The driver of a passenger van plowed through a wall at a CubeSmart self-storage facility in Mesa, Ariz., on Tuesday morning, damaging five units. The unidentified male driver may have fallen asleep before veering across traffic, sideswiping another vehicle, jumping a curb and then hitting the storage building, according to the source.

No injuries were reported. The driver said he woke up after the vehicle had entered the storage building at 3026 S. Country Club Drive. It’s not clear if the man was alone in the vehicle. Video news footage showed a large hole in a cinder-block wall with unit contents visible from the street.

The driver was ticketed for causing an accident and driving without a license, according to the source.

CubeSmart is a publicly traded self-storage real estate investment trust. The company owns or manages 629 self-storage facilities across the United States. Its operating portfolio comprises 42 million square feet.

Two former self-storage managers of Al’s Mini Storage in Beaumont, Texas, are suing owner Jim Speed over alleged unpaid wages and overtime. Arretta and Frederick Lawson claim they regularly worked at least 80 hours per week while serving as resident managers from Aug. 26 to Sept. 25, but didn’t receive any paid wages. They were provided a rent-free apartment, according to the source.

The Lawsons filed their complaint on Oct. 15 in the Beaumont Division of the U.S. District Court for the Eastern District of Texas. They allege Speed violated the Fair Labor Standards Act. They are seeking compensation for liquidated damages, relief, unpaid minimum wages and unpaid overtime, as well as attorney fees and costs.

They are represented by attorneys Daniel B. Ross and Charles L. Scalise of the Ross Law Group in Austin, Texas.

Update 11/12/15 – NSAT has released its financial statement for the quarter that ended Sept. 30, 2015, showing gains in key areas including core funds from operations (FFO), net operating income (NOI) and occupancy.

The REIT reported core FFO per share of $0.24 during the third quarter, a 14 percent year-over-year increase. Its NOI was $23.7 million, an 80 percent gain compared to the $13.2 million it reported for the same period last year. Same-store NOI was $10 million, up 13.6 percent.

“We are pleased to report a solid quarter of results,” said Arlen Nordhagen, CEO. “The ongoing implementation of our best-practices programs by our participating regional operators is producing outcomes that continue to exceed our expectations, both in same-store results and in the pace of our acquisitions.”

Same-store revenue was $15.3 million, a 10 percent increase from a year ago, and driven by a gain of 250 basis points in average occupancy and a 7.3 percent bump in average annualized rental revenue per occupied square foot. Average occupancy was 90.4 percent as of Sept. 30, up from 87.9 percent last year.

The company acquired 15 self-storage properties during the quarter for $106 million. The facilities comprise about 1.1 million rentable square feet in approximately 8,200 units. Since the quarter ended, NSAT has acquired 15 additional properties for $68 million, adding 950,000 square feet and 7,400 units to its operating portfolio. The REIT now operates 276 facilities in 16 states, comprising about 15.7 million rentable square feet.

On Sept. 2, the company declared a quarterly dividend of $0.19 per common share, which was paid on Oct. 15 to holders of record on Sept. 30.

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10/19/15 – National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, will reveal its earnings statement for the quarter that ended Sept. 30 after the market closes on Nov. 9. The company will conduct a conference call to review the financial results on Nov. 10 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 13613621.

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 275 self-storage facilities in 16 states comprising approximately 15.7 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 Jonathan Schmid is nearing completion on a West Seneca, N.Y., development that will convert the former Gillogly Chevrolet dealership to self-storage. Ikon Self-Storage, at 1777 Union Road, will comprise about 103,000 square feet and take up the majority of the 8-acre site, according to the source. Schmid hopes to open the storage business within the next two months.

The facility will offer about 53,000 square feet of climate-controlled storage space in 330 units inside the former dealership building. Another 50,000 square feet of traditional storage space is being constructed in the former parking lot. The project is estimated at $1.5 million, the source reported.

The developer has performed much of the construction work himself during the last two years. Schmid acquired the property four years ago and previously built a facility for equipment-rental company Sunbelt Rentals on about 2 acres of the site.

Schmid owns other commercial real estate, including strip malls and standalone buildings, but said the Ikon project is the largest he’s done. “[Self-storage] seems like a good business to get into,” he told the source.

