Two people were arrested and charged in connection with a burglary Tuesday at the Store-n-Save Self Storage in Windsor, Ontario, Canada. Police received a tip from a caller about 2 a.m. who said two men were acting suspiciously at the facility at 777 Highway 18. When officers arrived, they found stolen property propped against a nearby fence, according to the source.

Although the investigation is ongoing, at least three self-storage units were burglarized. The tenants were notified, the source reported.

The apprehended men, who’ve only been identified as being from Chatham, Ontario, have been charged with breaking and entering. One was also held for failing to comply with a condition of his previous release, the source reported.

Store-n-Save is managed by Real Storage Group, which operates more than 30 facilities in Alberta, British Columbia, Manitoba and Ontario, Canada.

Storage Zone, which operates 18 self-storage facilities in Ohio, has opened a new location in Rocky River. The property at 19901 Center Ridge Road is near shopping and residences, according to a press release.

The facility includes a business center, kiosk, covered loading area and electronic door access. Open daily, it also has a retail center that sells moving and packing supplies. Customer amenities include online billpay, tenant insurance and delivery acceptance.

Storage Zone hosted a grand-opening ceremony to unveil the new property on Oct. 14. The community event, 10 a.m. to noon, included property tours and refreshments. Rocky River Mayor Pamela Bobst and Liz Manning, executive director of the Rocky River Chamber of Commerce, were in attendance.

Locally owned and operated, Storage Zone serves multiple communities in Northeast Ohio.

Entrepreneur Tod Sherman opened a new self-storage facility last week in Lancaster, Pa. Named LancasterStorage.com, the 20,000-square-foot structure at 21 E. Clay St. was converted from a former use to include 156 storage units in range of sizes. The total project cost was $2.1 million, including $300,000 for the real estate, according to the source.

“It’s a state-of-the-art facility. It’s all Internet-driven on the cloud. You can rent a unit, buy unit insurance, pick a PIN and input your credit card number—all on your smartphone,” said Sherman, adding that the property employs security cameras and three part-time staff.

Sherman was inspired to enter the self-storage business by his older brother, Guff Sherman, who owns three facilities in Alaska comprising more than 1,000 units, he told the source.

Before building, Sherman hired a consultant to conduct a feasibility study and determine whether the community needed more storage, particularly records storage, he said. The study revealed unmet demand around the abundance of medical practices near Lancaster General Hospital and other small businesses in the area.

Vacant for three years, the property was most recently owned by ImageFirst, a provider of laundry and linen services to the healthcare industry, before the company moved to a new location. Built in 1942, the single-story structure has had numerous other uses over the years, including a car dealership and a meat-packing plant, the source reported.

Sherman was represented in the acquisition by John Stockdale, a broker with Berkshire Hathaway HomeServices Homesale Realty.

A native of Hershey, Pa., Sherman lives in Lititz, a borough in Lancaster County, Pa. He also co-owns Tybec Energy Management Specialist, an energy-consulting business, and was formerly a civil engineer for UGI Utilities Inc. He plans to develop a second self-storage facility in Lititz on Warwick Street, just north of the former Wilbur Chocolate factory, according to the source.

Real estate developer Ziff Properties Inc. has acquired a self-storage facility in Taylors, S.C., for $3.5 million. The 12-acre Taylors Storage property at 3146 Wade Hampton Blvd., Suite C, comprises 43,000 square feet of climate-controlled space. Ziff plans to add 25,250 square feet of non-climate-controlled space in 265 units.

“Taylors Storage is an exciting addition to our rapidly expanding storage portfolio. The nearby established neighborhoods, industrial growth and storage demand made this acquisition an attractive investment,” said Christian Chamblee, chief operating officer and director of acquisitions for Ziff.

In December, Ziff purchased Absolute Storage in Simpsonville, S.C., for $4.5 million, intending to add 314 units to the property at 412 Scuffletown Road. The company also purchased the 52,000-square-foot Buncombe Plaza shopping center in Greenville, S.C., that month, with the intent to convert it to self-storage. 

