By Matthew Van Horn

One of the most interesting aspects of being a self-storage operator is how to market your product in 2011. A few years ago, your facility was one of three or four facilities in a 5-mile radius. Now its probably one of seven in a 3-mile radius. The development of so much square footage from 2003 to 2009, along with advancements in technology, has altered self-storage marketing forever. You now have to hustle more than ever because the easy fruit has already been picked in your market. 

As you read this article and others like it, take a look at your marketing budget for 2011. Youre most likely staring at a figure thats larger than it was a year ago, and significantly larger than it was in 2008 and 2009. For your facility to combat the increase in square footage, the poor economy, and the insane amount of discounting being promoted, you must have a comprehensive marketing plan that covers print, Web and promotional materials.

Print Marketing

Print marketing is still a method to reach potential self-storage customers; its just not as cost-effective as it used to be. Yellow Pages is the most common type of print marketing used in our industry. The problem with it is the overall cost compared to that of a well-planned Internet campaign, which can often cost significantly less and reach a broader audience. The other issue is potential self-storage customers are moving away from responding to this type of advertising platform. With the Internet, mobile devices and social media, many are turning to online sources for information on the products they need.

However, if your market demands a Yellow Pages advertisement, consider the following. If you have multiple properties, try using a Yellow Pages company to negotiate the advertisement for your facilities. Consider placing multiple properties in one advertisement. In addition, have an outside marketing company design the advertisement for your facilities to make it more customer- and sales-friendly. Often, self-storage operators allow the Yellow Pages company to design their ad, which isnt necessarily the most effective advertisement for potential customers.

Direct mail is another type of print marketing often used by self-storage operators. The cost-effectiveness of direct mail coincides directly with the response rate. A typical campaign of 5,000 pieces can cost up to $3,000, including design, print, mailing list and postage. Along with the costs, the response rate usually varies from .5 percent to 2 percent. The ability of your facility manager to close potential customers will decide the cost-effectiveness of this type of marketing campaign.

You should also consider newspaper campaigns, church and apartment newsletters, and smaller hometown publications.

Online Marketing

The Internet is where the most advances in self-storage marketing are taking place. The Web has revolutionized how we communicate and shop for products. For our industry, the Internet has provided a place to promote your facility, attract potential customers, and acquire tenants in a very cost-effective manner. Every self-storage marketing plan should include Internet marketing.

At a minimum, if financially feasible, every facility should have a website optimized for search engines such as Google, Yahoo and Bing. A search-engine optimization (SEO) service will typically cost $300 to $500 per month along with design costs.

There are also several self-storage management software products that can be coordinated with your facilitys website to offer real-time reservations, payments and other facility information. These are the online amenities our potential customers have been conditioned to use.  

Once you have your facilitys website in place, consider adding a pay-per-click campaign to your marketing plan. Pay-per-click is a separate service by Google that allows you to buy clicks or advertising under different keywords. These advertisements line the far right side of the search page as you complete a search request. You may budget as much as youd like for this service, but typically, $75 to $125 per month will be adequate for most markets.

In addition, consider using online self-storage directories. These are websites that list facilities on an online database. One advantage is these websites are typically optimized to be found on all the major search engines. Each works in a different way, but all are valuable additions to your Web marketing.

Finally, consider leveraging social media. Facebook, Twitter and LinkedIn are all easy ways to reach potential customers. You can set up pages for each of your facilities, typically at no cost. One specific tactic using social media is to have your existing customers advertise for you. Offer tenants an incentive to place a post on their social-media page advertising your facility. Once the customer sends you a link or a screen shot of his posting, reward him with an incentive such as $20 off his rent that month. Most people have a Facebook page with at least 50 friends. With this one small incentive, you can market your facility to dozens of potential customers.

Referral and Alliance Programs

Finally, consider using promotional materials. When planning, use materials that will actually drive customers to your door. Free pens and calendars are nice, but are they actually providing you a constant stream of potential tenants? Two proven strategies are referral and alliance programs.

A typical self-storage facility may receive anywhere from 15 percent to 25 percent of new business from referrals. If you dont have a referral program, you should implement one immediately.

