Construction employment declined in 31 states between August and September, while fewer people are working in construction compared to last year in 40 states, the Associated General Contractors of America reported in an analysis of state employment data released last week by the U.S. Labor Department.

Construction employment is likely to continue to worsen amid uncertainty about federal spending and tax rates for next year, association officials noted.

Construction firms are caught between a difficult present and an uncertain future, said Ken Simonson, the associations chief economist. Looking ahead, nobody knows what will happen to the only thing keeping the current market from getting worse, federal spending, as long-term water, energy and transportation spending programs remain in limbo.

Simonson noted that Rhode Island (-2.9 percent, -500 jobs) lost the highest percent of construction jobs for the month, while California lost the most jobs (-2.5 percent, -13,300 jobs). Among other states losing construction jobs between August and September were Texas (-1.2 percent, -7,000 jobs), New York (-1.8 percent, 5,800 jobs), Ohio (-2.5 percent, -4,400 jobs), and Pennsylvania (-1.1 percent, -2,500 jobs).

Hawaii (4.9 percent, 1,400 jobs) and Minnesota (3.8 percent, 3,100 jobs) experienced the largest one-month percentage increase in construction employment between August and September. Besides those two states, another 13 and the District of Columbia added jobs, while construction employment was unchanged in four states. Other states with increases in construction employment included Florida (0.5 percent, 1,700 jobs), Georgia (1.0 percent, 1,500 jobs), Washington (0.8 percent, 1,100 jobs) and Illinois (0.4 percent, 700 jobs).

Simonson noted that nine states and Washington, D.C. added construction jobs for the year while employment in Alaska was unchanged. The largest year-over-year increase was in Oklahoma, where construction employment rose 9.8 percent (6,500 jobs), followed by Kansas (8.9 percent, 5,000 jobs), New Hampshire (8.0 percent, 1,800 jobs), the District of Columbia (4.5 percent, 500 jobs) and Arkansas (3.5 percent, 1,800 jobs).

Among the 40 states that lost construction jobs over the past 12 months, Nevada experienced the largest percentage decline (-19.3 percent, -14,200) in jobs while California lost the most jobs (-50,700, -8.8 percent). Other states experiencing large declines for the year include Vermont (-14.1 percent, -1,900 jobs), Idaho (-12.3 percent, -4,000), Colorado (-11.5 percent, -14,200 jobs) and Kentucky (-9.8 percent, -7,000 jobs).

Association officials cautioned that construction employment will continue to stagnate as firms, already coping with depressed private, state and local demand, contend with an uncertain federal marketplace. Adding to the confusion, officials said, was tax rates for most small-construction firms have also not been set for next year. Adding uncertainty and confusion into an already bleak market is a good way to keep construction workers out of a job, said Stephen E. Sandherr, the associations chief executive officer.

In a joint venture, Morningstar Properties LLC and Harrison Street Real Estate Capital LLC acquired a self-storage facility in Chesapeake, Va., the ventures third property in the state. Morningstar currently operates facilities in Virginia Beach and Norfolk.

The facility has 91,000 rentable square feet and 807 units, including 111 vehicle-storage spaces, and a renovated retail office. It will be re-branded Morningstar Mini-Storage.

Redevelopment plans include relocating the main gate, converting interior units in one storage building to climate control, and new fencing, landscaping and paving. The paving and gate relocation will give customers better access to the facility and provide additional parking.

 The quality of the facility and excellent demographics enhance our portfolio of properties in the South Hampton Roads area of Virginia, said Dave Benson, president of Morningstar Properties. The facility is well located in a strong growth market and were excited to add it to our existing Virginia footprint.

Morningstar Properties is a vertically integrated developer, builder and operator of specialty real estate across the Southeast. The company currently owns or operates 47 self-storage facilities totaling more than 2.5 million square feet and 10 marinas in the mid-Atlantic and Southeast.

Harrison Street Real Estate Capital, on behalf of Harrison Street Real Estate Partners I LP and Harrison Street Real Estate Partners II LP, has acquired or is in the process of developing 182 properties worth more than $2.1 billion. As of June 2010, HSRE has acquired or has under development in excess of 4,000 senior housing units, 60,900 storage units, 15,000 student housing beds, 2,800 dry and wet boat storage and 855,000 square feet of medical office space.

File Managers Inc. (Fileman) recently signed its 500^th records and information management (RIM) services client.

Last week, the company signed its first customer from mainland China. The new commercial-records center begins services in Beijing and will add several other cities within The Peoples Republic of China during the next few years.

For the past 33 years, Cary McGovern, owner and principal consultant of Fileman, has worked with clients from 38 countries on six continents to create and deliver RIM training programs, industry best-business practices, skills, tools and resources.

FileMan has provided education for commercial-records center startups, sales management and sales training, facilities revenue improvement assessments, and dozens of specific services for its clients. These include sales-closing assistance, proposal writing and answering, commercial-records center pricing and bundling strategy, customer relationship strategy, and ongoing coaching and mentoring services as well as other specific engagements.

