Off-site improvements such as road widening, utility extensions, and traffic-related upgrades can significantly impact the feasibility and development costs of a self-storage facility. These improvements are often required by local jurisdictions to ensure that the new development integrates safely and efficiently with public infrastructure. Understanding these potential requirements during the due diligence phase is essential to avoid cost overruns, permitting delays, or entitlement challenges.
1. Road Widening and Right-of-Way Dedications
- Developers may be required to widen adjacent roads or add turn lanes, sidewalks, and curb cuts, especially along arterials or collector roads.
- Local jurisdictions may mandate the dedication of additional right-of-way (ROW), reducing usable parcel depth or building area.
- Corner lots may be subject to sight triangle easements or corner cutbacks for improved visibility and pedestrian safety.
- Off-site paving, striping, and stormwater adjustments are commonly part of road improvements.
- These requirements can add $50,000 to $250,000+, depending on the scope and jurisdictional standards.
2. Utility Extensions and Service Upgrades
- If water, sewer, electricity, or telecom lines are not present at the property boundary, developers may need to extend utility mains from nearby access points.
- Utility agencies may also require upsizing of lines, installation of hydrants, manholes, or lift stations.
- Coordination with multiple utility providers can increase permitting time and mobilization costs.
- In rural or undeveloped areas, private septic, wells, or transformers may be necessary, further increasing upfront infrastructure investment.
- Utility extension costs vary widely, ranging from $50 to $200 per linear foot, depending on terrain and material type.
3. Traffic and Access Improvements
- Jurisdictions often require a Traffic Impact Study (TIS), particularly if the project generates significant trip volumes or is near a signalized intersection.
- Based on TIS results, you may be required to install deceleration lanes, turn bays, or signal modifications.
- Access control improvements—such as gates, striping, or stop signage—may also be needed for vehicular safety.
- Shared access agreements with adjacent properties might be required to limit driveway conflict.
- Traffic-related improvements can add $30,000 to $150,000+, especially for corner parcels with dual frontage.
4. Drainage and Stormwater Mitigation Requirements
- New impervious surfaces often trigger requirements for off-site drainage connections or detention system tie-ins.
- If no existing storm infrastructure is accessible, developers may have to construct or contribute to regional systems.
- Off-site drainage easements may be needed, requiring negotiation with third-party landowners.
- In floodplain areas, developers may face mitigation or elevation requirements extending beyond the parcel.
- Storm system extensions can cost $20,000 to $100,000+, especially in constrained urban areas or sloped terrain.
5. Public Improvements and Developer Impact Fees
- Municipalities often impose impact fees or require developers to fund off-site public improvements, such as streetlights, crosswalks, or park contributions.
- These may be fixed (per square foot) or negotiated during site plan review and entitlement hearings.
- Some jurisdictions offer fee credits or phased improvement agreements to reduce upfront cost burden.
- Public improvement obligations can significantly affect pro forma projections and must be modeled early.
- These costs can range from $1 to $5 per building square foot, depending on location and infrastructure burden.
