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  • Storage Building costs

    Just got my latest estimate for our Phase 2 of a location. This is for your normal drive up units. Last fall Phase 1 we were $3,200 erected for 10 x 15 or 10 x 20. This was contracted around February of last year. Latest quote is $4,000 per unit erected.

    Steel for buildings, rebar steel and Concrete caused the increase. Erection cost didn't change that much. This is for 7 buildings. About 198 units.

    Still moving ahead, since the project "numbers" only work with the whole site completed. Our builder is actually going to buy the Steel rebar now versus in 3 months, and store. He does other Steel work and thinks both the price and Availability will get out of reach.






  • #2
    Smart! Construction materials are way higher in price nationwide, whether you're building a house or a business.
    "The comeback is always stronger than the setback."
    Mom, Navy Vet, genealogist and voracious reader
    Always sunny in California

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    • #3
      Originally posted by KrisinWA View Post
      Smart! Construction materials are way higher in price nationwide, whether you're building a house or a business.
      All due to COVID, unfortunately. It really disrupted the supply chains all over the place.
      "The comeback is always stronger than the setback."
      Mom, Navy Vet, genealogist and voracious reader
      Always sunny in California

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      • #4
        Got our latest quote on a new building, phase 3.

        Building 30 x 250 roll up doors, drive up access $162,000
        Concrete Slab $ 47,000
        Erection of Building $26,000

        Total $ 235,000

        50 units, averaging $ 4,700 per unit

        Already own the land, does not include driveways, grading, electric, security, etc.

        If you see my first post above, this was $4,000 per unit erected March of this year.


        This location needs more storage, but is not a super strong market. Price for a 10 x 15 runs $55 per month.

        At $55 per month before taxes and costs, $4,700 at full occupancy at $55 per month would take 85 months or about 7 years. Thus 9 years based on rent up phase. We normally expect to pay these second phases off in about 4 years, including the extra costs except land.

        We have 8 locations in 5 different towns. Plus two other non self storage operations we can invest in. Most of the other locations have a higher demand potential and higher rates for the same units. At this time we are deciding not to build these units at this location.



        A. Basically priced out of this market. Our multiple location and town approach, however keeps us in the game.

        B. We could use 10x20 cargo containers at $3,200 delivered and set. Versus the $4,700 for regular storage. We can add and sell containers as needed. No property tax. Can write off in year 1. About 1/2 of the customers won't rent of like these, since they are harder to open.

        C. You might use this information for different purposes. We might decide to take a run at buying other operations.

        If an existing place had 150 units, using the brand new cost of $4,700 = $705,000. Using a 3 acre parcel. Land $150,000. Fence $25,000. Gate $25,000. Electric $25,000. Security $25,000. Grading/rock roads= $50,000. Misc $15,000. Total= $1,020,000 brand new.

        You would take out the rent up phase. Know the market is there. Take away both the work and the risk of developing. Easier to finance, since already cash flowing. Need to find a place where 10 x 15's are $70 or higher. You would offer around $700,000 in that market and start from there. You get cash flow for the time you hold it. As long as you maintain it, you sell for the same unadjusted inflation price 10 years later.







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        • #5
          Exact same building quoted in the August 2021 post above.
          Building $100,000
          Concrete Slab $49,000
          Erection Bldg $34,000
          Total $183,000

          Hard to believe the building cost from the MFG went down $62,000;
          Put our 30% deposit down and signed contract today.

          $183,000 / 50 units= $3,660 per unit.

          Start pads in about 2 months and erect buildings in about 4 months.

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          • #6
            It looks like you are seeing downward trends?

            Seems like prices are all over the place - I hope they go back down by this fall, I can't justify buying a building where things are now vs early last year.
            This is just for a building, no doors, no insulation, just the steel structure and panels (roof and walls)

            Jan 2021 - $6/sqft (we bought three buildings in January)
            August 2021 - $14/sqft
            December 2021 - $10sqft
            April 2022 - $15

            My sales rep said that they have seen two price increases this year.

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            • #7
              Originally posted by Clarkstoragellc View Post
              Exact same building quoted in the August 2021 post above.
              Building $100,000
              Concrete Slab $49,000
              Erection Bldg $34,000
              Total $183,000

              Hard to believe the building cost from the MFG went down $62,000;
              Put our 30% deposit down and signed contract today.

              $183,000 / 50 units= $3,660 per unit.

              Start pads in about 2 months and erect buildings in about 4 months.
              What manufacture are you going with? I’m 100% full and need to do another building asap. I’d like to check with the company you are getting that price from. Tried to PM you but it says you don’t accept PM’s

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              • #8
                Scvette We use a local contractor for concrete work and erection. Bldg mfg is Trachte. Have used them on all of our buildings.

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                • #9
                  Originally posted by Clarkstoragellc View Post
                  Scvette We use a local contractor for concrete work and erection. Bldg mfg is Trachte. Have used them on all of our buildings.
                  So you’re saying the building went down $62,000 since April of 2021? I just got off the phone with them and they told me 25 weeks out if I ordered today, did you have this new building ordered or are they getting it to you in 2 months.

                  just reread start building in 4 months.

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