If you’ve decided to build a new self-storage project, creating a construction budget is going to be one of your first tasks, and it’ll be all-consuming. Many owners and developers end up with a classic chicken-and-egg problem: You want to know if a project is worthwhile before investing in design work; but you need to invest in design work before your vendors and contractors can give you a solid price for their work.

In the earliest planning stages, you just need a rough financial plan to guide your decision-making. Basically, you’re trying to determine whether you’re willing to invest further. It begins with a vision of what you want to build. As yourself the following:

• Who are my target self-storage customers? Are they home residents? Businesses? Boat/RV owners? Wine enthusiasts? What kinds of storage do they need? Understanding this will help you determine the types of buildings to construct. For example, will the facility be single- or multi-story? Will it offer drive-up or climate-controlled units? What unit sizes will it contain?
• What are my priorities for cash flow? If you’re well-established, you may opt to build a larger initial phase. It’ll take longer to break even, but starting bigger can lower your cost per square foot (PSF) and reduce the number of times you need to hassle with planning-board approval, permits, loans, etc. If you’re a new developer, this may not be an option, as you may need to reach a positive cash flow as quickly as possible.
• How will the property be managed? This will impact design and, hence, cost. For example, if the site will be unmanned (no onsite staff), you’ll likely need to install a self-service kiosk and perhaps more advanced security. If you expect to have staff, you’ll need an office.

Estimating Construction Costs

With these items in mind, you’re ready to dig in and start creating your loose self-storage construction budget. Your goal will be to develop ballpark figures for costs PSF. Many new owners and developers don’t fully appreciate the amount of time a contractor spends preparing a formal quote. If you call and ask for a proposal but can’t present some kind a project plan, you’ll be disappointed.

In this initial budgeting mode, you’re looking for simple numbers. Your line items should include, beginning with the costliest:

• Land
• Grading
• Buildings
• Concrete foundations
• Driveways
• Access control
• Electric/lighting
• Civil engineering
• Landscaping
• Signage
• Permits
• Bollards

Additional items to consider adding are fire hydrants or sprinklers, office finishes, extensive grading, and architectural features.

In my experience, a single-story, drive-up property will cost around $40 to $45 PSF, plus land, to develop. A climate-controlled property will be around $60 to $70 PSF, not including the land. Keep in mind these numbers are with the owner serving as the general contractor. Add 15 percent if you need to hire one. You’ll also want to plan for bank fees, a contingency of about 10 percent, and startup cash to pay your mortgage during self-storage lease-up.

Projecting Revenue

The next component of your financial forecast is a revenue projection. If you don’t already own land, don’t get bogged down in the details. In rough budgeting, think in terms of cost and revenue per PSF. You can determine the latter by checking the rental rates of nearby self-storage properties. I’ve found that averaging the cost of a 10-by-10 and 10-by-15 gives you a good income number to use in your calculations. To be more conservative, use larger units for your estimates, as they’ll have lower PSF income.

Your next task is to determine what percentage of your lot will be buildable. For traditional drive-up buildings, about 30 to 35 percent of the lot will become rentable space. With wider, climate-controlled buildings, you may achieve 45 percent to 50 percent coverage. The rest will be greenspace and driveways. Multiply the monthly revenue PSF times the rentable square feet to come up with potential revenue.

Predicting Monthly Expenses

Armed with construction costs and potential revenue, you’ll next need to estimate monthly expenses. Your mortgage is normally your largest, so look at your construction cost minus your down payment and use a loan calculator to estimate your monthly bank payment. Just bear in mind that lenders will be hesitant to quote you an interest rate without knowing more about you and the details of your project. You may have better luck getting them to disclose a range on a phone call than in a written communication method like email.

Your remaining expenses to consider are, beginning with the largest:

• Property taxes
• Payroll (if applicable)
• Credit card processing fees
• Utilities
• Business insurance
• Landscaping and snow removal
• Marketing

Kiosk service fees and software subscriptions should also be considered, if applicable.

Your monthly expenses for a finished self-storage site shouldn’t be more than 70 percent of income. If they are, your costs are too high, rental rates too low, or you need to fit more units on the property. In the initial phase of a project, the breakeven may be higher, and that’s normal if the long-range completed forecast provides attractive results.

Moving to the Next Step

If this preliminary analysis shows your proposed project to be a dud, you can pass on the opportunity without investing in design work. This budgeting method can also help you identify the maximum you can pay for a parcel and still make money.

Hopefully, the results show an attractive investment. If so, your next step is to get the property under contract, and then start working with your civil engineer on detailed site planning. This is also the point at which you should consider hiring a feasibility consultant. Having a third party weigh in on your project can help you avoid costly mistakes, and may even be required by your lender.

