A self-storage owner in Palmer, Mass., has sparked serious debate about a controversial message posted outside his business, Bakers Auto Body and Self-Storage.

The sign, which states, "Muslims are destroying us from within, spreads hate and Islamphobia, according to several Muslim community leaders.

Russell G. Baker, 60, claims hes not spreading hate, merely speaking his mind. Bakers comments are posted on the back of a sign that reads, Obama appointed 2 devout Muslims to Homeland Security.

Several Muslim leaders have reached out to Baker in hopes to redirect his opinion about Muslims. Many Americans equate all Muslims with terrorists, according to John H. DeBonville, chaplain at American International College in Springfield. DeBonville wants to tell others in the community about the good things happening at the Islamic mosque, and educate the community about the religion.

Local Muslims have been recent targets of hostility. Signs at the Islamic Society of Western Massachusetts were vandalized with graffiti and a nasty telephone message was left at the center.  Islamic Society board members hope reaching out to Baker and others confused about the religion will teach tolerance and understanding.

Baker, whos owned the self-storage business since 1972, changes the message on the sign twice a week and keeps a list of everything hes posted. Most recently, he posted a message about this opposition to the mosque at Ground Zero. Baker told a local newspaper his messages, which are often aimed at President Obamas actions and policies, havent detracted from his business.

Bakers outspokenness, however, has attracted the attention of law enforcement, he said. Baker claims hes been visited by Secret Service agents twice. The Palmer Police Department has also fielded angry calls about the signs.

The U-Haul Company of Raleigh is offering 30 days of free self-storage to people affected by the Wilmington, N.C., flood. Nearly 21 inches of rain have fallen in the coastal city over the past week. It is the most rain the city has received since Hurricane Floyd in 1999.

Homeowners and business owners can also take advantage of the companys Take a Box, Leave a Box program. Anyone with reusable boxes can drop them off at the nearest U-Haul location, allowing others to use the box for free.

Floods cause tremendous damage and inflict extreme hardship on the communities we serve, said Paul Smedberg, president of U-Haul Raleigh.

Since 1989, AMERCO Real Estate Co., an affiliate of U-Haul International Inc., has been responsible for providing real estate services to AMERCO subsidiaries that include more than 1,350 U-Haul moving and storage centers throughout the United States and Canada.

Looking back over 2010, theres no doubt real estate transaction volume improved significantly compared to 2009. This is largely due to an adjustment in the two most critical factors affecting investor confidence: fear and greed. Weve seen an improved attitude toward acquisitions, and most self-storage professionals are feeling more confident in their ability to perform as the shock of the recession starts to wear off.

Most of the fear that was in the market last year was created by unknown factors in the financing market and an overall slowdown in the economy. As we approach the end of 2010, were seeing improvements in the financing market and, most important, were confirming self-storage is no doubt one of the most recession-resistant real estate assets.

Few Distressed Properties

The uncertainty and fear in the market during 2009 was generally created by the unknown factors floating around on the balance sheets of many major banks. The one question out there that still seems to be unanswered is how banks will handle maturing loans where the collateral is no longer worth the balance. Youve probably heard the term extend and pretend by now, as banks have tried to work with borrowers to extend the loan to allow borrowers the necessary time for the market to recover.

The few buyers in the market last year seemed to be waiting for distressed asset opportunities to come to market, hoping they would not overpay. Since it was difficult to assess the market value of real estate due to the lack of transactions, they were simply relying on the assumption that if it was distressed, then they would be not overpaying. The reality is there were actually very few distressed sales in 2009. The ones that did come to market were sold in a noncompetitive environment, which created a tremendous opportunity for the buyers who had access to these deals.

The majority of distressed opportunities that sold were placed in a bidding process where they were so actively chased that it left many wondering whether the winning bidder had actually paid a distressed price. In any event, the few transactions that took place in 2009 were setting the rules by which properties were now going to be valued.