Second, create an alliance program with existing businesses in your area. Working with other local businesses is extremely important. Examples include apartment and office complexes, real estate agents, restaurants, doctor and dental offices, and lawyers. Have a well-planned program and train the facility manager how to sell it to other businesses. In addition, compose a reward program for the businesses that send you rentals.

Campaign Tracking

The most important aspect of any marketing campaign is tracking it for effectiveness. A facility manager should gather all the information he can from potential and current customers. Consider using tracking numbers on your different marketing campaigns. These typically start at about $10 per month, or $100 per month for an unlimited package.

Along with tracking which marketing pieces are driving potential customers, the system will typically record the calls. Recorded calls are often available through an online portal that allows playback and archiving. Tracking numbers can be an invaluable tool for self-storage operators to determine which marketing campaigns are working, and which ones need reconsideration.

Creating a comprehensive marketing campaign for self-storage is not difficult. It does take time, some creativity and hard work, but the results are higher occupancy and bigger revenue.

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 copy of 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.

Acorn Self Storage in Fishkill, N.Y., is collecting non-perishable food items as part of the We CAN Feed the Hungry national food drive. The facility will collect and store the donations until Thanksgiving.  Collected items will be donated to the Food Bank of the Hudson Valley.

Self-storage customers who donate items will receive a discount on their self-storage rental unit. Donations can be dropped off at 35 Merritt Blvd. in Fishkill.

Public Storage, a self-storage real estate investment trust, released company operating results for the third quarter ending Sept. 30. Highlights include:

• Net income allocable to common shareholders was $182.2 million or $1.07 per diluted common share, compared to $173.5 million or $1.03 per diluted common share, for the same period in 2009, representing an increase of $8.7 million. This increase is due to improved operations of same-storage facilities, a foreign currency exchange gain of $55.5 million, and partially offset by a gain on disposition of $30.3 million related to an equity offering by PS Business Parks Inc.
• Revenue for same-store facilities increased 1.2 percent or $4.3 million in the quarter compared to the same period in 2009, primarily due to a 1.6 percent increase in average occupancy offset partially by a 0.5 percent reduction in realized rent per occupied square foot.
• Cost of operations for the same-storage facilities increased 3.2 percent or $3.7 million compared to the same period in 2009.
• Net operating income for same-storage facilities increased 0.2 percent or $0.6 million compared to the same period in 2009.
• Funds from operations (FFO) was $1.69 per common share on a diluted basis as compared to $1.44 per diluted common share for the same period in 2009, representing an increase of $0.25 per diluted common share or 17.4 percent.

During the third quarter, Public Storage acquired seven self-storage facilities, totaling 390,000 square feet, for approximately $27 million. Four of these facilities are in California, with the other three in Hawaii, Illinois and Louisiana. Public Storage is also under contract to acquire four properties for approximately $14.4 million, in Florida, New Jersey and Ohio. The acquisitions are expected to be completed in the fourth quarter of 2010.

Public Storage is a fully integrated, self-administered and self-managed real estate investment trust that primarily acquires, develops, owns and operates self-storage facilities. Headquartered in Glendale, Calif., the company has interests in 2,044 self-storage facilities in 38 states with approximately 129 million net rentable square feet in the United States, and 189 storage facilities in seven Western European nations operating under the Shurgard brand.

 

US Storage Centers in Corona, Calif., temporarily converted its self-storage facility into a polling station for the recent elections on Nov. 2. The facility has served as a polling station for the past five years.

We are honored to have been able to serve our community and country in this capacity, said Jason Lopez, director of corporate development. Polling at the facility was open from 7 a.m. to 8 p.m. and the facility had a consistent flow of voters through out the day.

Based in California, US Storage Centers owns and operates facilities 35 self-storage facilities in Arizona, California, Connecticut, Florida, Maryland and New Jersey.

Three broker affiliates of the Argus Self Storage Sales Network have recently earned their Certified Commercial Investment Member (CCIM) designation.

Jared Jones of Bauer & Associates in Tulsa, Okla., Paul Grisanti of Grisanti Group Commercial Real Estate in Louisville, Ky., and Shannon Barnhill Barnes of Omega Properties Inc. in Mobile, Ala., completed their coursework and final examinations in October. Now among more than 9,000 professionals worldwide with this title, they provide expert commercial and investment real estate services to their clients.

