The Inside Self-Storage Store, an e-commerce website providing on-demand insight and education products for self-storage professionals, is now offering two new reports produced by the Self Storage Industry Group (SSIG) of commercial real estate firm Cushman & Wakefield: the Self-Storage Expense Report 2013 and the Self-Storage Market Conditions Report 2013. Both digital products are available on demand at insideselfstoragestore.com.

The eight-page Expense Report provides a sample of real costs per square foot for fixed and variable operating expenses and presents the data nationally and by NCREIF (National Council of Real Estate Investment Fiduciaries) region and subdivision. Data is analyzed using nine key expense categories: taxes, insurance, repairs and maintenance, administration, onsite management, offsite management, utilities, advertising, and miscellaneous. The report is $100.

The eight-page Market Conditions Report, also $100, examines the supply and demand conditions in the top 50 U.S. Metropolitan Statistical Areas (MSA) to determine whether they are under supplied, at equilibrium or over supplied. Each market is organized by the conclusion of its market conditions and compared to a rent and occupancy index. Development information identifying new builds and renovations/additions is also included for each MSA.

In addition, the ISS Store offers other Cushman & Wakefield products including quarterly Metropolitan Statistical Area Reports and monthly National Rental Activity Reports. Details can be found in the ISS Store.

Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. The firm's Valuation & Advisory Division, which includes the SSIG, is one of the largest real estate valuation and consulting organizations in the world. Founded in 1917, the company has 253 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal.

Conceived as a central hub allowing self-storage owners, operators, developers and investors to obtain cutting-edge information and resources, the ISS Store is owned and operated by ISS, a dynamic services provider that has served the self-storage industry for more than 20 years. The brand includes ISS magazine, the Inside Self-Storage World Expo, the Self-Storage Training Institute and Self-Storage Talk, the industrys largest online community.

A proposed self-storage project in St. Michaels, Md., has been tabled until Talbot County Planning Commissioners can assess the potential site personally. Rio Vista Self Storage is seeking multiple conditional waivers for the project, and commissioners decided to visit the site to better assess how the storage facility could impact adjacent property owners.

The 4,500-square-foot facility would be built on Talbot Street as part of the Gateway Commercial Zone, an area intended to be a positive visual experience when visitors enter the town, according to the source.

Rio Vista wants a waiver from inserting landscape screening along the back of the property where a screen already exists. It also has requested a sidewalk easement waiver. In addition, the company wants an access point from State Route 33.

Among county staff concerns is traffic circulation on the site, particularly room for vehicles to complete turns in the rear of the property where parking is planned. Rear parking is a requirement in the Gateway Commercial Zone, and buildings must be set back from the street with landscaping in front, the source reported.

What was once a thriving GMC car dealership could become the largest indoor self-storage facility in the San Joaquin Valley area of California, if U-Haul Internationals proposal is viewed favorably by city officials in Manteca, Calif. The project, which requires a conditional-use permit, was scheduled to be reviewed last night by the planning commission.

Under the plan, the former Manteca Auto Plaza would be converted to nearly 5,000 square feet of retail and office space, with more than 19,000 square feet devoted to self-storage in an area that once was used to service vehicles. An additional 1,300 square feet at the rear of the building would be used as a maintenance area for U-Haul vehicles, according to the source.

U-Haul sister company Amerco Real Estate Co. originally purchased the property last year to be used as a U-Haul Rental Center. The building is on the northeast quadrant of the 120 Bypass and Main Street.

In addition to converting interior space, U-Haul will also enhance the facade of the steel building and install a 10-foot-wide strip of landscaping along Main Street and 120 Bypass. Foliage in the strip and elsewhere in the parking lot will include shade trees, the source reported.

In an agenda packet posted on the Manteca city website, city staff recommended the planning commission pass the conditional-use permit.

U-Haul and Amerco Real Estate are subsidiaries of AMERCO, which also owns Oxford Life Insurance Co. and Repwest Insurance Co. Established in 1945, U-Haul has 36 million square feet of storage space at more than 1,000 owned and managed facilities throughout North America.

DBCI, a manufacturer of self-storage roll-up doors and other building components, opened a new distribution center in Rocky Mount, N.C. The facility at 100 Red Iron Road encompasses more than 10,000 square feet of office and warehouse space. It will be shared with DBCIs sister company, Ceco Building Systems. The move will benefit door installers and contract builders from northern North Carolina and southern Virginia, who can now order and pickup DBCI doors locally.

