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Investing in self storage gives you the fundamentals and growth you need to grow your portfolio. But skip the opportunities from golf buddies and gurus—invest in a real track record. Started by John Muhich in 1993, AAA Storage has delivered 19% IRR across 90 deals, totaling $450M in exits. Listen to our expert insights on investing from the AAA Storage team. See more at aaastorageinvestments.com.
Welcome to the AAA storage podcast,
your integrated real estate and
development partner, exploring all
things, self storage investing to
bring you diversified success.
Let's dive in.
Brandon Giella: Hello and
welcome to another episode
of the AAA Storage Podcast.
I have with me as always the illustrious
Paul Bennett, and we have today a special
guest, Sean Beagler, who is the Director
of Land Development and Construction.
And today we are gonna talk about what it
really takes to build a storage facility.
And that matters a lot to investors
because we want to know that
this asset is being developed
the right way from the ground up.
From the get go.
And so Paul Paul's going to
interview Sean, and we're gonna
hear all the ins and outs and why
that matters for investors today.
So, Paul, take it away.
Paul Bennett: Yep.
Thanks Brandon.
Thanks a lot, Sean.
I'm really excited to
have you with us today.
I think it's gonna be fun to talk
about the construction process and
which you've got hands on every day.
But start everybody out by giving
'em a little bit of your background.
Shawn Beichler: Thanks Paul.
I'm glad to be here.
Glad to be a part of the conversation.
Background.
I grew up in the world of architecture.
That was my upbringing in school.
Ended up in design build
for that for a few years.
Got outta that to get into more
development, broader development.
Did work for McDonald's Corporation
for about 10 years, both in the real
estate and construction side of things.
Developed about 300 stores
over a 10 year period for them.
And then for the last 20 or so
years, moved into, I guess 18 years
or so, moved into shopping center
development with names like Food Lion,
Hannaford, sweet Bay, Lowe's Foods.
So on and so forth.
And most recently, over the last
few years, have been doing primarily
storage with AAA storage, a great
company to work for and love being here.
Paul Bennett: Yeah.
Well, we're super glad to
have you at your background.
I'm always really proud to tell people
a little bit about your background
because you you've, you've been at
this with some of the biggest players
out there in terms of development.
So, really, really glad to have you.
We're gonna walk through
the, the development process.
Really has, you know,
three or four major stages.
First the pre-development
phase, which we'll talk about
first, then the actual start.
We won't spend a lot of time
there, but that's, I think
that's a little bit interesting.
And then the actual construction process,
first site work, and then the vertical
construction, and finally getting it
to a certificate of occupancy where
you hand it off to our operations team.
So let's just jump in and start with the
pre-development part of the process as.
Folks that listen to us on a regular
basis know we land, bank land to
to transfer into an investment
vehicle once it's ready to go.
And you, your team, you've got a team
of project managers really manages
that property from the time we buy it
through the pre-development process
until it's ready to start construction.
So talk a little bit about the things
that you start with the major, you
know, big rocks early when we've
just bought a piece of land and how
it progresses through that process.
Shawn Beichler: Sure.
Yeah.
we deal a lot with pre-development.
It's an a very important part of our.
Getting into something even before
we purchase a piece of property, we
want to know what's the property?
Is it zoned correctly?
Can we build what we want to on it?
Are there any issues?
We're looking at competitive
impacts, all that sort of thing.
And we're looking at a number of
different aspects of, of that in terms
of what goes into pre-development.
Primarily it starts off with just a lot
of research with local jurisdictions.
Bigger the city, usually
the more difficult it is to
get something through the.
Smaller the area that a little
bit easier just based on
permitting and that sort of thing.
But we look at zoning, we look at
preliminary sketches on a site plan.
We look at building designs and
what we might have to put on there.
We do a lot of research with the
city in terms of are there any things
that are gonna cost us more money
relative to this particular site.
And every site is a lot.
And can be a lot different, which can add
or subtract to the cost of the project.
We do a lot of cost estimating up front.
We work with local GCs to make sure
that we're up to date in terms of
changing costs for construction.