Update 11/11/15 – Displaced tenants of Napa Self Storage have begun retrieving their belongings from earthquake-damaged Building 900, ending more than a year of waiting. Crews stabilized the structure with exterior bracing and inserted about a dozen wooden columns on the interior to support two steel I-beams that were threaded through the building, according to the source.

A hole was also cut into the side of the second story. Units on the upper floor were less damaged than those on the ground floor, the source reported. Crews began emptying units last week.

Tenants who have retrieved belongings expressed relief and reported little visible damage to personal items. “It’s been a long year,” tenant Vicki Hart told the source. “[The damage isn’t] as bad as I thought it’d be. I’m very fortunate.” She plans to keep another unit she has in another building at the storage facility.

“We are so happy,” fellow tenant Nini Keelan said. “It’s been so long. I never thought I’d see [my belongings] again.”

Damage inside the structure was extensive. A metal staircase to the second floor was twisted and partly lifted from the ground, while portions of “interior metal walls were crumpled like aluminum foil,” the source reported. Some walls bulged outward, and the door to a large unit had folded inside its frame.

Tenant committee organizer Jennefer Keller told the source she was glad the retrieval project was finally underway. “There were many moments where it seemed like this outcome was never going to arrive, and yet, here we are,” she said. “After hearing so many difficult stories of loss and hardships within our group, the fact that we will all be reunited with our contents makes me just delighted.”

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8/26/15 – Displaced tenants of Napa Self Storage, whose belongings have been trapped inside earthquake-damaged Building 900 for more than a year, have raised enough money to stabilize the structure and will finally be able to recover their property. Customers should be able to retrieve items in about two months, according to the source.

The self-storage company increased its pledge from $15,000 to $39,000 toward the recovery costs. A $25,000 grant from the Napa Valley Community Relief Fund will also be allocated toward the salvage project, the source reported.

It’s unclear how much money was raised through tenant contributions and community donations. The GoFundMe.com donation page, set up by tenants in an effort to raise $55,000, indicates just $2,651 toward the goal. Several other fundraising efforts were also initiated to raise money. The estimated cost for recovery was $167,000.

Although tenants were initially told they wouldn’t be allowed to recover belongings unless they paid their share, enough money was raised to ensure all tenants with property inside Building 900 will be able to participate in the salvage effort, the source reported.

"Napa Self Storage will have spent a full year with this recovery as our primary objective,” company officials told the source. “The reward will be to see our tenants successfully reunited with their property.”

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4/1/15 – Tenants who have been unable to recover belongings trapped inside Building 900 at Napa Self Storage following the earthquake that damaged the facility last August have begun to raise money to help pay for the salvage project. Tenants were informed by the storage company in January that they would have to pay the majority of the $167,000 needed to safely retrieve property or the structure would be demolished with contents still inside, according to the source.

In February, tenants launched a donation page on GoFundMe.com in an effort to raise $55,000. As of Wednesday, 29 people have donated $2,156 to the cause. RMB Management Inc., the property-management company that co-owns Napa Self Storage, has pledged $15,000 toward the recovery effort, the source reported.

In addition, the self-storage operator may receive a $25,000 grant from the Napa Valley Community Relief Fund to help offset earthquake-related losses. However, tenants contend this money wouldn’t be used toward the recovery project, according to the source.

Meanwhile, tenant Rob Frias has printed more than 120 T-shirts he hopes will raise awareness around the tenants’ struggle to recover their belongings. The shirts display the phrases “We Need Help,” “Earthquake Storage Refugees,” and “NSS Tenants 900 Bldg.” Frias, 39, is selling the shirts for $5 and plans to use the proceeds to create more shirts as well as possible donations to the GoFundMe effort, the source reported.

“This isn’t about me,” Frias told the source. “My 5-by-10 unit is pennies compared to what these other people have. Some people have been there for 15 years.”

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12/31/14 – Napa Mayor Jill Techel has agreed to see if the city’s earthquake-relief fund can help Napa Self Storage tenants recover belongings trapped inside Building 900, which was red-tagged following the 6.0-magnitude earthquake that damaged the facility in August. Tenants affected by the quake met recently after they were angered by a letter from the storage business informing them they would have to help pay to retrieve belongings, according to a report by ABC 7 News.

"We can spend a lot of time arguing over who should pay for this," said Techel, who attended the tenant meeting. "I'd rather have our focus be on how quickly we can get their stuff out of there."

