If you have a sale, grand opening, groundbreaking or other real estate transaction you would like listed here, e-mail [email protected] . 

---

All Size Storage, a 56,016-square-foot self-storage facility in Sacramento, Calif., recently sold for $4.95 million to an individual investor. Bobby Loeffler, a self-storage specialist with Marcus & Millichap Real Estate Investment Brokerage Co., represented the seller. The property features 443 units and represents an 8.3 percent pro-forma cap.

In addition, Loeffler represented the sellers in the sale of Hi Tech Self Storage, a 40,825-square-foot facility in Oakdale, Calif. The property sold for $3 million to an individual investor in Northern California. It features 312 units and represents a 6.67 percent cap rate. Info: 916.677.4100.

---

A developmental project including land and approvals for a 98,800-square-foot self-storage facility sold in Sharon Hill, Pa., for $1.2 million. John H. Gilliland of the brokerage firm Investment Real Estate facilitated the sale from the developer to a partnership that will build the self-storage property.

Gilliland recently brokered two other sales. Mill Street Storage in Quakertown, Pa., a 212-unit facility built in 2005, sold for $1.5. The property consists of five buildings on 3 acres and was in lease-up when sold. Bayport (N.Y.) Mini Storage sold for $1.3 million. The 122-unit facility, situated on 1.3 acres, has 14,350 square feet, outside parking and an on-site management office. It sold to a first-time self-storage investor.

Investment Real Estate broker Dan Wolf brokered the sale of West County (Pa.) Self Storage, featuring 33,100 square feet and an on-site management office. The property is on 6 acres with 3 acres available for expansion. Also included in the sale were 10 office suites. Info: www.investmentrealestatellc.com. 

---

Sperry Van Ness completed the sale of 6.78 acres of land for the development of an 80,000-square-foot storage facility in Burlington, N.J., to a national operator for $2.28 million. Nick Malagisi, of Sperry Van Ness/Storage Realty in Williamsville, N.Y., and Jeff Supnick of Supnick Realty represented the seller, a private partnership from New Jersey. Jim Pitoukkas of Self Storage Brokers of America represented the buyer.

The firm also completed the sale of a facility in Ewing, N.J., for $1.55 million. Malagisi represented the buyer, a West Coast-based institutional investor, and Supnick represented the seller, a New Jersey-based partnership. The site was built in 1999 and consists of three, three-story buildings with 118,272 net rentable square feet and a managers office. Info: www.svn.com. 

---

Roemer/Haskins LLC has broken ground on The Great American Storage Co. in Round Rock, Texas. The site will feature 579 units consisting of 75,450 net-rentable square feet. A United States post office contract postal unit, retail space, offices and condos are also planned for the 9-acre lot. Roemer/Haskins is a Dallas-based self-storage development and consulting company. Info: 214.353.0681; [email protected]. 

---

Adamsville Super Storage, a 34,900-square-foot facility in Birmingham, Ala., celebrated its grand opening in May and recently passed the 50 percent occupancy level. Owners Tommy Spivey, Scott Hedrick and Bob Copper are planning the development of the remaining phases including 26,000 square feet, and are closing on another parcel of land for the development of a 90,000 square foot facility in the Birmingham market.

The Adamsville facility was built by Maxus Construction with metal buildings supplied by Mako Steel. Info: www.selfstorage101.com 

---

Athena Real Estate, a specialty collateral real estate investment and services firm, has completed the acquisition of a 55,000 square-foot self-storage facility in Pensacola, Fla. Co-investment partner was NDC Capital Partners, a New York-based private equity firm. Financial information was not disclosed. The 382-unit facility opened in March 2005 and was nearly 79 percent leased at the time of acquisition. Info: 203.791.3837; visit www.athenarealestate.com. 

---

Charles D. LeClaire and Michael A. Mele of Marcus & Millichap sold Hialeah (Fla.) Self Storage and University Self Storage of Miami Gardens, Fla. The Hileah facility sold for $7.85 million, representing $110 per square foot, and University Self Storage sold for $6.85 million, at $86 per square foot. Both are new facilities in growing areas of South Florida. Info: 813.287.9777; 303.320.1300.

---

Mark Keys of Cornerstone Realty, a broker affiliate with Argus Self Storage Sales Network, represented the seller of two Adams Self Storage properties in Beaumont, Texas, which sold in June. The facilities consisted of 47,850 and 76,300 rentable square feet. Info: www.selfstorage.com. 

---

Storage Deluxe announced the opening of its 16th facility in the New York region. The new site, in Queens, features 90,000 square feet and more than 1,300 units equipped with climate control and 24-hour surveillance.

Storage Deluxe plans 10 to 15 new developments per year. Scheduled this year are three more Brooklyn facilities, four in the Bronx, two in Queens, and one in Connecticut, bringing the company total to 26 self-storage facilities, more than 3 million square feet and 40,000 units. For more information, visit www.storagedeluxe.com. 