There's some big ticket items that
we look at up front too, which
is usually re with regards to
the Department of Transportation.
And really the biggest pieces of
those are, are, is there gonna be any
road winding or turn lanes or any of
that sort of thing that they're gonna
require us to do, because that can
be a significant amount of money that
comes outta pocket to, to look at that.
So we want to understand
all that stuff up front.
We wanna understand the approval process
for the timeline of from A to Z of how
long is it gonna take us to develop this?
How long is it gonna take us
to get through permitting?
Again, back to the earlier comment
of the bigger the jurisdiction,
usually the harder it is to
get through the permitting
and the timeline and the
process from that perspective.
Some things that can add some lengthy
amount of time to the processes.
If you've, you've got a PLA of property.
And that can sometimes take upwards
of nine months that you add onto the
project, which is required in some
jurisdictions to, to be able to get
your site plan and buildings approved.
Paul Bennett: Yeah.
One of the things you touched on right
there, Sean, I wanna stop you for just a
second, that I think most people wouldn't
be aware of and ultimately they don't
really have to care, but they may be
just interested in learning a little bit.
The first one is.
Different jurisdictions have different
restrictions on how much impervious
cover you can have on a particular site.
So, and that means how much of it
can be covered with a nonpermeable
surface, like concrete, whether it's
the building pads or the driveway.
So one of the things.
You have to look at early on is
the preliminary site design and
does it fall within the guidelines
for how much of that ground we're
allowed to cover with concrete or
you know, other impervious materials.
So talk just briefly
about that for a second.
'cause I think that's something most
people would never even consider when
they were trying to build something.
Shawn Beichler: Yeah, that's one of
the most critical pieces of the, our
upfront view into what we're researching.
And, and I say that because, you know,
you can lay out a big site plan with
a lot of buildings on it and a lot of
concrete and so on and so forth, and
you get out there to build it in the.
Jurisdiction comes back and says, well,
no, you can't have over 45% impervious
coverage, so suddenly that reduces your
buildings, that reduces the size of
your lot, your parking lots, et cetera.
So it's, it's a very key thing for
us to look at, to make sure that
we fully understand that going
into it so that there's there's no
hiccups when it comes to what we're
actually going in for a permitting
for that piece, particular piece.
Paul Bennett: Yeah.
and it's, again, something most
people wouldn't think about.
Another thing I think in the
pre-development process that most people
wouldn't think about are two things.
Number one is access to
utilities and utility easements.
Which can dramatically affect the cost of
a project, the complexity of a project.
And the other one is the
Department of Transportation.
You know, and the, the
requirements that they can put.
It's always interesting to me.
They send us an agreement
that's a donation agreement.
and what that means is they've
determined that our project is gonna
impact traffic flow in that area.
And they either want us to add a
turning lane or an extra lane or a
deceleration lane, and we get the
pleasure of donating that, that road
improvement project to the state.
So to, to kind of inform or
educate everybody a little
bit about that for a second.
Shawn Beichler: Yes.
Relative to both that DOT and
utilities, DOT is a critical for
role for what we have to understand
up front because it can get very
expensive if you're adding turn lanes.
Are they only gonna give you a
ride in, ride out to your facility?
So it really restricts how cars
can get in on, off your lot.
You mentioned you know, donations.
Yeah, we get into a lot of that
relative to, depending on what kind of
impact that we're causing to the site
that it can add up to a lot of money.
And we, that you gotta
know that going into it.
'cause we've gotta take all that into
account in our financial modeling
relative to how's that gonna affect
the project, the overall returns.
and with regards to utilities,
I mean, it's one thing if you're
building a facility and you tap
into a water line that's right at
your front door, outside your front.
Entrance.
It's another thing if you gotta
bring water up the street.
A thousand feet and get, some of those
things get very expensive as well.
We also look at timing relative to
power companies and how long it takes
them to get transformers and that sort
of thing to your site to be able to
meters and et cetera that to make sure
that we can do what you want to do.
So just a lot of things that require
due diligence up front to make sure
we're going in eyes wide open to make
sure that this is a very successful
development and brought in on time.
