Storage Building Development

Recently, I was asked by a colleague to put together information for pre-design services for a future storage building development project in Miami, Florida.  Fortunately some years ago, I had the unique opportunity to work at a financial institution in their commercial lending division where I was given the primary task of inspecting projects under construction to confirm the institution’s financial risk.  The secondary task proved to be far more interesting and useful to me in the long run as it consisted of evaluating customer lending requests for project development.  To this day, that knowledge and experience has given me considerable insight and understanding of project development.  The experience included the extensive use of spreadsheet software, evaluation and analysis of profit and loss statements, project valuation, project due diligence, and commercial lending criteria for project development.  Having used this experience previously to evaluate existing and new storage buildings, it was a welcome task that I thoroughly enjoyed. 

Here I want to share some of the information I gathered, hoping that it will be both helpful and useful as a general guide to storage building development.  The outline of this information is broken down in three parts:  One is the pre-design due diligence list of factors to be considered; two is the project design criteria; and third is the operations and maintenance factors that will serve the on-going needs for this type of development.  In all, there are 50 points to be considered but the list will no doubt shrink or grow as this is applied to a specific project location under specific State and local requirements.  Please feel free to contact me if you should need more information or need assistance with a specific project.

DUE DILIGENCE

1. Project Background / Business plan
2. Market Study
3. Project Feasibility
4. Demographics
5. Site Selection
6. Layout
7. Zoning/Planning (WASA / DERM / MOT)
1. Plat / Site Plan Approval
2. Water/Sewer
3. Concurrency/Traffic
4. Storm water
5. Fire hydrant / building sprinkler system
8. Unit Mix
9. Taxes: property taxes; transfer taxes
10. Environmental / Soils Report
11. Appraisal/Broker's Opinion of Value
12. Physical Needs Assessment Report
13. Junior Liens (notice per any inter-creditor agreement)
14. Insurance Claims
15. Title Certificate or Title Commitment
16. List of Payables and Operating Statements
17. Current Financial Statement
18. Green Building/Operating Systems
19. Project Permits

DESIGN CRITERIA

20. Materials Selection
21. Imaging-Curb Appeal
22. Site Preparation
23. Access
24. Foundation & Floors
25. Driveways & Sidewalks
26. Climate Control Evaluation
27. Utility Hookups
28. ADA Requirements
29. External Lighting
30. Fire Flow
31. Erection /Structural System
32. Roof System
33. Doors & Partitioning
34. Hallways
35. Access Systems
36. Security Systems
37. Gates/Gate Operators & Fencing
38. Signs & Landscaping
39. Lightning Protection

OPERATIONS / MAINTENANCE

40. Manager Office/Apartment
41. Property Accounting System
42. Landscaping Services
43. Security
44. Training
45. Insurance
46. Utilities / Telephone
47. Advertising
48. Waste Management / Disposal
49. Legal (evictions and contracts)
50. Equipment / Labor rental