SpareFoot, an online marketplace for self-storage consumers, is celebrating its 10th year in business with a move to a new headquarters in University Park, a high-rise retail complex on the north side of Austin, Texas. The property includes a gym and yoga room, free covered parking and indoor bike storage. It’s also dog-friendly, according to a press release.

The SpareFoot office features an open layout with views of downtown and the University of Texas. It also has a kitchen with an in-house chef and culinary team, gaming area, and more. The layout includes multiple lounge areas for co-working, meeting rooms and a large event space.

“The new headquarters reflects the company culture of collaboration, creativity and collegiality, as all 100 SpareFoot employees are now located on one floor," said co-founder and CEO Chuck Gordon. "We've come a long way from our first offices inside Capital Factory, to the Perry Brooks Tower across the street at 720 Brazos, and now to our current space."

SpareFoot is also celebrating its 2017 achievements. It was named to the “Top Company Cultures” list by “Entrepreneur” magazine and has been named a “Top Employer” by the Austin American-Statesman since 2013. The company also received silver-level status from the Texas Department of State Health Services for being a mother-friendly worksite. Its new headquarters features a “Mother's Room” containing a fridge and sink.

In addition, employees formed “The Diversity and Inclusion Task Force” and the “Women of SpareFoot.” The company sent a large employee delegation to The Texas Conference for Women, and was a sponsor of the Austin Pride Parade.

SpareFoot also participated in the Austin Startup Games, raising $10,000 for Breakthrough Central Texas, which helps children from low-income families attend college. To date, SpareFoot has raised more than $100,000 for nonprofit organizations from its participation in the games.

Last year, employees also raised funds for the Central Texas Food Bank and the animal shelter Austin Pets Alive! They operated a “street store” to support the homeless, and volunteered at Dress for Success, which supports working women.

SpareFoot.com helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 12,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com and Penske Truck Rental.

Amazing Spaces Storage Centers, which operates five self-storage facilities in Houston, is supporting the Montgomery County Women’s Center (MCWC), a nonprofit that provides support and services to women affected by domestic violence. Two Amazing Spaces facilities will act as off drop-off sites for donations of new and gently used purses for MCWC’s Feb. 23 fundraiser, “Open Your Purse for Change.” Donations can be made at 18250 I-45 S. in Shenandoah, Texas, and 32620 F.M. 2978 in Magnolia, Texas.

All proceeds from the fundraiser will support MCWC services, including a 24-hour crisis hotline, advocacy, counseling, legal services, emergency shelter, transitional housing and community outreach, according to a press release.

“Giving back to our communities is one of the foundational pillars of our corporate mission and operating vision. We're always looking for new ways to help our community,” said Kathy Tautenhahn, who co-founded Amazing Spaces in 1998 with her husband, Scott Tautenhahn.

Now in its fifth year, “Open Your Purse for Change” was created by Ally Seder, who serves as co-chair with Shirelle Chimenti and Terry Larson. This year’s luncheon will be held at the Woodlands Country Club’s Legacy Ballroom, 11 a.m. to 2 p.m. Tickets are $150 per person, with table sponsorships also available.

“We're so excited to be able to help this wonderful organization and make it easier for people to give back to those in need,” said Angela Vaughn, team development manager for Amazing Spaces. “We feel fortunate to operate within such amazing communities, and believe it is our duty to give back as much as we can.”

Amazing Spaces is celebrating 20 years in business. It operates facilities in Houston, Magnolia, Spring and The Woodlands, Texas, and will open a second location in Spring next month.

There are two fundamental truths about staff training: It costs time and money to do, but not doing it also costs time and money.

Here’s another fact: Investing in training on the front end will positively impact your self-storage facility’s bottom line, customer relationships and employee job satisfaction. On the other hand, if you opt to save that time and money up front, the lack of training will eventually bleed you of vital resources. If left uncorrected, this downward spiral leads beyond frustration to potential lost business. If you’re reading this article, I already know that isn’t the outcome you seek; so let’s examine the four fundamental steps to staff training.