---

Collateral Mortgage Capital LLC closed 20 self-storage transactions in 2006 totaling more than $55 million, including acquisitions, refinance and bridge loans. The projects were financed through a variety of investors such as CMBS lenders, insurance companies and commercial banks.

Transactions were facilitated by Collateral production officers Lance Lehman, Paul Ahmed, Tom Vrabac and Rob Nagle. Facilities are spread throughout Alabama, Florida, Illinois, North Carolina and Texas. Info: www.collateral.com. 

---

CB Richard Ellis Self Storage Advisory Group associates Ryan Howse and Nate Hunterton represented sellers in two sales in Las Vegas. Blue Diamond Mini-Storage, with 50,183 square feet, was sold during lease up to an all-cash buyer for $5.73 million. Safeguard III Mini-Storage sold to an out-of-state buyer for $4.56 million. The six-building facility was constructed in 1996, and has 518 units in 52,705 rentable square feet. Occupancy was 98 percent at closing. Info: www.cbre.com/ssag-lasvegas. 

Bridgeport-Stamford-Norwalk, Conn.

By Self-Storage Data Services Inc.

The Bridgeport-Stamford-Norwalk, Conn., metropolitan statistical area encompasses 25 cities and towns located in the southernmost area of New England. The region is influenced by its New England heritage and proximity to New York City. In the past 20 years, many businesses have moved to establish international and national headquarters in the area, which has a civilian labor force of more than 462,000. Trade, transportation and utilities followed by professional and business services represent the two largest employment sectors. The Milken Institute ranks the area as 139th of Best Performing Cities in 2005.

Read more...

Never overlook sales opportunities. How do you turn every inquiry into sales while satisfying customers needs? When someone calls to rent a storage unit for Christmas decorations, he may not be thinking about where hell be storing the boat hes about to buyso ask. Sometimes, all it just takes is the power of suggestion to flag other items that should be on a tenants storage list.

Other folks may come to your facility specifically looking for a place to store their RVs or boats. Why not sell them secure storage as well as some ancillariesthings they need and eventually would buy elsewhere? If your office offers trailer hitches, locks, batteries and flashlights, you save customers time, and create another revenue generator for your business. Selling takes four simple steps:

1. Create rapport. If you share a smile, chuckle or common experience with a customer, you are developing rapport ... and it goes a long way. It prompts the person to open up and talk to you as a friend or acquaintance. Theres no underestimating the value of a shared smile. Make sure to converse with all your prospects and customers.

2. Ask questions. Key questions help the prospect think through the situation and evaluate his needs. Asking about important considerations will draw his attention to items he may have missed. Do you have a lock for your hitch so you can leave your boat and trailer unattended? Have you checked the batteries in your flashlight? Did you remember to pack insect repellent?

3. Guide decisions. After raising questions about key considerations for your prospect, ask your customer what he thinks. Review the decision. Then move on to the next decision. Does he want covered parking or inside parking? Does he want you to handle the maintenance, or will he handle that himself? Does he want to have 24-hour access, or just entry during regular business hours? You get the picture. Help decisions along.

4. Ask for the sale. Dont spend time educating a potential customer then let him go down the street to do business with someone else. Make sure you ask for the business.

The Request

When asking for the sale, a good approach is to create a sense of urgency. Its always best for a customer to make a decision while talking to you. If he doesnt, he may get distracted, take on another project, spend money on something else or shop at another time, elsewhere.

Create urgency by letting him know space is limited and availability is fleeting. Tell him units rent quickly, so its best to reserve now. If his vehicle requires service, it should be scheduled at this moment, because your staff gets busy and convenient appointments are not guaranteed. Remind him youd hate to disappoint him later if there are no vacant units or available service appointments before his Thanksgiving excursion.

Finally, close the deal. Get a yes and a time frame for fulfillment. You cant close a deal by saying, Thanks for calling. We hope to see you soon. Ask a confirming question, and write the action on the calendar. You ask, Will Monday be good, or will Tuesday be better? The customer says, Tuesday is good. You both write it in for Tuesday.

Art of the Close

Nailing the close is the most important and, for many people, difficult part of making a sale. Dont be intimidated; sealing a deal isnt that hard. Below are some examples of classic closes with a few scripted phrases. See which work best for you:

• The alternate-choice close. Ask the customer a question and provide two options. A yes to either choice means he will buy from you. Is Monday good for you, or is Tuesday more convenient? Would you like the covered space or the enclosed space? Will you need 24-hour access, or will 7 a.m. to 9 p.m. be sufficient?
• Close on the minor issues. Get the customer to make small decisions first and lead him up to the big purchase. When did you want to take delivery of the new boat? How often will you be taking your RV out of storage? Did you want us to clean your RV while we have it here?
• The order-blank close. If you start filling out the order and the prospect doesnt stop you, you have a sale. Take out whatever form you use to write up sales or service, and start writing. Get a name, address, phone number, make and model of the vehicle, date his storage will begin or the time for a service appointment. Once completed, pass the form to the customer and show him where to sign. Presto! The deal is sealed.
• The straight question. This is a great way to move a customer to a decision after you have agreed on some minor issues. You need to move along and close the deal, so you ask any one of the following: Does that sound good to you? Is that what youd like? Can we get started today? Are you ready to go ahead?
• The tag close. This technique allows you to tell the customer you are ready to do business, and then ask for the sale by tagging on an affirmative. Lets go ahead and get started, OK? Just pull it in here and well get started, all right? So then, well get you in on Tuesday, OK?

