By Dan Curtis

For a self-storage owner, choosing the right door and getting the most value for the money is a decision that will be lived with as long as a facility is owned. Before making such an important decision, the buyer must take time to research the market, learning what makes one self-storage door more valuable than another. With increased competition, care is required in selecting doors, as well as choosing the right company to supply and install them.

Generally, there are five stages of self-storage ownership:

1. Investigating whether to enter the business.
2. Building or purchasing a facility.
3. Making start-up and operational decisions.
4. Ongoing operation and success.
5. Preparing to sell.

Investigating the Market

In considering self-storage, don't be fooled into thinking of it as a passive investment. Owners must be familiar with the operation of their projects, and be able to share their knowledge with managers and others involved. Early on, owners need to be involved in the selection of all construction materials. There is no need to start from scratch, as all the necessary resources are available for the asking.

Potential buyers can see the products of the major manufacturers at industry tradeshows. Try the doors, investigating the benefits and features of each one. Be wary of manufacturers who have no product to show. Talk to present owners and ask what company they use or recommend. Ask if the manufacturer is able to supply and erect hallways and partitions for interiors. Visit competitive facilities and talk to owners and operators. Learn how they run their facilities and what construction products they use. This could save you considerable time and money down the line.

Buying or Building

In buying or building self-storage facilities, the difficult decisions are those regarding important construction features: maintenance, appearance, cost, service, life expectancy and options. These will strongly affect the fourth and fifth phases of ownership. Listen to contractors, but be careful about using information acquired at tradeshows or from personal discussion with door representatives. Contractors are most often concerned with price over long-term value.

During the '60s and '70s, many projects were built with sectional doors. These are upward-acting, sliding back into the building and taking up valuable storage space. They were chosen instead of roll-up doors because they were believed to be less expensive. Now, many owners would love to replace them, but continue to struggle with sectionals for fear of expensive replacement costs. But if they replaced the doors a few at a time, the change could be possible without a great deal of immediate expense. At some point, those doors should be replaced regardless. Sectional doors get old and their springs wear out. They are susceptible to breaking and slamming.

When buying or building self-storage, always keep value as a priority. Doors are now offered by most companies with a 20-year, no-fade warranty. Anyone with 12-year-old doors can report just how important this is to them. Repainting can cost from $25 to $35 for each door (which will likely require painting yet again in the not-too-distant future).

Many door manufacturers offer an easy tension-adjusting feature. One person can easily and safely adjust the spring tension on a door. This feature was first offered three years ago, and has been extremely well accepted by owners and customers. Doors that operate smoothly keep customers and encourage them to tell their friends about the facility. Doors that are difficult to operate discourage customers and, worse, may cause an injury to a tenant's or manager's back. Doors without enough tension can also fall unexpectedly, presenting another hazard.

New Operator Startup

All doors should be checked for proper adjustment. Each one should be pulled halfway up, then let go. If the door falls, it needs more tension. If it rises rapidly, it needs tension taken off the springs. Usually, most door problems will become evident within the first two months following installation, and most manufacturers are eager to take care of installation problems. The overwhelming majority of difficulties involve either spring adjustments or clearances in setting the width of the guides. All manufacturers give clearance requirements in their installation instructions. Because the door company supplies and installs the hallways for interior climate-controlled units, these need to be checked for stength and alignment before acceptance. All doors and partitions should be cleaned and free from defects upon completion.

Operating a Successful Facility

Normally, very little maintenance is required on doors, hallways and partitions. After the first year, it should be very easy to follow this simple procedure:

1. Clean any dust or dirt out of the guides or side rails, then spray them with Armor All^® as it does not attract dirt.
2. With a 7/16 hand wrench, make certain all 1/4-inch nuts are tight on head stops, bottom bars and slide-bolt locks.
3. From the inside and with the door closed to about 6 inches off the floor, spray the springs with white lithium grease. Some doors may have only one spring. A full covering of the spring is not necessary. Use white lithium because it does not evaporate and lasts a long time.

These three simple steps should be repeated every time the unit is re-rented. Improvement in the door's operation will be immediately evident. Newer doors with a tension-adjustment feature can be adjusted with a 3/8-inch rod. The only other maintenance job required is a yearly cleaning of all exterior doors with a steam cleaner (but be careful not to spray inside a unit). Also as part of a yearly spring cleaning, interior hallways should be dusted and the floor cleaned.

Always remember that once people decide to store with you, there are four needs they expect to have satisfied:

1. Good security.
2. No bugs or rodents in the unit.
3. No water or moisture seeping into the unit.
4. A clean and bright appearance.

These four issues may explain why some projects have high occupancy and rental rates while nearby competitors must offer lower rates.

Components Supplied by Door Companies

It is important to be knowledgeable about all of the items supplied by door manufacturers:

• Doors--Roll-up and interior swing doors. Swing doors are available flush or corrugated.
• Filler Panels--Exterior corrugated or flush.
• Header Panels-- Exterior corrugated or flush.
• Mullions--Exterior to match doors and divide large openings.
• Hallways--Flush columns with flush or corrugated header panels.
• Partitions--Galvalume-plus for a bright appearance.
• Light Soffet--To mount fluorescent lights for a bright appearance.
• Kick Plate--12 inches high at floor to keep carts from damaging hallways.

Paint Finishes

Most of the quality manufacturers use a siliconized polyester paint system. The metal-building industry has used this paint system for years, but it has only been available for doors over the past three years. It is the paint manufacturer who guarantees the paint, and the majority of the 20 or so colors offered are guaranteed against fading for 20 years. White and other lighter colors generally carry the 20-year guarantee. Darker colors have a shorter no-fade life. Door manufacturers should be happy to transfer this guarantee to their customers, as Kynar and Floropon paints are soft by composition and do not withstand the abrasion roll-up doors endure.

Purchasing

Most door suppliers offer installation and a complete line of products. Ten years ago, a magazine article was published concerning the bad experiences that can be involved in purchasing self-storage doors, but it was written about a manufacturer who is no longer in business. Today, manufacturers are senstive to customer needs and attitudes. As a group, they do their best to supply good products and service.

If you follow the suggestions provided in this article, your experience with purchasing and maintaining doors can be satisfying and your investment a sound one. When the time comes to operate or sell your facility, you can expect a very respectable profit.

Dan B. Curtis is the president of Altanta-based Storage Consulting & Marketing, which provides feasibility, unit-mix, layout and marketing ideas to professionals of the self-storage industry. For more information, call 77.432.2417; e-mail [email protected].

By Jim Chiswell

Another year is here and, with its arrival, our expectations run high that we might really accomplish the goals we have set for our businesses and ourselves in the year ahead. OK, so some of our New Year's resolutions will be forgotten in a month or two, but those chiseled in stone are the ones we're really after.

Storage Executives in Print

Two self-storage executives appeared in the pages of two national magazines at the end of 2000. One was industry veteran Dean Jernigan, the president, CEO and founder of Storage USA. The other was a relative newcomer to the business, Mark Hamister of Premier Self Storage.

The November issue of Fast Company--a monthly publication that sets out to chronicle how changing companies create and compete with new business practices (see www.fastcompany.com)--provided insights into Dean's personal philosophy as the owner of the Triple-A baseball team, the Memphis Redbirds. The excellent article, written by Geoff Calkins, spotlighted Dean's vision of what the ownership of a sports franchise could mean to a community. No one who knows Dean will be surprised to learn that his sports enterprise has been organized as a not-for-profit foundation under the requirements of Section § 501(c)(3) of the tax code. The foundation contributes every cent the Redbirds earn to Memphis charities. Congratulations to Dean on the article, and on the drive that turned his vision into a reality for the benefit of the people and children of Memphis.