Step 1: Needs Analysis

The needs analysis is the starting point for all training, the primary objective of which is to improve individual and organizational performance. This is the who, what, where, when, how and why. By determining the answers to these questions, you can decide what specific knowledge, skills and behaviors are necessary to establish or improve employee performance in accordance with company standards. Additional questions to ask are:

• Does the employee have any self-storage experience?
• Has he used the same software?
• Is he familiar with the same market?
• Does he bring solid customer-service skills to the table?

Step 2: Programs and Manuals

It’s important that you’ve established job descriptions along with facility standards and procedures. Job descriptions should be clear and concise, and will serve as a major training tool, as your policies and procedures should be based on each staff responsibility. This will standardize the necessary guidelines for future training. It’ll also be used for reviews and evaluations, which could lead to advanced training, or perhaps re-training.

Step 3: Program Presentation

This is where the time and effort spent on analysis and development becomes worthwhile. The success of this process is largely based on two crucial elements: who does the training and where the training is conducted.

It’s imperative that the trainer is patient and able to adapt to multiple personality types. Remember, this person is setting the bar the trainee must meet. He should have a strong passion for, working knowledge of and a desire to teach the subject; the ability to motivate participants to “want” to learn; a good sense of humor; and clean and professional appearance with good posture.

Too often, not enough consideration is given to where training will take place. Consider a quiet area offsite. It doesn’t need to be fancy, just away from the facility’s day-to-day activities. Perhaps a second office at the facility is sufficient if there’s someone else running the store who knows not to interfere. Your training location should also include the appropriate audio-visual equipment to enhance the training session, which could be as simple as a computer with speakers and access to YouTube.

Here’s a sample of items to cover on day one:

• New-hire paperwork
• A review of the job description and employee manual, including items such as dress code, holidays, chain of command, pay periods, etc.
• An acknowledgement of understanding all policies  and procedures (and collect a signature for the employee’s file)
• A brief history of the industry and the company, and the bright future it holds
• Logins to all software, computers, alarms, voicemail, etc.
• A thorough self-storage lease presentation
• Discussion and role-play call-flow

Items to cover on day two include:

• A review of day one
• Facility-opening procedures
• Facility details and features
• A review of local competitors
• Initial software training
• Banking procedures
• Facility-closing procedures

Days three through five should build on this foundation through practical applications and reviews, and then I like to layer in other items over the course of 60 to 90 days. For example, I might cover lien sales at 30 days, revenue management at 60 days and marketing at 90 days.

All of this is based on the size and complexity of your facility and organization. It’s also based on available time and specific staff needs. I can’t encourage you enough: Pour as much as you can on the front end of training to prevent mistakes down the road.

Step 4: Testing, Assessment, Evaluation

Testing is a critical step in the training process. It’ll tell you how well the trainee is retaining all that’s being taught. These tests should be administered at the end of the first week, and then again every 30 days.

Assessments will involve everyone on your team, including customers. This is simply a matter of logging what you see, the types of questions the employee asks, and how your customers are interacting with the new team member. Over the course of 90 days, your evaluations will you how the employee has progressed and if he’ll make a good fit for your organization in the years ahead. Further, discussing the assessment with your new hire will help him be prepared if it’s ever determined he isn’t a good fit. Conversely, it’ll motivate him when you recognize how hard he’s trying and the good job he’s doing.

Evaluations are without a doubt the most important step in the training process, shedding light on the effectiveness of the program and the trainer. They can be done anonymously through a third party or via a simple one-page form. In addition to employee performance, the evaluation should address:

• The training program itself
• The order in which training was administered
• Whether the program content was consistent with field usage
• The trainer’s knowledge of the subject matter, patience and ability to work with the trainee
• The training environment, and whether it was free of distractions and conducive to learning
• The trainee’s personal input, including what he’d like to see added to the training and what was unnecessary
• Whether the employee felt the training prepared him to perform the tasks he was hired to do

The need to properly train your employees has never been greater, not just to promote your business, but to minimize liability and exposure. As our industry continues to grow, more jobs will be created. Technology advances, customer expectations, employee morale, productivity and turnover, and increased competition are just a few of the reasons for establishing and implementing training in a self-storage organization. The rewards of a successful program are worth every dime spent and every ounce of effort invested.