Weve historically done plenty of business throughout this region, but we also see an opportunity for growth, said DBCI Vice President Larry Miller. Our Rocky Mount distribution center means reduced freight costs and a convenient outlet for our regular customers. It also offers a solution for those who want to buy DBCI products but were previously hampered by issues of time or place.

The new distribution center will stock the complete line of DBCI commercial and self-storage steel roll-up doors in standard and wind-rated versions. The companys plans to add delivery service will be dictated by demand.

A full-time, three-member team will oversee daily operations, monitor inventory and fill orders. Randall Wiggins, a Rocky Mount resident and industry veteran with more than 40 years of experience in metal buildings and building components, is the new plant manager. Most recently, he was the plant manager at Ceco.

DBCI designs and manufactures commercial-grade, steel roll-up doors as well as frames and panels, wall systems, interior-hallway systems, mezzanine systems, portable-storage units, and wine lockers. Headquartered in Douglasville, Ga., the company also operates production facilities in Chandler, Ariz., and Houston, and manages distributor relationships in Knoxville, Tenn., and San Leandro, Calif.

 

Westy Self Storage of Fairfield, Conn., recently provided the free use of its moving truck to b-Cause Foundation, allowing the nonprofit organization to transport supplies for its annual Block Party Fair on Nov. 9. The fundraising event, 10 a.m. to 4 p.m. at Fairfield Ludlowe High School, benefited b-Cause and Make-A-Wish Connecticut. It featured LEGO brick masterpieces, workshops with expert LEGO brick builders, arts and crafts, a boutique with LEGO products, and a Sparkle and Shine station for young girls. Admission was $5 per person.

The b-Cause Foundation provides grants and services to help improve the lives of Connecticut youths. Its mission is to educate children to recognize neighbors in need and provide service opportunities to help children and families.

We are grateful for the support Westy provided us, b-Cause President Gina Ludlow told the source. Use of the Westy truck solved a major problem for us. We bring in hundreds of items to transform the high school into the Block Party Fair.

We are happy to assist The b-Cause Foundation with their event. The block party is an outstanding fundraiser concept, said Joe Schweyer, district director of Westys Fairfield facility.

Founded in 1990, Westy Self Storage is headquartered in Stamford, Conn. The company's portfolio of facilities spans the tri-state area of Connecticut, New Jersey and New York.

SpareFoot, an online marketplace that assists consumers in finding and renting self-storage units, has released an entertaining new infographic on "The 5 Most Outrageous Self-Storage Stories," highlighting some of the wackiest things that have occurred in storage units. From "The Teenage Master Thief" to "The Pillow Pet Pilferer," the graphic provides a visual tour of some of the industry's wildest tenants.

The infographic can be viewed at http://visual.ly/wacky-world-storage-5-unforgettable-storage-unit-stories.

Based in Austin, Texas, and founded in 2008, SpareFoot.com helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 6,500 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com, Apartments.com and Penske Truck Rental.

Premier Self Storage in Bracebridge, Ontario, Canada, is now the new home of the Manna Food Bank, which provides food to the hungry in the local area. Located at 345 Ecclestone Drive, the self-storage facility better meets the charitable organization's needs than the Lions Club building where it was formerly housed, according to a press release.

The Lions building did not meet the requirements of the Accessibility for Ontarians with Disabilities Act. The new space is fully wheelchair accessible, has a separate interview room, a larger waiting room, a washroom, and increased food-storage space.

We really feel this will serve our clients needs very well, said Manna President Wendee Cameron. The Bracebridge Lions have provided us with subsidized space for many years, and for that we cant thank them enough. But we had to find a new location.

The Manna Food Bank was established in 1989. It serves residents of Gravenhurst, Huntsville and other areas in Muskoka. In 2010, it provided groceries to 2,067 families.

Premier Self Storage provides indoor storage, climate-controlled storage, document storage, packing and moving supplies and more. The 200-unit facility features a large, indoor, drive-in area to load and unload customers belongings.

Trachte Building Systems, a manufacturer and supplier of self-storage buildings, has announced the addition of new standard wall and door colors to its product line.

As a new wall color, the company has introduced Light Stone, a light, neutral beige. Its a warm tone without an overly yellow appearance, and is complimentary to many other door and trim options, according to a company press release. With the addition of this color, building owners and manufacturers will have the option of switching to Trachte while matching the color of their existing buildings.