Inc. magazine's October "Snapshot" feature provided a brief insight into the business world of Mark Hamister. Mark, whose Premier Self Storage properties are located in western New York, is likewise involved in sports with a team in the Arena Football League, the Buffalo Destroyers. He is also associated with the National Health Care Affiliates, which operates assisted-living centers.

In the early years of our industry, many people thought of self-storage as a fad development or simply as a "land-banking" play. Those days are long gone. Every national article on leaders such as Jernigan and Hamister enhances the visibility of our industry.

Who Put the Butts Out?

I know that phrase is not as catchy as that of the popular Baha Men's hit "Who Let the Dogs Out?," but it helps to make my point. No matter how properly maintained a self-storage property is, it appears there is no escaping one item: cigarette butts. These non-biodegradable filter ends are everywhere.

Let me go on record by saying I think the government has gone overboard in its efforts to demonize individuals who choose to smoke. Yes, I sit in the nonsmoking section of a restaurant, but I still support the individual's right to his or her own choice.

The one thing I have never been able to understand, however, is the smoker's natural reaction to throw his cigarette butts on the ground or out his car window. My absolute favorite is watching the driver in the car ahead of me dumping his entire ashtray of butts out the window while at a red light. Who does he think is cleaning up all of these little prizes?

I am finding a growing number of facility owners who are putting out the sign "NO SMOKING HERE," not only in the office, but on the entire property. You do have a safety issue to address: The protection of materials stored at our facilities must be a top priority. A no-smoking rule is a tough one to enforce, but it can make a world of difference to all your customers and the appearance of your entire operation. It may be worth your consideration as you draft your project's new "Rules and Regulations" for the year.

Lock Check: Not Just Busy Work

Despite what some employees may think, the requirement of conducting a daily lock check of the entire facility is much more than your boss' idea of how to keep you busy. Checking the status of every unit each day provides some valuable insights into a facility's operation.

First, it helps you stay on top of any unexpected changes. For example, if you notice six rented units in a row without locks, guess what might have happened? Can you say "break-in"? Or what about that last-minute customer from the night before? Perhaps he simply forgot to lock his unit.

Second, the lock check will help to verify your computer records in the office. It has never failed that when we visit a project where the managers are spending the bulk of their time in the office, there is a discrepancy between the lock check and their office records.

Third, yes, it does force managers out onto the property. It is hard to explain why you didn't see the corner of the back building is crushed if you are out every day doing a lock check. I urge you to require a regular lock check at your facility. It can be some of the best management time spent each day.

State Association Summit

This February, the Inside Self-Storage Expo in Las Vegas will break new ground. The tradeshow and magazine staff has designated a special time during the education agenda for attendees to meet with representatives from the various state self-storage associations. I am honored to be serving as the moderator of this new forum.

This special block of time will help newcomers and industry veterans get the most current information from the state level. This information could directly impact their business. The national Self Storage Association has been lending its support to this effort as well. All across America, the movement to set up state associations is growing. I have been an outspoken advocate of this for many years.

I hope everyone who is planning to attend the Expo will make a point to attend this State Association Summit on the night of Wed., Jan. 31. To those of you who do not yet have your tickets, I encourage you to call your travel agent today. I look forward to seeing you in Las Vegas.

Jim Chiswell is president of Chiswell & Associates. Since 1990, his firm has provided feasibility studies, acquisition due diligence, expert testimony and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos and various association meetings. He can be reached at 716.634.2428; e-mail [email protected];  www.selfstorageconsulting.com.

By Barry Morris

After a slow beginning, the 1990s became a decade of unprecedented prosperity for the self-storage industry. New properties emerged in many markets, bringing with them burgeoning consumer awareness and acceptance of the product. What was once the domain of mom-and-pop operators, with rudimentary buildings shoehorned into remote industrial sites, has steadily evolved into a largely developer-dominated business with modern, amenity-filled buildings in prime retail locations.

It's not all glitz and glamour, though. With the prosperity comes perpetual concerns about oversaturation, occupancy rates, financing availability and other issues. After years of growth, current indicators point toward a possible slowdown, attributable to some or all of these factors and consistent with a general cooling of the U.S. economy.

By tapping the knowledge of some of the industry's most respected insiders, this article will examine the current state of self-storage and its outlook for the new year. Whether you personally remain optimistic or tend to side with naysayers, the following should provide a good cross-section of views for the self-storage industry's prospects in 2001.

The Recent Past

When the potential for money-making opportunities in the self-storage industry became common knowledge in the mid-1980s, developers scrambled to react. A building boom ensued, pushing capacity far beyond demand for the product. Brisk competition and low occupancy rates combined to produce rock-bottom rental rates--a scenario operators found not conducive to meeting their mortgage obligations.

This industry-wide slump continued into the 1990s, with occupancies falling to their lowest point in 1990-1991, and the industry itself hitting rock bottom from 1990-1992. Many facilities were repossessed by lenders, and property values fell from their peaks of the mid-'80s.

But consumer demand eventually grows to meet supply in real-estate business cycles--and sure enough, by the middle of the '90s, things began to circle back toward prosperity for the self-storage industry. Occupancy caught up with the abundant supply, while the nation's economy strengthened. Financing firms loosened their tight reins, and full-scale construction began again.

As the new millennium dawns, the self-storage industry's big picture is still a positive one. That's not to say, however, there aren't some potential bumps in the road. Will these bumps turn into gigantic sinkholes that will send the industry falling toward a repeat of the late '80s and early '90s? Probably not. But given this history, most in self-storage seem to be better prepared to deal with whatever changes may come to the marketplace.

The Inside View

No two opinions of the industry's current state are exactly alike. While there seems to be no concern about a return to the depths of a decade ago, there are a wide variety of views about exactly how strong the self-storage business was in 2000, or how it will be in 2001. Like the markets themselves, opinions are regionally driven.

"This past year has been very good--actually a better year than '99," says Maurice Pogoda of Farmington Hills, Mich.-based The Pogoda Companies. "In the areas where we are, the economy has been sizzling. We've experienced a continued building boom here that has helped the self-storage arena tremendously. We have so many areas in Michigan and the surrounding states that are doing so well, and it always helps self-storage when you have that kind of activity."

"There's more money in the economy now than there has been in a long time," says R.K. Kliebenstein of Coast-To-Coast Storage, based in Boca Raton, Fla. "And in a healthy, vibrant economy, people have more disposable income. They're spending more freely. For self-storage, as awareness of the product grows, more people are taking advantage of it. As long as the economy stays healthy, even though we're experiencing a lot of growth in the sector in terms of new development, we will continue to lease that space."

Others, such as Jon Reddick of Sentinel Systems Corp. in Lakewood, Colo., enjoy continued good fortune--but with an asterisk of sorts. "Things are looking better than ever--we just had the highest sales month in the history of our company," says Reddick. "Part of that is due to the international market. We're starting to build a real strong foothold in Europe, as well as Australia and New Zealand. I think the United States market is starting to slow down a bit. Before, it was incredible. Everybody was building or doing a project all the time, and I don't see that quite as much now. But on the international side of things, they're really starting to move. They're typically two or three years behind us with technology, so I think that's why. They're where we were two or three years ago."

But others, while not pushing the panic button, see things slightly differently. The wildly fluctuating stock market of the past few months, for example, is creating a less-than-clear financial picture. "Probably one of the major issues that's going to come around in the next year is the lack of financing that may be available to refinance facilities," says Mike McCune of Denver-based Argus Self-Storage Sales Network. "We're recommending to all of our clients that if they have a financing event in the next two or three years, they should probably tend to it now as opposed to later, when the financing may be more difficult."

