Devon Self Storage has served customers for more than 27 years. In that time, we’ve redeveloped more than 60 commercial real estate properties to self-storage. These conversions have included big-box retail locations, car dealerships, strip malls, furniture-manufacture sites, office buildings and even a seafood-processing plant.

We’ve also transformed more than a dozen former Kmart stores, with the most recent in Grand Rapids, Mich. To provide some insight and advice, here’s a quick overview of the project and few of our key development philosophies.

Opportunities and Challenges

The 94,000-square-foot building is ideally situated on a major street traveled by 33,000 vehicles daily, providing maximum exposure to customers. It’s also adjacent to a heavily used Lowe’s home-improvement store, whose parking lot averages 5,000 vehicles per day.

Within a three-mile radius of the site are two older self-storage facilities with an average occupancy of 88 percent. Both offer exterior units only, none that are climate-controlled. Limited competition for a radius population of 28,400, with an average household income of $106,541, highlighted the void in supply. We stepped in to fulfill market demand.

Six months after acquiring the property in October 2019, the coronavirus hit, impacting construction. Regardless, we successfully converted the building in 10 months. It received its Certificate of Occupancy in July for an Aug. 1 opening, which was two months ahead of schedule.

The finished facility comprises 82,000 net rentable square feet in 820 units. It includes controlled access, climate-controlled units and an indoor drive-through. Additional features include security cameras, restrooms, and retail center selling locks, boxes and other moving supplies.

Though we budgeted an average monthly rate of $1.20 per square foot, units are renting for $1.56 per square foot due to initial high demand. From Aug. 1 to Oct. 28, we rented 106 units, and occupancy has increased daily. We forecast the property to achieve stabilized occupancy by September 2022.

Final Advice

By way of guidance, here are three tenets to our conversion philosophy:

Think outside the box. Be innovative. We’ve always been a proponent of self-storage conversions, and it has been our experience that they provide better streetscape locations with ideal access for customers. A successfully completed conversion can be less expensive and completed in a shorter timeframe than ground-up development. Conversions also compete well with any newly constructed facility.

Devon Self Storage in Grand Rapids, Mich.

 

No zoning = no purchase! Whether you’re looking to acquire a property for conversion or build from the ground up, the necessary zoning must be in place prior to closing.

Know the market. Drive it, walk it, read up on it and know your customer. Thorough market knowledge is critical with respect to market competition, rental rates and traffic patterns. Study the market and know the supply-and-demand ratio!

Kenneth E. Nitzberg is chairman and CEO of Devon Self Storage Holdings LLC, which operates 50 facilities in 19 states, with a market value of more than $250 million. Based in Emeryville, Calif., the company employs approximately 120 people. For more information, visit www.devonselfstorage.com.

Augusta, Maine, city officials are considering whether to allow new self-storage development in two zoning districts. Though there isn’t yet a proposal for either area, the move would enable vacant retail buildings in the Civic Center District and Regional Business District to be converted to storage as a conditional use, according to the source. Indoor self-storage, which isn’t addressed in the city’s current zoning, would also be allowed.

“This is something that has come up a number of times in the past few years, with respect to some of the larger retail locations that are having trouble being filled,” Matt Nazar, development director, recently told city councilmembers. “And one of the potential uses for a portion of those existing retail spaces is for indoor self-storage units; basically, cutting some of those spaces up into individual self-storage spaces. It may end up providing some level of use in some of these commercial facilities that couldn’t, potentially, get used in another way.”

Planning-board members have expressed concern about attracting new retailers to these empty spaces, particularly a former Sears store, which shuttered in 2017 at Turnpike Mall. Leasing tends to restrict the sites to retail use, Nazar said. He suggested buildings like this could be converted to a mixed-use structure with retail in the front and storage in the back.

Roger Pomerleau, a partner and developer of Marketplace at Augusta, said the approach would add flexibility for these buildings. “It’s good to keep all properties viable. And that might fill some unusual spaces, with retail in the front,” he said. “When an opportunity comes along, when a business needs space, they need it quickly. So, it’s good to be proactive and offer maximum flexibility.”

The conditional-use designation would allow the city to prevent an influx of new self-storage businesses to the area and retain some control over building appearances, Nazar said. Community members would also be allowed to comment on any proposals brought to the council.

