So, you’ve decided to throw your hat into the storage arena.
There has been a recent boom in storage, and maybe you heard about how profitable it is. Or maybe, you’re looking for a relatively stable asset class and landed here.
No matter what is drawing you to the industry, if you’ve decided to build a self storage facility rather than buy, there are some things you’re going to need to know before you actually break ground.
If you’re experienced in building commercial properties, you probably know most of this. But if you’re not familiar with all of the finer details about building a new facility? We’ll do our best to give you an introduction.
In this post, we’re talking about zoning and permitting for your new storage facility. Let’s get started!
The first thing you need to understand when building storage is the different types of zones you might encounter.
Before we talk about what zoning is required for storage units to be built, let’s take a quick look at zoning 101.
Towns and cities are divided up into different zones which govern which types of buildings can be built in that area. Each municipality will have its own specific regulations surrounding zoning categories, but here are the general categories you’ll find:
Beyond the categories, there are two types of special rules surrounding land use:
Building self storage facilities usually falls under conditional use. Be prepared to prove to the local government that your intended use case (building a storage facility) should be approved.
When building a storage facility, you may notice that your ideal location is in a residential area and does not have the proper zoning for storage units. You might be thinking, “Can you build storage units on residential land?”
In these cases, you may need to ask for a rezoning of the area to fit your needs. This process will change based on where you’re trying to build, but it generally involves an application process, a fee, and a hearing.
Make sure to get the ball rolling as soon as possible, as rezoning can take six months to a year, depending on your area!
No matter where you decide to build your facility, one of the things that you’ll face is the permitting process.
After you've determined that you have the proper zoning for storage units, you need to get a permit before you can start building.
Permits grant permission from the local government to build in their town or city, and you can’t start building without one. The type of permit you need in order to build in that specific type of zone will vary from area to area.
When it comes to commercial construction, there are two main types of permits involved: building permits and trade permits.
For most self storage projects, the building permits you'll most likely encounter are new construction or change of use permits. If you're building a whole new facility, you're looking at new construction, of course. If you're taking over a building with a self storage conversion project, you may be looking at a change of use permit instead!
Trade permits include work for the following trades (and potentially others):
Assuming you are hiring contractors to do that kind of work for you, trade contractors typically pull those permits themselves. This leaves you to worry about the building permits.
Much like rezoning, obtaining permits varies on a municipality-by-municipality basis. The best advice is to be informed about the local process, work well with the local officials, and make sure to pay fees and show up to meetings on time.
There are three main ways to find out what the processes look like:
Local governments usually have online resources for this kind of thing these days.
If you can’t find the information online—and even sometimes if you can—it’s a good idea to set up a meeting with local officials. They will be able to walk you through the process of obtaining a permit and answer any questions you may have.
Often, the information they can give you is more detailed than what's online. You may also be able to foster valuable relationships that make the building process easier. Local officials have the final word on what buildings are approved, and having them in your corner is important.
By showing them your plans, answering any of their concerns, and asking for their input, you’re more likely to get your building completed. You may even get recommendations that are easy to implement and will improve your rezoning or permitting process!
Obviously, you’ll want to have information ready regarding the dimensions, materials, and many other factors directly related to the construction of the storage facility.
But that’s not all.
Here are some details you should know before going into the process:
If you don’t know them now, consider having the research done—by a third party, if possible—so that you can use it to answer any questions and also just to make a strong case.
These officials usually want to know the impact a new building (and new business) will have on their area.
Going through the process of getting permits for your storage facility isn’t easy. If you’re having some trouble, it’s a good idea to talk with a zoning attorney--especially one familiar with the municipality.
They will have the expertise necessary to navigate these paths and make your job a whole lot easier.
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