Paul Bennett: Yeah, and I think the thing
that most people maybe don't grasp is
that the foundation that's laid in the
pre-development stage of the process.
Really sets the tone for the whole
development and is a critical part.
I, I'm gonna mention this real quickly.
Just the, the other thing related to
DOT that can happen is before they tell
you what you get to donate to the state,
they could require you to do a traffic
impact analysis, which A TIA, which
we had to do for the Gastonia project
in just outside Charlotte, which is in
growth fund two, and that's where they
basically hire an independent consultant.
To look at current traffic counts,
anticipated traffic that you're
gonna create, and then come back and
recommend, you know, what changes we
have to make to their infrastructure
to to accommodate our project.
So I don't wanna stay too long here
'cause we've got a lot to cover,
but anything else just sort of
closing on the, obviously the end
of the pre-development process.
Is when the project has been designed,
all the architectural work is done.
it is permitted in stages.
The site work and the civil
engineering plans permitted
usually, well, almost always first.
And, and then the final stage is getting
those buildings and the drawings for
those buildings and whether they meet
fire codes and all the other aspects
of whatever the jurisdiction requires.
That's sort of the final step in,
in the pre-development process.
Any, anything you wanna sort of help folks
understand as we move on to the next.
Shawn Beichler: No, I would just say
relative to the sequences you said
there, we absolutely do the civil and
that sort of permitting up front because
that sometimes can dictate what the
buildings look like in terms of size.
In terms of look, et cetera.
So we usually get pretty far down the
road on the site permitting and any site,
other u utility permitting that we have
to do to make sure that we understand
when we're going to draw the buildings
up from an architectural perspective,
if we've gotta use certain colors or
certain textures or whatever the case may
be, certain sizes relative to trying to
stay away from using sprinkler systems
and not making our buildings too big.
So, just a lot of factors that go into it.
But the sequencing you
mentioned is correct.
Paul Bennett: Yeah, so another thing
I keep going here, but it's another
thing nobody would ever think about,
which is depending on the jurisdiction,
the size of the building can dictate
whether or not you have to put
sprinklers in or how many firewalls
have to be in a particular building.
So we do, I.
All the drawings done internally,
right by our own architect.
So basically we get through the the civil
permitting process where we've really
forced out all those issues and know
exactly what we're dealing with before we
get too deep into actually designing the,
building, the footprint of the building,
the petition plan for the building.
So again, it's a super complex process
and, and it's critically important
because it really does set the tone
for the whole whole development.
We'll gonna move on just briefly here,
but tell everybody you know, what are the
things that you have to have in place or
we have to have as a firm before you get
a green light to actually put a bulldozer
on the site and start moving dirt and and,
you know, move the whole project forward.
Shawn Beichler: Sure.
Certainly from a permitting perspective,
we wanna have civil permits in place.
We wanna know that we can we've got
correct zoning in place with regards
to anything that is required with that.
We we're basically trying to.
The process, a risk-free process where
we know we can do what we want to do.
So we've gotta get that far
enough in the permitting process.
That sometimes means that the building
per has been permitted because it's
in a, a city like Austin or somewhere
that's a harder jurisdiction.
You get into some of the, the
outward counties and that sort
of thing, it's a little bit
easier in the permitting process.
So building, getting a building permit's
really not that big of an issue.
So really depends on where it
is and how much we get done.
We wanna know at the end of the day that
there's not gonna be any unforeseens.
That we can't do
something because we wanna
be able to build what we wanna build.
And in addition to that, I mean we've
gotta have the loan information in place
to know that we can get the required
dollars and stuff that we wanna do
to, to build this thing, the equity in
place relative to any specific project.
'cause we're gonna have to spend
that money up front before we
start spending money on the round.
And we've also gotta look at
the number of projects we've got
going on at any particular time.
We do use multiple GCs and look at
just the crews that those folks have.
and it seems like it,
when it rains, it pours.
We get all the permits at once.
We've gotta start everything at once.