Based in Mount Pleasant, S.C., Ziff specializes in the acquisition, development and management of commercial properties in the Southeast. Founded in 1992 by Stephen Ziff, the company owns a portfolio including 3 million square feet of self-storage, shopping centers and office buildings.

 

The European self-storage market continues to grow, with a high ceiling for future supply, according to research released by the Federation of European Self Storage Associations (FEDESSA) and investment-management firm JLL (Jones Lang LaSalle). This year, the continent has 3,247 storage facilities in operation comprising 8.7 million square meters, an increase of more than 500 properties in the last year, according to a press release.

“The self-storage industry has had a strong 2017 and has seen growth in rents, occupancy and the number of new stores across nearly every European country,” said Ollie Saunders, lead director for JLL’s Alternatives Team. “Robust demand, coupled with ever-increasing awareness about the sector, makes the next 12 months look positive for operators and investors.”

Despite the growth, the amount of rentable storage space available is just .018 square meters per person, compared to .878 square meters in the United States. Further, more than 85 percent of European facilities are concentrated in six countries, with 44 percent of facilities across the continent in the United Kingdom. The region is “highly fragmented” in terms of operating companies, with the 10 largest brands comprising 22 percent of all European facilities and 39 percent of total storage space, the release stated.

Among the countries outpacing the continental average of storage space per capita are Iceland and the Netherlands. Along with the U.K, these markets each have three times the European average of rentable square feet per person. Still, average rent across the region has risen to €258 per square meter per year, while average occupancy grew from 80 percent to 81 percent year over year.

“The growth of self-storage in the U.K. has been fueled firstly by an increase in the number of people using self-storage to support their relocation around the country and, following Brexit, noticeably to other parts of the world,” said Rennie Schafer, CEO for FEDESSA and the Self Storage Association of the United Kingdom.

One growing trend, particularly in the U.K., has been an increase in commercial tenants, including those renting office space and units for inventory. “Last year alone, more than 10,000 customers started their businesses in U.K. self-storage units,” Schafer said. “Indeed, around 42 percent of all self-storage space in the U.K. is rented to business owners, with around half providing storage space for the burgeoning rise in online retail.”

Founded in 2004, FEDESSA consists of 14 self-storage associations across Europe and represents about 1,400 self-storage facilities.

JLL is an investment-management firm specializing in real estate services for property investors and occupiers. The company has about 300 corporate offices in more than 80 countries and a global workforce of more than 78,000 employees. It completed $136 billion in acquisitions, finance and sales transactions in 2016.

The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have announced when and how they will reveal their earnings statements for the quarter that ended Sept. 30.

CubeSmart

CubeSmart will release its third-quarter financial results after the market closes on Oct. 26. An accompanying conference call will be held at 11 a.m. ET on Oct. 27. A live webcast of the conference call will be available from the investor-relations page of CubeSmart.com. The dial-in numbers are 877.506.3281 for U.S. callers, 855.669.9657 for Canadian callers and 412.317.0088 for other international callers. To avoid delays in joining the call, participants can pre-register and receive a special dial-in number and PIN at http://dpregister.com/10112822.

After the live webcast, the call will remain available on the company website for 30 days. In addition, a telephonic replay of the call will be available through Nov. 27. The replay dial-in number is 877.344.7529 for domestic callers, 855.669.9658 for Canadian callers and 412.317.0088 for other international callers. The conference number is 10112822.

CubeSmart owns or manages 910 self-storage facilities across the United States. Its operating portfolio comprises more than 60.5 million square feet.

Extra Space Storage Inc.

Extra Space will release its financial results for the quarter that ended Sept. 30 after the market closes on Nov. 1. The company will host a conference call at 11 a.m. ET on Nov. 2 to discuss the results. Hosting the call will be Joe Margolis, CEO, and Scott Stubbs, executive vice president and chief financial officer.

During the call, company officers will review performance, discuss recent events, and conduct a question-and-answer period for registered financial analysts. All other participants will have listen-only capability.

