RCG Ventures LLC, a privately funded real estate investment group, has received rezoning approval that will allow it to convert a vacant Giant Eagle store to self-storage in Columbus, Ohio. The property at 1000 E. Dublin-Granville Road in the Northland neighborhood has been empty since March 2017. The development committee of the Northland Community Council voted 14-1 on Dec. 5 in favor of the request, according to the source.

The rezoning extends to two parking-lot outparcels fronting the retail structure that will be earmarked for retail development, the source reported. Though the committee would have liked to see the results of a city-commissioned marketing study that’s expected to be complete within the next few months, offering development recommendations for the area, the members were encouraged by the RCG plan. No other developers have come forward with a vision for the site, according to committee chair Dave Paul.

“I think the applicant succeeded in giving us reasons to think of this as something more than your traditional self-storage facility,” Paul said. “What the applicant showed us in terms of the product that they’re offering is very different from what most of us think of when we’re talking about self-storage.”

“Honestly, it’s kind of not what I would have pictured for the front face of that whole area, to be a storage space,” said George Schmidt, chairman of the Northland Area Business Association State Route 161 Task Force. “It’s nice. It looks like retail. It’s not orange doors and barbed-wire fences.”

Founded in 2003 and based in Atlanta, RCG acquires and develops commercial real estate, specializing in “value-add anchored shopping centers with the potential for long-term ownership,” according to its website. The company has acquired 160 properties in 28 states. A 2016 fundraising will allow it to pursue another $250 million of assets during the next few years.

Source:
This Week Community News, Northland Community Council: Giant Eagle Site Eyed for Self-Storage Business

The way we interact with computers changes approximately every 10 years. First, we used punch cards, then keyboards and monitors, then the mouse, which was followed by touch screens. Each of these changes meant learning new skills but ultimately improved the way we engage with technology.

The next user interface is voice-driven. Think of Alexa, Google Home and Siri. A voice-activated device can enable all kinds of hands-free functions at self-storage facilities, from opening gates or doors to answering data-specific questions such as, “Who was the last person who entered the property?” Enabling these types of abilities is like giving the manager an office assistant, allowing him to quickly perform actions and tasks.

Voice-enabled, artificially intelligent assistants are being rapidly adopted in the U.S. today. Software firm Pegasystems Inc. recently asked Americans whether they believed they had interacted with artificial intelligence (AI). Only one in three said yes, when in fact, almost 85 percent had done so. AI is touching more facets of our lives, and we need to start thinking about how it can improve the self-storage industry and our customers’ experience.

AI for Business

While voice interactions with AI assistants are fast becoming commonplace in the home, Amazon is looking to bring the same benefits to the commercial sector with Alexa for Business. The service has three main components: management tools, an application program interface to integrate with existing applications and infrastructure, and Echo devices, which can be configured for individual tasks or used in shared locations such as conference rooms or lobbies.

Alexa devices open a vast array of features and functionality. Some of the skills that are useful for businesses include:

• E-mail management, which allows you to read, reply and manage e-mails
• Website monitoring, which allows you to learn the status of your websites
• Schedule management, which allows you to set reminders and confirm completion for tasks such as self-storage facility maintenance

Because these devices are cloud-based, they can easily be enhanced and expanded. Cloud-based systems allow for easy improvements without the high cost of upgrading older PC-based technology. Self-storage operators who are using antiquated tools should investigate newer platforms that allow for additional functionality, increased security and lower cost of ownership. Some are already experiencing multiple benefits by employing voice-enabled devices at their locations.

“We’ve seen numerous times where overcoming a language barrier sealed the deal in securing a rental,” says Natolie Ochi, president of SKS Management, which operates 23 self-storage properties in California. “We see future benefits of voice-driven functions at our properties, from having Alexa open our gates to giving the manager a daily briefing report, setting reminders, and so much more.”

Common Uses

Here are some common ways to use voice-enabled devices and platforms at your self-storage locations:

Language translation. If a customer who doesn’t speak English enters your facility, you can ask the device to translate your speech into the customer’s language and vice versa, omitting the language barrier and facilitating a unit rental. It vastly improves the customer experience for non-English speakers.

Control other facility devices. Voice technology can also be used to control thermostats, gates, doors and more. For example, you can simply say, “Open the front gate.” There’s no need to stop what you’re doing to find the clicker or open the access software to perform this simple function.