The letter and accompanying questionnaire sent to tenants estimated the cost to retrieve items with the help of a specialty company at $700 to $2,000 per tenant, the source reported. An unidentified tenant likened the attempt to have renters pay recovery fees to “extortion” and “ransom.”

"The fact that their building did not stand up is their problem," said tenant Sara Henry. "We need to have access to our belongings."

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12/5/14 – RMB Management Inc., the property management company that co-owns Napa Self Storage, is expected to file its plan to brace Building 900 with Napa, Calif., officials by Dec. 8. The city has said it will make reviewing the plan a priority and could give the go ahead for specialty crews to retrieve tenant belongings by mid-December, according to the source.

The two-story structure received extensive damage from the Aug. 24 earthquake and was subsequently red-tagged by the city due to structural instability, prohibiting entry. It contains 230 storage units.

Depending on the complexity of the bracing-and-shoring plan submitted by RMB, officials are hopeful they will be able to complete their review in less than two weeks. City Manager Mike Parness told the city council that recovery efforts would begin by securing the second floor from below to allow first-floor contents to be removed first. An engineering plan would then determine how to clear contents from the top floor, according to the source.

Parness warned tenants and the council that some property may need to be left behind. Some bracing that extends into hallways would likely prevent the removal of furniture and other heavy or large items, he said.

The city manager also encouraged tenants to file earthquake-damage claims with the Federal Emergency Management Agency before the filing deadline of Dec. 29 and assume a total loss of property.

Council member Peter Mott said few tenants are able to provide a complete inventory of their unit contents. “My fear is people won’t know what [level of] damage there is until they can get their stuff,” he said.

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9/23/14 – Napa Self Storage in Napa, Calif., was among dozens of businesses and residences heavily damaged by a 6.0-magnitude earthquake that struck the region on Aug. 24. The business may have to demolish one of its storage buildings, based on findings by city engineers and other professionals contracted by the company owners to inspect the site at 473 Walnut St., according to the “Napa Valley Register.”

Building 900, a two-story structure containing 230 storage units, has been red-tagged by officials due to structural instability, prohibiting entry and trapping tenant property inside, the source reported.

Miranda Evans, a spokesperson for RMB Management Inc., a self-storage property management company that co-owns the facility, said the owners have made it a priority to search for a solution that will enable tenants to recover their belongings. “It’s all so overwhelming for everybody,” she told the source. “A lot of people have their whole lives in there.”

The business is trying to determine if the building can be stabilized long enough to recover unit contents or if it will have to be demolished with tenant property locked inside. “Two [engineers] have said it needs to be demolished,” Evans said. “We’ve even spoken about the possibility of removing it piece by piece, from the top down.” It’s not known if deconstruction would work or cause further damage or a full collapse, she told the source.

The structure was built around 1994 and constructed of steel beams, concrete flooring and corrugated sheet metal, the source reported.

According to a letter to the editor published Sept. 22 by the “Napa Valley Register,” tenant Keith Myron said several units at the facility were marked with yellow tags designating limited access, while Building 900, where his unit is located, was marked with a red tag, prohibiting access. According to Myron, the facility manager told him a decision had not been made regarding the status of Building 900 but indicated it could be demolished.

“We then went to view the building and saw the devastating damage done by the earthquake,” Myron wrote. “It appears to list at about 30 degrees from vertical. A cyclone fence with padlocks has been placed in front of this building to prevent access.”

Myron’s letter criticizes the way the self-storage company has handled the aftermath of the quake. Among Myron’s complaints were a lack of communication to tenants whose units had been impacted and the prospect that Building 900 could be demolished without tenants being able to recover their property.

“We request others with storage units in Building 900 to come forward and formally request, as we do now, that the owners of Napa Self Storage choose to stabilize Building 900 sufficiently to allow safe access to those who wish to attempt recovery of their unit contents prior to the eventual building demolition,” Myron wrote.

Napa County officials have attributed economic losses of $362.4 million to the earthquake, according to Earthquake-Report.com, a website that aggregates news and information related to earthquakes and volcanoes. News reports have said nearly $50 million in damage was sustained by local wineries and agriculture.

As of Sept. 3, more than 100 houses had been marked with red tags and another 500 affixed with yellow tags, according to Earthquake-Report.com.