A common axiom used in the real-estate market--"location, location, location"--could also play a role in a possible downturn, says one executive. "I see the industry starting to slow down, not because of desire, but because of quality sites not being available," says Jim Chiswell of Williamsville, N.Y.-based Chiswell & Associates. "The barriers to entry are increasing because the type of facility required to attract today's new customer, in my opinion, is much more of a retail site, requiring all the bells and whistles in terms of security, landscaping and ease of access. All these factors are obviously going to increase the per-square-foot cost."

Economics 101: Supply and Demand

With the proliferation of new properties in many parts of the country, the question of overbuilding and saturation of particular markets is always a legitimate one. Many operators, especially those who came into the business during the mid-1990s boom, launched projects with little forethought about location or market demand. "I've had some concerns about overbuilding, and I would share that to an even greater degree now," Pogoda says. "I know of so many more facilities coming out of the ground this year and so many that are site-plan approved and ready to go, where people are just lining up their financing."

Too often, according to Pogoda, overbuilding is the result of inexperienced developers entering the industry. "A cry that I've been lamenting for years is that there are many novices trying to get into the business who don't do their homework," he says. "People are picking locations that are subpar, and building facilities willy-nilly without seeing if the market needs them."

Mel Holsinger of Tucson, Ariz.-based Executive Self Storage agrees there is an abundance of overbuilt markets. "There are still some markets that have some opportunities, but I think those opportunities are closing very quickly as far as new projects being supported by existing markets," he says.

The strongest markets for new development are currently in California, says Mike Burnam of StorageMart, a Columbia, Mo.-based facility operator with locations in several major metropolitan areas. Conversely, Burnam sees a continued weakening in Phoenix--which had been a strong market for many years--as well as in larger Texas markets such as Dallas and Houston. But even when a market shows some promise, the realities of the marketplace often pose a problem. "Austin markets are a bright spot," he says, "but rental rates are so low it doesn't warrant additional new development except at the lower end of the spectrum."

Even when a developer does his homework and chooses a site most agree will be in demand, there's no guarantee it will happen overnight. "We have some micro-market areas within communities that have seen, over the last several years, a great deal of new growth," Chiswell adds. "It's going to take awhile for those areas to absorb that new space."

The abundance of newer properties not only creates excess capacity; some say it also creates a sort of class structure among properties, potentially making the older ones less appealing to the consumer. "New facilities are being built in areas where one or two operators have had it all to themselves for years, and their facilities--which are now 10 to 15 years old--have become dog-eared and tired looking," says Chiswell. "In many cases they haven't spent the money to keep their facilities looking sharp. That way they become very susceptible to that new kid on the block or one of the national companies coming in with their new prototype facilities, which are very retail-focused."

Development and Construction

To attract the increasingly discerning self-storage consumer, new properties must offer the latest amenities and conveniences, such as automated security, bank-card and AFT payment options, and activity on the Internet. "There's definitely more climate control, more amenities being built in--it's the trend that has been continuing through the late '90s," says Pogoda. "Cameras, individual door alarms--those kinds of amenities are much more prevalent now than ever before."

But the shiny trimmings incorporated into new facilities don't always overshadow older properties--at least not in areas served by Pogoda's company. "Because the markets have been so strong, it hasn't seemed to have had any great effect," he says. "These newer facilities have added to the market, but the older facilities are holding their own. When you have a downturn, the consumer, if he has a choice, is going to go to the nicer facility rather than the older facility. But when he calls up, most facilities are full. Consumers are taking what they can get."

As previously mentioned, site availability is becoming a greater barrier to entry into the self-storage business. If land isn't completely unavailable, its price often necessitates multistory development. A solution to this dilemma for urban areas has become known as "in-fill" construction, where developers go into downtown neighborhoods and either convert existing buildings into self-storage or demolish a building and put up a new facility on the land. Kent Greenwald of CB Richard Ellis Inc.'s Phoenix office referred to projects completed by a leading self-storage operator in the Los Angeles area. "When you look at the land price, you'd be astounded," he says. "But when you look at the rents they get and how fast they lease up, it's unbelievable."

Acquisitions

For movement of existing properties, a consensus of brokers' opinions suggests the market is leaning slightly toward sellers. "There's still an abundance of buyers in the marketplace," says McCune, "and there are more sellers as well. Right now it's a pretty equitable balance, and it's hard to predict exactly what's going to happen; but if the financing dries up, I suspect there will be a buildup of sellers as opposed to buyers."

Marcus & Millichap's Burt Gay adds, "From a broker's perspective, it's great--we're moving into equilibrium. Before, there were very few sellers and very many buyers. Now it's more balanced. Two years ago, because we had very low interest rates, we had very high prices. Much of the smart money sold then. Now the sellers are a little bit nervous with the stock market being precarious, and are coming out of the woodwork and being more willing to sell than ever before in the recent past."

After riding the wave of a seller's market, Dean Keller of Bancap Self Storage Group Inc. predicts there will be fewer aggressive buyers in the new year. "Right now we have far more buyers than we have properties available to buy," Keller says. "So any institutional-grade property--a facility of 40,000 square feet or above in a good metropolitan market area that's reasonably filled and reasonably located--is going to have buyers. Yet they still have return on investment requirements, so they're not willing to overpay for things."

Greenwald says sellers aren't flocking to him simply because the market favors them. "It seems there are a number of self-storage operators who are not really motivated to sell because they bought or developed their properties in the early '90s, and they've ridden the economic boom." He adds that there's much greater knowledge of the self-storage market now than there was 10 years ago. "I receive one to two calls a week from buyers who are not in the self-storage industry, but are terrifically motivated to buy buildings," he says. "But the majority of the self-storage transactions are still going between experienced operators."

Financing

Because of the problems experienced by the industry in the past, lenders are far more careful about what projects they finance. While this may make it tougher to acquire a loan in some cases, those with favorable business plans are still largely successful.

"There are many aspects of the financing arena still on the upswing and very positive for the industry," says Neal Gussis of Chicago-based Beacon Realty Capital. "A lot of fixed-rate mortgages are being offered in the low 8s right now and, on a relative basis to historical benchmarks, that's still very good financing for this industry.

"There are more banks than ever before that understand self-storage and are willing to look at it either on a local or regional basis," Gussis continues. "Conduits, or secured-type lenders, are still offering fixed- and/or variable-rate mortgages. On the downside, there are fewer of the secured-type lenders and their underwriting requirements are stricter than before."

The picture painted by Argus' McCune is somewhat less optimistic. "I think we're seeing a constriction of development finance about to happen, which is going to slow down the additional development of sites and new facilities in the next year," he says. "The FDIC (Federal Deposit Insurance Corp.) is putting some pretty strong constraints on many of the banks, and has identified several areas as being overbuilt in terms of real estate in general, which will impact self-storage."

Since banks will often lump self-storage projects in with other real-estate endeavors, McCune says the chance of getting favorable treatment is reduced. "With self-storage being kind of at the lowest rung of lending in the banks, they're likely to lend on self-storage projects when they've got a customer who builds shopping centers and things they're more likely to put their real-estate allocation toward."

Technology

The addition of even more technological enhancements is one trend that most agree will continue indefinitely. Though incorporation of the Internet into the self-storage industry has perhaps not been as rapid as first anticipated, its potential continues to develop.

"We keep talking about the Internet, but I haven't seen it make huge inroads just yet," Pogoda says. "We advertise and have our listings online, but our tenant base from the Internet is miniscule at this point--with the exception that it's a little bit larger for our locations near college campuses. So that would give you the indication that it's going to become bigger in the future.