Based in Denver, Argus was formed in 1994 to assist self-storage owners and investors with their real estate needs. Since then, the company has assembled a network of 36 broker affiliates serving nearly 40 markets nationwide. Now the largest self-storage brokerage network in the United States, Argus has a transaction history of more than $1 billion.

(From left to right) Jared Jones, Paul Grisanti and Shannon Barnhill Barnes have completed their CCIM designation.

Rick McGee, the former president of Online Self Storage, has joined Bits on the Wire, an online-community development and management company, as vice president of sales and operations.

In his previous position, McGee oversaw the development of Call MAXimizer, the self-storage industrys first transaction-based call center. In his new role at Bits on the Wire, McGee will provide client counsel on online advertising and sponsorship strategy, support core development and marketing teams, and manage the daily digital components of the companys websites and online communities. He will report to company founder and CEO Stephen Wynkoop.

Over the past 27 years, McGee has held leadership roles in the banking, software and self-storage industries. He started his management career as a commercial loan officer and vice president for Deseret Bank in Pleasant Grove, Utah. He also developed, managed and sold three technology-based companies in Mesa and Tucson, Ariz.

McGees self-storage experience will translate to a new online community from Bits on the Wire that provides trend analysis and industry information to facility owners, managers and vendors. He will lead all content development for the site on top of his other duties. McGee said the site should be unveiled by the end of 2010.

Wynkoop and McGee attribute the decision to develop a new community for the self-storage professionals to growth statistics that indicate the $22 billion industry is one of the fastest growth areas in the commercial property sector.

Other sites for which McGee will help lead sales efforts include SSWUG.org, a membership-site for more than 525,000 online-database and information-technology professionals, and vConference Online, which hosts worldwide, virtual conferences and events for organizations and companies.

Based in Tucson, Ariz., Bits on the Wire is dedicated to delivering innovative content to its clients and members. Since 1997, the company has created and managed hundreds of websites, branded online communities and corporate blogs.

By Jean Kelley

No matter what your profession or level in your company, at some point, youre going to have to initiate a difficult conversation with a boss, co-worker or colleague. This could be between you and one person, or between you and an entire group. Its a conversation in which each party has an opinion and perspective, and theyre all very different.

So what makes these conversations so difficult? Often, theyre emotionally charged, and because of this, people have a tendency to react rather than respond. Or maybe someone feels verbally attacked and his fight or flight response kicks in, which escalates the conversation and immediately makes it complex. Examples of difficult work conversations include:

• Talking to a co-worker about a problem he has thats impacting your work
• Giving the boss feedback when hes doing something you dont like or thats de-motivating you
• Critiquing a colleague
• Talking to a team member whos not keeping up his end of the bargain
• Confronting a co-worker or colleague about blatantly bad behavior, such as stealing sales or discrimination
• Pointing out someones shortcomings that are affecting the project or team

The list is virtually endless. Regardless of the topic or circumstances, these conversations are hard to initiate, especially when the stakes are high or youre confronting someone you genuinely like. But the discussion must take place if you want to achieve any sort of happiness and satisfaction at work.

Unfortunately, most people avoid these conversations completely. They tell themselves the situation will improve or the other person will change his behaviors, but that simply doesnt happen. Other times, people face the prospect of a difficult conversation head on, but then approach it the wrong way, escalating the situation to a standoff.

A better option is to learn the skills needed to have these difficult conversations and facilitate the dialogue with grace and tact. Realize that having these discussions is indeed your job. Its not your bosss responsibility to intervene and solve all your problems. Thats called triangulation.

If you constantly go to your boss to smooth over your problems and professional relationships, youll never be viewed as a leader in your company. Additionally, by your boss having the conversation for you, the situation will usually get worse. So go to your boss for help with the skills needed to have a difficult conversation, but then engage in the conversation on your own. Always remember that if theres something bugging you at work, its your problem, so take care of it.

Chances are that a difficult conversation is looming in your future. To make the most of it and ensure it goes as smoothly as possible, keep the following suggestions in mind.