FileMan is actively involved in several industry organizations including PRISM, ARMA International, and the Association for Information and Image Management. McGovern has written and published more than 200 articles in dozens of publications, and frequently addresses RIM subjects on several blogs and hosts his own blog at www.carymcgovern.com.

There are still many challenges self-storage operators will face as we move into 2011. A generally slow economy, increased expenses, stressed-out customers, more competition, and an overall negative feeling are just a few of the issues the industry has weathered over the past three years. Along with developers oversupplying certain areas of the country, the pressure on our industry is at an all-time high, and affects your facility in one way or another.

With so many factors working against self-storage operators, how do we combat them? One of the most important tasks of an owner, investor, management company, regional manager/director or facility trainer is making sure the companys most important assetsits employeesare up to date on all aspects of their job. This includes areas such as legislation, technology, management techniques and operational methods.

Understand Legislation

Legislation is an extremely important topic all self-storage employees should be vigilant in researching. Have the laws regarding late fees or lien sales in your state changed in the last year?  Has the sales-tax rate changed? Are you required to collect a sales tax in 2011?  

Most states have unique laws regulating late fees, customer access, sales tax and, most important, lien sales. Since each state has its own unique self-storage statutes, the best and most efficient way to keep up with changing legislation is to become a member of your states self-storage association. The associations have the most direct link to a states legislature and will be able to distribute any changes in state laws to you quickly. If your state doesnt have an association, consider working with the national Self Storage Association.

Another way to keep up with legislative changes is to attend legal workshops or seminars. Almost every tradeshow or seminar has at least one session dedicated to changes in legislation. These sessions are invaluable in keeping up to date with the changes that affect our industry.  Lastly, consider having an attorney review your rental agreement and procedures on a regular basis.   

Learn Technology

Over the last five years, technology in the self-storage industry has moved at the speed of light. The Internet has changed how we operate. Gone are the days of looking at a Yellow Pages ad and finding a self-storage facility on a map. Now you just Google the information (as if Google was a verb in our vocabulary all along). Online management software, electronic kiosks, search-engine optimization, online referral services, Twitter, Facebook, LinkedIn and Google-based bar codes are just some of the items being implemented at self-storage facilities nationwide.

So, how do you keep up with all of these changes? Industry tradeshows are one of the best ways to keep up with technology thats storage-specific. Attend any show, and youll come away with a technological idea or product you didnt even know existed.

Another way to keep up with technology is to do some research online. Theres an endless number of blogs and websites that review everything from software to hardware. In addition, you should read self-storage trade magazines. Each month, youll pick up an idea you can integrate into your operation, often for little or no investment.

One of the best ways to learn about technology is to experiment. If you see an item that interests you, rent or purchase it and learn how to use it. Consider buying a Smartphone, laptop, iPod or iPad. Download a demonstration copy of software that interests you.  If this research is overwhelming, consider hiring a consultant to review your operations. Most self-storage management companies and industry consultants are familiar with the technology necessary for the day-to-day operation of a successful self-storage facility.

Improve Management Techniques and Operational Methods

The great thing about management techniques and operational methods is they dont have to be industry-specific. You can pick up ideas by reading small-business magazines such Inc., Entrepreneur and Success. These cover a range of topics including employee motivation, small-business finance and technology. Also, dont be afraid to browse your local book store or online book dealer for the newest management books. Often, great ideas are picked up from somewhere unexpected.

For industry-specific ideas, read self-storage trade magazines, browse storage-related websites, and attend storage-themed conferences. These events offer an invaluable amount of industry information. Consider joining online groups through Facebook or LinkedIn, or follow self-storage themed groups on Twitter.

Finally, never be afraid to seek an experienced self-storage management company or industry consultant. Most have people on staff that will gladly answer any operational question you may have.

Gather Information

As the self-storage industry changes, we must change with it. Legislation, technology, facility management and operational methods are extremely important to the day-to-day operation of every facility. You should share this information with your employees in a complete and timely manner.

Consider subscribing each of your facilities to industry trade magazines, so information is provided to them automatically. Join your local self-storage association, and invite your staff to attend meetings and events. Send managers weekly e-mails containing relevant articles, operational discussions, motivational pieces and links to relevant websites. Consider scheduling regular conference calls to discuss operational and management issues. Send employees to industry seminars and conferences when possible. Most important, implement regularly scheduled training sessions. Nothing can replace working with employees in a one-on-one environment.  