Guardian Storage, which operates 16 self-storage facilities in Colorado and Pennsylvania, received initial approval from the city council to build a self-storage facility in Hampton, Pa. In a 4-0 vote on Oct. 28, the council approved the operator’s application for a conditional-use permit in a highway-commercial district. The council adopted an amendment to its zoning ordinance earlier this year, adding self-storage as a conditional use permitted in these districts pending council approval, the source reported.

The plans include a four-building storage facility on the 5.5 acre-property at 4750 Route 8. The site will feature one three-story structure with an office, tenant lounge and retail store, as well as a single-story building and a pair of two-story buildings, the source reported. The buildings will be comprised of brick, glass and steel. Security features will include a 6-foot perimeter fence and video cameras.

Dog Central, a center for dog grooming and daycare that currently occupies the site, is seeking a new location. Evangelo N. Kaparakos purchased the existing building as well as 5.2 adjacent acres of land for $650,000 in April 2007, the source reported.

Only one person spoke in opposition of the storage development during the Oct. 14 public hearing. Joe Alo, owner of nearby Auto Service & Performance, expressed concerns about increased crime, water run-off and the difficulty motorists may have in accessing the property from Route 8. “People always miss that entrance and pull right into my parking lot,” Alo told the source after the hearing.

If the project receives final council approval, Guardian Storage will purchase the property, according to Steve Cohen, company president. Construction would begin in March, with the facility opening in October. The council is scheduled to vote on the revised site plan this month.

Founded in 1987, Guardian Storage owns or manages four self-storage facilities in the Denver metro area and 12 in Greater Pittsburgh, with a total of approximately 1 million square feet of storage space and more than 10,000 units.

Compass Self Storage LLC, a member of the Amsdell family of companies, has purchased a self-storage facility in Asbury, N.J., its 60th location nationwide. The property was purchased by separate affiliates of Amsdell Group LLC and Compass Self Storage LLC and will be rebranded under the Compass name.

The property at 190 Route 173 W. is comprised of more than 64,000 net rentable square feet of storage space. Features include drive-up and indoor climate-controlled units, electronic access, truck rental, video cameras, and a retail center that offers moving and packing supplies. Compass plans to make several improvements to the facility, including upgrading the office, rebranding the signage and adding more lighting.                  

"We are excited for Compass to hit the 60-store milestone with the acquisition of this quality self-storage center in Asbury. We look forward to serving the community as a one-stop solution for their self storage and moving needs," said Todd Amsdell, president.

Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. Since its inception, the company has been active in several billions of dollars of real estate ventures, with a primary focus on self-storage. It has owned and operated more than 500 storage centers under various trade names in more than 27 states. It currently owns and operates properties in Florida, Georgia, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania, Tennessee and Texas.

A solid bonus and incentive program can entice your self-storage managers to be more successful, which can lead to better occupancy and revenue for your facility. Determining what kind of program to offer is the tricky part. Many owners have experimented with different approaches, such as pay-per-lease bonuses, step bonuses for stores in lease-up, and bonuses on specific items such as truck rental or collections. Incentives can also be tied to certain timeframes, such as quarters or year-over-year.

Unfortunately, there’s no one-size-fits-all program. What works for one storage business may not work for another. That said, here are a few general principles to keep in mind when building your staff bonus and incentive plan.

The Basics

Paying a monthly bonus works best. First, it gives managers something they can plan for and anticipate. Second, if you pay bonuses quarterly or annually, it’s not as real or immediate, and it becomes harder to motivate employees to achieve their goals.

Similarly, the bonus should be easy to calculate—ideally, in less than five minutes at the end of the month. If it requires a master’s degree in accounting to figure out, it won’t be believable by your team and they’ll never focus on it.

Manager bonuses should be tied to budgeted income from all sources, not specific items such as the number of new leases or truck rentals. If you offer a bonus based on a single service or item, this becomes the area in which the team will focus. Also, begin each month fresh. This keeps everyone focused on the same goals: all income from all sources to reach and exceed budget projections.

When structuring your bonus program, it should be:

• Specific: Target a specific area in which you’d like to see improvement.
• Measurable: Quantify or at least suggest an indicator of progress.
• Realistic: State what results can realistically be achieved given the available resources.
• Time-related: Specify when the result(s) should be achieved.