Smaller Loans

Today the demand for self-storage properties is strong, and there are several well-capitalized buyers in the market. These buyers are experienced and disciplined in their underwriting, and are not willing to overpay. Those winning deals are not winning them on price alone. Theyre relying on other factors such as timing, due diligence and experience.

Theres also a substantial bifurcation in the market between properties in major markets, with values of more than $3 million, and smaller, less valuable properties. Higher-value properties are achieving cap rates that are 100 to 300 basis points lower than those for smaller properties. This is because the large, well-capitalized buyers in the market today are unable to obtain smaller loans at a competitive rate necessary to make the smaller deals work. Additionally, theyre unable to achieve the economies of scale necessary to make their new financial model work.

These factors, combined with the high cost of the legal work and the complex nature of the larger operators capital, have made it difficult for larger operators to consider smaller transactions in todays market. This has left the smaller operators wondering why they cant sell their properties at the same cap rate as larger properties in the same market. The smaller operators are dealing with buyers who are not as well-capitalized and, more important, banks that are less aggressive with interest rates and terms due to the small nature of the transaction. In fact, smaller, less valuable properties will be valued differently than larger, well-located, class-A properties for several years to come.

Market Confidence

Theres every indication the transaction market is improving, with market-rate deals dominating the majority of recent transactions. This has led to clarity in pricing and added confidence to the financing markets. Additionally, the concern about a possible double-dip recession, rising interest rates and the likelihood of an increase in capital-gains tax has led some of the most sophisticated owners in the business to consider selling in todays improving market.

Clearly, any of these events could have a material impact on the owners investment if the investments horizon is short term, say less than three years. If youre planning on selling in the not too distant future, you may want to give some thought to accelerating the process to take advantage of lower capital-gains tax and a buyers ability to borrow money at low interest rates.

Ben Vestal is president of the Argus Self-Storage Sales Network, a self-storage brokerage network based in Denver. He can be reached at 800.55.STORE or [email protected] .

Some self-storage operators question the importance of collecting emergency and alternate contact information from tenants on their rental agreement. They wonder:

• Why do I need to ask for an emergency or alternate contact on each rental agreement?
• What if the tenant refuses?
• Am I obligating myself to communicate with that emergency/alternate contact?
• Am I potentially violating my tenants right of privacy if I give information to the emergency/alternate contact?

The answer to these questions lies in two different placesyour state self-storage statute, and the language and protections in the rental agreement itself.

Alternate vs. Emergency Contact

Some statutes require that you have a place in your rental agreement where you collect the information of a second person to whom you can send notices in the event of a default. We generally refer to this as the alternate contact. If this is the case in your state, then you are required to ask for it. However, even if youre not required to get an alternate contact, I recommend you do anyway, subject to the conditions outlined in this article.

An emergency contact is potentially different. One could easily argue that a lien-sale default notice is not an emergency such as a fire or flood. While you should collect emergency-contact information in addition to an alternate contact, you have to define in your rental agreement what youll do with that info.

These restrictions are not like state privacy laws in which you must disclose what youll do with someones e-mail address. However, you want to disclaim certain liability to avoid the accusation that you were supposed to do something extra with emergency-contact information. Thus, many rental documentsif they ask for an emergency contactstate that it specifies the person the operator tries to reach if theres a pressing issue with the property at the facility. Try to stay away from defining exactly what an emergency may entail, then contact only if youre not able to reach the tenant.

The emergency contact will not be entitled to any default notices, and he doesnt become an authorized occupant. He cannot access the unit or order a lock cut. That said, you can send notices to the emergency contact in the event of a default, even if youre not obligated to do so by your state statute or the tenant himself. You might not send notices to the emergency contact by Certified Mail the way you would to an actual tenant; but from a belt and suspenders safety mentality, you want as many different contact names and numbers as you can possibly get.

Giving Yourself More Opportunities

Assume youre in a state that doesnt require you to collect an alternate contact for the purposes of notices. Should you be asking for an alternate contact, emergency contact, both or neither? In a perfect world, you should ask for both because the alternate and emergency contact may be different and, in the end, if theres a loss or default, you might not be contacting the right person if you only ask for one of the two.