The phone number for the call is 855.791.2026 for U.S. callers and 631.485.4899 for international callers. The participant passcode is 98646057. The conference-call playback, which will be available through Nov. 7, will be accessible at 855.859.2056 in the United States or 404.537.3406 internationally. The participant passcode is 98646057.

The conference call will also be available on the investor-relations page of ExtraSpace.com. Those who wish to listen online should visit the website at least 15 minutes before the event start time to register and install any necessary audio software. A replay of the call will be available online for 30 days.

The full text of the earnings report and supplemental data will also be available on the company website immediately following the earnings release to the wire services on Nov. 1.

Headquartered in Salt Lake City, Extra Space owns or operates 1,513 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 1 million units and 114 million square feet of rentable space.

Life Storage Inc.

Life Storage, formerly Sovran Self Storage Inc., will issue its quarterly results after the market closes on Nov. 1. The company will conduct a conference call to review the financial results on Nov. 2 at 9 a.m. ET.

The call can be accessed at 877.737.7051 within the United States or 201.689.8878 internationally. Participants can pre-register and receive a passcode and unique PIN at http://bit.ly/2xvbi96. Management will accept questions from registered financial analysts after prepared remarks. All others are encouraged to listen to the call via webcast from the investor-relations page at LifeStorage.com.

The webcast will be archived for 90 days. A telephone replay will be available for 30 days after the meeting by calling 877.481.4010 and entering conference ID 20574.

Based in Buffalo, N.Y., Sovran operates approximately 700 self-storage facilities in 29 states, under the Life Storage and Uncle Bob's Self Storage brand names. Its portfolio of owned and managed facilities comprises about 49 million square feet.

National Storage Affiliates Trust (NSAT)

NSAT, a Maryland REIT, will reveal its earnings statement for the quarter that ended Sept. 30 after the market closes on Nov. 6. The company will conduct a conference call to review the financial results on Nov. 7 at 1 p.m. ET.

The call can be accessed at 877.407.9711 within the United States or 412.902.1014 internationally. Management will accept questions from registered financial analysts after prepared remarks. All others are encouraged to listen to the call via webcast from the investor-relations page at NationalStorageAffiliates.com. A replay of the webcast will be archived for 30 days.

A telephone replay will be available by calling 877.660.6853 in the United States or 201.612.7415 internationally. The conference ID number is 13646795.

Headquartered in Greenwood, Colo., NSAT is a self-administered, self-managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. metropolitan statistical areas throughout the United States The company has 483 self-storage facilities in 28 states comprising approximately 30 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage

Public Storage will release information about its third-quarter 2017 earnings on Oct. 25. A conference call is scheduled for Oct. 26 at 1 p.m. ET to discuss the results.

The dial-in numbers for the live conference call are 866.406.5408 for U.S. callers and 973.582.2770 for international callers. The conference ID is 94094559. The live webcast will be available through the investor-relations page of PublicStorage.com and accessible on demand through Nov. 9. For the conference-call replay, the domestic dial-in number is 800.585.8367, the international number is 404.537.3406, and the conference ID number is 94094559.

Based in Glendale, Calif., Public Storage has interests in 2,358 self-storage facilities in 38 states, with approximately 156 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

By Bray Allen

Conversion projects are ideal for self-storage owners or developers who want to start or expand their business but are unable to find land for construction, or who face local moratoriums on new building. Those who own or can purchase an existing, unoccupied structure in a high-demand market can also greatly benefit.

Often, a conversion can save you time and money. Because the building enclosure and much, if not all, of the necessary auxiliary infrastructure (i.e., water, sprinklers, electricity, lighting, HVAC, security, etc.) already exist, the time from start to facility opening is significantly reduced compared to new construction.

Conversions can also be developed in phases, allowing for greater flexibility in schedule and budget. Fewer moving parts during the interior construction and unit build-out, as well as protection from adverse weather conditions and the availability of onsite material storage all serve to reduce costs and increase the speed at which units can be available for rent.