Staying on Target

My company has created a report to easily track each employee’s goals. The excel spreadsheet is called TARGETS, which stands for “Tracking and Reaching Goals Equals Total Success.” It takes a manager about 90 seconds or less to complete the form at the end of each day. The spreadsheet automatically calculates net gain, traffic-conversion ratios and box sales per lease. It includes a line for each day and automatically totals each column for a month-to-date cumulative number. Here’s how it works:

Each day, the manager checks his TARGETS workbook to see where he is for that month. He’ll look at move-ins, move-outs, delinquency, income, merchandise sales and traffic counts. This gives him a goal to meet in each category.

Once the store has hit the threshold of 90 percent of its budget for the month, the bonus amount appears at the top of the page. At the 90 percent mark, the manager will earn 90 percent of his bonus. That bonus grows as the manager increases income for the month, up to a maximum amount. This is a great incentive for sales as well as keeping delinquency in check. In addition, managers will feel they’re being rewarded and appreciated for their hard work each month.

The report is automated to turn from red to green once each category is within the company’s goal amount. The bonus pool for the team is right at the top of the page to keep everyone focused on the total. These amounts are budgeted and predetermined as to what percentage each manager will receive. For a large property, this could be divided among four or five managers. A small store might have one manager and a part-time or relief manager who earns 2.5 percent of the bonus for each day worked.

Other Incentives

In addition to money, managers respond well to other types of incentives. For example, my company hosts an award ceremony at the beginning of the year. We get together for training, bonding, sharing and to see who “shined” over the previous year. Our “Annual Awards of Excellence Banquet” is an exciting event at which high-performing managers are recognized for their efforts with a plaque and $100. Awards are given in categories such as “Most Leases,” “Lowest Delinquents” and “Most Improvement.” Not only is this a great way for managers to be acknowledged for their hard work, it can inspire newer managers and offer them a mentor if they’re struggling in certain areas.

Whatever bonus and incentive program you employ, planning and goal-setting will be the heart of its success. It’s critical to your facility performance to recognize and reward your managers. Doing so will show your appreciation, keep employees happy, and ensure everyone is working toward the same goal—being the best storage operator in your market.

Anne Ballard is president of training, marketing and developmental services for Universal Storage Group and the founder of Universal Management Co. She's a former president and current board member of the Georgia Self Storage Association and has served on the national Self Storage Association’s board of directors. She’s also participated in the planning, design and operation of numerous storage facilities. For more information, call 770.801.1888; visit www.universalstoragegroup.com.

Andover Management Group LLC, a Lexington, Ky.-based real estate developer known primarily for its apartment complexes, intends to build its first self-storage facility at a Nashville property it has under contract. Citadel Self Storage at 506 Fesslers Lane will comprise 137,950 square feet and cater to the city’s growing urban population near downtown, according to the source.

“We’re kind of opportunistic developers, and we see unmet demand in the self-storage industry in Nashville, which we’re looking to fill with this project,” Dan Kunau, development coordinator, told the source.

Although there are 325 self-storage facilities comprising 16.6 million net rentable square feet in the Nashville metropolitan area, most aren’t near downtown and other urban areas known as the Gulch and Midtown, according to the source. An estimated 80 people per day are moving to Nashville, coinciding with a boom in development of condominiums and apartments in the city’s urban core.

“Ten years ago, [self-storage] was the red-headed stepchild of commercial real estate,” Dave Sexton, a commercial real estate appraiser for R.K. Barnes & Associates Inc., told the source. “Now next to multi-family, it’s become the apple of the eye.”

Other self-storage operators, including Nashville-based A+ Storage of Tennessee LLC, have also planned new projects in the area. A+ Storage currently operates a facility on Division Street in the Gulch and intends to develop new properties in Germantown and an area known as the Eighth Avenue Corridor, between Interstates 40 and 440, company founder Tommy Pierce told the source.

Although Andover’s specialty is apartments, Kunau said some of the company’s partners have experience in the self-storage industry. “We feel for that site, the highest and best use is self-storage,” he told the source. “Nashville is just a hot real estate market in general.”

Andover is also pursuing a self-storage project in Charleston, S.C. At its residential properties, the developer is committed to building assets that fit a site’s unique characteristics, rather than take a templated approach to design, according to the company website. Its Kentucky properties include Beaumont Farms, Crescent at Shadeland, Lakewood Park and Property 358.