So we've gotta constantly go back and look
at, you know, from a timing perspective,
do we have enough people in place to
get everything done that we want to get
done over the course of the projects.
Paul Bennett: Yeah, and even in
Texas where we basically control.
the construction function you
know, different than out of Texas.
When we use a third party gc, you still
have to deal with scheduling issues.
This, this is actually the
place where you and I interact
probably as much as anywhere else.
We certainly, you know, have lots of
other points of touch, but timing the
start of a project you know, my primary
responsibility is the loan and the equity.
From that process standpoint and,
and you really handle the permitting
stage and the crew availability.
But this is a place where you and I
have to coordinate closely 'cause it
really impacts sort of our overall
schedule for, you know, each of
the funds as they start to start
construction on different projects.
So we've gotten the project started,
we've gotten it through pre develop.
Let's talk about the
construction process itself.
And you know, the way we're going through
this is terribly linear, but actually the
construction process is pretty linear, so
I, I don't know that there's another way
to really talk about it, but so you've got
your permits, you're, you're happy and.
And comfortable that there's not
gonna be anything that stops you
from building what we've designed.
Talk about the, what you really get going.
What's it look like?
What are the first things
that happen on a site?
Maybe talk about the phased approach
to construction just a little bit.
As you get started talking about the
actual horizontal development work
and then the vertical construction.
Shawn Beichler: Yeah, so we're
primarily talking about storage here.
We do sites with just storage,
but we also do sites that have
both storage and warehouses or
business parks on them, where we
have tenant outfits that we do for.
In leased locations for tenants.
And so depending on what that
site is, we'll come in there
and we'll start the site work.
There's usually several
months of moving dirt.
We try to design sites so that we don't
have to take a lot off, fill off, and
we don't have to bring a lot of fill on
because that all gets very expensive.
So we try to.
Work with the grades that are there and
what's most cost effective in terms of,
you know, the design and that, that goes
into the first part that we talked about.
And looking at that once we get far
enough on the site work, we'll we
wanna make sure upfront that we've got
all the utility companies on board.
So if they've got long lean tie dimes on
any of the stuff that we mentioned earlier
with regards to meters or transformers
or that sort of thing, we want those
in place before we, we really need 'em.
So.
Actively contacting those, those groups,
and sometimes we get into hiccups on
that with regards to some of the stuff
that has happened in Texas most recently
with the flooding where, you know, the
new customers kind of get put on hold
and all the existing customers get
preferential treatment relative to that.
So it just different things that can
pop up that you didn't foresee, but,
e every once in a while that happens.
Once the site work back to the site
work gets primarily done, then we're
coming in with the foundations and
the buildings, the slabs, getting
all those things into place.
By that point in time, we've
ordered all of our steel for
storage buildings and warehouses.
If we're doing warehouses, pre-engineered
structures and then we go vertical, we
really go bring it outta the ground.
the biggest, thing that affects
us in terms of weather is,
is usually the site works.
We, the quicker we get at that
in there, I usually say the
buildings will build themselves.
'cause once you get it dried
in, you can work inside and
Have
Paul Bennett: and I tell people all the
time, we're not building rockets here.
It's basically a metal
building on a concrete slab.
So, it's, it's pretty simple.
And if you can get the site work done,
you, you, you mentioned, you know,
Phil, either having to take it off or
bring it in, it reminded me of, of.
Of a project that's in growth fund
one that's just starting construction
now, highway 41, where the original
civil plan required a ton of fill and
you went back with a civil engineer
re-engineered that site design and
took out about $400,000 a cost that
was related to having to bring in Phil.
And and so it's a really.
All along the process, pre-development,
and even as you get close to construction,
there's some value engineering that you
do to make sure that we bring projects
in, you know, at or below budget.
Shawn Beichler: Yes.
And then, and you mentioned that
project that brought up another
thought to me in terms of we're
always looking to value engineer sites
even when we're out in the field.
So one of the things that, that
came up with regards to that was
part of the site, part one of the
buildings was in a floodplain, so we
took an extra little bit amount of
time to go back to FEMA and work to.
to ensure that they had redrawn
the maps and we actually ended up
getting it out of the floodplain.
