All Forum Posts by: Joey Stelly

I’ve Identified several locations within my region that, based on the trends in  residential development seem to be under supplied and positioned to be great potential locations for new climate control self storage. 

My aim is to build a climate controlled facility at one of these identified locations - about 250-300 units. 

In each of these potential locations, total NRSF is below 13. Climate control NRSF is typically between 2-5 fpp; while the non climate control old outdated facilities make up the balance (7-10 fpp) and tip the scales well beyond the 7’ pp rule of thumb. 

My question is - does the 7 feet per person equilibrium rule apply to total NRSF in the 3 mile or can that be broken down by class (cc vs non cc, facility age, etc) and the 7 rule applied as a cap to each individual class? Is there a case for building climate control in the scenario where the nsrf mix is 3 for cc & 7 for non cc (10 total)? Based on the age of the surrounding facilities and lack of new, updated options, coupled with increased residential development projects in the area, my gut tells me it is a great location but don’t want to assume that if I really should be basing off of TOTAL nsrf being below or at 7. Appreciate any input here! 

Thanks 

 Interesting, the majority of the climate control in south Louisiana is single story. Different markets, different perspective I guess.

Interesting, the majority of the climate control in south Louisiana is single story. Different markets, different perspective I guess.

Appreciate the reply! Thanks @Zach Quick 

Looking into ground up development for single story climate control self storage facilities in my market and looking for some general guidance on design & cost rule of thumbs - any help would be greatly appreciated. 

Currently working through some (very) preliminary due diligence with the goal of creating a template for 150 & 250 unit climate control buildouts in order to dial in an acreage size to focus in on for land acquisition, and to try and determine the most cost effective & scalable footprint to build as a "test" that can be scaled. 

Couple of questions & assumptions that I'd really appreciate some critiquing/input on:

Building Layout:

- Right now I'm assuming 1 acre (43,560ft) will yield about 60% (+/- 26,190ft) of climate control NRSF. 

- What is a good rule of thumb yield/acre, and how many sq ft of slab/building should i assume for every 1 ft of climate control NRSF?

Building Cost: 

- I've heard varying estimates $/ft for capex related to building a climate control facility, but what can I expect generally in total $/ft for an assumption when building 150 or 250 unit building. I've heard $50, 35, 40, etc for turnkey rule of thumb - shell, utilities, foundation, M&E, paving, etc, basically everything but land. 

Opex ratio: Is 35% of revenue a solid assumption for operational expenses - insurance, maintenance, etc? 

Right now my cost assumptions look something like this: 

25,000 ft to yield 250 units 

Acreage needed for 250 units = about 1 acre (Depends on local municipality requirements for detention, setbacks etc but for now this is my assumption)

25,000*$50 = total buildout cost less land 

revenue $ *.35 = opex cost 

thanks!