"I can foresee a time when we can sign leases online because of the new act that was just passed by Congress allowing electronic signatures. I can see that being advantageous in the future, but it has not yet been revolutionary in this industry."

Some are more optimistic about the web. "The Internet is going to continue to play a vital role in this industry in selling your product to the marketplace," says Dave Cook of Tacoma, Wash.-based Tech-Fast Metal Systems. "It's going to be much more interactive as a part of e-business as opposed to simply a marketing tool. Convenience, speed and accessibility to information are going to help you stand out from your competitor. And that's what the industry has always been doing anyway--from building plain, rectangular boxes in an industrial site to an architecturally pleasing, multistory project in a residential zone, you're providing convenience and services closer to the needs of the consumer."

Other types of technology are also making an impact for Cook. "From the construction process side, we and others are pursuing technology as a means of providing a better-quality product to the marketplace faster," he says. "Speed is a huge motivator from a development perspective, because the obligations are in place, and another day that goes by is another day of rent you don't receive until you get open.

"We view technology as an absolute requirement to stay competitive and ahead of the market. We need to push on that because the timeline is being pulled from the other direction--zoning conditions, code requirements and the permitting process are getting longer. You need to be pushing the speed of what you have under your control, because the things out of your control are taking longer."

Management

Though owners of self-storage facilities may possess a world of knowledge and experience, it's widely believed an individual facility is only as successful as its on-site manager. However, for some self-storage operations, finding and keeping good management is a monumental struggle.

"Most of the really top-notch managers who have been around awhile are able to acquire the positions with companies that are offering higher pay, better benefits, etc.," says Holsinger of Executive Self-Storage. "The industry is still, in my opinion, lagging in terms of manager salaries and being able to compensate employees for what they actually accomplish. It's no longer just 'Let's hire an older couple that has a retirement income and let them be caretakers.' That age is gone. You need somebody who's aggressive in selling, intelligent in office procedures and has the common sense to help both the customer and the company."

Holsinger credits seminars offered by Inside Self-Storage, the Self Storage Association and others for helping to fill the training void. "There's still a large gap between trained and untrained managers, but I think that gap is slowly closing," he says. "The training is available, and I think now you're seeing a lot of people take advantage of it. I think our managers, overall, are much better than they were even three years ago."

Niche Markets

When the term "niche" is used in the context of self-storage, it can refer either to geography or market focus. Whatever the definition, "niche" is a word used with increasing frequency in the self-storage business.

"The self-storage industry has always been a niche business, and it's becoming even more of a niche business now," says Greenwald, using the geographical definition. "A number of years ago, I would hear owners say they were drawing their tenants from up to a five-mile radius; and then probably three or four years ago, we were looking more at a three-mile radius. But now, I've had a number of owner/operators tell me that they're drawing a majority of their tenants, when they're in a built-up area like Phoenix, Seattle or Portland, from within a two-mile niche."

Specialty-niche markets are also being pursued by self-storage operators. Legal documents, wine, fine art, antiques, classic automobiles and other items demand storage space, and in many cases it isn't feasible or cost-effective for owners of these items to maintain or create their own storage facilities. Converting facilities to house such items often makes sense for enterprising self-storage operators. To this end, Coast-To-Coast Storage has recently launched a store repositioning product, offering a combination technology/store improvement package along with market and management information.

"I think there's more awareness that we need to increase our product base in order to maintain the occupancies, and most of these kinds of things require some upgrading of our facilities," says Kliebenstein. "So it goes hand in hand with repositioning a store. You need to find new horizontal markets to go after, whether it be wine storage, antique storage or whatever. It is not my belief that the best way to compete with a state-of-the-art facility is to lower your prices--that just doesn't make sense. An investment in your assets will go a lot further than just lowering your prices. I think necessity has been the mother of invention here. As folks look for new ways to create storage opportunities, they become a little more industrious in going after new markets."

The Year Ahead

What the long-term future holds for the self-storage industry is only speculation at this point. Though many factors point toward a slowdown, most downplay it and some dismiss the notion entirely.

"Self-storage is a great investment in the long run," says Bancap's Keller. "It's stable, it's safe, it's got good returns that are fairly predictable, and I think that's why you see a lot of stability and a lot of good cash flow coming from the publicly traded REITs.

"It's going to continue to be a good market for owners and operators," he adds, "but be careful of new development. All it takes is one brand-new, empty facility across the street from you to really have a dramatic impact on your cash flow."

"I'm still very bullish on the future of the industry," says Chiswell. "It still represents, to me, one of the greatest entrepreneurial opportunities in America in terms of creating a small business that can generate the kind of revenue our facilities can, and the kind of financial return to that entrepreneur who is willing to venture forward."

A few are exercising caution, however. "Who knows what the stock market will be like going into 2001, but we sure appear to be in very precarious times," says Pogoda. "I think the combination of the potential downturn many of us have been expecting for years, and the tremendous increase in capacity ... well, it's just simple economics. Something has to give. At least in the markets I'm in, we appear to be at that point."

Finally, at least one insider is steadfastly convinced that anything can happen, and therefore sees speculation as pointless. "The longer I'm in this business, the more humble I'm getting," says Gay of Marcus & Millichap. "I can't even predict sometimes which of my own deals will command what kind of prices and which ones will close. So when I try to make forecasts of what's going to happen in the market in general, I'm on even thinner ice."

By Matt Morgan

Since 1985, self-storage owners Joe and Lolita Bader have been specializing in self-storage unit-door numbering through their Corpus Christi, Texas-based business, Quik# - Door Numbers. The Baders, whose business manufactures computer-generated, pre-spaced, vinyl, adhesive numbers, recently spoke with ISS about door numbers and unit sequencing.

ISS: Why would the numbering of units be something an owner should consider seriously?

Joe: You certainly want to consider this, and it certainly makes your facility look more professional. When I first started in the business, I numbered around the building, 1 through 88. The next phase of my operation extended that building, and I had to renumber because I then had 88 consecutive units and an extension. Starting at number 89 in the middle of a building made no sense at all.

Lolita: Every unit has to have a number so your customer knows where to find his unit. That's one of those things you want to do right the first time and never think about again. You want it to look good and you want it to do the job.

ISS: What are the various types of door numbers available?

Joe: First, there are painted numbers, which is the old way of doing things. A lot of facility owners still have their numbers painted on, or they go out with a stencil and paint the numbers on themselves. Then there's an engraved plastic type of number, and that's been around a long time. It's a small piece of plastic that's engraved by a machine. Finally, there's vinyl, which is probably the most popular way of putting on the numbers. That's using a very thin--paper-thin, almost--grade of vinyl that has an adhesive back and is pre-spaced by a computer; or you can go to vinyl numbers available at a lumber yard or home-improvement center. They won't be pre-spaced, but you can stick them on the building. For rougher surfaces where you want to use vinyl, an aluminum plate comes with the number already on it.

ISS: What are the advantages or disadvantages of each number type?

Joe: The first thing I would recommend is to talk to other facility owners about how they numbered their units. The advantages of having the numbers painted on--especially if you hire a sign painter--is that it takes one call. If you call a good sign shop, they can come out and do it very simply for you. Quality really depends on the material they are using--which may be good or bad paint that lasts a long time or does not--and the artistic talent of the sign painter.