Listen Closely

Sharp listening skills help you succeed at every step of becoming a sales wizard. Paying attention may be a challenge when youre busy or its your 15th time answering the same question about fuel filters in a day. Bite your lip, hold your tongue. Allow people to finish their sentences.

Heres a valuable tip to hone your listening skills: Paraphrase what your customer says. Repeat it for clarification. If he says it once, it might have been just a thought. If you repeat his words and he confirms, then its fact. This leads to a solid sale. Say something like, If I understand you correctly, then ...or So, if I hear you right ....

If you follow these tips and practice your selling skills, before long youll be selling boat/RV storage and numerous ancillary items to everyone who steps into your office. 

Tron Jordheim is the director of PhoneSmart, an off-site sales force that helps storage owners rent to more people through its call center, secret-shopping service, sales-training programs and Want2Store.com facility locator. You can read what he is up to at www.selfstorageblog.com. For more information, e-mail [email protected].

Some self-storage operators have turned to eBay to conduct lien sales when customers turn delinquent. But eBay offers the industry a much bigger opportunity, one that can generate significant profits.

Facility staff can actually become independent eBay agents, helping tenants sell items from their storage units, even attracting new business by selling for the general public. The concept is simple. Tell your tenants you will post their goods for sale, monitor the entire online auction sale process, and then ship the item to the winning bidderfor a fee.

Worried that you dont know enough about the inner workings of eBay to pull it off? Solutions are out there, such as companies that help self-storage facilities set up eBay stores. The franchise operation takes up little space in your existing facility; current staff is easily trained; and the investment is reasonable, particularly when compared to the profit potential. When selecting your eBay selling partner, be sure the company provides training, ongoing support, a proprietary software system that talks to eBay, and signage for the office-counter area and driveway entrances.

Natural Fit

The help-you-sell-on-eBay industry started out as independent storefront businesses. The targets were people who didnt own or understand computers, or those who might be intimidated by eBays procedures. Customers would walk in, and the operation would take in the item, help establish its value, photograph it, write the descriptive copy, take care of the listing, ship the item, then issue a check to the seller.

Soon it became apparent many existing businesses would make natural partnersoperations that would benefit by devoting some existing square footage to a small eBay operation. Self-storage businesses appeared to be a perfect fit. Heres why:

• Virtually every rented unit contains at least an item or two that can be converted to cash on eBay.
• Self-storage businesses dont have to find new customers to take advantage of their new eBay capability. They already have a universe of existing prospects, many of whom would quickly get on board.
• Tenants often come into the facility on a regular basis to pay their storage fees, making onsite marketing easy.
• If tenants sell a few unwanted items in their unit, they can put the money toward storage rental.
• Most storage operators agree existing staff would have enough free time to handle eBay transactions.

Profit Projections

Phil French operates Filco Ltd. of Indianapolis, which owns and runs a real estate portfolio including self-storage facilities. French has an extensive history in the service industry, where ancillary products are a key function of profitability. A self-storage business with 400 or 500 storage units represents a feasible base of customers that can be cultivated for eBay sales, he says.

The service is so new, average monthly revenues arent yet known. But French believes eBay sales at self-storage facilities have the potential to outstrip such current ancillary mainstays as packing materials, padlocks and truck-and-trailer rentals.

I think this is a product that can make three or four times the money that operators are seeing now through any other ancillary product or service, and that is without any increase in human time or effort, French says. On-site eBay sales could exceed all current ancillary revenue combined.

Self-storage business owners may see eBay sales as an add-on service for existing tenants; others will reach out to non-traditional customers. Opportunities include business-to-business sales, liquidations, and getting involved with community fundraisers.

Either way, its an excitingand profitableancillary avenue. 

Matthew A. Brown is president and founder of The Online Outpost, which sells items on eBay for a variety of clients. The first The Online Outpost opened in Tampa, Fla., in 2004. Since then, the company has grown to 19 stores, a combination of company-owned and franchises. The company also offers bolt-on franchisessmaller sub-franchises that operate within existing businesses. For more information, call 813.470.7094 or 866.881.3229; visit www.theonlineoutpost.com. 

Many operators treat vehicle storagewhether its cars, RVs or boatsas a regular self-storage transaction, and then wonder, Should I have a separate vehicle-storage lease? If I simply stick with my standard agreement, do I need any additions or special provisions to cover vehicle storage?

Whether you need a separate lease depends on your preferences. As for the second scenario, you absolutely want to add language to your existing lease for vehicle storage.

Additional provisions for vehicle storage will make your lease a lot longerso, if you dont want to bog down your standard-storage lease, consider a separate agreement or vehicle addendum. This is particularly true if you have numerous vehicles stored, especially expensive ones. On the other hand, you may want vehicle-storage language in the regular lease so it triggers a discussion between you and tenants planning to store cars or boats in conventional storage units.

