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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Original Message:
Sent: 04-20-2021 12:47 PM
From: Jimmy Dent
Subject: Climate Control vs Non Climate Control
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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