Update 1/2/18 – City council members voted overwhelmingly in favor of banning self-storage development within IBZs without a special-use permit last Tuesday, sending the measure to Mayor de Blasio for signature. The bill creates a two-year application process, which includes a uniform land-use review procedure. The special permit will cost about $2,000, according to the source.

In all, 48 of 51 council members voted in favor of the ban, with one councilor absent. Those voting against it were Robert Cornegy from Brooklyn, and Joe Borelli and Steven Matteo in Staten Island.

Typically, just two or three new self-storage facilities are developed within New York City’s IBZs each year, which prompted Queens Borough President Melinda Katz to wonder why a special-permit process was necessary, the source reported.

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12/8/17 – A city-council committee approved the measure to ban new self-storage development from the city’s IBZs without a special-use permit yesterday, pushing it forward for a full council vote on Dec. 19. Obtaining the permit would require a nearly yearlong process of public review, culminating in a council vote for final approval, according to the source.

The change wouldn’t apply to two zones in the Bronx and two others in Staten Island. A portion of a zone in Jamaica, Queens, would also be excluded. In those cases, self-storage developers would still be required to reserve industrial square footage in their projects. For the IBZs that opted out of the bill, storage facilities up to 50,000 square feet will be allowed as-of-right, with buildings of larger size required to designate 25 percent of space for industrial use.

New York’s 21 IBZs account for about half of the city’s manufacturing space, the source reported. Though councilmember Ritchie Torres indicated he supported the effort to preserve the city’s manufacturing, he criticized the council for not studying whether restricting self-storage would result in more manufacturing jobs. “The text amendment before us should be seen for what it is: raw legislative power disconnected from fact-finding,” Torres told committee members.

Torres was the lone dissenting vote. Councilmember Daniel Garodnick described the bill as “odd” but voted in favor of pushing it forward. The majority of the city council appears to be in favor of the measure and is expected to pass it without issue this month.

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5/30/17 – New York City officials formally submitted a land-use application last week that would progress Mayor de Blasio’s plan to ban self-storage from the city’s IBZs, unless developers obtain a special permit. The measure would require the permits in “certain parts of manufacturing districts in the outer boroughs,” according to the source. Though city planners considered allowing self-storage as part of mixed-use developments with a manufacturing component, the exception isn’t included in the zoning amendment.

Those fighting the city’s stance on self-storage may push to include the mixed-use provision when the amendment comes up for public review. “They’re now looking at how to create mixed-use developments that would include self-storage and manufacturing space,” Woloz told the source.

City planners have acknowledged that curtailing self-storage development in a city that’s considered undersupplied for consumer demand would lead to increased rental rates and impact self-storage use in IBZs, Woloz said.

Though the city council earlier indicated it would support the zoning change, the eight-member council delegation representing the Bronx submitted a letter asking officials to halt proceedings.

“To be clear, the Bronx delegation is hardly a monolith on the subject of self-storage,” the members wrote. “Some members of the delegation see self-storage as affordable warehousing for individuals and small businesses of minimal means. Others see it as a blight on waterfront properties and a competitor with manufacturing. Even though our views might vary from member to member, the delegation stands united in calling for a new beginning.”

The New York Self Storage Association, along with the chambers of commerce in the Bronx, Brooklyn and Queens, has also voiced its opposition to the mayor’s proposal in recent months, the source reported.

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1/17/17 – Mayor de Blasio’s controversial proposal to ban self-storage from New York City’s IBZs, unless they obtain a special permit, could be in for a legal battle from storage operators and developers. SNL Development Group LLC, a Bronx, N.Y.-based company that has built storage facilities for CubeSmart and other operators, has retained lobbying firm Connelly McLaughlin & Woloz (CMW) to challenge the measure, according to the source.

“We haven’t really seen any evidence that banning industries—banning self-storage—is going to bring manufacturing back,” Michael Woloz, a partner at CMW, told the source. “The city should not be engaging in policies that ban whole industries from growing and providing a service—a valuable service—that businesses and residents need.”

The city council has indicated it will approve the new zoning regulations once it receives them from the planning department, the source reported.