You can even ask the AI to begin the work day, which might include turning on lights, starting the coffee-maker, telling you the weather or breaking news, or relaying the number of rentals the facility had via the self-serve kiosk or online reservation system during the night.

Obtain information. Instead of having to look up information on the facility computer, you can simply ask the device, “Who was the last tenant on site?” or “How many tenants are on the property?” If you run daily reports on occupancy, rental rates and other key metrics, the technology can provide data that will help you better operate and manage the site. You could even set this up as part of your morning briefing.

Security Concerns

Data security and privacy are significant concerns today with all this new technology. Amazon and Google say their assistants only start recording information after they’ve heard the wake phrases “Alexa” or “Hey Google.” Users can delete any information that was stored.

The attack vector for smart speakers is small, meaning a hacker would have to access Amazon or Google or your physical device. Your laptop and Web browser, which store more critical information, are much more open to cyber-threats than a voice-controlled device.

Adapting to Demand

“Amazon, Apple and Google are investing billions to make voice recognition the main way we communicate with the Internet. We need to take proactive steps to ensure we’re part of this new shift in user experience,” says Robert A. Chiti, CEO and president of OpenTech Alliance, a provider of self-storage kiosks, call-center services and other technology.

Investigate the benefits of incorporating voice-enabled devices into your day-to-day operation, including how people use them and how they can enhance the customer experience. As with any new technology, it’s important to choose an open platform that allows for integrations with many devices as opposed to a closed, end-to-end solution.

Just as Web and mobile search displaced the Yellow Pages in how customers find and use self-storage, voice-enabled devices can drive even greater change. As consumers use these platforms, the more functionality they’ll expect. Potential self-storage users will ask their device for the closest facility, then to reserve a unit, pay their rent, schedule a move-out or perform other functions. Facility operators should think about how they’ll use this new technology to stay competitive in a quickly evolving industry.

Jon Loftin is vice president and IOE (Internet of Everything) product owner for OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology. He has more than 25 years of hands-on experience in the storage industry, specializing in technology advancements, particularly for access control. For more information, call 800.481.7459; e-mail [email protected]; visit www.opentechalliance.com.

“Beware of little expenses. A small leak will sink a great ship.”
―Benjamin Franklin

Many self-storage owners focus on revenue management, increasing occupancy or adding ancillary services to make more money in their business. However, it’s equally important to regularly review and control expenses. Consistent, predictable costs will make it easier to budget future profit and loss and make your property more attractive to a potential buyer, if and when you decide to sell.

The first step in controlling expenses is to have a clear and clean approach for recording them. Work with your accountant to create a chart of accounts that works for you. A good one will be sufficiently detailed but not overwhelming. Here are some areas to examine and ideas to help cut costs.

Advertising

Every storage budget should have an advertising category. These expenses include website hosting and maintenance, search engine optimization, Google AdWords, social media advertising, billboards, sponsorships and any other activity you perform to promote your facilities. Talk to your existing vendors and see if any of these services can be combined. Use tracking numbers and reports to confirm you’re getting leads and customers from your marketing efforts.

Software Expenses

Software as a service (SaaS) is the new business model. According to Wikipedia, it’s “a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as ‘on-demand software.’”

Tracking SaaS fees as a category on your income statement can help you realize what you’re paying each month. These small amounts add up to big numbers when you don’t pay attention. Examples of SaaS include software for marketing, property management and time-tracking. Talk to your manager and make sure all the services are used to their fullest capacity. Is there anything you can cancel or downgrade?

Insurance

Re-evaluating your business insurance can yield huge benefits. One owner I worked with saved $20,000 a year by bidding out his policy. Working with an insurance provider that knows self-storage will ensure you have proper coverage around customer goods and disposal, wrongful sale, and other coverages that are unique to self-storage.

If you have a moving truck you allow customers to use, make sure you have proper insurance limits for it. Also, review the value of the truck on your policy. An adjustment could save you money on the premium.

Referral Programs

If you’re in lease-up mode, paying for referrals can be a great return on your investment. Referrals can come from existing customers, third-party directories or community members such as realtors or moving companies. Once a property is full and stabilized and other marketing programs are in place, this expense can be reduced.

Repairs and Improvements

These expenses are commonly broken into “building” and “grounds.” Any repairs or improvements to the building should be coded accordingly. Always get three bids from contractors before you commit to any work. If you’ve used the same vendors for a while, make sure they’re still charging you a market rate.