Though conversions offer many benefits, a common challenge is finding the optimal balance between features that improve functionality and those that are aesthetic in nature. Both can maintain or increase property value and allow operators to charge higher rates. So how do you create this balance while maintaining at least 75 percent rentable space and maximizing the return on investment? Following is some insight.

Location

When embarking on a conversion project, first understand the requirements of your area to avoid additional costs, delays or even a cancellation. Conducting a feasibility study before investing will ensure you understand the local market and how to best to maximize your earning potential. The study should include information for the area within a three- to five-mile radius of your property. It should contain:

• Market size: How many people live and work in the area?
• Market type: Is the area urban, suburban, rural or industrial? The answer will help you decide the size and number of units to build.
• Market growth: What’s the expected evolution for the area?
• Disposable income: How much does the average resident have?
• Traffic: Will your facility serve those who live or work outside of the three- to five-mile radius? If yes, how many more people could be accommodated?
• Competition: Are there existing facilities in your market? If yes, how many, and is there still an unmet need your business could fulfill?

Unit Mix

After facility location, your unit mix is the most important consideration. You want to offer the ideal combination of unit sizes and types. Based on the market factors listed above, it’s important to create a balanced and focused mix (not a banker’s mix), with 75 percent net rentable space and 25 percent reserved for hallways and office areas. Additional considerations include:

• Unit placement: Consider the frequency with which renters will need access to their units. For example, commercial renters typically visit more frequently and, therefore, appreciate having larger units near entrances. On the other hand, this is less of an issue for residential customers, who access their space less frequently.
• Site layout: Door manufacturers and architects can provide you with layout options that meet your unit-mix needs.

Functional Features

There are several options for conversion projects that enhance site functionality and increase rentable space, despite the limited building footprint or constrained budget you may face. To ensure your project will deliver the desired investment return, consider the following:

• Building protection: Kickplates, corner guards, wainscot and column wraps all help to protect your facility from the everyday wear and tear of tenants moving items in and out.
• Door type: While swing doors can obstruct access and visibility for tenants and security cameras, roll-up doors eliminate these challenges and the associated dangers.
• Door installation: Using qualified installers not only ensures your facility will look nice (by using the correct screw patterns, for example), they’ll ensure the doors roll correctly and the latches are properly fitted and functioning.
• Hallways and wall systems: Available in flush or corrugated styles, these must be at least 8 feet high to accommodate roll-up doors. Liner panels may be added to the back of each unit, depending on building construction.
• Mezzanine systems: Suitable for buildings with 18- to 20-foot clearance, these can increase your available space by half. For example, a 40,000-square-foot building can net 60,000 rentable square feet by using a mezzanine. They do require a slab that can handle the load, with concrete or composite decking used for the second level. An added benefit is the layout of the top floor can be redesigned after the bottom floor is complete.
• Security: Depending on ceiling height, burglar bars or mesh panels can be used to protect unit contents from above. Additional security components to consider include cameras, keypads and gates.
• ADA: Kits are available to ensure your facility complies with the Americans With Disabilities Act (ADA).
• Lockers: Smaller locker units can be double- or triple-stacked or even placed above standard storage units. These are popular in urbans areas, on military bases and with student populations.
• Specialty options: Specialized wine lockers in various sizes can be included as a small portion of your unit mix and will yield high rental rates.

Aesthetic Features

The aesthetics of your facility can make or break its success. Curb appeal is of the utmost importance because it can affect a consumer’s decision to rent with you. Even a property with a perfect unit mix that expertly suits area demographics from a functional standpoint can deter business if it doesn’t have the right allure. Furthermore, customers are generally willing to pay more for facilities that look welcoming and safe. Here are few high-impact options to consider for a conversion:

• Improvements: It’s easy to upgrade a dated building with minimal investment. Possibilities include painting the floors with epoxy coating; repainting with bright, friendly colors; and outfitting the facility with kickplates, corner guards and soffits to cover exposed edges.
• Customization: Proper branding of your facility will not only serve as a consistent advertisement that drives traffic to your business, it’ll help justify higher rental rates. Areas that can be customized to promote your brand include awnings, free-standing and digital signs, interior and exterior door displays, and anything that can be painted with your signature color.
• Retail areas: Renters are more likely to do business with a facility that can conveniently meet as many of their needs as possible. Creating a bright, clean area where products such as boxes, packing supplies, locks and tenant insurance can be sold is a great way to elevate your business above the competition.