Not all councilmembers are in agreement with the plan. They questioned whether the business type, which generates little foot traffic, would detract from the economic vitality of the shopping areas. One also suggested the city should explore whether these empty spaces could be repurposed for housing. “We have a housing crisis, and I’m feeling protective of these large buildings as a possible opportunity for addressing the housing crisis and creating economic development in those malls,” said councilmember Courtney Allen.

In their leases, most shopping centers prohibit the space being used for housing, Nazar said.

The council agreed to allow city staff to conduct market research and create an economic-impact analysis. Once complete, they’ll discuss the findings and decide if they’d like to move forward with the rezoning.

Source:
Central Maine, Augusta Considers Self-Storage Businesses for Vacant Retail Spaces

 

There are many facets to running a successful self-storage operation, but the key to profitability is to maximize revenue, decrease expenses and create property value. These principles comprise the central focus of How to Make Money in Self-Storage and How to Make MORE Money in Self-Storage, both authored by industry experts RK Kliebenstein and Jennifer LeClaire.

The first book in the series offers concrete, actionable strategies and programs facility operators can use to boost their bottom line. It includes sections on how to generate more income and manage expenses. The sequel offers additional guidance on revenue management and adds insight to equity generation.

As principal at Coast-to-Coast Realty Advisors LLC, Kliebenstein has more than 30 years of experience in acquiring, developing, financing and managing self-storage properties. LeClaire is president and creative director of Self Storage Promotions, a Florida-based marketing and public-relations firm.

The books are available for purchase separately as well as in a discounted combo package, which offers a savings of more than 20 percent. Visit the ISS Store for full product details. Take charge of your self-storage profitability today!

The Storage Group (TSG), an Internet-marketing company that serves the self-storage industry, has added SureScan ID verification to its ClickandStor online-rental tool. The new service is designed to improve the contact-free move-in experience by allowing operators to verify a customer’s identify before an online rental is finalized, according to a press release.

During the rental process, self-storage renters will upload images of their valid driver’s license along with a recent photo of themselves. The system compares the photo against the license, which it checks against a national database. Once the ID is validated, the online rental is processed, the release stated.

“The safety of our facilities and their tenants is extremely important to us,” said Steve Lucas, CEO. “We want to provide a safe way for storage facilities to verify their tenants’ identification beyond a simple scanned ID when reserving a unit. Adding a biometric security feature to the contactless rentals process gives [operators] reassurance, knowing who their tenants are and that no misinformation has been provided.”

Based in Altamonte Springs, Fla., TSG provides online tools and marketing solutions including local-listing management, mobile websites, online rentals, pay-per-click advertising, search engine optimization, social media marketing, and software and website development.

National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has acquired a 14-property portfolio from The Jenkins Organization (TJO), a Houston-based real estate company specializing in self-storage acquisition and disposition, development, property management, and ownership. Totaling 8,517 units, the purchase comprises six properties in Houston and three in Austin, Texas; two in the Minneapolis-St. Paul markets; and one each in Dallas, San Antonio and St. Louis, according to a press release. The transaction includes assets built between 1997 and 2017.

TJO was represented in the transaction by Steve Mellon and Brian Somoza, managing directors; David Berglund, senior managing director; and Blaise Tomazic, vice president, of JLL Capital Markets, a full-service global provider of capital solutions for real estate investors and occupiers.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. With a portfolio comprising approximately 49.5 million rentable square feet, the company has ownership interest in 788 storage facilities in 35 states and Puerto Rico. It’s owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Formed in 1989, TJO manages or owns more than 60 self-storage properties comprising more than 4.5 million square feet. Its wholly owned affiliates include TJO 10 x 10 Management and The Storage Web LLC, which offers website design and Internet marketing for TJO properties. The company also focuses on RV parks, with three Great Escape RV Resorts in Colorado, Mississippi and Texas. In all, it has more than $500 million of commercial real estate assets under management.