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11/5/15 – New York City Mayor Bill de Blasio unveiled a 10-point Industrial Action Plan this week designed to preserve the city’s 20 industrial business zones (IBZs) for heavy manufacturing. The plan, part of which requires approval from the city council, includes a component that would end “as-of-right” hotel and self-storage development in IBZs. Instead, hotel and self-storage would require a special permit with council approval in those areas, according to a source.

“The administration will work with the city council to create a new special permit that will be required for any hotel developments in M1 districts within IBZs (with the exception of a portion of the area around JFK, where hotels serve airport-related businesses),” the mayor’s office said in a press release. “Additionally, it will implement restrictions on personal mini-storage and household-goods storage facilities in IBZs through appropriate land-use controls. Such storage facilities do not create a high number of jobs and thus do not align with the mayor and council’s vision for economic development in core industrial areas.”

The plan would also protect IBZs from residential development while investing $442 million over 10 years in city-owned industrial properties such as the Brooklyn Navy Yard ($140 million) and Hunts Point ($150 million) in the Bronx. Protection for land zoned for a mix of light-industrial and residential uses will be proposed after an ongoing study is concluded.

“This framework will help determine the best ways to bring a mix of light-industrial, commercial and limited residential development to appropriate locations in a way that supports 21st century businesses and 21st century jobs,” the mayor’s office said. “The city will begin developing the framework for these re-imagined mixed-use districts with the North Brooklyn IBZ study currently underway. Developments would be facilitated through incentives and/or zoning requirements that encourage a mix of uses, with specific requirements assessed on a neighborhood-by-neighborhood basis.”

Some business and community leaders have lobbied for similar proposals because they believe an influx of hotel, residential and self-storage developments in industrial zones have driven up rents and property values, effectively freezing manufacturers from developing in areas specifically zoned for them. An unidentified company executive told “The Brooklyn Paper” his business recently lost out on a property because it was outbid by a self-storage company.

The mayor’s plan would also establish a $150 million loan and grant fund for new or expanding industrial businesses. “The new and current investments will generate more than 20,000 new jobs and support the city’s existing 530,000 manufacturing and industrial jobs,” the release stated.

The proposal was developed in cooperation with city council leaders as well as input from manufacturers.

Sources:
Crain’s, Council Panel Votes to Limit Self-Storage in Industrial Zones
Crain’s, Mayor Finally Unveils Plan to Protect Industrial Businesses, Which Calls for Freezing Out Hotels and Self-Storage
New York City, Mayor de Blasio and Speaker Mark-Viverito Unveil Action Plan to Grow 21st Century Industrial and Manufacturing Jobs in NYC
Queens Chronicle, Council Votes to Curb Self-Storage in IBZs
The Brooklyn Paper, DeBlasio: Hotels Are Killing Industrial Jobs — and My New Rules Will Bring Them Back
The Real Deal, 18 Months Later, de Blasio Gets Moving on Plan to Curb Self-Storage
The Real Deal, Self-Storage Refuses to Be Boxed Out of Manufacturing Zones

From the outside looking in, self-storage facilities generally appear to have a straightforward, basic design. Single-story, steel-and-mason buildings make up most of the storage properties in the United States; but designing these structures is much more in-depth than it seems. Let’s take a deep dive into some important design elements and understand what it takes to create a successful project.

Incorporating Style

Most traditional self-storage facilities aren’t the greatest display of architectural genius. Square buildings that lack color and unique features span the nation, in part due to startup costs. Builders must consider their return on investment, and historically, budgets haven’t included much for attractive exteriors. This is changing, though, with designs that include bold colors or innovative materials. Here are some ways to add elements of style to your project:

• Match the color of your buildings to those of surrounding structures.
• Use bold colors.
• Incorporate unique architectural features.
• Build up! Multi-story facilities stand out.
• Add glass through real or faux windows. It adds a nice touch.
• Install lush landscaping.
• Use masonry to add aesthetic appeal.

Municipal design and review committees now consider how your design integrates with existing buildings in the area. Keep in mind that a mix of aesthetics, function and cost will contribute to the success of your project. Incorporating some of the options above will put you well on your way toward being approved for construction.