Consider the following when creating a vehicle-storage agreement:

1. Vehicle Info

While you may never know the actual owner of a mattress stored in one of your units, you should know the owner of the vehicle and the names of anyone who has liens against it.

The lease should include all necessary information about the vehicle, including identification (VIN) or hull number, make, model, color and style. Youll also need insurance information such as the provider, policy holder, name and number of the agent. We ask our storage clients to require copies of the title, vehicle registration, insurance card or other documentation. The more info the merrier, and the safer youll be if something legal comes up.

2. Writing the Rules

Different rules and regulations exist for vehicle storage. For example, you probably want to control the appearance and condition of vehicles stored at your facility. You may require the vehicle to be operable, not stored on blocks, all tires inflated, no broken glass, minimal rust, current registration and state inspection. Youll also want rules about properly blocking and chocking tires, and the direction in which you want vehicles parkedfront or back end in first. Others to consider are gate entrance and exit times.

3. Waste Not

A provision should state that, while hazardous waste is generally prohibited at your property, youll allow vehicle-storage tenants to have a set amount of gasoline, oil and hydraulic fluid; a sanitary toilet; batteries; and brake and transmission fluid. The lease should indicate how vehicles are stored; if a pan must be used to retain fluids under potential leaking sources; what happens in the event of leak; whether full or partial tanks of gas and oil are permitted in stored vehicles; and winterization requirements.

4. Electricity

Many vehicles may need on-site electricity to maintain trickle chargers or other battery systems. Your lease should say if electricity is prohibited or allowed at the facility.

5. Dumping Services

Vehicle-storage tenants, especially RVers, often need a place to dump garbage, empty chemical toilets and so forth. Your lease must address whether your site will provide or allow for dumping of chemical toilets and trash, and the use of potable water at the facility.

6. Mechanic Work

How do you feel about people working on vehicles or changing fluids at your facility? Its bad enough to worry about leaks, but to know someone is intentionally unscrewing the plug in an oil pan is an environmental nightmare waiting to happen. Make sure your lease prevents mechanical work at your site.

7. Right of Removal

On occasion, you may need to remove a vehicle for any number of reasons: pavement repair, replacement, building painting, digging a trench, a truck needs to get through to the facility, or a government authority orders the vehicle moved because of unstable land. Make sure your lease grants you the right to move or remove vehicles in an emergency situation.

8. Breach of Lease

What happens if a rented parking space is unavailable because a tenant has accidentally parked in the wrong spot, parked over the line or inadvertently blocked access to the space? Disclaim these issues in your lease and provide a remedy so people dont demand rent deductions or scream about a breach of lease.

9. Absence Notification

Many storage operators also impose rules regarding notification of absence from the property. This requires people to check in and out if theyre away for a long period of time. Tenants benefit if a storage operator notices their vehicle is suddenly missing and can report it stolen to the owner or police.

Other times, a tenant may vacate the premises without notifying the manager, who may want to track him down for delinquent rent, or rent the space to a new customer.

10. Nontransferable Space

Make sure only vehicles registered on the lease are kept on the premises, otherwise you may be liable. Many tenants will leave other vehicles in their rented spaces when they take their RVs on the road.

This isnt necessarily a problem if you have vehicle and insurance information for all cars stored onsite. Make provision in your lease for disclosure of information about other vehicles left in the spot while the stored one is being used. You can also prohibit this practice completely if indicated on the agreement.

11. Stated Value

With some RVs valued at $500,000, your lease may need to be amended to address the higher value limits and conditions for allowing these vehicles to be stored at your facility. Again, always check that stored vehicles are properly insured so damage or loss occurring onsite is covered.

12. State Wise

Investigate your states statutes with regard to default. Some states allow you to remove a stored vehicle in default; however, you may be required to have certain signage posted. Make sure you have complied with requirements and your lease stipulates remedies in the event of a default.

Risky Business

Vehicle-storage leases can be radically different than those of regular self-storage. While many provisions will be appropriate for both, several addendums are necessary for vehicle storage. This abbreviated outline of considerations is a start, but operators should seek legal counsel to help create or revise a lease to cover the nuances of vehicle storage. It should never be an afterthought. Too much is at stake. 

Jeffrey Greenberger practices with the law firm of Katz, Greenberger & Norton LLP in Cincinnati, which primarily represents owners and operators of commercial real estate, including self-storage. This article is for the purpose of providing general legal insight into the self-storage field and should not be substituted for the advice of your own attorney. Mr. Greenberger is licensed to practice in the states of Ohio and Kentucky, and is the legal counsel for the Ohio Self Storage Owners Society and the Kentucky Self Storage Association. He is a regular contributor to Inside Self-Storage and the tradeshows it sponsors. For more information, call 513.721.5151; e-mail [email protected]; or review Mr. Greenbergers legal opinions and insights into the industry, as well as an article archive, at his new website, www.selfstoragelegal.com. 