Let me give you a quick example. A tenant lists his wife as the emergency contact, but names his parents as alternate contacts for notices. Lets say the tenant divorces and defaults on the unit. You send an extra copy of the default notice to the now disenfranchised ex-spouse, who promptly throws it away rather than tell her ex his stuff may be in jeopardy. It seems nice and revengeful enough, but it doesnt really help you.

If you send a notice to the home of the tenants parents, however, mom and pop will hopefully have sustained contact with their son and be able to help you resolve the problem or reach the tenant. By asking for both contacts, even when not required, youve given yourself two extra opportunities to reach someone who may help you resolve a default.

Some self-storage operators dont want to collect that much information on the lease. If youre only going to ask for one, choose an emergency contact. (This assumes your state statute doesnt require you to ask for the alternate.) The emergency contact is generally the person in the best position, short of a divorce or some other life change, to assist you in locating your tenant. When you request emergency information, make sure you disclaim that this person might not be entitled to the same notices and doesnt have entry or other rights under the rental agreement.

Consider a Hybrid

If your state statute requires you to collect alternate-contact information, you cannot disclaim responsibility for sending notices to that person. In that case, I dont recommend you change the title of alternate contact to emergency contact in your lease. However, the other disclosures named above should be listed in your rental agreement, for example, no authorization to enter, etc.

Finally, consider a hybrid, especially in states where youre not required to collect an alternate contact. Add lines for emergency/alternate contact information in the rental agreement, and allow space for one or two names and phone numbers with relationships. This way, youre not splitting hairs between emergency and alternate information. Plus, you can include all the pertinent disclaimers and still collection the information of several people who might help you find your tenant if necessary.

This column 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.

Jeffrey J. Greenberger is a partner with the law firm of Katz Greenberger & Norton LLP in Cincinnati and is licensed to practice in Kentucky and Ohio. Mr. Greenberger primarily represents the owners and operators of commercial real estate, including self-storage owners and operators. To reach him, call 513.721.5151; visit www.selfstoragelegal.com .

This week California Governor Arnold Schwarzenegger signed into law Assembly Bill 655 (AB 655), which amends the states self-storage lien law. Championed by the California Self Storage Association (CSSA) with funding support from the national Self Storage Association (SSA), the signing of AB 655 marks the culmination of a three-year legislative battle on behalf of the industry.

The law, which goes into effect Jan. 1, addresses the "Declaration in Opposition provision of the lien law, resulting in a more cost-effective process and eliminating baseless Declaration scenarios. It also provides for a more reasonably priced lien-notification procedure.

Previously, self-storage liens in which a declaration had been employed were settled in a superior court. AB 655 allows facility operators to resolve such disputes in small-claims court. Also under the new law, verification of delivery of lien notices can be satisfied through certificate of mailing rather than Certified Mail, which is more costly.

"We believe that the updates to the law will create a more efficient and cost-effective process for operators and their tenants to communicate when customers have fallen behind in their rent, said CSSA President Shelley Geiler. "We could not have been successful in this endeavor without the joint effort of the national Self Storage Association and the incredible support we received from our membership.

Founded in 2002, the CSSA a not-for-profit trade organization dedicated to serving the California self-storage industry, including owner-operators, facility managers and vendors. The association represents approximately 380 direct member companies that own and operate more than 800 facilities in California.

The California Self Storage Association (CSSA) will hold its annual conference and membership meeting Oct. 13-15 at the Westin San Diego hotel. The theme of this years event is Self-Storage 2.0: Maximizing the Power of the Internet.

Educational highlights of the conference include a special keynote presentation by Amber MacArthur, who will speak on Demystifying Social Media for the Storage Professional. Other presentations will include:

• Been There, Done That, an open discussion of hot topics including solar energy, cost segregation and self-storage kiosks, led by Charles Byerly of Westport Properties
  
• Five Sure-Fire Keys to Create a Sales Culture, presented by Kenny Pratt, president of Crescendo Properties
  
• Anything Legal, including an open Q&A with self-storage legal expert Carlos Kaslow
  
• A Discussion About Search Engine Optimization, presented by Jason Lopez, partner and director of corporate development for Westport Properties Inc.
  