At this point, you’re also ready to begin collaborating with your trades on design and detailed proposals. As you work through the process, your goal is to replace each ballpark line item on your budget with a detailed proposal from vendors. When you’re ready to close on your loan, your bank will require this documentation.

Focus on the Final Details

I’m going to wrap this up with a word of caution regarding the final project budgeting and financing. The raw materials used in construction can fluctuate in cost, sometimes quickly. You don’t want to get quotes, obtain financing based on them, and then find out five months later when you try to order materials that they’re no longer valid.

The solution is to confirm immediately before closing that all quotes are legitimate, and then update your budget. Make sure your vendor contracts allow for delivery within a realistic timeframe. Discuss this in depth with your providers to ensure the contract pricing includes timely delivery of materials to the job site. If you can, build in a healthy contingency. Once financing is in place, execute all contracts for materials and labor.

Finally, there are online tools that can help you create a financial projection for a self-storage project, including this one provided by my company. Our tool allows you to punch in the variables discussed above and will use your figures to produce a breakeven projection and two-year cash flow. Your cash-flow projection is important, especially if you’re using a Small Business Administration loan program, which requires your project to break even in two years or less.

Despite all the craziness in our world today, it’s a great time to build self-storage. Interest rates are low, and demand remains high. Good luck with your project!

Steve Hajewski is the marketing manager at Trachte Building Systems, which designs, manufactures and erects a full line of pre-engineered and customized steel self-storage systems, including single- and multi-story, portable storage, interior partition and corridor, and canopy boat/RV. He also owns a self-storage facility in Wisconsin and is a frequent contributor on Self-Storage Talk, the industry's largest online community. For more information, call 800.356.5824.

Europe-based investment firms Angelo Gordon and Marcol have launched a €250 million self-storge investment platform in Germany under the Space Plus name. Headed by industry veteran Russell Jordan, the venture will target underperforming commercial and retail assets in high-visibility locations and convert them to a storage use.

Thus far, Storage Plus has purchased five properties, according to a press release. The acquisitions are predominately in the North Rhine-Westphalia area, which has a dense population. The brand has also secured four other properties that offer expansion opportunities, the release stated.

“The strategy is to build an industry-benchmark self-storage brand, in a country with low market penetration, that leverages cutting-edge technologies and hybrid staffing solutions to maximize operational efficiencies,” officials said.

Jordan, the former CEO of Self Storage Plus Germany, joined the venture about a year ago. He also previously served as a managing director for Fauvic European Business Partners Ltd, according to a source.

“Our investment in Space Plus follows the acquisition of EasyBox Self Storage in Italy in 2018 and is part of a strategic initiative to increase our position to take advantage of the rapidly expanding self-storage market in Europe and to build a platform with significant value and economies of scale,” said Marcel Hertig, director of Angelo Gordon.

“This is an optimal time to launch an innovative, new self-storage platform given the increasing demand for the product across Europe,” added Rebekah Tobias, head of busines development for Marcol. “Having assembled a highly experienced team, combined with a truly disruptive business model and the robust growth forecast for the sector, Space Plus is poised to become a predominant player in one of Europe’s most undersupplied markets.”

Angelo Gordon is an alternative-investment firm specializing in credit and real estate. It recently raised $1.5 billion for its AG Europe Realty Fund III. The fund targets underperforming assets with value-add growth opportunities. Its investments will span multiple property types across Europe, according to the release.

Founded 45 years ago, Marcol is a private-investment house focused on real estate and private equity. To date, it’s completed more than €5 billion in transactions. Its portfolio includes healthcare, leisure, logistics, mixed-use, office, residential and technology assets, the release stated.

Sources:
Marcol, Innovative New German Self-Storage Platform Launches
IPE Real Assets, Angelo Gordon, Marcol Launch €250m German Self-Storage Platform

Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has released financial results for the fourth quarter and full year that ended Dec. 31. In general, the company showed gains in key areas, particularly in operating revenue and net operating income (NOI), according to a press release.

Highlights include an operating-revenue growth at constant exchange rate (CER) of 6.5 percent for the quarter. Same-store revenue grew 3.2 percent using CER. All stores’ NOI increased 6.4 percent. Same-store NOI margin grew 1.4 percent to 65.5 percent. Adjusted earnings on the European Public Real Estate Association (EPRA) Index were €31.7 million for the quarter, up 16.2 percent using CER.

Of the seven European markets in which Shurgard operates, The Netherlands showed the largest same-store, year-over-year quarterly revenue gain at 7.6 percent using CER. The United Kingdom was second at 3.2 percent, followed by Belgium at 2.7 percent. Same-store locations in France and Germany performed the weakest, with revenue up 1.5 percent.