Sources:
Multi-Housing News, National Storage Affiliates Buys Three-State Self Storage Portfolio
RE Journals, REIT Acquires 14-Property Self-Storage Portfolio

If you’re looking for ways to promote yourself professionally, a LinkedIn profile is one of the most important tools available to you. I’ve reaped great things from my own. It’s helped me connect with amazing people in the self-storage industry, secure speaking engagements and expand my network globally. I’ve even used it to communicate with “New York Times” bestselling authors!

If you’re new to LinkedIn, here are seven steps to building a strong profile. It takes some work, but it’ll expand your options, whether you’re looking to grow within the self-storage field or beyond.

1. Do Your Research

Go to LinkedIn and spend some time reading people’s profiles. See how others have crafted their pages. How have they explained the details of their professional background? What do you like about one profile vs. another? Take notes so that when you’re ready to build your own page, you know the direction to go. This is your brand, and you want to impress!

2. Add a Great Photo

According to LinkedIn, including a photo with your profile will increase its chances of being viewed by 40 percent. But don’t take a selfie in your car and post it. This isn’t Instagram! The right image is paramount. Recruiters and hiring managers want to feel a personal connection with you as a candidate. When you have a bad photo or none at all, you’re severely reducing your chances of good connections and a possible future career.

So, use a high-quality, professional photo that also conveys your personality. Make sure you’re appropriately attired. Choose a cropped headshot that’s free of background distractions and other people. No candid shots from weddings, parties or karaoke night!

3. Complete All Sections

LinkedIn allows you to tell everyone who you are. Make sure you fill out every section as completely as possible. This is you; this is your brand. It shouldn’t only display want you want to project about yourself but what employers and coworkers have come to know about you during your career.

In your summary, avoid fluff and clichés in favor of action-packed information and language, letting your personality shine through for that prospective employer. Don’t just tell someone you’re results-driven; demonstrate this fact by citing results in your profile. Establish your education credentials and any other achievements. Share your certifications and interests. The more comprehensive your profile, the better it’ll be positioned in search results when employers in your network look for people like you.

4. Get Recommendations and Endorsements

Next, you need to build some LinkedIn “street cred.” Reach out to your connections and ask them to provide a recommendation. A good start would be a colleague, supervisor or mentor. Having a few quality endorsements looks great on a profile.

5. Be a Language Nerd

Seriously? Yes! If your LinkedIn profile is filled with spelling and grammatical errors, people are going to pass you right by. Who would blame them? I mean u”d probly thnik, it was nt verrrry prufesionul, rite? That’s why doing a thorough spellcheck—a human one because computers don’t catch every mistake—and double-checking your grammar is vital.

6. Connect With Others

Think of LinkedIn as a high school dance. You don’t want to be the person standing in the corner waiting for people to approach you. You want to be social and start good conversations!

I’ve identified four types of users on the platform:

1. People who want to sell you something
2. People who just want to collect followers
3. People who want something from you
4. People who are there for meaningful discussion and quality connections

Luckily, most users fall into that last category. It’s the thing that sets LinkedIn apart from many of the other social media platforms available today. Just make sure your profile is optimized so potential connections can find you. Also, send your own connection requests. Uniting with people you already know is a great way to start. Chances are that most folks in your personal and professional circles are already using LinkedIn.

7. Post and Comment

LinkedIn offers a wide variety of ways to post and create content. You can publish images, blogs, videos or even articles. It’s a great way to attract connections and build engagement. Just remember: LinkedIn isn’t Facebook. It’s best to avoid personal, political or controversial posts here.

The benefits of LinkedIn are vast with almost no downside. Best of all, it’s totally free! Get involved in forums, join groups and meet like-minded individuals. Job-seeking is a tough business, in self-storage or any other industry, and you need to do anything you can do to get ahead.

Rick Beal is co-founder of The Atomic Storage Group, a third-party management and consulting firm for the self-storage industry. To contact him, email [email protected]. To stay up-to-date with his publications and speaking engagements, go to www.linkedin.com/in/storagerick.

SafeStorage, which operates four valet self-storage facilities in India, plans to expand into five new cities this year. The company will enter Kolkata and Mumbai in April, plus three additional markets that have yet to be named. It currently provides services to about 10,000 customers in Bengaluru, Chennai, Hyderabad and Pune, according to a press release.

SafeStorage uses an online platform that allows customers to schedule item pickup, manage their accounts, and schedule delivery of items to their home or business. It also provides packing services.