If you have a product or service you would like featured in this section, e-mail detailed information and a high-resolution digital photo, if available, to [email protected]. 

---

Rapid Rack Industries

Wire Deck Shelving

Rapid Rack Industries Inc. introduces the new GR-7304N P-Rack storage rack. The unit is part of a Gorilla Rack line of shelving and is certified by NSF International for public health and safety.

The P-Racks adjustable wire-deck shelving includes a DuPont Alesta powder-coat paint for a clean, rust-free look. The post and beam design is made of 14-gauge steel to support heavy loads. Each rack is easy to assemble because no nuts or bolts are needed. Info: 800.736.7225; www.rapidrack.com. 

---

Card Scanning Solutions

SigniShell

Card Scanning Solutions introduces Signishell, an advanced solution for collecting signatures and authenticating identity. The system uses a unique algorithm to capture detailed measurements of a signers rhythm, speed, pressure and acceleration when creating a signature to use for future comparisons. Unlike many verification systems, the SigniShell relies on more than just the look of signatures. Upon capture, they are profiled, encrypted and compressed, then stored in a database system, smart card or token device. The product offers a solution for access control, client identification, document workflows and the security of electronic transactions in any market.

Card Scanning Solutions is a leading developer of identification products. Its product line, including the IdScan identification card scanner and the Swipescan magnetic stripe reader, is used by security and government agencies, credit unions, casinos, hotels and automotive dealers around the world. Info: 419.735.2419; www.card-reader.com. 

---

HiEnergy Technologies

Explosives Detection System

HiEnergy Technologies Inc. announced the launch of its next-generation portable Atometer detector, the SIEGMA 3M3, a modular, suitcase-borne explosives detection system. Unlike X-ray and other conventional detection methods, it detects and confirms whether a container carries specific explosives, biological agents or illicit drugs.

HiEnergy Technologies is the creator of the worlds first stoichiometric diagnostic devices that can effectively decipher chemical composition of unknown substances through metal or other barriers, almost instantly and without human intervention. Info: www.hienergyinc.com 

---

InventHelp

Rack System for Vehicle Containers

A London inventor has designed an efficient method of maximizing space for shipping or storing vehicles. The original design was submitted to InventHelp, which created a prototype.

The system to rack vehicles into containers is designed to provide shipping lines, automotive manufacturers and freight forwarders with a progressive mode of shipping vehicles by doubling the business shipping capacity. It may be offered in multiple variations and applications. The prototype is available for licensing or sale to manufacturers or marketers. Info: 412.288.1300, ext. 1368; www.inventhelp.com. 

---

Supply Side

New Moving Kits

Supply Side debuts four MoverTough Moving Kits, providing convenience to store owners and consumers by taking the guesswork out of moving, packing and storing. The pre-packaged kits provide a popular assortment of MoverTough boxes and PackRite packing supplies for different room sizes. Animated graphics designate contents for easy selection. Various kits are available, including the basic moving kit, two- to three-bedroom kit, closet kit, office/work station kit and kitchen kit.

Supply Side offers shipping boxes approved by all major carriers for shipping and mailing. Along with the MoverTough Moving Kits, they can be combined to meet freight prepaid minimums. Info: www.suplyside.com. 

---

PaySure Direct

Paycheck Deduction System

PaySure Direct has launched a paycheck-deduction payment system, offering a free, secure way for consumers to pay for purchases directly from their paychecks. There are no spending limits and customers never divulge personal account or payment information. PaySure Direct offers an alternative for companies to collect payment and recover lost revenue. Info: 678.528.8113; www.paysuredirect.com. 

---

Bird-X

YardGard Repeller

Bird-X, maker of environmentally safe bird and pest-control products, introduces YardGard, an electronic-control device designed to protect up to 4,000 square feet from pest animal damage. The ready-to-use, portable, one-pound unit is easy to install anywhere with keyhole slot mounts. Operators may choose continuous or motion-sensor operation keeping raccoons, dogs, cats and deer from entering the premises. YardGard protects lawns, gardens, walkways, dumpsters, rooftops and buildings of all sorts from disease-laden animal droppings and costly repairs. Info: www.bird-x.com. 

---

Ettore Products

Hydro Squeegee

Ettore Products Co., a leading maker of high-quality squeegees for consumers and professionals, introduces an innovative cleaning system for commercial and industrial floors. Hydro Squeegee uses the power of water to clean tough dirt and debris with six high-pressure nozzles that spray in a controlled fan pattern. The system is designed to make floor-cleaning faster and easier. It comes with a 30-inch curved head and a red, oil-resistant foam squeegee. While the pressurized jets do the work, the thick closed-cell squeegee conforms to surfaces. Hydro Squeegee is available at ACE, True Value and Do It Best stores. Info: 503.249.8800; www.ettore.com. 

---

Tiger Taco Industries

Packaging Tool

Tiger Taco Industries introduces an innovative packaging tool to make packing and unpacking boxes safer, quicker and easier by eliminating box flap hassles with its utility patented design. The metal tacos slip over box flaps and keep them from flipping into the way of packing.

