Bloomington, Ind.-based Storage Express has acquired Store N Lock self-storage in Indianapolis, bringing its total number of locations in the Indy Metro area to five. The 35,000-square-foot facility is on the southwest side of the city, right off of I-465, near I-70 and the Indianapolis International Airport.

Storage Express intends to upgrade the property with new security and access-control features, a 24-hour rental center, and other amenities common to the company's portfolio, it announced in a press release.

Storage Express owns and operates more than 80 self-storage properties across Indiana, Illinois, Kentucky, Tennessee and Ohio. The company has opened several locations over the past year and has plans for new construction in several markets in 2014. In June, it acquired D-V Storage in Anderson, Ind. Earlier in the year, it purchased Palm Storage in Richmond, Ind., and a three-property portfolio of properties in Sidney, Ohio, from Lock-It-Up Storage. The company is actively pursuing more acquisition and ground-up development opportunities.

By Rachel Adams

Self-storage was introduced to the United Kingdom in the early '90s. Since then, the industry has faced an array of challenges, with the latest being the imposition of a 20 percent value-added tax (VAT) as part of the governments revised budget plan in 2012. Despite the obstacles, U.K. self-storage has continued to propel forward, evolving to fit the changing needs of consumers and expanding into new markets.

Conquering the VAT Curveball

Coming into 2013, the VAT was one of the biggest challenges on the horizon for U.K. self-storage operators. Starting Oct. 1, 2012, self-storage was no longer exempt from having to charge customers a sales tax.

According to a survey conducted by the Self Storage Association of the United Kingdom (SSA-UK), many facilities chose to shield consumers from the price increase by phasing in the tax. As a result, average net rentals declined only 5 percent in 2012. 

"The VAT rise affected most of our operators and made self-storage a more expensive product for the customer. However, our members are confident that sales and profit can be maintained, with 79 percent of surveyed firms expecting profit to be the same or improve this year, said Association CEO Rodney Walker in the survey report. The effect of the VAT increase has yet to be fully measured, but with average occupancy only falling 2 percent over the year, members are confident of reversing this over the coming year."

Evolving to Fit Business, Consumer Needs

As the needs of consumers have changed, the U.K. self-storage industry has evolved to meet new requirements. As the result of recession, more business users have turned to storage to mitigate their overhead. Many facilities began to offer more business-related services, including office space, phone-answering services, P.O. boxes, IP telephony and even shipping services.

According to the SSA-UK survey, the average length of stay for all customers increased from 37 weeks in 2012 to 41 weeks in 2013. "An increased proportion of business users during the recession is one reason average storage time has increased, since business users typically store for much longer than private individuals," said David Greenwoood, CEO of Boxload, a U.K. company that provides mail-storage solutions for personal and business users.

A need for office space is another driver. Access Self Storage, which operates more than 50 facilities in the United Kingdom, reported twice the volume of inquires for office space in the last few years. "In many cases, business owners are skeptical about setting up physical or even virtual offices in storage facilities," says Kevin Pratt, marketing manager. "They think they will find themselves in one of our metal-lined, windowless lockers." On the contrary, the company offers a range of units with heating  and lighting that are available for any length of time, he says.

In addition, self-storage is becoming a more widely known and accepted part of the culture. Facilities are getting creative, catering to the unique needs of the market. For example, LoveSpace Self Storage began offering a service not commonly seen in the United States, one that allows for the storage of goods without renting an actual unit. Called "mail storage" because the goods are delivered to the facility via post, the service allows tenants to pay for storage by the box.

The U.K. industry is holding steady across the board with plans for growth. According to the SSA-UK survey, 81 percent of self-storage companies are planning to open a new facility this year, and 11 percent have definite plans. "Things dont look likely to slow," Greenwood says. "With the U.K.s population expected to keep increasing and space for new construction reducing, 2013 looks like it will be a good year for self-storage operators in the U.K."

Rachel Adams graduated from the Walter Cronkite School of Journalism and Mass Communication at Arizona State University with a bachelor's degree in journalism and a minor in Spanish. Her passion for writing and culture propelled her journey through college and has continued to inspire her endeavors with VIRGO Publishing, where she contributes to "Inside Self-Storage. Contact her with questions, comments or ideas at [email protected].

Tree Tops Golf, a popular driving range and miniature-golf facility in Lady Lake, Fla., may soon share space with a self-storage facility. Property owner Michael Girard has proposed a plan to build Tree Tops Storage on 12.65 acres of the property at 176 S. Rolling Acres Road. The facility would comprise 110,000 square feet and require the driving range to be pushed back to make enough room.

Operation of the driving range would be by appointment for training purposes, Girard said. The self-storage project is part of an improvements plan for the golf facility, which also offers batting cages and miniature golf.

The Lady Lake Commission is expected to vote on the site plan on Dec. 16.

American Spectrum Realty Inc., which operates self-storage facilities under the 1st American Storage brand, has released its financial results for the third quarter of 2013, which ended Sept. 30. Rental revenue decreased 11 percent, approximately $1.2 million, compared to the same period last year. The company attributed the decline primarily to the deconsolidation of variable interests, which resulted in a reduction in rental revenue of approximately $400,000. Revenue for properties consolidated for the full three months in the quarter decreased by $700,000.