“We initially thought there will be demand only for household goods. Later, we realized there is demand for document storage and business storage,” said M. Ramesh Babu, CEO and co-founder. “There is a good demand to serve small businesses who have limited space in their facilities or offices. Household goods account for 70 percent of business, document storage accounts for 20 percent serving 200-plus clients, and the remaining is from small businesses.”

SafeStorage also plans to add more automation to its sites. “We want to get into a stage where customers can come to our warehouse and drop [off] goods the way it happens in the West,” Babu said. “And the entire inventory is handled with ease.”

Launched in 2018, SafeStorage operates two warehouses in Kompally, a suburb of Hyderabad, India.

Source:

Telegana Today, SafeStorage to Expand to 9 Cities by Year-End

Self Storage India, which operates six facilities, has completed the first of four new sites it plans to open this year within the country’s National Capital Region (NCR). SelfStorage - Honda Chowk on National Highway 8 in Gurugram, Haryana, currently contains 100 units but will be expanded to 400 over the next year. It’ll also serve the communities of Faridabad, Manesar and New Delhi, according to a press release.

“While demand has grown steadily over the last few years, the COVID-19 era seems to have acutely raised awareness about quality of living and working spaces. As a result, interest in our services exploded in Q2 2020,” said Dr. Manjali Khosla, CEO and co-founder.

The company expanded its facility in the Udyog Vihar industrial estate in Gurugram last fall. “The additional capacity was sold out within just 30 days of launch, leaving us with a long waiting list, which will partially be fulfilled with our new Honda Chowk facility online,” Khosla said.

Self Storage India also plans to expand two existing properties within the NCR this year. “At the end of 2021, we would have doubled capacity each year for the last three consecutive years,” Khosla said.

Founded in 2013, Self Storage India operates three facilities in Delhi, two in Gurugram and one in Noida. The company is a subsidiary of Dynamic Group, which operates in several industries, including construction, human resources and software development.

Source:
PR Newswire, Self Storage India to Launch First of Four New NCR Facilities on 1st February 2021

 

KO Storage has entered the North Dakota market with the four-property portfolio purchase of RH Rebel Storage, with two locations in Jamestown, one in Minot and one in Valley City. The former owner, Scott Bintz, is exiting the industry and will return to e-commerce, which he left after selling an online truck-parts business in 2015.

KO now operates 72 facilities across nine states. Founded in 2016, it’s run by partners Ryan Burnet, Andrew Freeman and John Marshalla. The company is actively expanding and has several deals under contract, all expected to close in the next three months, Freeman told the source. It also has several projects in its development pipeline.

Facing a non-compete contract back in 2015, Bintz needed a new business venture. Though he didn’t immediately pursue self-storage, adding it only as a supplement to an existing rig shop, he found the units rented well. He eventually built RH Rebel to 142,896 net rentable square feet. “I realized [that] in order to sell, you probably have to have more than one facility in a B market,” Bintz told the source.

Tom Flannigan and Alex Ihrke of KW Commercial Minneapolis represented Bintz in the transaction and procured KO Storage as the buyer. “Working with Scott Bintz was a uniquely enjoyable experience,” Flannigan told the source. “Only a true rebel would fathom building class-A climate-controlled self-storage in small-town North Dakota, and I was honored to represent him. Scott embodies the idea that you should focus on what you do well, to include fun, and to never make excuses. Those are good lessons for all of us to live by.”

Bintz admitted he may have sold his storage business a year too soon. During talks with KO Storage, which lasted more than a year, he built the Minot location, which “leased up in record speed,” according to Freeman.

In addition to his new online-retail venture, which focuses on truck accessories, Bintz has released “Principle to Fortune,” a book chronicling how he turned his previous e-commerce venture from a basement business to one generating more than $100 million in sales. He’s also invested in multiple startups and is an adjunct professor at the University of Jamestown, the source reported.

KW Commercial is an affiliate brokerage of Argus Self Storage Advisors, a Denver-based network of real estate brokers who specialize in storage properties.

Source:
SpareFoot Storage Beat, E-Commerce Trailblazer Scott Bintz Sells Storage Portfolio in North Dakota