Metal Construction News, November 2018

KNOW YOUR PRODUCTS Self Storage for New Developers By Steve Hajewski Tips for builders to guide clients through the process quickly Unless youve been under a rock for the past fi ve years you have probably noticed that self storage is booming An active housing market and readily available lending has fueled growth in the industry Meanwhile the trend has been toward larger and more complicated projects Here are some tips for speeding it up that we encourage you to share with potential clients that are looking to build self storage Dont put your cart before thehorse many new developers call us asking for a quote on a building We ask them What size building What layout What features details And they have no idea This is like walking into a car dealership and saying I want a price on a vehicle without knowing which model you want The problem here is that the new investor is trying to fi gure out if a project is worthwhile but they arent ready to invest in the design work that is needed in order to provide solid quotes At this stage we encourage them to compare properties or markets thinking in rough cost and revenue per square foot terms Most building suppliers should be able to give a ballpark cost per square foot And you can easily calculate the revenue per square foot based on a typical unit price at similar nearby facilities This will lead to a fi nancial projection close enough to determine if its worth investing in the design work A free tool for creating quick and dirty fi nancial projections can be found here www trachte com resources calculator basic investment calculator Timelines The other common question from new developers is How fast can I get my building New developers are often very dismayed at the honest answer which varies based on building complexity However when it actually comes time to ship a building most projects delays are due to missing building permits weather and site preparation Codes and zoning matter Ask the client up front if self storage is an allowable use on the land Many new developers underestimate the diffi culty of changing zoning Fire code can also affect the budget Energy codes are also driving some changes in climate controlled structures and should be researched prior to building design if the project will have insulated structures Buy the land with cash For most developers banks will require about 10 to 25 percent equity Land counts toward this Buying land with cash and reserving the bank loan proceeds for construction make the land purchase a lot easier and it means that the developer will not be dealing with loan paperwork and lending requirements until he is fi nally ready to build Waiting until permits are in place to close on the loan will make that process easier and may take pressure off the construction timeline by allowing the interest only period of the loan to take place entirely after construction begins The caveat you should be sure the permits will be granted if you are buying the land fi rst Simplify The more basic your self storage project the faster it will go The easiest structures to build are simple rectangular structures that conform to a 5 foot grid Jogs multiple stories custom colors and certain fi nish treatments slow things down To add curb appeal try to limit stone brick or other architectural treatments to the offi ce and blank endwalls of the storage building Avoid changes Planning early and being decisive can reduce the delay that changes can bring When the engineers need to rework plans and permit sets that can add weeks to a timeline Changes that affect building cost can also complicate lending About that fancy offi ce Self storage offi ces are increasingly personalized spaces Prefabricated self storage buildings are a thing of wonder most everything bolts together quickly with ease But traditional stick built construction is the better choice for an offi ce The space can be completely separate or attached to the self storage building Steve Hajewski is marketing manager at Trachte Building Systems Sun Prairie Wis and regional manager for N C sales Additionally Hajewski owns and manages one completed facility and a second location that will be opened in 2019 To learn more visit www trachte com 38 METAL CONSTRUCTION NEWS November 2018