On the door and trim side, Trachte and its door subsidiary, Trac-Rite Door, introduced Matte Black and Patriot Red. The red, a deep vibrant hue similar to the red stripes on the American flag, is the equivalent of Pantone 1805c.

Based in Sun Prairie, Wis., Trachte designs, manufactures and erects a full line of pre-engineered steel building systems and portable storage containers. Its customized self-storage systems include single- and multi-story, interior partition and corridor, and canopy boat/RV. The company has more than 111 years of manufacturing experience.

By Jeff Stein

Rarely do we associate the term "sexy" with self-storage. But sexy sells, and the evolution of this product and its place in the market are making private and institutional investors take a closer look at the appeal of this asset class and capitalize on its recession-proof returns.

The Self Storage Association estimates approximately 10 percent of U.S. households currently rent a storage unit, generating an estimated $22 billion in annual gross revenue for property owners. Revenue at this peak level has pushed self-storage real estate investment trusts (REITs) to outperform every other REIT asset class and the Standard & Poors 500 since 1993, according to Wall Street analysts. Likewise, the recent sale of trophy self-storage portfolios reflected this value push with capitalization (cap) rates challenging those of prize office buildingsbetween 5.5 percent and 5.7 percent.

Private investors, such as Atlanta-based Stein Investment Group, are also pumping new capital into the sector. Within a 12-month period, Stein has invested $17.2 million in the storage industry, compared to an infusion of $20 million in retail and office combined for the same period.

So, whats driving the evolution of commercial real estates new darling? Whats propelling the self-storage sex appeal? While some may argue that it's the noncyclical demand for the product, recent opinions indicate its the introduction of facilities as community assets along with the emergence of new client segments that are truly the most important factors in bumping up the sexy.

Urban Migration

By 2020, an estimated 85 percent of the U.S. population is expected to reside in an urban environment, according to the Atlanta Business Chronicle. Already, many of the nations largest cities have experienced waves of urban resurgence in their downtown cores, driving the need for self-storage in new submarkets.

With single- or multi-family residences now integrated into mixed-use developmentsand squeezing into smaller footprintsspace is at a premium. Unwilling to sever the emotional attachment to their belongings, urban dwellers are seeking self-storage facilities that are accessible to the home front.

One such facility is Decatur Street Self-Storage, a Stein investment under construction in downtown Atlantas popular Old Fourth Ward district. The $9.2 million, five-story development caters to the residents of 26,500 upscale apartment and condominium units dotting the neighborhood, the 30,000 students who attend Georgia State University, and downtown Atlantas dense commercial areas. Despite the high barriers to entry typically found in an urban environment, Stein identified a residential node that was underserved (less than 7 square feet of self-storage per person), one of the many keys to successful market penetration.

A Workforce on the Move

As suburbanites flock to urban ZIP codes, the nations workforce is also on the move. Crisscrossing the country with only the necessities, short-term workers are moving for work and shaping a new long-term renter. This transient workforce locks up its belongings in a self-storage unit typically for 18 to 24 months while on the job away from home. According to real estate consultant Christopher Lee, almost $1 trillion of student-loan debt and stagnant household incomes are driving this trend.

The Influence of Affluence

While baby boomers arent new to self-storage, their evolving needs are demanding greater product diversification. Loaded with the belongings of their extended family, these typical suburbanites require more climate-controlled and secure storage for family valuables including art, wine and large heirlooms such as pianos.

Another Stein investment under development, Johnson Ferry Self-Storage, meets those needs at the heart of one of the most affluent neighborhoods in metro Atlanta. Larger unit sizes and climate- and humidity-controlled wine storage will be a new addition to the communitys most prominent commercial corridor. This trend is expected to continue for the next decade.

A Community Asset

To attract these new, emerging classes of renters and sustain the sexy, the self-storage industry is expected to evolve from a lifestyle business to an investment-class business model. While single-site operators remain the mainstay, its the capital from new investor resources thats infusing the industry with a sustainable and more sophisticated product type that ensures the asset's longevity.

No longer hidden from view on undesirable sites, the 21^st century self-storage facility is front and center at highly visible, class-A retail intersections within burgeoning communities, urban and suburban. Yet its not only the physical address that solidifies this product, its the industry's emergence as a community assetan integral part of a neighborhoods amenity packagethats driving the performance of this product.