Decide To Do It

Having the difficult conversation is for you, not the other person. You initiate it so you can lighten your own load and ease your mind or frustrations. Yes, you know the other person might get defensive, but thats OK. You have something to say, so you must say it.

Unfortunately, when a situation arises, people tend to fall into one of two categories: silence or violence (verbal). Most people become silent. They understate the problem, avoid it, or make excuses for it so they dont have to address it. Other people come from an angry place and become controlling, coercing and blaming.

But to be successful in business and in life, you have to acknowledge that its time to have a difficult conversation with someoneand then commit to doing it. No backing out, no making excuses, and no yelling. So make the decision and stick with it.

Prepare

This is no time to wing it or talk off the cuff. This is an important conversation; you need to prepare for it. Before you approach the person, pre-script what you want to say. When thinking about what to say, most people have a tendency to speak from their head rather than their heart. To avoid this, start with your motives. Why are you really having this conversation? If youre not beginning with the right intention, it wont go well.

Remember the only person you can truly prod is you. Chances are you want a win-win solution that makes the situation better. So be clear about what that solution looks like. As you do this, dont forget that if you play a part in the situation, state it in both the problem and the resolution.

Finally, if possible, bounce your conversation script off a trusted colleague. To keep anonymity, you dont have to say the persons name, or you can choose someone who doesnt know the person. Either way, get this outsiders feedback to make sure youre not sounding defensive, accusatory or unprofessional.

Make an Appointment

Whatever you do, dont approach the person out of the blue. Thats called an ambush. Rather, ask for him to meet you for lunch or coffee. If the person is in another location and scheduling a face-to-face meeting is impossible, schedule a phone call. Face-to-face or voice-to-voice are the only options. This is not a conversation you can have in an e-mail exchange, instant-message thread or Facebook wall post.

When doing the conversation face-to-face, meet over lunch or coffee rather than in someones office. Not only is a public location neutral territory, its also conducive to a more intimate conversation where you can read each others intentions, energy and motives. When conversing via phone, try to schedule it as early in the morning as possible when both parties are fresh and havent been bombarded with the days stressors yet.

Speak From the Heart

If youve done all the prep work, the conversation itself should flow naturally. Speak from your heart and talk about what you know to be true (the facts), not what you think (your perception of events). After you state the facts, you can tell the person your take on the situation. Ask what he thinks happened so you can get his side of the story.

As you speak, avoid the word you as much as possible. Instead, focus on I. For example, dont say, Youre always missing deadlines, and that means all your work falls on other peoples shoulders. This just proves how inconsiderate and lazy you really are. Instead say, When you continually miss deadlines, I have to work late to compensate so I can make my deadline. When I have to work into the night, I feel very frustrated and taken advantage of. The second version focuses on how a certain behavior makes you feel rather than being accusatory on the other person. Additionally, be sure you dont talk in a parental tone or use authoritarian language, as that will make a tense situation worse. 

When the other person talks and you want to ensure understanding, paraphrase what he said so you acknowledge the story and validate it. Often youll find the other person did not intend to be hurtful and didnt know his actions were causing anyone stress.

Before concluding the conversation, ask for what you want. For example, you could say, Can we agree that from now on that youll meet your deadlines or give me an early heads up? As you do this, keep in mind you cant change the other person. The only thing you can do is talk about how you feel about the situation and how his behavior has impacted you. The other person has to decide whether he wants to change. You can simply offer the opportunity for him to do so.

A Better Future

These difficult conversations are intimate and transparent. They put you and your feelings out there in a way that allows you to be seen (and judged) for who you really are. Thats why they feel so scary. But the more prepared you are, the better they will go.

So dont harbor feelings of resentment or anger toward others anymore. Decide to engage in a difficult conversation, prepare thoughtfully for it, and then speak from your heart. In the end, youll feel better for taking the plunge, and your work life will improve substantially.

Jean Kelley, an industrial sociologist and the founder of Jean Kelley Leadership Consulting, has personally interviewed more than 20,000 people.  Shes the author of Get a Job; Keep a Job and Dear Jean: What They Dont Teach You at the Water Cooler. For more information, visit www.jeankelley.com.