So from that perspective, we didn't
have to flood proof the building,
which is a lot more expensive
and a lot more time consuming.
So just different things as we're out
there building it, if we see things
that can pop up, that we can change,
then to make it more cost effective and
make the returns look better than we do.
We, you also mentioned earlier phasing.
Usually when we're looking at storage,
we will, and we've got, let's just say
five, six storage buildings out there.
We may start out with all the site
work or majority of it in phase one and
bring those buildings out of the ground.
So we want to understand how much
of that leasing is gonna happen
and how quickly it's gonna happen.
So if we're building a project in
two phases, we may wait until the
storage is 60% leased up in phase
one before we start phase two.
Now in phase two there's gonna be a lot
less horizontal work, I'll call it site
work, utilities, that sort of thing.
'cause we've probably already
done most of the work.
And so it's really a matter of just
bringing the, the buildings up.
And so the, the intent of that would be
as we're continuing to lease up phase one
from 60% to a hundred about the time and
the, the amount of time it takes us to
do phase two, we're hopeful that phase
one is then leased up and we transition
right into leasing up phase two.
So it's just
a natural progression.
We also build on.
Paul Bennett: with David Lutz and his
crew on the property management side.
In terms of where we are in the lease
up cycle and how things are progressing.
I think it's also important to note that
you really do most of the site work.
In fact, on occasion, because concrete
pads are pretty indestructible, if it's
a little bit more cost efficient, you'll
go ahead and pour pads for phase two.
and just leave 'em until you're,
we're ready to go vertical.
'cause.
The cost when the grading's
already done the cost of pouring
the concrete's, not tremendous.
Shawn Beichler: Yeah, and it's
really a case by case basis.
It depends on the grades and whatnot
out there and how big the project is.
If it's a smaller project, we'll probably
absolutely pour all the pads at once,
depending on just the size of the project.
It just, there's a lot of
factors that go into that.
We also do, I might mention, we
also do for storage, we do onsite
an office and a an apartment.
That sometimes is in the same building.
Sometimes they're separate
buildings, but we like to have onsite
managers to manage the storage.
We just think it's, it's, it's more
cost effective to have them there.
Easier to get things leased up.
They're al always on site and can
react to things that are there.
So maybe a little bit more work than some
other storage companies out there where
we've got, you know, actual individuals
living on site, managing the property.
Paul Bennett: Yeah, but I think something,
I'm gonna check something with you
typically you know, we think in terms
in of six to eight months to build
phase one because there's a little bit
more grading and site work involved.
And one of the things you haven't
talked about, and we don't
need to really get into it.
But another thing that people wouldn't
think about is the fact that most of our
sites require retainage ponds, and in
some cases, some fairly complex drainage
work to make sure that the part of that
surface we've covered doesn't create
runoff that creates a problem for an
adjacent property owner or, or the city.
But but basically six to eight
months to build phase one and three
to six months to build phase two.
That's pretty much the marks that you
hit in most of our projects, right.
Shawn Beichler: Yeah, that's,
that's a fair statement.
Paul Bennett: Well good.
So, so we've got the site work done.
you're into you know, the
vertical part of the process.
We do something that's a little bit
unique at AAA storage with the roofing,
particularly on the storage buildings, not
on the not on the small bay industrial.
and it's a move that, that allows us to,
from a design standpoint, build a unit
that stays drier than the materials and.
Design that you would get
from a steel manufacturer.
It also saves us a little bit of money.
Talk for just a second about how
what we do that's unique with the
roofs on our storage buildings.
Shawn Beichler: Yeah, I mean we're using
metal roofs, but normally where you go
out and you'd hire a contractor or a
subcontractor to come in and do all that
work, we have in-house crews that do that.
We have our machinery to bend metal,
cut metal, whatever the case may be.
And that's, that's where we get
uniqueness relative to our, our projects.
I think because 1 we can probably
get it done faster because
we're managing ourselves.
2 we know it's not gonna leak
because we're doing it ourselves.