Cindy Ashby is vice president of operation for Prime Storage Group, where she’s responsible for overseeing the firm’s 8-million-square-foot self-storage portfolio. She has more than 20 years of industry experience, including asset-management roles at Storage USA, two real estate investment trusts and three property-management companies. She’s written operational guidelines and developed training programs for numerous storage companies. For more information, call 518.792.1586; e-mail, [email protected]; visit www.primestoragegroup.com.

The William Warren Group (WWG), a privately held real estate company that operates the StorQuest Self Storage brand, has opened a new location in Lakewood, Colo., its first in the city. The facility at 9720 W. Colfax Ave. is in the 40 West Arts District, in the W. Colfax Avenue corridor. The community contains art galleries and studios, restaurants, and retail.

Property features include 24-hour access, climate control, perimeter fencing and video cameras. Customer amenities include online billpay and reservations, and free use of the company moving truck and driver for a limited time.

WWG also opened a new facility in December in Reno, Nev. The facility is off Interstate 580 in the South Meadows community.

Founded in 1994 and based in Santa Monica, Calif., WWG acquires, develops and operates 128 self-storage facilities in Arizona, California, Colorado, Florida, Hawaii, South Carolina and Texas.

The national Self Storage Association (SSA) has hired Joseph L. Doherty as senior vice president of legal and legislative counsel. Doherty joins the SSA after four years with the Independent Insurance Agents & Brokers of America, where he most recently was associate general counsel. In that role, he advised association staff and members on contracts, governance, intellectual property, legislation, litigation and risk management, according to a Jan. 22 e-mail newsletter to SSA members.

"Joe's addition is a natural enhancement to SSA's advocacy programs during a period when the industry's growth and success continues to draw scrutiny," said Timothy J. Dietz, SSA President and CEO. "Working with SSA general counsel Carlos Kaslow and our professional staff, Joe is uniquely suited to assist our members as we face the challenges ahead."

Doherty graduated as valedictorian of the Villanova University School of Law. He completed his undergraduate studies at Emory University in Atlanta. He and his wife, Christa, reside in the Mt. Vernon area of Fairfax County, Va., with their four children.

The SSA represents more than 22,000 U.S. self-storage facilities and approximately 9,100 international facilities, according to its website. It’s affiliated with several state and international self-storage associations and currently has 5,500 members.

Real estate developer Titan Development has partnered with Extra Space Storage Inc., a self-storage real estate investment trust and third-party management firm, to build six storage facilities in Arizona and New Mexico. Together, the projects comprise about 570,000 square feet in approximately 4,200 units. All the developments are expected to break ground before the end of March, with completion expected by the end of December, according to press releases. Each facility will be operated by Extra Space.

All six facilities are part of Titan Development Real Estate Fund I, a $200 million private-equity fund launched by Titan last April to raise capital and provide investment management for more than 20 projects in the company’s pipeline across industrial, multi-family, self-storage and senior-living sectors, according to the source. Titan expects to pursue developments in multiple states including Arizona, Florida, New Mexico, South Carolina and Texas.

The Arizona facilities will be built in Gilbert, in partnership with WDP Partners LLC, a Phoenix-based real estate development and management firm. The first will comprise 755 units near Gilbert and Warner Roads. Groundbreaking is scheduled this month. The second will comprise 91,000 square feet and be built near Coronado and Ray Roads. Construction is expected to begin in March.

The New Mexico projects will serve the Albuquerque and Santa Fe markets. The first Albuquerque facility will comprise 88,000 square feet in 650 units. It will consist of three buildings, according to an earlier report, as well as 92 outdoor parking spaces. Groundbreaking is scheduled this month. The second project will comprise 107,000 square feet in 790 units. The three-story structure will be built near Ladera Drive and Unser Boulevard. Construction is scheduled to begin in February.

In Santa Fe, a 100,000-square-foot facility will be built in the Rodeo Business Park. The two-story, climate-controlled structure will offer 750 units. The second facility will comprise 88,000 square feet along Vegas Verdes Drive. Both projects are scheduled to begin this month.