Storage Express, which owns and operates 74 self-storage properties Indiana, Illinois, Kentucky, Tennessee and Ohio, acquired a new facility in Charleston, Ill., from Simply Self Storage. The 26,000-square-foot facility will be the first in this Midwest communityhome to Eastern Illinois Universityto offer high-tech security, temperature-controlled spaces, a 24-hour automated rental center, and other amenities common to the Storage Express portfolio. The companys local field reps will maintain the property.

Storage Express has opened new locations this year in Illinois, Indiana and Kentucky, including one in Effingham, Ill., purchased last month from Simply Self Storage. The company is headquartered in Bloomington, Ind.

Real estate investment trust Sovran Self Storage Inc. reported operating results for the quarter ended Sept. 30, 2010.

Net income available to common shareholders was $8.9 million or $0.32 per diluted share compared to $7.5 million or $0.32 per diluted share during the same period in 2009. Funds from operations (FFO) were $0.63 per fully diluted common share compared to $0.68 for the same period last year. The impact of the companys 4 million share offering in October 2009 offset a significant decline in interest expense, thereby contributing to the reduction in per-share FFO results.

Revenue for Sovrans 345 self-storage facilities for the quarter was slightly higher than that of the third quarter 2009the result of a 60-basis-point increase in average occupancy offset by a 1.1 percent decline in rental rates, and strong growth in other revenue.

We saw solid increases in rents and occupancy this quarter, said Kenneth F. Myszka, the president and COO. Inquiries to our website are up dramatically, and were encouraged by continued strong demand in many of our markets.

Same-store operating expenses increased by a total of 80 basis points compared to the prior-year period, primarily the result of increased healthcare, workers-compensation and property-maintenance costs offset by a net property tax decrease of 2.6 percent. Property taxes were impacted by the reductions won at several properties as a result of successful challenges to assessed values.

Total consolidated property net operating income for the third quarter declined 27 basis points to $30.5 million compared with the same quarter in 2009. Overall average occupancy for the quarter improved 20 basis points to 82.6 percent, and average rent per square foot for the portfolio was $10.09.

General and administrative expenses grew by about $0.4 million over the same period in 2009, primarily due to increased income taxes associated with operations of the companys taxable REIT subsidiary and marketing and Internet advertising costs.

During the third quarter of 2010, revenue growth was seen at the companys Georgia, Tennessee and most New England stores, while stores in Arizona, Florida and Texas (primarily the Houston market area) showed revenue declines.

Sovran did not acquire or dispose of any properties during the quarter for its own portfolio or for that of its joint ventures.

Were seeing an increased number of facilities coming to market, and were well positioned to acquire the right properties at the right terms, commented David Rogers, chief financial officer. We have a strong balance sheet and plenty of liquidity to put to work.

The company continues with its program of expanding and enhancing its properties. Up to 20 projects providing approximately 500,000 square feet of additional and/or improved space at existing stores is planned during 2010 at an estimated cost of $20 million. It is also evaluating up to $50 million of such improvements to undertake in 2011.

Morningstar Properties LLC, in a joint venture with Harrison Street Real Estate Capital LLC, acquired a self-storage facility in Savannah, Ga. The store will be re-branded Morningstar Mini-Storage.

The acquisition expands the companys presence in the Georgia/South Carolina region to seven properties. Morningstar currently owns and operates four properties in Hilton Head, S.C., one in Summerville, S.C., and one in Alpharetta, Ga.

The acquired facility is on Largo Drive, just off Abercorn Street, a main commercial corridor through the city. The facility has 61,280 rentable square feet and 417 units, of which 44 percent are climate controlled. The site features a two-story retail office, a digitally operated gate, and drive-up units.

Were excited to introduce Morningstar Mini-Storage to the Savannah market, said Dave Benson, president of Morningstar Properties. The market offers a booming port, stabilized manufacturing and a strong military presence thats led to a growing economy even in these difficult times.

Headquartered in Matthews, N.C., Morningstar Properties LLC is a vertically integrated developer, builder and operator of specialty real estate across the Southeast. The company currently owns or operates 48 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.