The advantage to engraved plastic is the engraving is going to last pretty much forever, as long as the plastic lasts. Like paint or vinyl, quality means almost everything. Most of the engraved plastics I have seen have been riveted onto the door. It takes a little bit more time--you've got to drill the rivet holes into the door and then rivet the plastic. One of the problems I've seen there is--especially when it's placed at shoulder height--often, with rivets, there is a small piece of sharp metal that comes out and can catch on people's clothing.

Size equals cost here. With a small number, it is very price-competitive. But with a larger number engraved in plastic, there is more engraving, and more plastic, so that increases the price.

On metal buildings, vinyl numbering is probably one of the best options. It's pre-spaced by a computer. 3M says it has a life of seven years. It's a long-lasting product. Because it's computer generated, it's always going to look professional. It's hard to apply these numbers wrong.

It just doesn't make any sense for a facility owner who's going to be in the business for more than five years to use anything but the very top-of-the-line product. If you put on an inexpensive grade of vinyl, you'll have to peel it off more often, and that's a lot of trouble and expense.

ISS: What are the costs of the various number types?

Joe: As long as we're talking about relatively small sizes--up to maybe 4 inches--the three options are going to be real comparable. There's not going to be a whole lot of difference in cost one way or the other. When you're talking about putting a vinyl number on concrete or wood where the surface might be porous, the aluminum plate is going to add a little bit more expense. But it also adds a nice finished look to the numbers.

ISS: What sizes and colors are available?

Joe: Today, there are almost 100 colors available--a number of different shades of any color. With all the computer fonts out there, we recommend you use a bold, block typestyle, because you want your numbers to be easily read and understood by your tenants. But there are thousands of type styles.

At least 80 percent of our business has requested a 2-inch bold number. On a 25-foot driveway, a 2-inch number is easily read. If you've got a 60-foot driveway for RV or boat storage, you may need a larger number.

Lolita: When it comes to colors, what we suggest business owners think about is this: If they know the name of the company they ordered their doors from, we've got several of the door companies' color charts and we can match our vinyl to their door color--or come very close. That way, they can put them above their doors and it really looks good.

ISS: Do you have any tips for buying numbers?

Joe: In terms of quantity, the building owner is just going to buy what he needs. The problem with buying numbers at an office-supply or home-supply store, in terms of quantity, is they look great when you are numbering the first 99 units. But there are only a certain number of 1s on each sheet. After you reach 100, every unit includes a number 1, so that becomes a problem. Then you have to buy a lot of sheets to get all the 1s you need.

Lolita: One of the biggest tips we have suggested to people in regard to their numbering is, if they're beginning with a first phase and will continue adding phases later, they really need to look at what their overall end result is going to be. In other words, decide on your entire numbering system in advance. The second tip we suggest is to know if you're going to have a gate-system entry, or code number or computer system that's going to be able to manage your tenant location.

Joe: For instance, if your software will only work with the numeric system, instead of lettering a building A101, you might think of numbering it 1001, so that you've got a numeric system throughout.

Lolita: Making it easy on the customer and manager, and keeping the system compatible with software so they can work in sync, are things an owner should keep in mind when he starts his numbering system.

ISS: How long do vinyl numbers last?

Joe: At our facility in south Texas, which gets probably as much heat and humidity as anywhere in the country, our numbers have been up for 14 years, and they still look good. You get what you pay for in vinyl because the quality of the manufacturing is really what's important in terms of the adhesive and the vinyl itself. One of the problems with this is not the price of purchasing the new numbers. The problem is removing the old numbers and getting the adhesive off, which is time-consuming.

Lolita: When you talk about the lower-quality vinyl--and probably also stenciling--you might not have to pay in the beginning, but you're going to pay in the end. If you use a low-quality vinyl, your adhesive won't stick as long, and the colors will fade. You want something that's going to look good and last for a long time--for years and years.

ISS: Do numbers fade? How often do they need to be replaced?

Joe: Ideally, you would not have to replace numbers but every 15 years. For any of these, there is no maintenance. You just put them up and leave them.

Anywhere in the country, if you use a dark number, like a dark blue or black, you're pretty safe. Red and maybe the light blues will fade. Certainly, you want a good, strong contrast between the background and the number. The more sun you have, the more fading you're going to have. The color on a black or a dark blue number will last longer than 15 years.

ISS: What's the procedure for replacing and applying numbers?

1.

Joe: We've struggled with this for a long time ourselves. It's a very time-consuming and difficult process to peel numbers off. We had a hot-water pressure-washer company come out, and found that with 210-degree water and about 3,500 pounds for pressure, you can knock the numbers off with a sprayer. That is so much faster than peeling them off.

After you get the numbers off, you need to use an adhesive remover. Use a piece of plastic, like a credit card, put the adhesive remover on there, scrape it and then wipe it off with a paper towel.

2.

Lolita: When you're putting vinyl onto metal, simply take water and alcohol in a bottle and spray the surface you're about to apply the number to so it's clean, and wipe that off with a dust cloth. The number itself will come with a paper backing and a taped front. You'll peel off the backing, place the number directly onto the metal building, take a credit card or squeegee, wipe over the number and pull the tape off. It's a very simple method.

When you're putting vinyl numbers onto a metal building, Scotch suggests that the surface be at 45 degrees or warmer, so if you're putting this on in the middle of winter when it's 32 degrees, you can still put the numbers on.

3.

Just take a hair dryer or heat gun and heat the metal for about a minute and put the number on.

If you've got a concrete building, stucco, brick or unpainted wood, the vinyl number is not going to stick. What we do is put those numbers onto an aluminum plate, which comes in various shades and colors. The way to adhere the aluminum to the building is to punch holes and screw it on; or the simplest, most economical way is to place two beads of construction adhesive (from a caulking gun) to the back and simply press it on.

By Harley Rolfe

Convenience trumps economy. That's how most customers see it; but many suppliers seem to miss this fact.

The instinctive reaction of many self-storage owners when they see they're earning less than their desired income is to drop prices. They do so either in response to competition or because they are assuming the demand for self-storage is price elastic. In either case, it happens for defensive reasons. I'm going to try and dispel that inclination and show other responses are more lucrative.

Recently in my column, I've been discussing the invisible aspects of your self-storage offering: choice and change. This time I'll examine convenience--the mother of all features. It is the most important of the invisible offering components--so much so that it should be regarded as a separate product. Properly offered, it adds multiple levels of value (read price) to the product or service it accompanies, and fortifies against competition.

So, what is product convenience? Simple: The prospect assesses his problem and the product, and immediately concludes that life just became easier. Self-storage is loaded with convenience--creating opportunities--especially in personal (non-business) applications. The use of a storage unit is often a necessary evil, involving grubby work and an extra move. Generally, it's something the user wishes he could have avoided. He rented a unit because he couldn't figure a way out of it. That's fertile ground for the benefits of convenience.

Consider a Cake Mix...

Is there any ingredient of a cake mix that isn't generally found in the average kitchen? Even so, Mrs. America happily trots down to the local supermarket and buys a cake mix for about $1.75--even though all the ingredients are readily available to her at home for about a quarter. Is it any wonder that General Mills would rather sell you flour in the guise of a Betty Crocker cake mix rather than a bag of Gold Medal? Amazingly, the same company can offer these two products side by side.

Compare the stock of an old general store with that of the modern supermarket. The produce and deli sections are much the same. The difference lies in the huge array of convenience foods, all of which are aimed at making food preparation goof-proof, saving users time, etc. Supermarket shelves are filled up to 80 percent with convenience offerings. This sort of trend is similar to the common supplier responses in any competitive marketplace. Those same changes can apply to self-storage as well.