“The self-storage industry is seeing a lot of disruption due to best-in-class operators like Extra Space Storage who are raising the bar on expectations for self-storage,” said Brian Patterson, director of self-storage development for Titan. “These new facilities [will] have innovative features that customers now expect with self-storage.”

All three cities will open new markets for Titan. Founded in 1999, the company provides real estate services including acquisitions, design/build leaseback, joint ventures, land entitlement, and private-equity real estate fund management. It has land holdings across Florida, New Mexico and Texas.

Headquartered in Salt Lake City, Extra Space owns or operates 1,513 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. Its properties comprise approximately 1.03 million units and 114 million square feet of rentable space.

It’s no secret that Canada is experiencing a real estate boom, and the country’s self-storage sector is no exception. The industry is experiencing a growth surge that has led to capitalization-rate compression and significant development in some of the nation’s largest cities. But Canada also offers significant obstacles to entry for investors and developers, which can make success elusive for those lacking deep pockets and institutional resources.

Expansion Drivers and Opportunities

So, what’s driving self-storage growth in Canada? Primarily, the strong economy, low interest rates, population growth and a historically undersupplied storage market. The economy has been consistently strengthening for the past several years. Canadians are earning and spending more, and they’re in need of additional space to store their belongings. There are also more businesses using storage for excess inventory, records and other uses. In fact, commercial tenants are estimated to account for 20 percent to 30 percent of all leased storage space in the country.

Additionally, as the population grows, people appear to be more mobile and are moving about the country more readily than in the past. And as we know, mobile populations lead to greater demand for self-storage.

Finally, the relative lack of storage space in Canada has led to significant new development in several markets, particularly Toronto. Unmet and growing demand is being addressed with new builds. However, with this opportunity comes significant pitfalls that require tools, resources and experience to avoid. Heretofore, the Canadian industry has been regionally fragmented and led by smaller independent operators. As the market matures, however, institutional investors and managers should lead the way.

Though the self-storage market isn’t as saturated in Canada as it is in the U.S., despite a significant amount of new product entering the market, demand still outstrips supply throughout most of the country. I believe it’ll be several years before we reach equilibrium. That said, developers must be careful not to oversaturate specific submarkets.

Obstacles to Entry

Speaking plainly, it’s very expensive to do business in Canada. You need deep pockets and significant resources on the ground. There are appreciably more taxes and fees than in the U.S., and municipalities tend to play a larger, more aggressive role in the planning process.

These factors conspire to make development very costly. As a result, newer facilities tend to be larger to realize greater revenue. This can lead to a dangerous game of cat and mouse, as owners increase operational risk and hope for higher occupancies to offset increased costs.

Furthermore, with greater input from municipalities, new facilities require a significant investment in urban design and aesthetics to secure development approval. As such, owneres are caught between increased development costs for a modern-looking facility and their bottom line.

Thus, sophisticated site selection, financial modeling and market research is essential. However, there’s a lack of industry statistics and financial data available in most Canadian markets, which makes it difficult for small organizations and traditional mom-and-pop owners to gauge demand in local areas and create economies of scale to manage facilities that sometimes operate with tight margins.

Success will probably elude those incapable of performing thorough, independent and accurate underwriting. This is likely why we’re seeing smaller, independent players replaced by institutional investors and developers with the ability to hit the bullseye on a more consistent basis. There’s simply little room for error north of the border.

Competition

Valuations are beginning to reflect the institutionalization of the Canadian self-storage industry. From a management standpoint, this allows large-scale brands to be more competitive over local owners. Large brands have more pricing power and the infrastructure to achieve economies of scale. This has put significant strain on smaller independents and adds significant risk to their business as they attempt to compete with the power of corporate brands.

Some of the larger storage operators have also added premium services to further differentiate themselves. These amenities vary greatly by brand but can include pick-up and delivery services, or wine vaults with onsite sommeliers and tasting rooms. Servicing a high-end niche, these premium services aren’t likely to become standard across the Canadian storage community, but they may cater to an affluent clientele.

From my perspective, these premium services don’t drive the value some may expect. Frankly, it’s important to remember what our core business is, which is providing additional space to store belongings. You typically won’t find institutional owners and managers offering niche amenities.

