Seeking Advice -Building New Self-Storage Facility

[Tammy Garst]

I'm looking to invest in self-storage in the smaller cities and towns surrounding the Twin Cities area and am debating between two options: buying land and building a new facility or purchasing an existing one. I'd like to get an idea of what is costs to build from scratch.

Let's say I find a 2-acre lot to purchase. Aside from zoning issues, permits, and city/county requirements, which are highly variable, I'd like to get an idea of how many units/buildings and how to lay it out for most efficient use of space for those 2 acres. Assuming the 2 acres is 100% usable, I'd like to do buildings on one acre and outdoor RV/boat storage on the other acre.

I've looked online at several companies that build storage buildings, but I don't know what size to ask for quotes on.

Does anyone have software recommendations that can assist in planning and designing the layout of the facility? Any recommendations for companies or consultants who specialize in self-storage construction?

I would greatly appreciate any advice, experiences, or resources you could share to help me plan effectively.

Thanks in advance for your help!

[Chris Mason]

I have a question about something in between those two options. And I'm not suggesting I have the answer, just a question.

Office buildings are basically "on sale" right now. The flipper folks always like to say "you make your money when you buy," meaning that the lowest possible and highest value entry price point is one of the most important things.

So let's visualize a single story office building. A/C already in place. Single story so you don't have to worry as much about load bearing and weight. People looking for self storage really don't give a **** about the paint or carpets, so you can leave it as is, tear out the carpets, whatever. The in-place plumbing will overkill, so if over time you lock and shut down a couple bathrooms (so you have less to maintain), whatever. 

If you hire someone to build, you're going to pay full retail price. If you buy existing, you're going to pay full retail price. If you buy the "on sale" office building, it will cost some money to convert, but if the savings is there on the initial buy price to more than make up for it...

And then let's say 5 or 10 years from now the "work from home" fad is over and offices are in demand again. Cool. As storage units turn over, re-rent them as offices gradually, if it makes sense. Your eggs aren't all in one basket. 

So... what would that look like?