What You Sell Is Not What the Buyer Buys

So what's holding us back? One problem is the way self-storage operators define their business. They tend to think they are selling storage spaces. That depends. We may be billing for storage, but looking at it from the prospect's point of view, he is buying one necessary step in the purchase of a new house. To some that is double-talk. Yet, it is the crucial distinction between what we do as self-storage operators and what the tenant is doing. When engaged in a move, the prospect is instantly confronted with the chores of packing (and unpacking), transporting, buying insurance and finding storage (we hope). These are all unavoidable elements he must deal with in order to achieve his end. Self-storage is but one component of the means. If you want total prospect attention, deal with the problem as your tenant sees it. When a marketer talks about thinking like the customer, this is what he's talking about. The instant the prospect closes escrow, his thoughts turn to getting into his new home. What do you think the rewards would be to the guy who recognizes and provides the total package of ingredients necessary to accomplish this? That's the "cake-mix" approach.

Why do you think Home Depot outsells separate suppliers of lumber, roofing, appliances, etc.? Convenience, gang. One-stop shopping. Betty Crocker pioneered the way in the supermarkets. How much more expensive is ready-mix concrete than that you have to mix yourself? Even if you mix your own, you will likely use Sacrete mix rather than the commodity ingredients (sand, gravel, cement, etc.). The success of converting commodities is all around us. Why not in self-storage?

Come and Get It!

One reason operators have shied away from this one-stop-shopping approach is that it involves more hassle. One of the appeals of investing in self-storage is the relative ease of management. And that is true as long as the owner can achieve his ends operating as a commodity. It amounts to a "come and get it" marketing approach and works as long as people show up at the door ordering units without a lot of urging. Another reason is that examples of packaged services and how they work are apparent in the world around you, but not necessarily the self-storage world. The techniques have been developed and proven in thousands of markets with a history of competitive conditions, but they're new to owners in markets just now being tested by such pressures.

My concern is that many owners find themselves distraught over the need for the marketing techniques I espouse. Not having operated in an aggressive marketing climate, they are faced with a uneasy market situation on one side and, on the other, possible solutions that are foreign and they may not trust.

Still--look around and notice the thousands of businesses that simply combined some commodities and created an assembly perceived as easier or more convenient for the user--and worth much more than the constituent parts. That's the kind of synergy we're after. Would you rather grow corn and hope the erratic commodity markets bless your toil? Or would you rather be Kellogg, insulated from the vicissitudes of commodity pricing by creating so much convenience that the raw cost of the corn in cornflakes doesn't make much difference? What is notable is that such organizations as Kellogg or Post were not originally agriculturists who wanted out of damaging commodity-price contests. They were run by business people who understood how to mix commodities and convenience to create new and lucrative products, which, today, are household names.

Let's hope the self-storage industry doesn't evolve into the next phase of operation the same way. Will it take outsiders to see that by combining various elements with self-storage units, far more valuable offerings can be created? Step one for current owners is to realize their current offering is a commodity. Step two is to realize that, sooner or later, severe price competition will befall many facilities as the supply of units starts to exceed the demand. To prevent step two, remove your facility from market consideration as a commodity. One of the most fruitful ways of doing that is by adding convenience as an ingredient to your offering. Make it distinctive and more valuable.

These things are not true because I say so. I'm only the reporter. Look around and check the manifest presence of convenience being used to create differentiation. Differentiation is the only potent escape from commodity competition. It's where marketers spend most of their time. Next month, I'll offer a recipe for brewing some self-storage convenience.

Missed some previous issues? Check the web at www.hardnosed.com.

Harley Rolfe is a semi-retired marketing specialist whose career includes executive-level marketing positions with General Electric and AT&T. He also owned lodging and office facilities for more than 20 years. Mr. Rolfe holds a bachelor's degree in economics from Wabash College and a master's degree in business administration from the University of Indiana. He can be reached at his home in Nampa, Idaho, at (208) 463-9039. Further information can also be found in Mr. Harley's book, Hard-Nosed Marketing for Self-Storage.

Bill Seaworth, owner of Seaworth Safe Sales in Fort Collins, Colo., prides himself on being an entrepreneur. In addition to his popular Fort Knox safes, his business dealings have encompassed such diverse areas as agricultural farming and livestock, hunting and fishing clubs, firearms and self-storage.

Having grown up on a farm, Seaworth became involved in his family's livestock business. The farm's ponds provided great fishing, and the grounds yielded game for seasonal hunting. This background, accompanied by Seaworth's innate business savvy, lead to his eventual establishment of hunting and fishing clubs. In 1982, he opened a small gun and sport shop. Seaworth wished to provide his customers both equipment and adventure, insisting on absolute quality in his products. This meant providing top-name guns and a means to store and secure them. He felt this level of quality brought his customers back time and again.

The sale of firearms necessitated the provision of secure storage. As gun safes became the lion's share of Seaworth's business, it wasn't long before other types of secured storage came in demand. In 1993, when Seaworth began construction on ABC Storage Units, he extended his philosophy of quality to this venture, making the facility well-lit and extremely secure. The demand for additional security, along with Seaworth's tendency to "go the extra mile," resulted in the inclusion of his Fort Knox safes in the storage units.

Seaworth has been building premium safes and vaults for more than 15 years. In those years, the company has striven to lead the security industry in technology and innovation. With an industry standard being set by the largest nonprofit consumer-protection organization, Underwriters Laboratory, Fort Knox customers get peace of mind in knowing their safe is one of only a handful that have passed the rigorous laboratory testing. They can be certain their guns, family heirlooms, coin and card collections, legal papers, investment records, photo albums, cameras, house-hold inventory and sentimental items will be secure.

These days, Seaworth has expanded his business into retirement villages, charging a small monthly rental fee for use of his safes. He says his Fort Knox safe is "a quality product coupled with a quality service, and folks are willing to pay a fair price for it." For more information, call 800.821.5216 or visit www.ftknox.com.

In 1984, Sam Sabri and Boyd "Buddy" Whitney had a vision. They formed a self-storage company in Statesville, N.C., and named it BETCO, originally an acronym for the "Building, Engineering & Technology Company." (In recent years, however, the company dropped the use of this description due to another company's claim to its original use.) BETCO's mission was to create a specific and unique self-storage building design and market it to the industry. It became Sabri's primary responsibility to accomplish this formidable goal.

Times Were Tough

BETCO's 75,000-square-foot plant and offices in Statesville, N.C.

The timing for such an entrepreneurial venture couldn't have been worse. The country's economy was in a serious recession, but that didn't deter the partners. "We had no control over the business climate," remarks Sabri, BETCO's president and CEO, "but we were committed to move ahead with our plans--and we did."

In spite of the economic downturn, the business grew and, in 1989, ground was broken for a manufacturing plant in Statesville, N.C. While all manufacturing was initially done at the plant, two separate sales offices were set up--one in Statesville for the self-storage business, and another in Bluffton, S.C., for the international division. This division was the responsibility of partner Whitney, who directed sales of poultry and swine houses in more than 40 overseas markets. Five years ago, the division began to offer low-cost housing for third-world countries.

More Growth With More Products and Services

BETCO's new 75,000-square-foot manufacturing facility in Bryan, Texas.

The company soon offered an array of products and services, including the construction and shipment of components on BETCO's own dedicated fleet of trucks. The company prospered in the '90s, but business was primarily relegated to the eastern states. The reason was simple: logistics.

"We wanted to expand our business, but it didn't make sense to sell building components far from the source of manufacturing because shipping costs would be prohibitive," explains Sabri. "At one point, we considered building a warehouse out West, but realized a better idea was to build a manufacturing facility instead. This plan would provide our customers in the area with all the services we offer on the East Coast." That's exactly what happened in 2000.

