. Let that number of units determine your initial building size and financing.

                      If your Debt adverse. Don't get into Storage. It is a purely financial investment. Timing- If you wait 8 to 12 years to build up from a Cash basis, the market will have passed you by.


                      Comment


                      • #12
                        Welcome to the forum from Oregon.
                        "Never let the inmates run the asylum!"

                        Comment


                        • #13
                          Can anyone give me a "ballpark" cost to build a climate controlled building. I know there are lots of variables, just trying to get a range on dollar per square ft. (excluding land & prep, etc).

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