Access Self Storage, with six facilities in the Dallas/Fort Worth, Texas, area, encouraged its employees to make a difference in their communities during the winter holidays and is now offering customers a donation-matching program so they can do the same.

During the companys annual Christmas party in December, company owner Doug Hunt gave $100 to each of his facilities, letting the managers decide how to use it. The only stipulation was that the money be used to benefit others.

• John and Marylin Wynn, managers of the Oak Cliff facility, gave their $100 to Mary Williams, president of Hands of Mercy, who used it to provide holiday gifts for a grandmother and her five grandchildren.
• Jeff and Debbie Ford, managers of the Lancaster facility, gave the money to a tenant and her child, who had been evicted from their home and were living out of their car.
• Red Oak facility managers Tom and Betty Miller chose to help a man who routinely comes through their property looking for items that can be sold or recycled. His gas and food money comes almost exclusively from scavenging.
• Doris LeFever of the East Dallas facility provided food and Christmas presents for a single mother and her eight children in the midst of their griefthe familys youngest child had recently drowned.
• Lori and Carlos Cabanas of the Garland facility gave their funds to a couple who had come to Dallas in search of work and ended up mugged and penniless. Lori found the couple sitting at her dumpster one morning and knew they needed her help.

We wanted to let our employees share in the opportunities we have as a company to make in difference in our cities, Hunt said. Access regularly hosts fundraising events for charities, schools and educational organizations.

Now Access has started a donation-matching program to benefit the Texas Scottish Rite Hospital for Children and other charitable organizations. Donations in any amount up to $2,000 will be accepted and matched by the Access corporate office.

Founded in 1921, the hospital has helped more than 190,000 Texas children at no cost. It specializes in orthopedics, learning disabilities and certain neurological disorders.

In its first national collaboration with the U.S. Marine Corps Reserve Toys For Tots, PODS Enterprises Inc. provided more than 170 mobile-storage containers to support the organizations annual holiday toy drive across the United States.

The Toys For Tots program, which runs from October through December, collects new, unwrapped toys and distributes them during the holidays for children in need throughout communities in all 50 states, the District of Columbia and Puerto Rico.

Our local PODS franchise owners and corporate stores were happy to have assisted Toys For Tots this holiday season, said George Spowart, vice president of marketing. Were looking forward to providing Toys for Tots with secure onsite and offsite storage again next holiday season.

Founded in 1998, PODS currently provides moving and storage services to a population of more than 240 million consumers, in 48 U.S. states, Canada, Australia and the United Kingdom through its company-owned and independent franchise network. To date, the PODS network has completed more than 300,000 long-distance relocations, exceeded 1.6 million deliveries and has nearly 141,000 PODS containers in service.

Storage Property Protection (SPP), a Phoenix-based provider of tenant-insurance solutions, named its first self-storage managers of the year.

Garry and Donna Kaylor of Tatum Ranch Storage Solutions in Phoenix are the recipients of the first Storage Property Protection Managers of the Year award. The Kaylors have worked as a management team for seven years.

The couple was chosen for their excellent customer service and outstanding implementation of their facilitys tenant insurance program. 

In addition to receiving a plaque, SPP is also sponsoring the couples trip to the Inside Self-Storage World Expo in Las Vegas, March 14-16. SPP Chairman Harry Sleighel will present the seminar, Choosing a Self-Storage Tenant-Insurance Program March 15. For a complete agenda, visit www.insideselfstorageworldexpo.com.

The self-storage real estate market is seeing resurgence in some areas of the country. To get answers to questions relevant to todays facility owners, buyers and sellers, I recently assembled a roundtable of real estate experts to discuss the state of self-storage in the Northeast United States. Ive asked them to comment on the state of the market in their regions and share their predictions on how the industry will perform in 2011. Joining us in the discussion are:

• Guy Blake, Pyramid Brokerage Co., Kingston, N.Y.
• Linda Cinelli, LC Realty, North Branch, N.J.
• Joe Mendola, NAI Norwood Group, Bedford, N.H.

As weve seen a dramatic swing in the volume of real estate transactions, from very few transactions in 2009 to a more normal transaction volume in 2010, what are the trends with cap rates and property values in your markets?