The Texas Expansion

After considering several options, the company chose Bryan, Texas, as the new plant location for two reasons: First, the location gave BETCO a centralized base of operations from which it could sell and service customers in the southwestern United States. The second reason was the close proximity to Texas A&M University, the largest engineering school in the country. It could provide a source of talent that would allow BETCO to maintain its commitment to research and development.

Construction of the new 75,000-square-foot facility began in the spring of 2000, and was completed in late summer. The manufacturing capabilities mirror those of the Statesville plant, using the latest technology in equipment and systems. The only products not being manufactured in Texas are roll-up doors.

The Introduction of Doors and Hallways

New door and hallway systems were manufactured beginning in 2000.

The year 2000 held more change and promise for the company when management made the decision to begin manufacturing door and hallway systems. (Until this point, BETCO had manufactured all self-storage building components except doors.) A significant investment of time, personnel and money was committed to build the new door plant in Statesville. It was a business decision that completed BETCO's line of products.

"With the inclusion of doors and hallways to our product mix, we can now position ourselves as a one-source provider, offering a complete line of self-storage components," says Terry Huber, BETCO's chief operating officer and general manager of manufacturing. "In addition, we decided to market our product to all potential customers, not just those who buy other BETCO self-storage building products. We are making our systems available industry-wide because we want to give all viable self-storage customers a choice--let them know there is another player in the market offering a quality door and hallway system."

Another Successful Year

BETCO's manufacturing facility for roof panels, exterior and interior walls, columns and headers.

In spite of the largest program of capital expenditures in its history, BETCO continues to prosper. Fiscal year 2000, which ended in August, marked the company's 16th year in business and another record-breaking year of growth. "With all the growth and success of our company," says Sabri, "the challenge to management and employees alike, is to make sure that quality continues to be our benchmark, and that dedication to our mission remains foremost in everyone's mind. If we pay attention to these things, we'll continue to be successful."

For more information, call 704.872.2999; www.betcoinc.com.

In addition to the introduction of our annual State of the Industry report, my comments here should be of particular interest to this audience. At the close of each year, Inside Self-Storage speaks with several of this industry's most knowledgable and respected insiders, asking their predictions for the months ahead in relation to self-storage development, amenities, financing and more. You'll find this year's insightful missive beginning on page 22.

More important, I thought you might like to know of some promising new developments budding in this industry's political arena. Recently, the ISS staff had the distinct pleasure of meeting with Self Storage Association Executive Director Michael Kidd. It is no secret to those seasoned in this industry--particularly our suppliers--that there has been rather poor communication between our organization and the association. This has been partially attributed to the SSA's affiliation with MiniCo's rival publication, the Mini-Storage Messenger. But mostly, the weakness has stemmed from a complicated political history we now recognize as irrelevant--and damaging to future industry progress.

It has been pointed out to both parties the necessity for more collaborative efforts between the two groups, particulary in the area of industry tradeshows and conferences. As self-storage witnesses what many predict will be a leveling of business, exhibitors as well as attendees are frustrated at having to split annual budgets over numerous events just to keep up with the Joneses. The question has been put to us: Why can't the organizations combine efforts, saving everyone time, energy and money? And it's a great question--one we addressed in our recent meeting with Kidd.

In efforts to repond to the needs of our supporters, Inside Self-Storage is considering a consolidation of it's annual Las Vegas and Fall Expos into a single, mega-tradeshow in Las Vegas. And that's just the beginning. ISS and the SSA will be looking to partner in other ways that will make access to information easier--and more economical--for all industry participants. You will soon be seeing a dedicated page in the magazine each month for association news and events. You'll also see links on both organizations' websites, joining the two resources. Other developments are in the works. (Feel free to contact the SSA for information on its own personal strategy.)

That's the real state of the industry. Our primary goal, as information and service providers to self-storage, is to be accessible, affordable and, above all, useful. It's time we see more unity between the organizations our professionals rely upon. It's the only prediction I have for the upcoming year, but perhaps the most significant.

Happy new year to you,

Teri L. Lanza
Editor
[email protected]

For a complete list of references click here

By Teresa Sedmak

Storage doors are considered a trademark of the self-storage industry. They are its most recognizable feature--when people see a series of doors, they normally think storage. That being the case, the condition of your self-storage doors makes a huge difference in the overall appeal of your facility. If the doors don't look well cared for, are chalky or dirty, are not maintained or don't work properly, you may be losing business. As most of us know, customers relate well-maintained, clean properties to safer and more secure facilities.

Maintenance Challenges

Sun, salt air, acid rain and other damaging elements take their toll on the paint on metal doors and buildings. Ultraviolet rays will eventually fade and chalk even the best paint. Salt air can oxidize and pit the metal, causing ugly corrosion. Dirt and dust will settle and stick on the chalky or oxidized doors. Even when the metal doors or buildings are cleaned, they can remain dull and dingy.

Dirt or grit in the guides of the doors can gum up the mechanisms. More commercial customers are renting storage units and the doors may get more wear. If the doors do not have bearings, the steel-on-steel friction may cause excessive wear if not maintained.

The original paint on metal buildings and doors, such as aluminum or steel, is baked on in the factory. Many times, when your doors are put up, touch-up paint that matches the color of your doors is used by the contractor to cover any scratches. At the time it is touched up it matches very well, but the non-baked paint will oxidize more easily, and blotches can appear where the touch-up paint fades faster than the original.

While roll-up doors generally require little or low maintenance, there are some periodic preservation procedures you can use to ensure better-looking, longer-lasting and well-working doors and buildings.

Maintenance Solutions

Fading and Chalking
Door manufacturers are constantly working to offer better paint finishes. Even though metal doors and buildings will eventually fade and chalk from sun exposure, the good news is there is still good paint under the chalk that can be refinished to look new. But if you clean the doors or metal buildings and don't seal or protect the surface, they will soon fade or chalk again.

Some owners repaint their metal doors or buildings to brighten them up. There are, however, problems with repainting the metal. Moisture can get inbetween the original baked-on paint and the new, softer layer of paint, causing bubbling and peeling. Paint that is not baked on will also oxidize much faster than original paint, bringing back the chalking and fading problem the owner attempted to solve in the first place.

Instead of painting to brighten up faded metal doors and buildings, refinishing with a high-quality, protective coating is a good alternative. Once the surface is cleaned from chalk and other soiling agents, a good clearcoat can restore the doors' former appearance. Make sure the coating will bring back the original color, be easy to work with, will not crack, peel or discolor with exposure to the elements, and will protect from sun, salt air, acid rain, moisture and other damaging elements. A good protective coating will also make the doors much easier to keep clean by repelling dust and dirt.

If your metal doors and buildings are already peeling, or if you need a color change, repainting is the only option. Make sure you have the surface properly prepared, and use quality materials. If you are planning to slurry coat your property, have the refinishing or painting done first. In either case, the chalky oxidation will have to be removed and can cause stains if not washed off the slurry immediately.

Salt-Air Oxidation
In areas close to the ocean or even by Salt Lake City, pay particular attention to the tops of doors, especially on the sides of the building that don't dry as quickly because of lack of sun exposure, such as the north side. Even if you are miles from salt water, you can get oxidation from the fog. Rub your hand along the doors. If they are rough, that is salt-air oxidation, and it can cause extreme corrosion and damage to your doors and buildings.

Similarly, if you use salt for snow and ice control, keep an eye out at the bottom of your doors and metal buildings for corrosion. This corrosion needs to be stopped before it causes major damage. Paint alone cannot stop rust or corrosion. Paint breathes and will allow moisture to penetrate, and rust can travel underneath or quickly penetrate back through. In areas where salt air is a problem, check your interior doors for corrosion as well, especially if your hallways are open. The moist salt air can settle and corrode the interior doors as well. A protective coating formulated to stop salt oxidation will prevent additional damage.