Tiger Tacos point of purchase display is designed to give facilities an impulsive, interactive selling tool for storage customers. POP kits of 24 Tiger Tacos cost $69.95. For orders over five kits, Tiger Taco Industries will add a facility logo for a small additional fee, creating a sales promotional tool for storage facilities. Info: www.tigertaco.com. 

If you have a staff-related announcement such as a promotion, new hire or award you would like to include in the magazine, send an e-mail to [email protected] . High-resolution, digital photos are appreciated.

---

Campbell Promoted to Digitech Account Manager

Digitech International Inc. selected Steven Campbell to assume direction for the Southeastern sales team. Campbell will create and support customer relationships, and lead a team in order preparation and general account service. He has been with Digitech for more than three years as a senior technician in the companys technical support call center.

---

OpenTech Hires Two New Grads

OpenTech Alliance Inc., the maker of INSOMNIAC self-storage kiosks, filled two key positions at its Phoenix headquarters. Sean Moriarty joined in March as business development manager for the mountain and western Canada regions after receiving his bachelors in business administration from the University of Massachusetts. Jason Bradley joined the team in June in the technical services department, and has completed his electronic and computer technology degree from DeVry University in Phoenix.

---

Trachte Adds Eight Employees

Trachte Building Systems announces the addition of eight new employees. Devin Anderson is a product development engineer responsible for developing and launching new products to help Trachte diversify its markets. Jennifer Schroeder was recently hired as an engineering technician. Her duties include generating proposals, contracts, plans, construction details and bills of material. Tim Sexton accepted a position as a PC support specialist. LeAnn Spuda joined the materials group as a purchasing agent. Lisa Gensch is a new accounting assistant. Shaun Decker and Mali Butteris accepted positions as structural engineers responsible for the design of custom details for new buildings. Trevor Sajdak is an engineering technician, generating proposals, contracts, plans and construction details.

---

Sentry Hires Yonis, Promotes Lekas

Norman Schulman announced Rick Yonis has joined Sentry Self Storage LLC as executive vice president and managing partner. For the past 13 years, Yonis served as vice president of operations and franchising for Storage USA and Extra Space Storage. He will be based in Sentrys Dallas office. Bryan Lekas was promoted to regional vice president and partner. Lekas, based in the Coral Springs, Fla., office, joined Sentry in 2001 as district manager and worked as operations manager. Rob Nelson joined Sentry as the district manager for Texas; previously he was with Storage USA and Extra Space Storage.

---

Hryszko Joins CBRE as VP

CB Richard Ellis announced Steve Hryszko has joined the firms self-storage advisory group as vice president. With Hryszkos arrival, CBRE has added a national institutional brokerage component. He will work in the companys Cleveland office and serve large national and regional institutional owners as well as smaller local clients. Hryszko, a 20-year real estate veteran, most recently worked for U-Store-It, where he oversaw the acquisition of more than $1 billion in self-storage properties.

---

Rapid Rack Appoints National Sales Manager

Frank de la Torre is new national sales manager of the industrial division for Rapid Rack Industries Inc., a manufacturer in the shelving rack and workbench industry for more than 75 years. A 10-year veteran of the industry, de la Torre will oversee the sales managers and manufacturers representative organization.

---

New Personnel Director for AAAA

AAAA Self Storage Management Group appointed Vicki Mahone as human resources manager. She has 22 years experience in human-relations management. AAAA Self Storage Management Group, an affiliate of Virginia-based The Nicholson Companies, is a full-service management and development company for the self-storage industry along the mid-Atlantic.

Our roundtable of experts gathered this month to discuss the South Central United States. Ive asked local broker affiliates to summarize the current self-storage market in their areas and share thoughts on what the future may hold.

Gulf Coast States
Bill Barnhill and Stuart LaGroue, Omega Properties Inc., Mobile, Ala.

Self-storage is still viable along the Gulf Coast of Alabama, Mississippi and Florida panhandle. Over the last year, the area received the most attention because of the overly active hurricane season, which directly impacted the storage industry. Areas along the Alabama coast and the Florida panhandle incurred damage from several storms, but it was the Mississippi coast that suffered the worst destruction, with some facilities being totally destroyed by water and wind.

In many areas, intact facilities were flooded within days. It was common to see renters in Alabama come from as far as New Orleans. Facilities that were 85 percent to 90 percent occupied went to 100 percent for awhile. However, in the past few months were beginning to see occupancy rates revert back to pre-storm levels.

In the aftermath of the storms, The Gulf Opportunity Zone Act of 2005, commonly referred to as the Go Zone, is providing major tax incentives to business development in parts of Louisiana, Mississippi and Alabama that were declared major disaster areas by President Bush. One key aspect of Go Zone is the 50 percent bonus depreciation, which applies exclusively to new property, and can only be taken on additions or improvements of newly purchased or constructed assets. This opportunity is providing incentives to rebuilding efforts.