Blake: In Upstate New York, the short answer is cap rates are up and values are down, although certain segments of the industry have fared better than others. Weve been seeing a flight to quality across the investment real estate spectrum. Investors are seeking safety more than anything else, and have little appetite for risk.

Accordingly, well-located, class-A facilities with good occupancy rates are still in high demand and are selling in the 8 to 9 cap range. Class-B and -C facilities or facilities with vacancy issues have not fared so well. Demand for lower-quality assets is still off compared to a few years ago, and the sellers of these facilities should expect cap rates of 10 percent or higher based on actual, in-place income. Buyers are simply not paying for vacant space or expansion potential.

Cinelli: In our experience in New York City and New Jersey, there are no normal transactions in todays market. Property values have not increased. If anything, we hope to keep them stable. Cap rates have dropped 1.5 points, with aggressive rates at 7 percent to 7.5 percent, and most offers are around 8 percent to 8.5 percent.

Mendola: In the last 18 months, from east of Interstate 495 from Bourne, Mass., north to Concord, N.H., and over to the coast of Maine, there have been only two self-storage facilities that have closedone in Bridgton, Maine, and one in Derry, N.H. For a well-located facility with strong demographics, the cap rates are between 8 percent and 9 percent. In more rural markets with less density, the cap rates are between 9 percent and 10 percent. These properties have good occupancies in the 80 percent to 85 percent occupancy range.

Due to the lack of construction financing will conversions become more prominent in the next couple of years?

Blake: I dont think so. First, conversions generally require construction financing just like building new facilities from the ground up. Second, we have seen virtually no construction in the last two years, and I expect that to continue for at least the next two or three. As the recession wears on, Im seeing more facilities whose occupancies are slipping into dangerous territory. I dont expect to see any new construction, conversion or otherwise, until the existing facilities fill up their vacant space.

Cinelli: In my market, conversions are more prominent as theres virtually no money for ground-up deals, especially with the indicators for three to four years to stabilize. We are seeing conversion interest in certain urban markets with the population density and demand to support new facilities.

Mendola: Conversions fit into the same category as new construction in the Northeast. Theres plenty of capital to invest in well-located markets that can show good unmet demand for self-storage. The issue is speculative projects of any type are difficult to finance. But if a developer can demonstrate a strong track record in self-storage management and a need for storage, conversion or new construction can be financed with conservative underwriting terms. Now that the Small Business Administration has entered the self-storage financing market, it has opened up new opportunities for self-storage development through its 504 real estate program.

As the economy and real estate market start to recover, should investors buy, and should owners consider selling or continue to operate their properties and see what happens?

Blake: Its unquestionably a great time to buy! The tricky part is finding people who want to sell in this market. Its well known this is a buyers market, so many would-be sellers are just biding their time waiting for things to improve. Plus, were seeing a number owners of distressed facilities who would love to sell but cant because the value of their property is less than what they owe. This is going to take several more years for all this to shake out. The economic recovery in Upstate New York is progressing slowly. Were beginning to see activity pick up a little bit, but we still have a long way to go.

Cinelli: Depending on their particular situation, theres no clear direction for self-storage owners unless they are upside down in their loans. They take the chance if they wait for higher interest rates, larger players entering the market, and competing with rates. Today, we see more interest from owners looking for us to provide an opinion of value on their property, as most are looking to hold in the short term and plan for the future.

Mendola: As the economy recovers, Im encouraging buyers to move aggressively to own self-storage in this economy. This is because self-storage is not distressed property in New England. We dont have poor occupancies in the market and owners are not highly leveraged. So owners dont have to sell unless they want to change their lifestyle. In New England, the economy is not nearly as challenged as the nation as a whole. For example, in New Hampshire particularly, the unemployment rate is 5.7 percent and were having an influx of manufacturing businesses coming into the state.

What advice would you gives owners with regard to the financing market for self-storage properties in todays market? 

Blake: Believe it or not, theres financing to be had in this marketprovided the property being financed is cash flowing! Lenders are being a bit more conservative than in prior years and they are looking hard at the borrowers, but most important is the cash flow of the property being financed. If you have a profitable facility, getting it financed is not going to be an issue. If youre reporting losses to the IRS, only a buyer with a strong signature will be able to get financing and it will probably only be in the 50 percent to 60 percent loan-to-value range.

