Multi-storied, climate controlled self-storage facilities

I got this really interesting question from a guy (I won't share his name in case he'd rather stay anonymous) on Bigger Pockets after we connected on a Self-Storage investing thread on their forums.  I certainly don't have all the answers but I thought it was interesting banter and his question probably provided more info that my answer, which also is unique.  For reference, he is from a small market in the midwest.  Similar to, if not slightly smaller than, Des Moines, IA in size and stature. 

Question or discussion point: Anyway, wanted to see if you have any experience or knowledge of companies that specialize in conversion or construction of multiple story climate controlled facilities? want to start doing some due diligence on trying to develop one in my market.

My answer: This is an interesting question you are presenting regarding the climate controlled storage.  I don't have much in the way of experience as I've never built anything quite that complicated.  It feels to me that you have to have a couple things working against the self-storage market before considering this option.  1.) property values have to be quite expensive, 2.) it has to be hard to build self storage, and 3.) there can't be any larger warehouses that could be converted into this.  

1.) It doesn't make sense to go up if property values are cheap enough to go sideways. 

2.) This means that only the determined can succeed in getting new self storage built and therefore it's worth buying expensive land and building expensive buildings because you'll get top rents.

3.) In the end this is what I wanted to talk about the most.  If there are large warehouses or old retail buildings sitting vacant, they might be a better buy and rehab project than a new construction.  You might be able to get the best real estate as there aren't many old Kmarts on crappy corners or out in the country.  Also, there is a number of these conversions in the Twin Cities now and I helped a friend move into one.  Seems like very simple construction methods and pretty cheap way to build units.  All of the slab/foundation is already in for you and you just attached walls to the floor.  All other infrastructure is in too - heat/AC, sprinklers, lighting, etc.  

So in the end, I'd explore the existing vacant large buildings/warehouses to see if you could retrofit one of them first.  If not, you might be well-served to head to an industry trade-show to see who'd designing and building these things.  

Do you mind if I ask why you were thinking the multi-story option would be best for a future project?  I've been there a time or two and it seemed that there was plenty of industrial/commercial land where storage could get built without having to go the more expensive route.  But if you can get a premium price for a premium product, more power to you, for sure.  

Feel free to email or call to discuss more.  This is an interesting subject.  I've mainly been building larger-scale storage units for businesses and people with large items - boats, RVs, heavy equip, etc.  Therefore, I haven't really thought about the multi-story climate controlled units all that much, to be honest.  But I do know there is a certain client that is looking for climate controlled and it isn't as simple as what they want to store.  It seems like more of a value proposition for them.  If they see the value in it, they'll pay for it.  And that's whether they really need it or not, which is the ironic part.