All of these ideas will help you balance function and aesthetics in a conversion. In the end, you’ll optimize your project, shaping it into a self-storage facility that achieves your business goals.

Bray Allen is the general manager of sales at DBCI (Doors & Building Components Inc.) Allen began his career with the company in 2004 as an inside sales representative. Over the last decade, he’s held positions in customer service, sales, and research and development. He also serves as the company’s representative to the Door & Access Systems Manufacturers Association, where he serves as chairman of the Sheet Door Committee and vice chairman of the Rolling Door Division. For more information, call 800.542.0501; visit www.dbci.com.

National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has acquired the Ace Storage portfolio in the St. Louis market. The transaction includes six properties comprising 440,059 square feet in 2,996 units and 331 parking spaces, according to a press release from SkyView Advisors, the self-storage investment-sales and advisory firm that helped broker the deal.

There are 750 climate-controlled units between the six locations. Ace Storage was represented in the transaction by Ryan Clark, director of investment sales at SkyView.

SkyView is a boutique firm specializing in self-storage acquisition, development, facility expansion and renovation, refinancing, and sales. Based in Tampa, Fla., the firm also has offices in Cleveland and Milwaukee.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas throughout the United States. The company has ownership interest in 483 storage facilities in 28 states. Its portfolio comprises approximately 30 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Real estate investor Leo Ghitis has purchased a vacant industrial warehouse in Weston, Fla., for $8.1 million with plans to convert it to self-storage. The property at 1500 N. Park Drive is in the Weston Park of Commerce.

The site comprises 84,672 square feet of warehouse space and 5,948 square feet of office space. It also includes 92 parking spaces, a drive-up ramp and seven van-high loading doors, the source reported.

The seller was an affiliate of Becknell Development, a Carmel, Ind.-based real estate firm that specializes in industrial development and management. The site was on the market a year ago for $9 million after its only tenant, Vital Pharmaceuticals Inc., vacated, according to Steven Wasserman, executive vice president of Colliers International Group Inc., the firm that represented Becknell in the transaction.

Ghitis was represented by UBS Realty Advisors, a global investing and real estate firm.

Born in Colombia, Ghitis has been investing in and developing industrial properties in South Florida for more than 30 years, Wasserman said. Ghitis also co-owns Nayara Springs, a luxury hotel in Costa Rica, which he developed with architect and co-owner Angelo Zaragovia.

Colliers International is a global commercial real estate services firm employing more than 16,000 professionals who operate out of 554 offices in 66 countries. The company offers a variety of services for investors, business owners and developers. These include consulting, market research, real estate intermediation for sale and rent, project management, property management, and valuation.

Herb Havins, president of The Havins Co. Inc., recently broke ground on Silverbell Self Storage at Sunset Ranch in Tucson, Ariz. The urban-renewal project at 2720 N. Silverbell Road was 10 years in the making, according to Havins, who also owns Ajo-Kinney Super Storage at 5175 W. Ajo Highway in Tucson.

The new facility will offer climate-controlled as well as traditional drive-up units and make use of several eco-friendly initiatives to create a lower carbon footprint, such as LED lighting, rainwater harvesting, native landscaping and a 21.5 kilowatt photovoltaic-solar system. Security measures will include keypad access, individually alarmed units and video cameras. The facility will also offer a retail store that sells moving and packing supplies, and a moving truck customers can use for free when renting a unit.

The Silverbell site received a commendation from the Tucson Metro Chamber of Commerce, whose proclamation "carries with it 100 years of good fortune,” according to the source.

Havins is also president of Pima County Market Data Services, a member of the Appraisal Institute and a real estate broker in Arizona. He’s been a resident of Tucson for more than 30 years.