And so there's a just a number
of factors, benefits that go into
that relative to roofing and.
and being able to get things
dried in quicker so that you
can get the inside done quicker.
HVAC installed quicker, you
know, those sorts of things.
So a little, that's probably a little
bit different than most companies, but
we think it's a benefit and helps us
move faster and get things done faster.
Paul Bennett: Yeah, I mean, we
basically buy flat roll steel in.
Bulk, and we have the equipment that we
move from site to site to actually bend
that metal and create the roof seams
that that, that are used on our building.
So, you talked about the
office and apartment, that is a
little bit of a unique feature.
I think it's always interesting to me.
I, it's really hard to get data on.
Actual cost per square foot
in different markets that
other people are building for.
But in spite of the fact that we build
a separate building with an office, it's
usually an office on the first floor
and an apartment on the second floor.
For our own site managers.
We're bringing cost in at somewhere
between $100 $110 a square foot,
which again, hard to get real
data, but my gut is we're probably
15% below the average cost that,
that other developers are seeing.
And it's really because of the way
you manage the process and the fact,
particularly in Texas that we control
the resources that are building it.
any comment?
I'm, I'm super proud of you guys
for being able to accomplish
that on a consistent basis.
Any comment about that in, in terms
of how it drives you and how you
think about managing a project?
Shawn Beichler: No, I think the numbers
you mentioned are fair and to back to
your example of the roofing relative to us
bringing in roles and doing that sort of
thing, you could buy it offsite and you,
it is already pre-stamped and to what you
need it, you're just gonna pay more for
that from a labor, from somebody else.
So we save a lot of those costs and, and.
Try to drive that, that savings
to the bottom line relative
to just doing it ourselves.
And some of that, especially
with regards to roofing just
having the control over it.
I know that with regards to the office
and apartments, when I've just fact
checked this outside with other venues,
we do tend to spend 10-15 less just
because of again, we're doing it all
in-house and we try to repeat the same.
When we can the same
buildings over and over.
So there's some cost effectiveness
in, well, we've already drawn
that architectural set of plans.
All we gotta do is put it on the,
change the address and put it on the
next build and then the next project.
So there's some savings
relative to that as well.
Paul Bennett: Yeah, we do
some really crazy things.
We were talking about the roof panels
and it just kind of dawned on me
you know, fencing, particularly in
self storage isn't a significant
cost, but it's a real cost.
And most developers call a
fencing company and have them.
Come out and put a chain leak fence or
whatever, we do it a little differently.
We take that same flat roll steel and
the equipment that we already own, and
we actually create panels and build
a fence out of the same type of panel
that are on the roof of the building.
and you think about that, if you
think about a piece of flat roll
steel that's been bent in seams, the
top edges of that are pretty sharp.
I've never tried, but I wouldn't
want to climb over the top of one.
Shawn Beichler: Yeah, we do that as well.
and it's just another piece that we
don't have to sub out to somebody else.
And.
You know, wait for their timeframe
to come out and install it.
It also, I think it adds a better sense
of security because the panels aren't
see through then like a chain link fence
would be, even if you've got slats in
it, you can probably see through it.
But it just adds more security to the
surrounding location because it's, it's
completely invisible from the outside.
Paul Bennett: the people can't
see in the project at all.
So they can't see if it's a project
that has RV or boat storage that's
outdoor, those assets aren't visible
to somebody outside the facility.
Sort of at the very end of the process,
you're wrapping up utilities you're
putting in the gates and all the security.
Apparatus in the project.
And then you're going for final
inspections and co talk about the
tail end of a project, what it looks
like as you get ready to wrap it
up and hand it over to the property
management group to begin lease up.
Shawn Beichler: Yeah, you
mentioned David's name before.
We're getting ready to turn over
projects to him from, to operate 'em.
So there's always a David.
We're getting ready to
get a CO on this one.
And we're always trying to pin a date
down to it, and that comes with a lot
of inspections relative to the sites and
the buildings and that sort of thing.
So we're getting to a point where
we're trying to get either a tentative
CO or a Final Co so that we can.