Due to the substantial losses incurred last year, many insurance carriers are making adjustments to policies regarding specific coverage. Unfortunately, coverage isnt available in some areas of Florida, even by state-run carriers. Property owners and elected officials are looking into the problem.

Today, the industry remains upbeat and positive. Several areas along the Gulf Coast are still experiencing record population growth. The overall economy remains robust and demand is still strong for storage. Theres plenty of room for acquisition and many U.S. investors remain attracted to this dynamic region.

Arkansas
Mike Procter of JR Fulton & Associates, Oklahoma City, Okla.

Arkansas has approximately 1,000 to 1,200 self-storage facilities, according to Bill Humble, self-storage owner and president of the Self Storage Association of Arkansas. The new association has several hundred members and was formed to help combat the states sales tax situation and organize support for the issues facing the industry. The self-storage market in the Little Rock area is strong with average occupancy rates between 80 percent and 82 percent, but the expanding northwest area of the state is overbuilt, says Humble. With the current rental rates being what they are, it would be hard to justify more facilities in that area of the state.

In other areas, such as Jonesboro, business is thriving. The city was recently ranked as the sixth-best small city to start and grow a business, and experts suggest there is unmet demand for A-grade self-storage facilities here and other small cities.

The average rental rates and cap rates (9 percent) for Arkansas currently lag behind all other geographic areas in the U.S., says Bill Fritz of Coldwell Banker Commercial Division in Jonesboro. Although Little Rock is currently oversupplied with 143 facilities, future demand will likely absorb this supply. Owning facilities in Arkansas in the future should translate into high occupancy levels and increasing net operating income.

The 2006 Self-Storage Almanac shows most Arkansas facilities were built from 1986 to 2000. Since only 1.7 percent was built in 2004 or later, there is likely an opportunity for new facility developmentor redevelopmentin Arkansas, says Fritz.

In light of the current business environment and macro-economic conditions, there are still self-storage opportunities here, but site selection, unit mix and amenities remain fundamental ingredients of facility success.

West Texas
John Owens and Barry Comiskey of Westar Commercial Realty, Lubbock, Texas

Over the last year, overbuilding has become a key factor in this market. Our data shows seven new facilities opened, which took a heavy toll on occupancy statistics for the market as a whole. Another downside to overbuilding is the affect it has on the bottom line of a facilitys operations. Many owners have experienced decreases in net operating income. New facilities are offering great move-in and rental specials, forcing the competition to decrease rates to remain competitive. Low rents coupled with increasing expenses, particularly taxes and insurance, are a major concern for owners.

Overbuilding has and will continue to affect self-storage businesses in West Texas. No one knows how many square feet of storage exist and what the demand for that number actually is. The good news is demand seems to be on the rise, but its a mystery if supply and demand will ever equalize. Owners and developers should be cautious about future expansion or development. As always, a good feasibility study is critical.

North Texas and Oklahoma
Richard Minker of Richard D. Minker Co., Fort Worth, Texas

While theres concern the Dallas/Fort Worth Metroplex market is being overbuilt or is oversaturated, construction of new facilities continues. Most is in the North Dallas/Collin County (Frisco/Addison) area. Major regional developers building approximately three facilities a year are now looking at one or two. The exception is All Storage, which continues to build about four state-of-the-art projects of 80,000 to 120,000 square feet each year. In addition to building mega facilities, the operator pursues aggressive marketing, offering 50 percent discounts off the first three to six months of a lease. This dramatically impacts unit and economic occupancy of the area.

A September 2005 market survey, commissioned by the Texas Self Storage Association, reflected in excess of 1,100 facilities in the Dallas/Fort Worth market. Of the 962 surveyed, average unit occupancy was 82.7 percent and economic occupancy was 75.9 percent. Because of new development, most operators are struggling to maintain their existing unit occupancy and especially economic occupancy. In addition, many large regional operators are being bought by prominent national chains.

In Oklahoma, new facilities are adding to the Oklahoma City inventory, but not to the degree of Dallas/Fort Worth. Unit-occupancy rates range from the mid-70s to high-90s, with an overall market occupancy in the mid-80s. Oklahoma has more than 800 facilities with the greatest concentration in Oklahoma City and surrounding areas. Oklahoma City/Norman area is somewhat oversaturated.

The next largest market is Tulsa/Broken Arrow, where there had been limited growth except near Owasso, which experienced a stagnant or declining economy because of job losses but is now on the rebound. Occupancy is firming up and, as a result, operators are increasing rates. Tulsa occupancies range from about 75 percent to 80 percent, depending on location and age of facility.

Overall, new development is slowing for three reasons. First, markets are being oversaturated; new facility lease-up to a stabilized level takes 24 to 36 months. Next, the cost of building materials is driving up overall development costs. Finally, the increase in interest rates for construction and permanent financing is impacting development. All told, the economics of new development are not as attractive as theyve been in the past.

As for sales of existing facilities, more independents are thinking about selling. Several regional players in North Texas have sold out to the U-Store-It chain from Middleburg Heights, Ohio, and operate under the U-Store name. The last major sales in Oklahoma were the disposition by Storage USA in both Oklahoma City and Tulsa. Cap rates range from 7 percent to 11 percent, with the majority of sales in the 9.5 percent range.