Cinelli: If owners can refinance, they might want to see if they can bring down their interest rates if they have the equity. If refinancing is not an option, owners need to look for an exit strategy and plan how or when they can sell. At some point, there will likely be a change of circumstances that will cause them to sell, and its best to have a plan in place.

Mendola: Concerning advice for financing in New England, theres plenty of capital available from the local banks in the $2 million and less range with loan to values in the 70 percent to 75 percent range and interest rates in the 5.5 percent to 6.5 percent range. Theres also money to lend in the $5 million and up category with the life insurance companies and now some conduit lenders coming into the market. The area thats most challenged to finance is the $2 million to $5 million loan amount. There are not many lenders willing to lend in this price range.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self-storage buyers and sellers. For more information, call 800.55.STORE; e-mail [email protected] .

Authorities in Marion, N.C., are attempting to recover $150,000 in property they claim was stolen by a self-storage operator from the facilitys tenants and sold to unsuspecting buyers for a profit. Benjamin Raymer, 29, the facility owners son and the person responsible for running the storage business, was charged with three felony counts each of breaking and entering and larceny after breaking and entering, and two felony counts of obtaining property by false pretense.

On Dec. 3, a customer of Fort Knox Storage on U.S. 70 West reported that $15,000 worth of goods was stolen from her rented storage unit. Three days later, another customer reported a similarly valued theft. After receiving two more break-in calls for Fort Knox on Dec. 9, police went to the facility to discover yet a fifth unit had been compromised, with $100,000 in furniture stolen.

Detectives began finding some of the stolen property in the possession of Raymers acquaintances, and investigation revealed that Raymer, with the help of accomplice Jerry Davis, 40, had broken into the units and sold it during a weeklong sale at the storage site. Buyers were told the items were from units on which rent had not been paid.

Police have located some of the property but are asking that anyone who purchased items from Fort Knox during the week of Nov. 9 call the McDowell County Sheriffs Office.

Detectives said that when they searched Davis property for stolen goods, they also found methamphetamine. Davis was charged with breaking and entering, possession of stolen goods and larceny after breaking and entering, and one felony count each of maintaining a place to keep a controlled substance, possession with intent to sell and deliver methamphetamine, and possession of methamphetamine.

Charles Wood, a manager at Anchor Self Storage for more than 10 years, is now the new sales and marketing person for Kodiak Mini Storage in Lake Wylie, S.C. Wood will work up to four days a week at Kodiaks Lake Wylie location and at least one day a month at the companys other facility in Concord, N.C.

The companys growth and that of the Lake Wylie area was a draw, Wood says. Wood is also chairman of the Lake Wylie Chamber of Commerce. He hopes to host a chamber event at Kodiak Mini Storage.

Anchor Self Storage has hired Bill Jupena and Dee Dee Comlander as the new store managers. Jupena has 15 years experience with Microsoft, while Comlander is a 30-year area resident. The facility will continue to be managed by Storage Management Partners.

Big Yellow Self-Storage, a self-storage operator with 61 facilities in the United Kingdom, released information showing its operating revenue is rising.

The companys third-quarter revenue from the 51 of its facilities rose 7 percent from the same time a year ago to about $23 million. In addition, total store revenue from 10 partnership stores has more than doubled.

Closing occupancy for the company was 1,874,000 square feet across the 51 stores, representing 58 percent of the total capacity in the third quarter. Company shares have risen 11.5 percent in the last six months.

The majority of Big Yellow facilities are in London and southeast England.

Self-storage call center and marketing firm PhoneSmart donated $500 on Dec. 8 to Kure It, a non-profit 501(c)(3) organization dedicated to funding innovative kidney and other cancer research. It was the first company to use Kure Its newly established online-donation button, created at Kureit.org so supporters to set up one-time or recurring contributions.

PhoneSmart is very happy to be the first to take advantage of Kure Its new easy donate-online service, said director Tron Jordheim. We hope many others will follow our lead.

PhoneSmart is also designating Kure It as a charitable partner for its Hawaii Un-Conference, June 2-6, at the Mauni Lani Resort on Big Island.