Door Numbers
Door numbers will eventually fade and crack, creating a poor impression for potential tenants. When replacing numbers, use the highest-quality vinyl numbers possible in an easy-to-read, block style. Otherwise, you will be replacing your numbers more often.

Periodic Maintenance
When a unit is vacated, there are several procedures to ensure your doors remain in good working order:

• When you sweep out the unit, sweep any cobwebs and dirt out of the guides on the door. You may want to wipe them down with a rag to remove dirt that will interfere with the smooth operations of the door. Do not use grease or WD-40 on the guides as it will attract dirt and grime and gum up the rollers.
• Check to make sure the door is securely screwed into the wall. The screws may have backed out after excessive use. Sometimes none of the screws are in place.
• Oil or lubricate the springs with a very light coat of oil to reduce friction and prevent rust. Check the tension and adjust according to the manufacturer's directions. Maintaining the spring tension and making sure they are balanced is critical. People who hurt their backs trying to raise doors that stick or open unevenly can file lawsuits.
• Check the pull cords, especially if they are on the outside, as they wear very quickly. Frayed cords do not give a well-maintained image. Tom Berlin, vice president of operations for Pogoda Management Co. in Michigan, says nylon rope is very durable when used for pull cords, particularly in colder areas where routine winter maintenance (i.e., snowblowing) can damage them. Make sure you melt or singe the cord ends so they won't fray.
• Inspect the unit for signs of leakage, and replace worn weather seals as necessary.
• If your doors are dented, Roll Right Industries of Anaheim, Calif., offers dent tool kits that fit the doors of several manufacturers. Terry Rider, the company's national sales manager, also advises that if you must paint older doors, make sure to readjust the springs to compensate for the extra weight of the paint.

In conclusion, since the appearance and smooth operations of your doors project your image to the public, maintenance does not cost you money. It makes you money and keeps your customers and employees happy.

The author wishes to extent a special thanks to Lolita Bader of Quik # - Door Numbers, Terry Rider of Roll Right Industries, Tom Berlin of The Pogoda Companies and Bert Brown of DBCI (Doors and Building Components Inc.) for their contributions to this article.

Teresa Sedmak is the president and co-owner of Everbrite Inc., which manufactures and markets Everbrite Protective Coating, and Pacific Pride Products Inc., the contracting division. She is also a licensed painting contractor with extensive experience and knowledge of protective coatings. For more information, visit www.renewmetal.com or www.renewstorage.com; call 800.304.0566; email [email protected].

By Cary F. McGovern

Records management is a different business from self-storage. So why would a self-storage operator opt to offer records management at his facility? I have assisted more than 135 business owners and entrepreneurs in offering those services--30 in the last year alone. What in the world is going on? Why records management? Why now?

What's Going On?

In an era where computers are a dime a dozen and everyone is using the Internet, why do business records still predominantly come in paper form? This is a question I am asked by my customers and consulting clients all the time. I have heard industry pundits discuss this phenomenon. I have read hundreds of articles discussing the movement to digital data. I have watched Star Trek and seen the paperless office on the 23rd-century starship. How do we get there from here?

There are literally hundreds of reasons that paper proliferates. Here are just a few:

• People like paper. It is truly a sociological issue. Paper is the form we have been using for 2,000 years. People are comfortable with it and are slow to change.
• Computers complicate life. The old theory that computers simplify our lives just isn't true. Computers merely give us more options and increase our productivity. In reality, they complicate our daily existence.
• Xerox and HP have ruled. These two giants have sold hundreds of millions of printers, copiers and fax machines--all pumping out paper. When we receive an e-mail, we print it out, make 10 copies and file them everywhere. It's our nature.

Why the Growth in Commercial Records Management?

The commercial records-management industry has grown from the infant it was after World War II to a giant in recent years. This industry, like all others, has witnessed significant consolidation over the past few years. Pierce-Lehay, Iron Mountain or Brambles--all big industry players--have bought most of the large local and regional commercial records centers in major markets of 1.5 million and more. Last year, Iron Mountain bought Pierce-Lehay, and Brambles became Recall. These are the high-end players who have hundreds of millions of boxes in storage throughout the world.

The Australian and European markets are booming, and there is a rise in commercial records centers in Asia and South America. In the United States and Canada, local and regional entrepreneurs have new opportunities to form commercial records businesses where Iron Mountain has bought up the competition.

Why Records Management in Self-Storage?

There are several reasons self-storage facilities are likely prospects to enter the records-management business. A few of them include:

• Similar Business Components--The components of business resources in self-storage line up nicely with those of commercial records. A self-storage operator can go into the commercial records business for very little additional capital.
• Existing Business--If you operate a self-storage facility, it is likely that at least 5 percent of your units already have records stored in them. The national average is between 5 percent and 10 percent. We estimate, based on current research and experience, there are about 300 million boxes in in unmanaged self-storage units.
• Increased Revenue--Records management rents your units by the cubic foot rather than the square foot. Do the math: Your revenue should equal between three to five times that for regular square footage. (You can use the revenue calculator at www.fileman.com to calculate the revenue on any space.)
• Low Unit Turnover--It is true that once you have records in a records-management contract, you don't lose the business. No longer is it a month-to-month lease but perpetual. If someone wants to take their records out of your facility, there is a retrieval fee and a permanent-retrieval fee referred to as the "hostage fee" by most insiders in the industry.

How Do I Decide If This Is for Me?

I receive three or four phone calls or e-mails a day from self-storage, moving-and-storage, courier and warehouse companies asking me about this business. I always recommend they first do some research. Articles on the topic of records management can be found at www.fileman.com under "Resources" or at www.insideselfstorage.com (search for my name). Although they may seem redundant if you read them all at once, they cover a wide variety of records-management topics. This will give you a better basis from which to ask questions. I am also available for free consultation on the subject.

Only you can determine if the records-management business is for you. Many self-storage operators have made the leap--but with differing results. It is the type of business where you can determine how fast you want to grow. Fast growth requires a full-time, aggressive marketing program. Slow growth can be accommodated with very little marketing. It's your choice. You can give it a try and make some money. If you get into the business and decide a year later you don't like it, you can sell your book of business to a competitor.

Some Things to Remember

I could provide several tips for succeeding in the records-management business--too many to list here. These are a few:

• Limitation of Liability--Use the standard industry contract promulgated by PRISM International, the industry trade association for records management (www.prismintl.org). Jim Booth is the executive director.
• Optimize Space--Unit selection and optimized rack design can improve rental revenue by 50 percent or more.
• Software Options--Buy or time share. Minimize your software cost on the front end.
• Standardized Industry Practices--These are tried and true. Use them. Don't try to reinvent the wheel.
• Outsource, Outsource, Outsource--It is likely that outsourcing some or all of your activities will optimize profitability and reduce labor.
• Select the "Right" Model--You can operate a traditional, nontraditional, boutique or virtual records center. All are different and one may fit you best.

Regular columnist Cary F. McGovern is a certified records manager and the principal of File Managers Inc., a records-management consulting firm specializing in implementation assistance and training for new, commercial records-center start-ups, as well as marketing support for existing records centers. For more information, visit www.fileman.com.

FileMan Records Management is developing a model for selling records-management services on the Internet. The company will soon be piloting several versions of its method. If you are interested in becoming a FileMan Pilot participant, e-mail [email protected] or call toll-free (877) FILE-MAN.