Canada is a growing market with significant upside and opportunity. However, it’s also fraught with danger for the unprepared and the unsophisticated. The margin for error is slim, and success will require a lot of money and manpower.

H. Michael Schwartz is the founder, chairman and CEO of SmartStop Asset Management, a diversified real estate company focused on self-storage assets as well as student and senior housing. Its storage portfolio comprises 108 facilities throughout the United States and Canada, including 68,000 units and approximately 7.9 million rentable square feet. For additional information, visit www.sam.com.

Update 1/23/18 – Construction is progressing on the Quincy Self Storage project on Washington Street. The four-story structure comprises 125,000 square feet. The first floor will house sales and administrative offices, while the upper floors will offer 1,150 climate-controlled storage units. Eight “drive-in” units will be built outside the main building, according to the source.

The project is being constructed with steel and insulated wall panels by Rockland, Mass.-based Integrated Builders. The main building will offer two oversized freight elevators.

The facility owner is listed as GRE Quincy LLC, an affiliate of Jumbo Capital Management.

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9/15/16 – Jumbo Self Storage received approval from the Quincy Planning Board on Sept. 14 to build a new facility in the city. The developer was also awarded its three requested permits.

In a letter to the planning board, Croall said the project was a better option aesthetically than other industrial uses permitted for the site, according to the source. He also noted the storage facility won’t cause an increase in traffic traveling across Fore River Bridge, which logs about 30,000 vehicles a day.

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7/15/16 – Jumbo Self Storage LLC is seeking city approval to build a four-story facility on a portion of a large boat-storage yard in Quincy, Mass. The 1.5-acre lot at 671 and 661-665 Washington St. is just west of the Fore River Bridge rotary and north of an old shipyard.

Members of the Quincy Planning Board were receptive to the project during a July 13 meeting. The proposed lot is a key gateway point for the city, according to Brad Croall, city councilor for Ward 2. If designed appropriately, the storage facility would be an improvement over the boat yard, he said. “That’s the first point of judgment for motorists coming into the city, and I think we can do better. I really do.”

Jumbo plans to purchase only a portion of the boat yard from owners Paul Griffith and Michael Scalisi of Quincy Maritime Park LLC. The remaining space would continue to serve as boat storage, according to the source.

An existing structure on the site that once housed a gas station and later a donation center for Quincy Checker Cab would be demolished, the source reported. The facility would comprise 122,900 square feet of storage space in 1,062 units as well as include 12 parking spots, green space and a loading area. The property would be operated by a self-storage management company.

Although the land is zoned industrial and self-storage is an acceptable use, the developer is seeking three special permits: a parking waiver, a signage waiver and a final one because the property would be for a major, nonresidential use, the source reported. Current zoning prohibits commercial signs over 60 square feet. Jumbo has proposed two signs for the property that are 250 square feet each. The business will also need fewer parking spaces, according to Edward Fleming, an attorney representing the storage operator.

The storage building will be similar in design and size to that of an Extra Space Storage facility recently built at 27 Liberty St., according to the source. Board member Maureen Glynn said she’d consider the proposal if the architectural design was aesthetically pleasing. She pointed to Castle Self-Storage in Weymouth, Mass., as an “ugly” example. “We don’t want anything that’s garish like that,” she said.

Bill Chaggaris, who lives behind the proposed site, voiced his concerns about allowing a 45-foot-high facility to be built, noting the large structure would block the sunlight from his home. “I’m going to be in the shade for eternity,” he said.

The planning board voted to continue the discussion at its Aug. 24 meeting.

Jumbo Self Storage is led by Howard Hirsh, partner, and Jay Hirsh, managing partner and co-founder, of Jumbo Capital Management LLC, a privately held commercial real estate firm specializing in office space. The company made its first foray into the self-storage market last fall with the acquisition of a warehouse in Norwood, Mass., it plans to convert to storage.

Sources:
New England Real Estate Journal: Integrated Builders Tops-Off 125,000 S/F Quincy Self Storage
The Patriot Ledger: New Self-Storage Facility Proposed Near Fore River Bridge in Quincy
The Patriot Ledger: Quincy Planning Board OKs Self-Storage Facility Near Fore River Bridge