Worth it to build mezzanine levels in self storage facility?

Question

Anyone have experience with these small overhead units? They are typically accessed by rolling step ladder. One thing I hear is the major liability issue from ladders tipping or people falling carrying stuff into their unit but we do have a space which is 14'-6" high which is why we are considering building these out.

Any thoughts appreciated on the risk involved and what people lease these units out per sf relative to the units below.

Henry Clark · Answer

Also require autopay only.  Debit, credit or bank ach.  Otherwise, you will get transient population.

Joseph Gozlan · Answer

This seems like a good solution in places were the cost/SF is high and you want to maximize your rent/SF but at least in most places in Texas I think it would probably not be worth it between the increased construction cost and liability.

That said, if it's common in your area, then figure out what everyone else is doing, especially the big guys in the industry, and copy their contracts and equipment.

Henry Clark · Answer

A.  As noted, some of your competition have them.  Rent a unit out and look at contract.

B.  Verify your insurance carrier will cover.  Ask for their input.

C.  Put together a small youtube video on your website on proper usage of ladders.  Make sure you buy the correct type of ladder.  Wheel lockouts.  Wider versus narrow. Side webbing at top???  etc etc.  Operation signs on the ladder.

D.  Next to each door latch put specific instructions on ladder wheel lockout, spacing from wall, and material handling.  Next to each door latch.

Peter Lee · Answer

Yeh I'm sure if we listed these lockers, I'm pretty sure we would get a lot of action.  They are pretty hard to find in general.  I don't know other markets well but I would agree these only make sense in high priced markets.

I'm going to take a look at these mezz units this week and get a sense of how they work.

Zach Quick · Answer

@Peter Lee Would be sure you put locked access to these units via keypad for the entry door or something similar.

Peter Lee · Answer

we built these out.  question is on the ladders and what kind of tenant agreement those who of you have rented out such units have the tenants sign.

Peter Lee · Answer

So looks like we are going to give this a shot at least in the design phase.  I heard some of the larger companies make you sign a different lease which has some sort of liability waiver.  This we will definitely need to implement as I imagine the possibility of injury isn't low.  Won't prevent people from doing stupid stuff so will continue doing more research on this.

The tough part is if you carry a box up the stair ladder, you can't hold the rails if it is a big box.

Peter Lee · Answer

@Zach Quick how do you deal with potential transients/ increased activity with the cheap locker units (which is ok with us as long as it doesn't become a problem but the issue is by the time it is a problem I heard it's kind of too late).  I had one guy suggest only doing a small handful of lockers and doubling up the lockers for 3' x 10' instead of the 3' x 5' we were thinking of of to drive up the unit price.  What kind of demand is there for an oversized locker, not sure.

Peter Lee · Answer

@Zach Quick Yeh I'm very confident there would be demand for lower priced units.  I guess a bigger concern is liability and potential issues of transients.  Curious as to how this might have worked out for other operators.  I know Public Storage and Extra Space have these units in a small handful of their facilities in the area and plan on taking a quick trip out to them to chat up the managers at some point.

Zach Quick · Answer

@Peter Lee Janus builds and can help with a project like this, but this is very site/area specific.

Do you have enough demand on your smaller units to feel confident to look further that even smaller units would rent? That’s the question. In a super dense area, I’d look into it for sure.

Worth it to build mezzanine levels in self storage facility?

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