For the year, operating-revenue growth was 5.5 percent using CER. Same-store revenue grew 3.2 percent. NOI for the entire portfolio grew 6 percent. Same-store NOI margin rose 1 percent to 64.6 percent. Adjusted earnings on the EPRA Index were €118 million, up 10 percent using CER.

Shurgard opened four locations in Berlin, London and Paris during the year and acquired six properties in Munich and Paris for €59.7 million. The moves expanded the company’s footprint by 44,900 square meters.

“The past year has presented challenges no one could have foreseen. As the COVID-19 pandemic swept across the world, our employees and customers faced social and economic upheaval more acute than any in living memory,” said CEO Marc Oursin. “Amidst these challenges, Shurgard quickly modified the work environments and business processes to ensure the safety of our stakeholders and the continuity of the business.”

Shurgard operates 245 self-storage facilities comprising 1.2 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.

Based in Glendale, Calif., Public Storage has interests in 2,548 self-storage facilities in 38 states, with approximately 175 million net rentable square feet. It holds a 35 percent interest in Shurgard.

Where do you stand on the issue of self-storage staff evaluations? I conducted a survey within my own organization and found most employees welcome the interaction with their supervisor or owner. Though many are a bit nervous to hear negative feedback, most admit performance reviews are a necessary evil to achieve company growth.

There’s a an appropriate quote from Shari Harley, founder and president of international training and consulting firm Candid Culture, that I think helps put things in the proper context: “Each of us, regardless of title and level in the organization, is 100 percent accountable for our happiness, success and satisfaction at work—not our boss and not our company.” This is a good frame of mind from which to approach evaluations. Keeping these interactions upbeat will yield better results.

Let’s examine why performance reviews are so essential, as well as when and how to conduct them.

Why Review

The goal of the staff-review process is really two-fold. One aim is to examine an employee’s job description and evaluate his performance and function within that context, while the other is to assess how he contributes to overall company performance. Reviews are designed to show employees where they shine and identify areas for improvement. If you tell a team member he’s “perfect” and never specify areas for growth, he’s likely to become complacent. I believe there’s always something new to learn in any job.

Some companies have employees write a self-evaluation each year, which can provide great insight to the areas in which they believe they’ve made gains or have deficits, as well as how they view their own accomplishments. Regardless of who writes them, though, performance reviews help reveal who’s highly motivated and takes initiative, which helps you assess how employees contribute to company performance, which creates an understanding of when and why staff should receive rewards, including raises.

When your self-storage business has been outperforming expectations, this a scenario that often leads to deserved pay increases for staff. The uncomfortable flip side is when you have to share that company performance is below projections, and though the team may have done a great job, raises won’t be given. It’s also possible the company hasn’t met expectations, but a pay increase is warranted anyway based on staff accomplishments. Conducting evaluations helps clarify all these decisions.

Reviews may also help build positive attitudes or correct negative or incorrect behaviors that could become detrimental to the organization. They’re like road maps in that they show employees where they’ve been, where they are, where they should be headed and how to get there.

When to Review

Most self-storage companies review employees annually. New staff members may be reviewed after a 90-day probation period to determine how well they’re settling into their position as well as to reinforce the company’s vision and their role within it.

Reviews should be conducted on or very close to the anniversary of an employee’s hire date. This creates consistent expectations and allows everyone to prepare. Conducting evaluations on a schedule also demonstrates that you recognize the significance of the process and emphasizes the employee’s importance to the company.

How to Review

When it comes to evaluations, presentation is everything! Most companies have a formal format and process to follow, which often involves a form to complete. The form typically allows the supervisor to score the employee on various performance measurements. It should also include a place for the evaluator to write comments describing the reason for each rating.

Your evaluation should assess criteria such as the employee’s dependability, job knowledge, work productivity, cooperation, initiative, ability to meet deadlines and anything else that’s important to your organization. It should point out limitations as well as talents. If you note deficiencies, address how to bolster them.

A detailed performance evaluation will take time and effort. Unless this is an employee’s first, the previous year’s assessment should be used as a reference. Go back and review any previous notes for improvement. You’ll need to reflect on the employee’s year and any notes in his file regarding accolades or disciplinary action. It’s important to be as specific as possible, which is why making notes on strengths and weaknesses throughout the year is helpful. For example, let the employee know you’ve seen his outstanding Google reviews, or about the complimentary phone call you received from a satisfied tenant.

Give the employee every opportunity to interact with you, so the evaluation is more of a conversation than a one-way monologue. The more you engage, the more likely he’ll want to set higher goals for the coming year. All staff want to feel like they’ve had input into setting their objectives, no matter what job they have. As Jim Goodnight, CEO of SAS Institute, has said, “Treat employees like they make a difference, and they will.”