The weighted average occupancy of the companys owned properties was 84 percent as of Sept. 30. By comparison, the weighted average occupancy of all consolidated properties in the companys portfolio was 88 percent.

Third-party management and leasing revenue decreased about $100,000 during the quarter compared to the same period a year ago. The decline was attributed primarily to reduced income from insurance. In April, American Spectrum added management contracts of 20 self-storage properties totaling more than 1.5 million square feet. These managed properties are expected to add about $1 million annually to the companys third-party management revenue, company officials said.

Net loss attributable to common stockholders for the third quarter was approximately $700,000, or 18 cents per share, an improvement from a net loss of approximately $1.3 million (35 cents per share) for the same period last year.

Headquartered in Houston, American Spectrum Realty is a real estate investment, management and leasing company that owns self-storage, office, retail and multi-family interests across the United States through an operating partnership. The company has been publicly traded since 2001.

Complaints from residents have sparked a preliminary investigation into possible code violations at Gibraltar Self-Storage in Birdsboro, Pa. Allegations against the facility at 3700 Main St. along Route 724 include expanding the parking area without approvals, disturbing soil, extending Albert Street and a potential breach of wetland, according to the source.

Berks Conservation District and others are investigating, officials said. However, no official action should be taken until a proper analysis is complete Township Solicitor Christopher J. Hartman told the source.

"An evaluation has to be done to indicate whether a land-development plan is required," Hartman said.

U.K. self-storage operator Safestore said good-bye to CEO Peter Gowers on Nov. 1 as he moved on to explore opportunities in the hotel industry. Frederic Vecchioli, former president of the company's Une Piece en Plus business in France, has stepped in as the new chief executive.

An executive board member since 2011 and an employee since 1998, Vecchioli co-founded Une Piece en Plus, which operates 25 self-storage facilities in the Paris area.

Gowers has been named CEO of Travelodge Hotels Ltd., a private company operating in the hotels and hospitality industry throughout the United Kingdom. He is replacing  Grant Hearn, who has been with the company since 2003.

Travelodge Hotels Ltd. is under separate ownership from the U.S. chain of the same name. It is the second largest in the budget-hotel sector and the third largest hotel chain in the United Kingdom based on the number of rooms, according to Wikipedia.

Gowers, 41, spent 12 years working in the leisure industry before moving to Safestore in 2011. He will be responsible for returning Travelodge to health following a major financial restructuring last year, according to the source.

Hearn started with the company as CEO, then transitioned to chairman. He was recalled to his position as CEO last year to steer the hotelier through its financial woes, the source said. He announced in July that he wanted to move on from the low-cost hotelier.

In 2012, Hearn guided Travelodge through a debt-for-equity swap, which saw U.S. hedge funds GoldenTree Asset Management and Avenue Capital Group, plus Goldman Sachs, wrest control of the group from Dubai International Capital. Travelodge also went through a company voluntary arrangement.

Before his time at Safestore, Gowers oversaw the Asia-Pacific region for InterContinental Hotels Group. He was also chief marketing officer of that company from 2005 to 2007. He will now work with Brian Wallace, another leisure-industry veteran, who was recruited as chairman of Travelodge in January.

Peter is a highly regarded senior executive, with extensive industry and market experience and expertise. His skills and knowledge will be a great asset in helping to further grow our business and to make Travelodge the best value hotel chain in the U.K.," Wallace said.

Travelodges new owners are investing almost £80 million in a refurbishment program, according to the source. The company made a pre-tax loss of £71.1 million last year.

Safestore operates 135 self-storage facilities, including 98 wholly owned U.K. locations and 25 wholly owned facilities in France. The company also has 12 locations under management in the U.K. It serves approximately 43,700 total customers and employs about 550 people.

WeStore Boxes Ltd., a U.K.-based startup business specializing in valet self-storage services, launched this week behind investment money from players connected to Londons tech startup community and SEKO Logistics, a global provider of supply-chain solutions and specializing in transportation, logistics, forwarding and warehousing. Similar to recent U.K. startup LoveSpace, the business plans to target consumers and small businesses using a per-box fee strategy and valet pickup and delivery services.

WeStore handles all pickup and delivery scheduling online and has four storage box options available for customers. Boxes range from 45 to 125 liters and cost £3.95 to £5.95 monthly per box, depending on the size. The company offers boxes and packaging material for free, and there is no cost for initial storage pickup. Next-day delivery of stored items costs £7.95 per box, although the company will return boxes for free if a customer has stored them for more than a year.

Customers are encouraged to keep track of their inventory online by using a four-digit code assigned to each box. They can also upload photos of their stored belongings to help them identify particular boxes they may want returned.

All items are stored in a climate-controlled, secure warehouse in Northampton, England, although WeStores relationship with SEKO could potentially enable the operation to scale storage of items to local markets. Each stored box is insured for £100.

Henry Villers, co-founder and CEO, said he believes WeStore offers practical solutions to a vast range of household and small business needs.