Layout Essentials

When you seek to get approval for a self-storage development, there will typically be competing uses proposed for the same land. Demonstrating that you’ll maximize the potential of the parcel will put you one step closer to your goal. To maximize use, you must balance rental space, customer convenience and ease of maintenance.

There are several factors to consider when designing your facility layout, with building size and driveway widths being among the most important. Typically, you’ll want to design buildings in 10-foot increments, simply because steel is manufactured in 10-foot lengths. This will enable you to create the most cost-efficient project.

Generally, a 30-foot-wide building will provide options for a variety of unit sizes. If you don’t have that much area available, you can develop a 20-foot-wide building, though this can cost more per square foot to build. There are also options for larger buildings at 40-foot widths, though these will only provide a balanced layout if you’re planning to incorporate 10-by-20-foot units back to back.

Though 30- to 40-foot-wide buildings with exterior drive-up access are efficient and offer a great unit mix, it’s becoming more common to build 100-foot-wide buildings with interior hallways. As long as you provide tenants with handcarts and dollies, most won’t object to renting your interior units; and you’ll ultimately spend less on driveways and general construction.

Where land is costly or scarce, it makes sense to build multi-story. If you commit to a multi-level design, however, consider raising it to at least three stories.

In some areas, fire and zoning regulations will specify the distance required between buildings. Typically, 25 feet is used for a self-storage facility. Toward the end of buildings, the driveway should be a little bit wider (30 feet is standard) to accommodate a minimum vehicle-turning radius. Avoid any driveway dead-ends except for areas that allow for snow removal and piling.

Unit Mix

Deciding on a unit mix can be one of the most difficult tasks you face during the development process, especially if you don’t know where to start. The mix is crucial to how a facility will perform within its marketplace. Because it’s so closely tied to market dynamics, there isn’t a one-size-fits-all approach. Start by gathering information in a feasibility study. The overall goal is to ensure a proper launching point relative to the market.

Ensuring your facility has the right commercial-to-residential ratio is also key. Most markets will have 75 percent residential to 25 percent commercial.

Climate Control

Considering whether your community has a need for climate-controlled units is important, as this is a growing demand. Climate control will add to your overall square footage, since most of these units are wider than traditional ones.

A simple plan would be to aim for 40 percent climate-controlled units to 60 percent traditional. Just keep in mind that mixing climate control with tradition will add expense, so obtain as much information about your market as possible to ensure cost-efficiency. Developers of smaller facilities sometimes choose to build 100 percent climate control, which raises the overall square footage.

Security

There are several design factors that can help bolster facility security, including building placement. Using the height of your buildings as “fencing” around the perimeter of your property can increase security immensely. Since buildings are much taller than a traditional seven-foot fence, this fortress-style layout ensures most breaches will occur at entry and exit points. If this configuration isn’t possible, perimeter fencing is perfectly acceptable, though barbed or concertina wire usually aren’t tolerable to local municipalities. Spear-point fencing is a great alternative.

Interior elements are also important to ensure client safety. Here are some items to consider:

• Incorporate seven- to 10-foot-wide hallways.
• More doors and windows create a sense of security.
• Straight hallways limit hiding places and reduce security risks.

Self-storage is a competitive industry, and facility design is playing an increasingly important role in business success and market differentiation. Though there are many other factors to consider, creating a unique architectural presence while maintaining efficiency, function and security will go a long way toward ensuring you build a standout facility.

Dakota Kerkove is marketing assistant for Precision Structural Engineering Inc., a Klamath Falls, Ore.-based structural engineering firm specializing in self-storage and shipping-container uses, as well as sustainable residential, commercial and industrial projects. For more information, call 541.850.6300; e-mail [email protected]; visit www.structure1com.

Devon Self Storage, a California-based operator that owns or manages 46 facilities nationwide, has acquired a family-owned portfolio consisting of three properties in Ottawa County, Mich. The sites comprise 212,668 square feet of rentable space in 1,296 units and 47 vehicle-parking spaces, according to the source.