With current economic conditions and slowdown in construction, most operators hope demand catches up with supply. 

Michael L. McCune has been actively involved in commercial real estate throughout the United States for more than 20 years. Since 1984, he has been owner and president of Argus Real Estate Inc., a real estate consulting, brokerage and development company based in Denver. In 1994, he created the Argus Self Storage Real Estate Network, now the nations largest network of independent commercial real estate brokers dedicated to buying and selling self-storage facilities. For more information, call 800.55.STORE; visit www.selfstorage.com . 

All interested parties are invited to attend a free webinar titled "Self-Storage Construction: Using Site Layout to Maximize Project Potential," on Oct. 24, 11:30 a.m. ET to 12:30 p.m. ET. The event is presented and sponsored by Trachte Building Systems and Inside Self-Storage.
The session will explore how to balance storag facility design with the needs of the target market to make the greatest profit. Topics will include alternative layout methods, multistory building, climate control, drive-up access and more. Time will also be allotted for questions and answers with the speaker.
The webinar will be presented by Trachte's national sales manager, Jamie Lindau, who has more than 20 years of experience in self-storage building and consulting. During his career, he has assisted more than 1,200 self-storage owners with the acquisition, layout, feasibility, building design and purchase of their sites. He has also conducted more than 170 self-storage seminars on Trachte's behalf since 1987, and is the former owner of an 850-unit, 95,000-square-foot Florida facility.
Trachte is one of the nation's largest suppliers of self-storage buildings. This web event is free to all attendees thanks to the company's generous sponsorship. For more information, visit www.trachte.com.
For details regarding the webinar and to register, visit www.insideselfstorage.com/webinars.

Every storage facility seems to sell basic storage and moving supplies, and has a retail area devoted to promoting and displaying these products. It makes good sense for owners to consider selling ancillary supplies for several reasons:

• Additional income 
• Convenience for customers 
• Commission opportunities for the manager 
• Any combination of the above

Best Sellers

Once the decision has been made to stock the shelves with retail options, the next question becomes, What products should we sell? Depending on whom you talk tosuppliers, customers, competitors, management companiesyoull get a different point of view. Suppliers like to sell you as many items as you can handle; customers tell you what they buy; competitors (if youre friendly with them) and management companies may be willing to share what has sold best for them.

In my experience, locks, boxes, bubble wraps, tape and mattress covers are big sellers. Still, its best to ask others whove been in the business for a long while what sells the most at their sites.

What if you have RV storage? Should you sell RV supplies? Theyre usually more expensive and dont sell as fast as moving and packing supplies, but several of our RV-storage facilities have been successful selling ancillaries. On the bestseller list are toilet paper and chemicals for waste-removal systems. Campers need these items frequently; if you sell them, you save customers from a trip to the specialty RV store and you can pocket the change.

Bundling and Selling

How you present your products often determines how successful youll be. For example, if your supplies are out of the way and unnoticeable, customers may assume you dont have them. On the other hand, you might choose to display products where people cant possibly avoid seeing them.

When we train staff in selling supplies, we explain that some products sell themselves if they are in front of customers. Our managers are trained to walk potential tenants past the ancillary display area on their way to units. While passing by the products, the manager might say something like, Will you be needing some boxes for your dishes? or We recommend using covers over your valuable furniture to keep it dust-free. or We sell disc locks to a lot of customers. Would you like to have one as well? The idea is to plant in the customers mind that we have products they need and its convenient for them to purchase right now.

Another suggestion is to bundle several items and sell them as a package deal. For example, a 5-by-10 Convenience Pack might include five medium boxes, one wardrobe box, two mattress covers, one roll of tape and one magic marker. Discount the price so its a good deal for the consumer. Moreover, its good for you because you move inventory more quickly.

As another incentive, offer tenants a small discount over street rates with a signed lease. Its a small gesture, but sometimes people receiving a 10 percent or 15 percent discount buy more because they think theyre getting a good deal.

Staff Incentives

Selling ancillaries should become as important as matching tenants with the right size unit. There is a substantial profit margin in the average markup of supplies, so the goal of the manager should be to sell to everyone who walks through the door.

Offer managers commissions of 5 to 10 percent and youll still earn greater profits. Further, if you are a manager and your facility isnt already selling ancillaries, make a suggestion to your owner or management company. Tell them youll create a small retail center and split the profits. By taking the initiative, you show them youre willing to create more revenues and will work harder in return for a small piece of the pie.

Ancillary supplies can serve as an extra income stream, inspire managers to make more money through commissions, and provide added convenience to self-storage customers. Select appropriate inventory, and let customers know what you offer, and youll be on track to a great sideline business. 

Mel Holsinger is president of Professional Self Storage Management LLC, based in Tucson, Ariz., offering facility management, consulting and development services to the self-storage industry. For more information, call 520.319.2164; visit www.proselfstorage.com.