Vertical Consultants, which represents self-storage and other real estate owners in negotiations regarding cell-tower lease transactions, is now accredited with the Better Business Bureau (BBB). After following all protocols set by the organization and providing multiple references, the Nashville, Tenn.-based telecom consulting firm was informed this month that it is officially recognized and accredited by the BBB.
BBB standards include maintaining a positive track record in the marketplace, advertising and presenting services honestly, and approaching all business dealings with integrity. Vertical Consultants is the only telecom consulting firm specializing in cell-tower leases that is accredited with the BBB, according to a company press release.
We look forward to not only maintaining the standards expected from the bureau, but also surpassing these standards in order to provide our clients the most positive and beneficial experience with our firm," said company president Hugh Odom.
Now in its second year of advocating property owners monetary rights within their telecom leases, Vertical Consultants provides information a variety of complimentary services and programs for landowners including free cell-tower lease reviews, lease-buyout analyses and rent reports. Founded in 2010, the company specializes in issues surrounding the wireless-telecom industry, providing property owners with the information they need to make decisions regarding their cell-tower lease agreements.
The company also helps self-storage owners recoup unpaid and underpaid rent from wireless providers. Areas of expertise include telecom-site acquisition and development, lease negotiation, and the legal issues surrounding such transactions.
Storage Post Self Storage has added free WiFi Internet access at each of its 22 locations so customers can browse the Web while on site from their laptops or mobile devices.
"We know that providing WiFi access is going to make a big impact with our customers," said Tom Walker, information-technology manager. "Providing Internet connection is a critical amenity for our visitors, whether it's so they can manage their Storage Post accounts or to set up deliveries to their Storage Post location."
Storage Post offers a variety of amenities at its facilities. In New Jersey and New York, the company provides customers with a free truck and driver service that can be used to assist with their unit move-in. The Long Island City location provides a free customer storage shuttle that helps customers retrieve items from their rental space.
Company-wide convenience features include online bill pay and account management, automatic payment options, round-the-clock access to Storage Specialists, and a full line of packing supplies for purchase in-store or online. A few facilities even professionals with work stations complete with Internet access, printers and fax machines.
Headquartered in Atlanta, Storage Post has locations throughout Georgia (1), Louisiana (5), New Jersey (2) and New York (14). The company is actively pursuing self-storage acquisitions.
Access Self Storage in Woodbridge, N.J., will host its first rummage sale and pet-adoption event this Saturday from 9 a.m. to 3 p.m. Customers and local residents will be able to shop for early holiday bargains as well as adopt pets from Woodbridge Animal Shelter. In addition, the self-storage facility will donate all proceeds from vendor fees to the shelter. Vendors can rent space for $10.
The event will also include music, free hot dogs and beverages, and hourly prize giveaways, including gift cards from local restaurants.
Woodbridge Animal Shelter is run by the township. In addition to pet adoptions, the facility tries to assist pet owners with food and other services if they have difficulty paying for the care of their companion animals.
The self-storage facility is located at 135 Amboy Ave. Access Self Storage owns or manages 17 facilities in New Jersey and New York, with more than 12,000 units for rent.
Members of the Florida Self Storage Association (FSSA) raised $1,333 for Kure It Cancer Research during a silent auction on Oct. 4, the evening before the FSSAs annual Executive Retreat in Kissimmee, Fla. Kure It is a nonprofit dedicated to funding kidney and other cancer research.
The auction was part of the cocktail reception, hosted by USStorageSearch.com, an online self-storage directory and reservations network. During the event, participants bid on a variety of items, including Tampa Bay Buccaneers tickets with hotel accommodations, a dinner, golf packages, and self-storage industry-related products and services. The items were donated by companies including Bader Co., Marcus & Millichap Real Estate Investment Services, PhoneSmart, Chateau Products Inc., MiniCo Insurance Agency LLC, SMD Software Inc. and others.
The FSSA partnered with Kure It in January 2012 to promote the organizations mission to its members. On behalf of the FSSA board members, this is just the start, said FSSA Executive Director Robert Bret. We discussed supporting many different projects, but all agreed we could do more good by focusing our efforts in supporting one worthy cause. After a thorough and exhaustive research, we found Kure It was the best way we could give back directly to a cause so near and dear to all of us.
Kure It was launched by Barry Hoeven, who was diagnosed with kidney cancer in 1998. In April 2007, Hoeven partnered with cancer center City of Hope to create the Kure It! Kidney Cancer Research Fund, which raised more than $400,000. Kure It Inc. was established in January 2010. Its goal is to be the leader in granting funds to cancer researchers investigating progressive treatments and cures.