Ground expenses might include lawn care, snow removal, pest control and anything else needed to maintain your facility. Bid out your monthly contracts at least once per year.

Also, review repair and maintenance items. Are you spending on a temporary fix for something that needs a larger investment? If you’re constantly having a gate issue, for example, you may need an overhaul. Decide if expenses in this category are too high or you need to allocate money to capital-improvement projects.

Utilities

Utility contracts are famous for creeping up over the years. Do you need a land line for your phone or can you use VOIP (Voice over Internet protocol)? Can your Internet contract be renegotiated? Is there another dumpster company in your area that may give better value for a lower price?

Payroll

Payroll is one of the biggest expenses for self-storage owners. If you pay too little, you won’t keep good employees and you’ll make your life much harder. If you pay too much, well, then you’re paying too much. Find out the market rate for jobs in your area and be careful not to pinch pennies. A great manager will make much more money than he costs you.

Loans

Your loan payment is also likely one of your largest expenses. Renegotiating the loan isn’t an easy task, but it can yield huge savings if you can get a lower monthly payment. Now’s a great time to seek refinancing, as lenders are hungry for this asset class. Find one that makes you feel comfortable and can help you through the process.

Office Supplies

Managers can spend too much or too little money in this area if they aren’t given proper guidance. Some will purchase pretty covers for their keyboards, fancy hand soaps or silly, overpriced toilet-paper holders when they could purchase a cheaper item that fulfills the same function. Others are too frugal and try to “save money” by not restocking important items like resale locks or ink. This costs more in the end because they must then visit a local store for an emergency buy instead of getting the product from a regular vendor at a lower price.

Setting an office supply stock level and a level to restock will give managers direction on what’s expected. Regularly evaluating your costs for these items will ensure you get the best prices. This is a great area to give your manager some control.

Credit Card Fees

Credit card fees can add up quickly if you aren’t paying attention. Talk to your processor and understand the other ways you can save. Validating the address-verification system and staying compliant with credit card standards will often reduce your rate. You can also bid out the contract and find a processor that’ll charge you less; however, having the processor integrated with your facility-management software may be worth the extra cost.

We all want to save money, but we also want great service. Someone once said you can have it good, fast or cheap but not all at the same time. Pinching pennies in every area can end up costing more in the long run. Paying too little to your staff, contractors or service vendors may not be worth the savings. As Norman “Sailor Jerry” Collins said, “Good work ain’t cheap, cheap work ain’t good.”

Business owners often tell me they wish someone would give them advice on how to save money, but no one takes the initiative in this area. The financial professionals in your life don’t know you need help unless you ask for it. Regularly reviewing expenses should be in someone’s job description. Otherwise, it stays on a list and never gets done.

Magen Smith is a former self-storage manager turned certified public accountant (CPA). Her company, Magen Smith CPA LLC, helps storage operators understand the financial side of their business. Services include monthly financial management, billpay functions, revenue management and strategy. She also offers a curb-appeal checklist available for download and has created an online revenue-management course complete with checklists, cheat sheets and guides. For more information, e-mail [email protected]; visit www.selfstoragecpa.com.

OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology, has launched SmartEye, a tenant- and asset-protection service. The platform uses artificial intelligence (AI), machine learning and a virtual security team (VST) to detect and intercept intrusions at self-storage facilities, alerting the facility operator, according to a press release.

“SmartEye works with existing closed-circuit television systems to detect bad behavior as it is happening at your facility, and immediately alerts a VST,” the release stated. “The VST is standing by to respond to the perpetrator with voice commands as well as notify the local authorities, who can immediately respond to the incident. The VST can also respond to visitors with precautionary or greeting messages, reinforcing that security is a priority and enhancing customer assurance that their belongings are secure.”

The system uses AI technology to learn from incidents and tags events the VST should ignore, such as lights turning on and off. The platform is designed to offer real-time monitoring and response, rather than wait to view recorded footage or rely on untrained personnel to intervene during an incident, according to the release.

“We have been following technology advancements in AI and how it can benefit self-storage security,” said Jon Loftin, vice president. “We are impressed with the results at several self-storage locations where SmartEye is implemented. Operators are reporting facilities that once experienced frequent issues have had no incidents.”

OpenTech provides several models of INSOMNIAC self-serve kiosks as well as a range of self-storage rental solutions including the INSOMNIAC Live! Call Center, INSOMNIAC Online Web and mobile applications, LiveAgent! software products, and the INSOMNIAC ILock Security System, all available through the company's self-storage cloud.