PhoneSmart is an offsite sales team dedicated to helping rental-property owners increase their occupancies through better sales, marketing and lead management.

Kure It raises money from the private sector and redirects those funds through competitive grants to kidney and other cancer researchers. The organizations goal is to lead the self-storage industry in raising $1 million for cancer research in 2011. For information on how your self-storage company can participate, contact Director Kellie Newcombe at 949.428.7081 or [email protected].

By Norm Spitzig

Great self-storage companies are populated by great employees. While a talented and efficient general manager is necessary, this sole position is typically not sufficient for the long-term success of your company. Storage businesses that succeed and flourish over the long run have general managers who possess the vision, wisdom and courage to identify, attract, hire and mentor great assistant managers.

For example, lets say Mark is an accomplished and respected general manager who, by and large, does an excellent job for his company. Like many self-storage general managers, Mark also spends too much time on tasks that should be handled by assistant managers. Mark claims hes "just too busy to hire and train an assistant" and "he's better off doing it himself."

These are typical refrains from those in his position, but by securing and mentoring the right assistant manager, Mark would have significantly more time to do what someone in his position should be doing, such as strategic planning, community outreach and developing long-term business plans.

The self-storage business, in turn, would run more efficiently and profitably. Equally as important, the next generation of senior leadership would be firmly in place. Following are attributes savvy general managers should look for when hiring key assistants.

1. Complementary skills . Good assistants are typically not clones of their general manager but bring new and different talents to the senior managerial mix. For example, a "low-tech" general manager would be particularly well-served to hire someone who really understands when and how to use high-tech tools that are available and applicable to the companys business needs.

2. Practical experience. While in no way diminishing the fundamental importance of formal, industry-specific education, good assistants also need relevant hands-on experience before they are truly ready to function effectively. Ideally, this practical experience should be garnered in a variety of positions within the company or with another company in the industry. Assisting with accounts payable is always a good place to start.

3. Loyalty. Good assistants in any profession must be totally loyal to their bossin this case the general manager. Anything less is unacceptable. Office politics might make for a good television sitcom, but they make for bad assistant managers. There is more than a modicum of truth in the old saying, "When the boss looks good, everyone looks good." Effective assistant managers fully trust in the experience and knowledge of their bosses and, over time, they earn the complementary respect and admiration of their superiors.

4. Good work ethic. Successful assistant managers are willing and able to put in the necessary time to help make their businesses successful. Nine-to-fivers need not apply. Acclaimed filmmaker John Frankenheimer (The Manchurian Candidate and Birdman of Alcatraz) once said, "The importance of hard-working assistants cannot be overemphasized."

5. Desire to be a general manager someday . Today's assistant manager is potentially tomorrow's general manager. Someone whos content to "just be an assistant manager" without fervently aspiring to become a general manager is, generally speaking, not someone most general managers would want on their senior management team. (Yes, there are always exceptions.)

6. Passion and enthusiasm for the industry. Successful assistant managers are those who genuinely love their work and industry. Hall of Famer Ernie Banks reiterated throughout his baseball career that he gladly would have played for free.

7. A willingness to be creative . Truly successful assistant managers are willing to think outside the proverbial box. Better yet, they dont think about boxes at all. A common shortcoming of new assistant managers is they are sometimes too rules-oriented or too rigid. Common sense applied to the storage industry will come to most assistant managers over time, especially when theyre working for a mature, supportive and nurturing general manager.

8. An interesting person . Finally, successful assistant managers are not one-dimensional. They have creative, fulfilling personal lives and myriad interests and activities independent of their work. Nerds may be particularly good at the specific tasks they perform, but seldom do they rise to positions of real leadership within a company.

Hiring the right assistant manager can only increase the likelihood of long-term success for your self-storage business. Better yet, top assistant managers make the workplace more enjoyable. W hen people truly love their work, productivity, customer satisfaction and profit all naturally increase. Locating, attracting, hiring and mentoring the right assistant manager is well worth the effort.

Norm Spitzig is principal at Master Club Advisors and an internationally recognized speaker and private club industry expert. He has provided presentations for professional associations, individual businesses, private club leaders and civic groups on six continents. For more information, call 352.735.5693; e-mail [email protected] ; visit www.masterclubadvisors.com .