Since announcing Kure It had reached the $1 million mark in funds raised for research, the five-year-old nonprofit has seen tremendous growth in support. The self-storage industry has led the charge in raising funds. The industrys commitment has allowed Kure It to award significant funding to top cancer-research institutions, including City of Hope and Cedars-Sinai. In 2012, Kure It awarded two grants totaling $500,000 through a partnership with the American Association for Cancer Research, and $100,000 to the Oregon Health Science University Knight Cancer Institute.
The FSSA plays an important role in spreading awareness of Kure It's mission, and the critical need for funding of orphan cancer research. We couldnt be more pleased with the partnership and the outcome of the auction, said Kure It Director Karen Jones.
The FSSAs annual executive retreat, held at the Gaylord Palms Resort & Convention Center on Oct. 5, was designed to be a think-tank, allowing industry professionals to meet and exchange ideas. Guest speakers discussed their business successes, challenges and creative ideas.
Spencer Kirk, CEO of Extra Space Storage Inc., a self-storage real estate investment trust (REIT), will be a panelist during a general session on consumer-oriented real estate owners as part of the REITWorld 2012 convention in San Diego, Nov. 13-15.
Kirk will serve on a panel also featuring Jon Bortz, chairman and CEO, Pebblebrook Hotel Trust; Daniel Hurwitz, president and CEO, DDR Corp.; and Robert Taubman, chairman and CEO, Taubman Centers Inc. The one-hour session will be held at 10 a.m. on Nov. 14 and will be moderated by Steven Sakwa, senior managing director of ISI Group.
REITWorld is an annual convention hosted by the National Association of Real Estate Investment Trusts. The tradeshow attracts investors, commercial real estate executives and service providers for private meetings, general sessions and networking events.
Headquartered in Salt Lake City, Extra Space owns or operates 910 self-storage properties in 34 states; Washington, D.C.; and Puerto Rico The companys properties comprise approximately 610,000 units and about 66.5 million square feet of rentable space.
By Amy Campbell
I have a confession to make: I hadnt planned to vote in this years presidential election. I know, I know, its my duty/right/obligation. You can pick any excuseI dont have time, I dont like any of my options and everyones favorite, My vote doesnt really count. Really, these excuses are just that ... excuses. So what changed my mind?
It happened when an off-duty police officer knocked on my door a few weeks ago. He introduced himself and held out a flier. The city of Glendale, where I live, is considering drastic budget cuts, including slashing jobs for police and fire personnel. After his short speech encouraging me to vote against the proposition, he went on to the next house. I perused the flier, then later got online to read more about it. I decided that night that not only should I vote, but that I must, that my voice can matter.
As a self-storage manager, you may feel like your voice isnt heard some days. Maybe ownership didnt ask for your input about a upcoming project, marketing strategy or even whether the facility needs a software upgrade. Regardless, there are likely going to be days when your voice is simply lost in the shuffle.
Nows your chance to sound off about an important topic affecting most self-storage managers: self-storage real estate investment trusts (REITs). ISS is looking for manager input for an upcoming article on the REITs. If youd like to add your two cents, simply complete the online survey. Youc an also copy the questions below and drop them along with your answers in an e-mail to me: [email protected]. While we would love for you to boldly profess your opinions by adding your name, we do understand if you need to keep that info private. So send me your name and facility name if you can, or at least your city and state.
Over the past couple of years, the REITs have grabbed up dozens of properties in a variety of cities. Theres no denying when one moves in down the street, competition heats up. REITs do have economies of scale you may not have as an independent operator and a brand name with which it's hard to compete. But compete you can if yours truly is the better choice. Heres a great article written by industry veteran Mel Holsinger, president of Professional Self Storage Management, that may help: 5 Ways for Independent Self-Storage Operators to Compete With the REITs.
REITs can also bring a lot of good things to your market including industry awareness and marketing power (yes, this can help you, too); They can even force you to step up your game. Just as the officer knocking on my door gave me a reason to vote, sometimes we all need a little kick to get things moving.
BETCO Inc., a manufacturer of metal buildings and components for the self-storage industry, hired Earl T. (Tommy) LeBlanc to its sales team. He will be responsible for sales in Lousiana.
Before joining BETCO in September, LeBlanc spent nine years selling industrial equipment and instrumentation for Cleancut LLC and Rotronic Instrument Corp. A native of Baton Rouge, La., he received a bachelor's degree in business management from Louisiana State University. He is married with a newly born daughter.