The acquisition includes Lakewood Self Storage Center at 257 W. Lakewood Blvd. and Felch Street Self Storage at 12285 Felch St. in Holland, Mich. The third facility is Georgetown Mini Storage at 7062 12th Ave. in Georgetown Township, Mich.

The deal positions Devon in two underserved submarkets in West Michigan with “well-maintained” properties that “will require nominal capital improvements,” according to a company statement. The purchase was made with a $9.1 million loan facilitated by Talonvest Capital Inc., a boutique commercial real estate advisory firm serving the self-storage industry.

Last month, Devon purchased a U-Stor-It facility in downtown Chicago. The 21-story building on S. Wabash Avenue comprises 95,589 net rentable square feet.

Devon has maintained a dedicated self-storage operating platform since 1993. Since then, the company has been involved with the acquisition, development, disposition and management of approximately $1 billion in self-storage assets.

Has a break-in ever occurred at your self-storage property? Did a natural disaster cause damage to your buildings? Or did some other situation arise that may have resulted in bad press for your business? Being prepared in the event of a crisis with a media-relations plan can minimize the negative exposure for your operation.

To be proactive in a catastrophe, you need to a plan. A strategy will allow public perception of your facility to be controlled by you, not the media. Here are some guidelines to include in your crisis-management plan for better public relations.

Take Responsibility

Today, honesty and transparency are the best policy. The first step to handling public relations in a crisis is to own up to the situation. If you release the information on your own terms, you can direct the message. Hiding it and allowing the media to find out could be detrimental.

Admitting what happened gains trust with customers, prospects and the community. They’ll appreciate your willingness to acknowledge the event, rather than ignoring it and allowing the press to discover and air your “dirty laundry.”

Communicate the Plan

Being proactive and communicating the crisis on your terms means you can address how you plan to fix the problem. For example, if there was a theft on the property, release your plan to install more security cameras or a new gate-keypad system. How you convey your plan to rectify the issue will be more telling than the crisis itself. Customers will appreciate that you already have a course of action so the situation won’t happen again.

Speak to Your Customers

Your customers want to hear directly from you about the crisis. Before you alert the media to the occurrence and your plan of action, send an e-mail or letter to your tenants explaining what happened. Communicate what happened honestly, and explain the next steps to resolving the issue. Your tenants want the information directly from you, not the media.

Handle the Media

Before a crisis happens, everyone who’s employed by your company should know who’s going to handle public relations. There should be one person who deals with all media requests and communicates with tenants. The spokesperson should be knowledgeable and have access to pertinent information. Any questions by internal and external sources should be directed to this person exclusively. Having one point of contact avoids confusion and ensures messaging is accurate and consistent.

Identify Channels

Your public-relations plan should include a list of all local and industry media contacts, and all social media platforms your storage business uses as well as the log-in information. The identified spokesperson should be able to communicate the relevant messaging as the branded user on these channels. Issuing a media release through these platforms will be key in directing the conversation about your company and assist in getting the message out faster.

Answer Negative Reviews Honestly

If a crisis occurs and tenants are effected, your business might receive some negative reviews. Monitor your online profiles and respond to each negative post. When answering, stay on the same message that was sent to tenants and the media. Never stray. Taking out the emotions and sticking with the facts is the best practice for damage control.

Make or Break

How a company handles a crisis publicly can make or break the business. With a plan in place, your storage operation can deal with any situation that requires public relations.

Acknowledging the situation and communicating your plan are the first steps when formulating a response. Having an appointed point of contact for the media, communicating to customers directly, and establishing which avenues to use for sending your message are important parts that should be identified before a crisis occurs. Planning to be proactive rather than reactive in your crisis management can help turn a negative situation into a positive one!

Melissa Stiles, marketing manager for Storage Asset Management, is responsible for the direction of marketing and sales functions of the company’s 90-plus managed self-storage facilities as well as its corporate marketing. Her previous experience includes traditional and digital marketing, specifically social media and search engine optimization in the nonprofit and manufacturing sectors. For more information, call 717.779.0044; e-mail [email protected]; visit www.storageassetmanagement.com.