Posted by Rich-CA on February 23, 2008 at 08:41:50:
And the price of concrete has shot up since a couple of years ago when I did a major regrading project complete with retaining wall and hardscape.
Storage Units - Posted by Virgil Horner
Posted by Virgil Horner on February 21, 2008 at 14:20:26:
Hello,
We’ve got 4 acres of land located in Twin Falls, Idaho that I think would be a perfect spot to build storage units. Has anyone had any experience on the build out of storage units? Any suggestions? I’m being told by my real estate agent that he’s had quotes of a build out on the units at $10 a square foot; does this sound right? Any help would be appreciated.
Thanks,
Virgil
Suggest Trachte - great resource - Posted by JT-IN
Posted by JT-IN on February 22, 2008 at 06:32:19:
Trachte is a mfg’er of nothing but metal storage bldgs. They offer design and production of metal bldgs and many resources to help you plan your site, completely through the rent-up process. On their website they offer free webinars, and a host of other info that will be useful in arriving at whether self storage is in your future.
You can access their sebsite at: www.trachte.com
I built out a site of 100 units about 12 yrs ago, and found Trachte to be the best bang for the buck. They were invaluable and have the process down to the brass tacks. I have since sold the units and the people that purchased the site have doubled the size of the operation and it continues to be successful.
The downside of mini storage is that it is NOT totally passive income. You are creating a business that requires daily efforts and someone to be in ear-shot of the phone and close proximity of the site, in many cases. Eventually you can put systems in place that will allow a bit more flexibility, but initially you will be tied to it far more than residential rental units. That was the part that I disliked about the mini storage biz.
JT-IN
Re: Storage Units - Posted by Eric in FL
Posted by Eric in FL on February 22, 2008 at 03:12:42:
Virgil,
First, how in the heck does a real estate agent know how much it costs to construct storage units unless they have done it? Second, there are so many preliminary studies and zoning issues that need to be addressed before truly analyzing build out costs.
Best Regards,
Eric
Re: Storage Units - Posted by RR
Posted by RR on February 21, 2008 at 19:06:48:
Check demographics for rented residential (houses, townhouses, apartments) in the market and age distribution. Renters usually do not have adequate space. Per unit value depends upon occupancy history, rent comparables from competing projects and what your lender wants to see and you want to see as a cap rate on the investment.
Re: Storage Units - Posted by Killer Joe
Posted by Killer Joe on February 21, 2008 at 16:08:49:
Virgil,
That sounds unrealistic. In my neck of the woods (literally) it cost $7 a sq ft just for the concrete pads.
It is easy to look online for steel buildings that go up fast for storage units. That’s probably the quickest way to form an estimate of what the building structure will cost.
Then you need to price out the driveway and any electric you will need (if any).
Never hurts to put a fence around part of the property if security is a good selling point to your customers.
If the complex is large enough a public restroom is also a welcome amenity. HTH
KJ
Re: Storage Units - Posted by Sherm
Posted by Sherm on February 21, 2008 at 20:40:04:
K J
Forgive my ignorant question for I am truely ignorant in the construction of storage buildings. How are your pads constructed so tha they cost $7 per sq ft? How much is a yard of concrete in your area?
Re: Storage Units - Posted by KJ
Posted by KJ on February 21, 2008 at 22:33:50:
Hi Sherm,
It’s not just the cost of the concrete ($70+/- a yard), it’s all the costs associated with the pour that add up. (Unless you just plan on dumping ‘the whole nine yards’ in a big hole 
Assuming the site is already cleared, you need to have the site graded and footings dug. A gravel base is also added. You will need forms to define the envelope, rebar to add strength, and sometimes a vapor barrier depending on the water table.
On a job like Virgils, the concrete will need to be pumped. So you have the cost of the pumper. Then the concrete needs to be distributed and spread level, or pitched for drainage, then bullfloated and screeded (think smoothed and really smoothed).
On a job like storage units you will need to separate the individual units with either a dam or a moat (concrete is raised or lowered as a barrier 2"-3" tall or deep [more forms]) between the units. This helps contain liquids like water or gas from migrating from one unit to the next. (Check local codes).
I recommend hiring this out.
KJ