 

The William Warren Group (WWG), a privately held real estate company that operates the StorQuest Self Storage brand, has forgiven the debt of a Palm Springs, Calif., family after being contacted by a local news station. Though Layia Williams owed $1,400 in delinquent monthly payments, she contacted News Channel 3 to see if the station would intervene before her unit went up for auction on Dec. 12.

Williams recently moved from Las Vegas with her son and daughter. She’s studying to become an emergency medical technician and can only work part time due to caring for her son, Andre, 12, who has cerebral palsy and is "developmentally delayed,” the news station reported.

Williams said she could afford their new apartment only by selling her car. During the move, she rented a unit at StorQuest to store some of the family’s belongings, including Andre’s medical supplies. After the lien sale was scheduled, she feared she’d lose the equipment.

"He needs that gait trainer. I'm more focused on his gait trainer,” she told the news station. “I want him to walk, to be able to walk. I don't want him to keep relying on his wheelchair."

After Channel 3 visited the storage facility, the manager agreed to speak to his supervisor about the situation. A StorQuest representative later called the station to say the company would forgive the entire debt.

"At StorQuest self-storage, we're committed to giving back to the communities we serve,” the company wrote in a statement. “When uncovering the GoFundMe page that [daughter] Lasherata Williams created to raise the outstanding balance of [Layia’s] storage unit, we knew it was an opportunity to give back to a family in need, in a meaningful way. After releasing all of her son's stored medical supplies, we covered the entire cost of the storage unit to help the family enjoy a happy and joyful holiday season this year."

Founded in 1994 and based in Santa Monica, Calif., WWG acquires, develops and operates more than 125 self-storage facilities in Arizona, California, Colorado, Florida, Hawaii, South Carolina and Texas.

Source:
News Channel 3, Palm Springs Storage Business Forgives Debt to Help Family in Need

Inside Self-Storage (ISS) has released a new podcast as part of its “Sounds of Storage” series that offers insight on staff recruitment and hiring. The seven-minute interview with Susan Haviland, owner of self-storage consultancy and management firm Haviland Storage Services (HSS), reveals how owners can find quality candidates, give better interviews and avoid making a bad hire. Haviland also provides a sneak peek of her all-new Staffing Success Workshop, which she’ll present 1 to 5 p.m. on April 4 as part of the Inside Self-Storage World Expo in Las Vegas.

This audio and others in the series can be accessed on the ISS podcasts page.

Haviland has more than 30 years of self-storage experience, from serving as a site manager to acting as vice president of operations for Extra Space Storage and Price Self Storage. She has extensive knowledge in facility management, auditing, feasibility studies, employee relations, operational policies and procedures, software conversions, and training. She’s a frequent speaker at industry conferences and is vice chair for Charity Storage, a nonprofit organization that helps self-storage operators raise funds for more than 220 local, national and international charities. She’s also a partner in consulting and training firm Self Storage 101.

HSS provides self-storage audits, manager training, educational webinars, and feasibility and market studies. It also conducts management-software conversions and offers third-party management packages.

For nearly 28 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Red Dot Storage, which operates 133 self-storage properties in 15 states, was recently named on two “Best Company” lists from Comparably, which reports on company cultures and market compensation as contributed by real employees. Red Dot ranked No. 42 on the “Best Company Culture” list under the small-companies category and No. 21 on the “Best Companies for Women” list under small- to mid-sized companies.

Comparably awards are given based on sentiment ratings provided anonymously by employees, who are asked questions on topics such as compensation, leadership, professional development, work-life balance, and perks and benefits.

“We are so excited and proud to be recognized on these lists,” said Seth Bent, CEO of Red Dot. “We are very fortunate to have the culture and equality that we do, and continue to work hard to maintain them. It is amazing to see that our employees are as proud of our culture as I am. There is no better measure of success than the happiness of our employees. They are the driving force of our company and we could not succeed without them.”

“Winning Comparably's ‘Best Company Culture’ award is an exceptional achievement, highlighting the absolute best places to work in the United States as rated by their own employees,” said Jason Nazar, CEO of Comparably. “These employers received the highest ratings from their teams across every facet of work, from leadership and office environment to compensation and company outlook.”

Red Dot Storage is the operating brand for Sparkplug Capital LLC, which was launched in 2013. The portfolio comprises more than 5.1 million net rentable square feet.