• Software Showcase, a demonstration of the self-storage industrys top management software

The event will also include a networking cruise outside downtown San Diego, Oct. 14 at 6 p.m. Conference information can be found at the CSSA website, www.cssaweb.com.

The Inside Self-Storage World Expo wraps up today in the beautiful city of New Orleans. Hundreds of self-storage owners, operators, investors, builders and vendors from around the countryand dozens from around the worlddescended upon the Crescent City for three days of education, exhibits, workshops and more.

We had an amazing turnout for our fall show, said Troy Bix, publisher of Inside Self-Storage magazine. The mentality in the industry is shifting. Operators are no longer focused on surviving the current economic climate, but are now looking forward. Theyre focusing on growing their businesses, training employees and implementing new marketing strategies. ISS Expo attendees found solutions they can take home and implement today to achieve greater success.

The wide range of seminars offered at this years show, Sept. 29-Oct. 1 at the New Orleans Marriott, included marketing, financing, construction, development, legal issues, and day-to-day facility management. But it was technology that generated the most buzz. I really enjoyed the online marketing workshops, said Brad Poe, chief operating officer of Stockade Storage in Charleston, S.C. The expo featured several seminars focused on a variety of tech topics, including measuring Web-marketing performance, secrets of search-engine optimization and online branding.

In addition to two days of education, expo attendees enjoyed a lively Q&A session with industry experts Mel Holsinger of Professional Self Storage Management LLC and Jim Chiswell of Chiswell & Associates LLC. The interactive Q&A enabled operators, investors, builders and other industry professionals to discuss the issues they face today. The show also featured five add-on workshops, a Buyers & Sellers Meeting and roundtable discussions.

The exhibit hall opened on Sept. 29 with more than 70 exhibitors displaying self-storage products and services. Companies included developers and builders, brokers, financiers, insurance experts, door manufacturers, software vendors and many others. The opening of the exhibit hall coincided with the ISS Expo cocktail reception, allowing attendees and vendors to meet and greet in a relaxed setting. The cocktail reception was just one of several networking events.

Marc Johnson, an investor looking to purchase his first self-storage facility, was awed by the shows many networking opportunities. The openness and willingness of so many people to share their experiences and knowledge was amazing, said Johnson of Green Cove Springs, Fla.

This industry includes so many welcoming individuals who are willing to share what they know so the industry will thrive and grow. Were extremely grateful to all our speakers, attendees and the exhibitors who joined us in New Orleans, Bix said. Theres a lot of viability in this industry, as evidenced by the success of this show.

The annual ISS Expo in Las Vegas, the industry's largest conference and tradeshow, is slated for March 14-16, 2011, at the Paris Hotel and Resort. The education program will feature the industrys top consultants, developers, marketers and online experts addressing topics such as management, marketing, financing and more. The show will also feature two days of exhibits, add-on workshops, a Technology Marketplace and more. Details about the show will be available in the coming weeks at  www.insideselfstorageworldexpo.com.

Dean Jernigan, CEO of U-Store-It Trust, will be a speaker at the Florida Self Storage Associations Executive Retreat, Oct. 8.

Jernigans  presentation will reflect on the challenges and opportunities of operating a self-storage real estate investment (REIT)  through the current economic climate. Other noted speakers for the retreat include Chris Oakley of the Federal Reserve Bank of Atlanta, George Miliotes of Darden Restaurants, and Scott Enos of Disney Destinations.

More than 100 self-storage owners and operators are expected to attend the Florida Self Storage Association's Second Annual Executive Retreat, held at Disney's Yacht Club in Lake Buena Vista, Fla.

U-Store-It Trust is a self-administered and self-managed REIT. The company owns or manages 491 facilities across the United States, and operates the U-Store-It Network, which consists of approximately 712 additional self storage facilities.