Remember, the most important asset of any self-storage facility is the people who manage it. Self-storage managers are some of the hardest working men and women in any industry. The things that come up on a day-to-day basis at some facilities would make a reality TV star blush. Keep your employees up to date and trained with relevant material, and it will make a huge impact on the operational harmony of your facility

Matthew Van Horn is vice president of Cutting Edge Self-Storage Management, a full-service management company specializing in management, feasibility studies, consulting and joint ventures within the self-storage industry. Mr. Van Horn is well-known for finding hidden profit centers in self-storage operations. For a complimentary Hidden Profit Discovery Session, send an e-mail to [email protected] . For more information, call 866.970.EDGE or visit www.cuttingedgeselfstorage.com . Follow the company on Twitter at Cuttingedgemgt, and on Facebook at Cutting Edge Self-Storage Management.

The state of Idaho recently purchased Affordable Self Storage in Boise, and some residents question whether its a conflict of interest for the state to run a commercial business and compete with the private sector.

The state paid $2.7 million in August for the 400-plus-unit facility on Maple Grove, in a Boise suburb. In an effort to increase its return on investments, the agency that oversees the states endowment lands added the storage site to a portfolio of properties that includes offices, parking garages and grazing land. The endowment benefits public schools and has generated $2 million to date.

Affordable self-storage is run as a tax-exempt facility. Though state ownership and operation of the property is legal, some people are concerned about the removal of this and other commercial properties from the tax rolls while competing with private businesses.

Sovran Self Storage, a self-storage real estate investment trust, will issue financial results for the quarter ended Sept. 30, 2010, after the market closes on Nov. 3. The company will conduct a conference call to review the results and discuss operations on Nov. 4 at 9 a.m. ET.

To access the conference call, dial 877.407.8033 (domestic) or 201.689.8033 (international) at least five minutes prior to the scheduled start of the call. Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast at www.unclebobs.com/company/investment/events.

The webcast will be archived for a period of 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering pass codes 286/358443.

Sovran is in the business of acquiring and managing self-storage facilities. The company operates 371 facilities in 24 states under the name Uncle Bobs Self Storage.

Kayne Anderson Real Estate Partners I, LP (KAREP), a private equity real estate fund launched, has entered into a joint venture with Flagship Investment Group, a Florida-based developer, owner and operator of commercial property. 

The nearly $25 million acquisition boasts a five self-storage portfolio in Florida totaling 375,097 in square footage with 3,187 units in prime locations throughout the Orlando and Jacksonville areas including Orange Park, Fleming Island, Clermont and Minneola. 

Since December 2007, KAREP has invested primarily in off-campus student housing as part of a strategy to invest in specialized, fragmented real estate sectors, with recession-resistant characteristics, where operational expertise and capital investment can be used to improve value. Through this joint venture with Flagship, the company is able to expand upon its strategy by investing in the self-storage sector and capitalize on similar opportunistic situations to generate value. 

This acquisition is a compelling investment for both Flagship and KAREP due to the excellent location of the properties and the strength of the industry, which has very stable cash flows and low loan default and loss rates," said Chip Headley, president and COO of Flagship.

Flagship Investment Group is a diversified real estate company focused on self-storage, master-planned communities and hospitality. 

Kayne Anderson Capital Advisors is a $10 billion investment management firm with more than 25 years of investing experience in the middle markets in the energy, growth capital, real estate and mezzanine debt sectors. The firm has offices in Houston, Los Angeles and New York City. 

Strategic Storage Trust Inc., a publicly registered non-traded real estate investment trust targeting the self-storage market, recently secured $32.5 million for the refinance of an 11-property self-storage portfolio. 

The refinance includes a nine-year term, 30-year amortization, and a fixed interest rate of 5.43 percent on $29.8 million and 5.31 percent on the remaining $2.7 million. Eric Tupler, vice chairman and Josh Simon, senior production analyst of CBRE Capital Markets Denver office, along with Bernard Branca in the Houston office, arranged first mortgage financing.

We have been acquiring assets on an all-cash basis over the past few years, but given the current financing markets, found it accretive to finance this pool of assets with low-leverage long-term debt, said H. Michael Schwartz, chairman and CEO. 

The 11 self-storage facilities are in Arizona, Florida, Georgia, Kentucky, Nevada, New Jersey, Pennsylvania and Virginia, and have a total of 7,794 units and 797,507 square feet.

A man in Redlands, Calif., accused of stabbing and killing his girlfriend at a self-storage facility last April is facing murder charges and a trial.

Tommy Lee Mendivil, 46, appeared in San Bernardino Superior Court Wednesday. After hearing testimony, Judge Brian McCarville determined there was sufficient evidence to hold Mendivil for trial.

Mendivil is accused of stabbing Pamela Nadine Kilpatrick, 35, April 2 at A Storage Place. Kilpatrick was found bleeding profusely outside a storage unit just before 2 a.m. According to police, the couple was breaking up when they visited the self-storage facility.

Mendivil and Kilpatrick, who had been together eight years and had a child together, had a violent relationship, court records show. Mendivil was sentenced to two years in state prison for a 2003 battery conviction and convicted of spousal abuse in 1998, according to court records.