Construction and Development

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  • 1.  Climate Control vs Non Climate Control

    Posted 04-20-2021 12:48 PM
    I own a facility in the suburbs near Ft. Worth.  I have 276 units and we are now 98% full.  I am wanting to, again, add more units.  But now I am also considering climate control units.   Questions:
       1.  How do I know what size climate control units will rent best at my facility? 
       2.  How many of each of the various sizes should I build?
       3.  Who knows how to "size" the AC/Heat units properly for this use?
       4.  How much more rent should be charged?   I was thinking 35% for like size units.

                         


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    Jimmy Dent
    Eagle Mountain Self Storage
    Azle TX
    2701921
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  • 2.  RE: Climate Control vs Non Climate Control

    Posted 04-22-2021 10:36 AM
    You might call a company that does Feasibility studies in your area and have them do a study on your market.  Then when you apply for a loan you have proof that your plan will work if it comes back favorably.  This study will also help with loan acquisition.

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    Megan Baker
    T-5 Investments
    Highlands Ranch CO
    (615) 477-2304
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  • 3.  RE: Climate Control vs Non Climate Control

    Posted 04-23-2021 09:01 AM
    Edited by Kristy Breaux 04-23-2021 09:45 AM

    Jimmy,

    it sounds like you have the demand to add on, regardless of climate vs non climate. Like Megan said, If you haven't already gotten a feasibility study, now would be a good time to properly gauge demand for your expansion.

    As far as unit mix, check existing supply in the 3-5 mile market and try to gauge occupancy and price per sq. ft. Use that data along with feasibility data to create pro forma for expansion project.

    A good GC that specializes in self storage construction can be worth their weight in gold. There are many variables that go into climate controlled. Depending on the size of the structure, fire sprinkler systems, or fire walls may be required. 

    HVAC- This is where a solid GC comes in. If they do not know what they are doing, they will usually over sell the tonnage required for self storage or industrial type warehouse. They typically try to get you to heat and cool to a high volume retail environment. That means they are going to get you to add a ton to 350 sq ft of climate controlled space. I have seen studies that show you can optimally heat and cool our types of storage for 650 sq ft/ton. Also, try and steer away from units larger than 5 ton residential units. The larger commercial units are expensive to replace from a cap ex standpoint. 

    Example- say you need 40 tons hvac. 8 -5 ton units are easier to replace at $5-6k per unit than 2 -20 ton units at $22-25k a unit. A good GC will know these things. 

    Have you done a pro forma on the expansion?

    I would try and target rental rates to around $1.20- $1.25 sq ft on climate controlled, but of course the higher the better. 

    Hope this helps,
    Chris



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    Chris Martin
    Ideal Self Storage
    Waco TX
    (254) 224-6341
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  • 4.  RE: Climate Control vs Non Climate Control

    Posted 04-24-2021 09:59 AM
    Hi Jimmy,

     

    It was a pleasure speaking with you yesterday and hope that I was a little helpful. As mentioned, if you require more information and or directions to a feasibility study company...please let me know.

     

    To assist with your performa numbers, I attached a copy of our ballpark budget sheets for various types of Self Storage construction. We understand that navigating through the due diligence process can be time-consuming and invite you to reach out to us with your questions to help move you through to your next steps.

     

    We have the experience and knowledge to help. Everything from feasibility referrals to feedback on your site plan. I have also attached a self-storage planning guide for your review.

     

    If you are ready to build, Mako Steel can assemble a proposal for the structural engineering, materials, and possibly labor. Again, during this initial process if you have any questions, or I can help clarify anything for you, please don't hesitate to reach out.

     

    Call me at the number listed below and or click here to schedule a call. Schedule A Call With Me I look forward to hearing back from you and thank you for the opportunity.


    All The Best,
    Eddie Huebner
    Regional Sales Manager
    830-643-9053
    P.O. Box 311711
    New Braunfels, Texas 78131





    5650 El Camino Real, Suite 100
    Carlsbad, California 92008
    Phone: (760) 448-1760
    Fax: (760) 448-1761
    www.makosteel.com