Get in there and start operating and
making leasing up stuff and getting
money flowing in as quick as we can.
Back to my earlier comment, you
know, some of those inspections and
cos come more difficult in bigger
cities like Austin, San Antonio,
Houston, those sorts of things.
You get into the smaller areas.
We may just be dealing with a fire
marshal and doesn't really have as much
criteria that we're required to do.
Relative to what he
wants to give us for co.
So probably a little bit easier to
get one out there, but the quicker
we can get that, the better.
That just gets us into the operating mode
and then we're onto the next project.
We also do after that point in
time, it's not as, not on the
storage, but I'll, I'll just speak.
Shortly on the, the warehouse side of
things where we've got tenants coming
in, we do tenant upfits for them.
So not only do we get on the shell
of a, of a warehouse, we'll get a co.
So that's a co for just
the shell of the building.
But then as we bring in multiple
tenants into a space, or could be one
tenant, such as a pickleball that's
taken the entire building we have
to do tenant up outfits for them.
And there's cos that
come along with that too.
And then obviously there's, there's more.
Time that is very specific to that
because we've got leases tied to that.
We've got tenants that
are ready to move in.
They're, they're, they've got all
their stuff ready, that sort of thing.
So just a lot of coordination that goes
on internally with us and, and our whole
subcontracting group and the tenants and
how we're bringing all that together to
make a
Paul Bennett: Yeah, that's a.
That's a great point and maybe a
good place to sort of begin to wrap
things up because the whole process
you've talked about up to that
point between self storage and the
small Bay industrial products that
we develop is pretty much the same.
The small Bay industrial
buildings are just bigger
versions of a storage building.
They're slab on grade metal
buildings, metal roofs.
But we build it, it could vary
and obviously there are different
size buildings on the site, but in
general, something that's in the
12,000 to 20,000 square foot range.
And then as we lease that space,
actually put a petition in, divide
that building up into different bays.
And then your team led.
Steve goes in, we actually
design the tenant improvements.
We do the layout where the, to if they,
you know, if there's a bathroom, where
the bathroom is, where their office
space is, how it's divided up, all
the finishes, all that type of stuff.
And then once it's designed, it gets
handed off to to, to your team to
actually go in and do the construction.
And we coordinate with subcontractors
like HVAC and plumbing the trades that
we have to have to do with the MEP work.
But we do all the construction work.
And that's really the last.
Stage of construction in the small
bay product is when we actually are
finishing out spaces for the tenants.
and I know that you coordinate with
David usually 45 days in advance as
you start to approach the CO on a
storage site so that he can start
marketing that site and get ready for
the grand open and build his marketing
plan and, and that type of thing.
Sean, it's been great to have you, man.
It's been fun.
I hope people have learned a little bit
and maybe appreciate a little bit some of
the complexities of what we do in ways.
It's simple.
Like I said, we're not building rockets.
They're slab on grade metal buildings, and
at the same time, the whole development
processes, you know, can be complex.
You, you mentioned it several times.
One of the reasons we build in city skirt
markets, the bedroom communities around
Austin, San Antonio, Houston, Charlotte
in those markets is that the whole
pre-development permitting process in
those areas is a lot simpler than it is.
You.
You're often dealing with a fire marshal.
Versus a planning commission that has
a staff of 15 people and a lot of time
to make up rules and regulations that
make them sleep good at night, but make
developing, you know, really difficult.
So it's one of the reasons we
tend to stay out of the out of
the major cities proper and really
develop in the areas around them.
So anything else you want
people to know as we wrap up?
Sean, it's been great to have you today.
Shawn Beichler: No, I
appreciate the time to be here.
I'm excited to continue our
work and we're looking forward
for more investors coming in.
Paul Bennett: Yep, we've got some
projects coming your way hopefully
starting in October with growth
Fund two, breaking escrow, so you
guys stretch out and get ready.
We'll go to work.
Shawn Beichler: We're ready.
Let's
go.
Paul Bennett: man.
Thanks.
Thanks, Brandon.
Shawn Beichler: Thanks.