The Next Generation

So, what makes a self-storage facility a community asset? First, a quality product. Todays facilities must align with the architectural and lifestyle appeal of the surrounding neighborhood, designed to meet the increasingly strict local and municipal zoning requirements and blend with homes and buildings. This is key to positioning a project in highly visible, prime commercial nodes. Whether progressive or traditional in style, storefronts now incorporate varied exteriors including stone, wood, brick and other high-end finishes. Extensive landscaping and intentional lighting schemes complete the welcoming, upscale environment.

The "next-generation facility" is also wrapped with state-of-the-art technology that controls everything from electronically controlled access to bill-pay. These sites feature bright, clean and secure interior environments that include motion-controlled lighting, music, intercoms and large, clean corridors. Onsite kiosks allow renters to manage their accounts with the opportunity to extend contracts, pay rent or register a maintenance request.

With prime real estate at a premium, many of these new facilities are multi-story to capitalize on a smaller footprint. This alternative floor plan calls for elevators as well as designated, and often covered, loading/unloading areas.

Establishing a Hub

But it takes more than a good first impression, quality product and fancy technology to establish a community hub. With a growing focus on convenience, many facilities offer more than just storage space. Taking a cue from retail, its all about service and convenience.

As 33 percent of self-storage businesses (up from 17 percent in 2004) serve as a one-stop shop for everything moving, including supplies and truck rentals, even more are emerging as office headquarters for transitory workers such as home-based salespeople and tradesmen. By offering conference facilities, Wi-Fi access and a coffee bar, these properties create the ideal atmosphere for small-group meetings and business-networking events, often free of charge, essentially locking in that immediate community connection. Further, many serve as package-delivery sites accepting shipments on behalf of their renters.

As more self-storage businesses stake claim to street-front, retail real estate with appealing façades, small retail and service providers are finding this property type to be a lucrative bedfellow. Boutique tenants, such as coffee shops, spa services and fast casual dining, are opening their doors adjacent to the storage front office. Business models are also being defined by self-storage, as units are retrofitted for hair salons and used by records-management firms capitalizing on the propertys state-of-the-art security, further embedding self-storage into the daily lives of neighbors.

New self-storage development has been virtually flat over the past five years. This has allowed demand to catch up and outpace supply in specific markets. Its expected that properties coming online in those markets will serve as community and business hubs that will ultimately outlast the lifestyle storage of yesteryear. There will always be a need for self-storage, but what gets stored and where will drive the evolution of this recession-proof asset class. Yet, the embedded nature and long-term value of this product will keep the sexy in self-storage.

Jeff Stein is principal at Stein Investment Group, where he's responsible for the overall strategic direction of the company as well as identifying investment and ownership opportunities that align with the firms growth strategy. He has facilitated the acquisition of office, retail, self-storage and multi-family properties valued in excess of $200 million in five states, and purchased more than $13 million in performing and nonperforming loans. He was previously involved in more than $900 million in commercial real estate transactions as vice president of Harbor Group International and Fortress Capital Investors, which he co-founded. To reach him, call 678.892.6963 or e-mail [email protected] .

AMERCO, the parent company of U-Haul International Inc., reported financial results for the quarter ended Sept. 30, the second quarter of its 2014 fiscal year. Self-storage revenue increased $7.6 million, nearly 20 percent, year over year to $45.6 million. Average monthly occupancy was 85 percent during the quarter, up from 83.3 percent for the same period last year. U-Haul has added approximately 2.2 million net rentable square feet to its self-storage portfolio during the last 12 months.

Companywide, AMERCO reported net earnings available to common shareholders of $138 million, $7.06 per share, compared to $109.4 million, $5.61 per share, for the same period last year.

"Our efforts to improve convenience for our customers through the addition of new company operated locations and independent dealers along with an expanded fleet of trucks and trailers has resulted in continued revenue growth," said Joe Shoen, chairman of AMERCO.

Operating earnings at the companys moving-and-storage segment increased $38.3 million in the quarter compared with the same period last year. Total revenue climbed $96.6 million but was partially offset by a $58.3 million increase in total costs and expenses.

AMERCO is the parent company of U-Haul International, Oxford Life Insurance Co., Repwest Insurance Co. and Amerco Real Estate Co. Established in 1945, U-Haul has 36 million square feet of storage space at more than 1,000 owned and managed facilities throughout North America.