Based in Statesville, N.C., BETCO produces self-storage roll-up doors and hallway systems and also provides refurbishing for existing buildings.
By Hugh D. Odom
Self-storage operators are always looking to increase the ancillary revenue they derive from their properties. One highly pursued avenue is cell-tower placement; however, facility owners with existing cell-tower leases are often not taking advantage of the opportunities they have to increase their value.
For many owners, its easy to overlook their cell-tower leases because these are not the primary source of facility income. In addition, most believe that several years remaining on a lease inhibits them from renegotiating and re-entering their lease now. On the contrary, even if you have 10 or more years remaining on your lease, you may be able to negotiate terms that will immediately increase the lease value and cell-tower rents received.
Here are some things to consider when determining if you're able to increase the value of your existing cell-tower lease.
Market rent doesnt determine the value of your cell-tower lease. Many cell-tower landlords are being approached to extend their current leases and they, unfortunately, continue to rely on market rents that have been set by the same companies who are leasing the land. Relying on this to determine how to negotiate these transactions can cost you hundreds of thousands of dollars over the life of a cell-tower lease.
Why? First, a cell-tower lease isnt a real estate asset for the purposes of valuation. Wireless carriers and tower companies value these leases as telecom assets, and so should you.
Second, every cell-tower site has a different value. For example, you can have two cell towers within one mile of each otherboth paid the same amount of rent, were leased by the same company and have the same basic lease termsbut they can have significantly different values. This is because value can be based on:
Wireless carriers and tower developers rely on these market rents because theyre the ones who set them and will continue trying to perpetuate them. If you use their market rents as a guideline, you wont be paid correctly. Look at the 2011 revenue figures in the accompanying chart and learn why.
The revenue and profit margins are not only staggering and some of the highest of any corporate sector, but are directly tied to the market rents these companies have been able to maintain for years. This is important for new cell-tower leases, but even more so for existing ones.
More than ever, self-storage owners are contacted to extend or sell their current cell-tower leases, yet theyre not getting true value for the use of their land in return. This is another reason why it's vital to understand a companys method in determining cell-tower value.
When it comes to a lease extension, some operators may find be in a position to decline the extension and take over ownership of the existing tower. Once a cell-tower location becomes an established foundation point for the wireless networks it serves, wireless carriers located on the tower do not want to leave. This is when a self-storage owner can use wireless carriers dependency to their advantage.
If an operator converts ownership of the existing tower through tenant forfeiture or conveyance at the end of a lease term, or builds a replacement tower, hes providing wireless carriers an easy transitionfar easier than a migration to a location even right down street. The best part is you, the self-storage owner, will pocket all rent received from these carriers instead of the mere fraction from your current tenant as ground rent.
A cell tower with two or more tenants can garner upward from $200,000 a year in site rental revenue. In contrast, an operator leasing land to a tower company receives somewhere between $10,000 to $20,000 per year. Even if a self-storage owner receives a share of a tower companys subtenant rents, it would fall far short of the revenue generated from operating a cell tower on his property. Seeking guidance from experts in the telecom industry who have your best interest in mind will help you determine if taking ownership of a tower is monetarily beneficial for you.
Be aware that a cell-tower lease is completely different from the commercial real estate leases you're used to. Never assume youre paid correctly for the use of your land for telecom purposes. Cell-tower companies capitalize on self-storage owners lack of familiarity with their lease terms and their satisfaction in simply receiving a monthly rent check. This is how these companies keep their rent payments low and sub-standard.
Operators should always pay mind to the utilization of cell sites on their properties. For instance, a cell-tower company often uses areas outside the parameters set in a lease. In addition, theyll allow third parties to use your land without getting your approval and without paying you accordingly.
Cell-tower companies get away with such breaches simply because operators dont have the time to monitor activity on their cell sites. Experts working for cell-tower companies know exactly how far they can push these limits without you realizing it. The result: You arent given revenue you're rightfully owed, and you indirectly subsidize the cell companies' profit.
Finally, immediate options to increase the value of your existing cell-tower leases exist, no matter if you have one cell-tower lease or dozens. Increases of only a few hundred dollars a month will equate to hundreds of thousands of dollars over the life of your lease and will increase the overall value of your property.
Hugh D. Odom is president of Vertical Consultants, a telecommunications-consulting firm currently working with approximately 1,2 00 self-storage facilities across North America to place telecommunications equipment and optimize existing leases. For more information, call 877.456.7552; visit www.vertical-consultants.com .