Follow Up

Due to the time and money every organization invests in its employees, follow-ups to staff evaluations are a must! It’s a simple task that shows your team just how important they are to you and the entire company. If your people have no goals for which to strive, their jobs will become boring and unsatisfying. Ensuring growth for everyone will keep them interested and happy.

Diane Gibson is the owner and president of Cox’s Armored Mini Storage Management Inc., which manages self-storage facilities in Arizona. Currently president of the Arizona Self Storage Association, she’s participated in roundtables and panels at the organization’s conferences. For more information, email [email protected]; visit www.armored-mini-storage.com.

The Jenkins Organization Inc., a real estate investment and development firm specializing in self-storage and RV parks, has hired Cherolyn Johnson Chiang as director of marketing. She’ll oversee marketing and advertising for the company’s portfolio, according to a press release.

Johnson Chiang has more than 15 years of experience in the media industry. Most recently, she was a digital-ad operations manager for Cox Media Group, where she oversaw the digital strategy and execution for clients in various industries including automotive, medical aesthetics, nonprofit and tourism. She earned a bachelor’s degree from The University of Houston.

“I am thrilled to join this outstanding team during this exciting time of development and growth,” Johnson Chiang said. “I look forward to leveraging my past marketing and advertising experience to continue the amazing progress already achieved.”

Founded in 1989 and based in Houston, Jenkins owns and manages a portfolio of more than 70 self-storage properties comprising 4.5 million square feet in five states. It provides expertise in facility acquisition and disposition, development, management, and ownership.

Attic Self Storage, which operates three facilities in London, is building a multi-story property in Harrow, England, that’ll include “work pods” aimed at business owners. The service will be a first of its kind in the United Kingdom, according to a press release.

Attic is incorporating the new offering in response to people looking for alternative ways to run their business during the coronavirus pandemic, the release stated. The work pods will provide access to WiFi, computer plug-ins, a printer and coffee. Each unit is secured with a keyless electronic lock customers can control via mobile app. Tenants can receive a notification every time their unit is opened and delegate access to others as needed.

The facility will contain about 1,000 storage units. It’ll also offer 24-hour access and contactless rentals.

“Attic is excited to launch a U.K. first, to provide a safe and secure environment for business leaders looking for convenient ways to work and store stock,” said Frederic de Ryckman de Betz, CEO and founder. “The facility offers a contemporary space that will become a hub for creativity, business growth and entrepreneurialism. We are already taking bookings with the facility opening this March.”

Founded in 2006, Attic operates three facilities in Bow, King’s Cross and Marylebone. Additional services include conference rooms, moving and packing supplies, and mailbox rentals.

Source:
Harrow Times, Attic Self Storage Launches a UK First in Harrow

Update 2/25/21 – The global self-storage development pipeline continues to be extremely dynamic. Inside Self-Storage regularly covers new projects being planned and approved as well as zoning and other municipal issues. Following is additional activity taking place in February 2021.

Self-storage owners Carey and Jim Abraham are renovating and expanding Howell Storage in Marion Township, Mich. The married couple acquired the former McGowan Mini Storage property at 1650 Pinckney Road last summer. In addition to capital improvements, they intend to add 50 to 70 units. Depending on township approvals, the project could be complete this fall. Built in the 1980s, the facility comprises 300 units. The Abrahams also own Abe’s Storage in Holly, Mich., and Abe’s Storage North in Grand Blanc, Mich.

A partnership between Amenity Self-Storage Holdings and LSC Development LLC opened a new facility in Lawrence, N.Y. The six-story structure at 4 Bay Blvd. comprises 120,613 square feet in 1,220 climate-controlled units. It includes a 45-foot-wide interior drive aisle for loading and unloading, and premium drive-up units on the ground floor intended for contractors. The property will be managed by REIT Life Storage Inc. New York-based Amenity is a commercial-development company specializing in self-storage REIT projects. Based in Barrington, Ill., LSC specializes in industrial parks, office complexes and self-storage facilities. Its portfolio and development pipeline comprise more than 2.7 million square feet. Alex Catalano, president of Amenity Self-Storage Consulting & Development, owns the Lawrence facility as well as another in Hewlett, N.Y.

Ash Properties Inc., a property-development and -management company that operates more than 50 Atlantic Self Storage facilities in Florida, is building a three-story facility in Jacksonville, Fla. Plans for 773 Mill Creek Road include 101,900 square feet of storage at a cost of about $759,228. Ash has another project under development in the city at 11969 Beach Blvd. If approved, it’ll include four stories and 107,200 square feet. The city is reviewing the permit application for the $3.3 million project. Ash Properties is a locally owned real estate development company that leases, manages and develops commercial, retail, self-storage and office properties.

Attic Self Storage is building a new facility in Harrow, England. The multi-story property will comprise about 1,000 units and several “work pods” that’ll provide access to WiFi, a printer and coffee. The project is expected to be complete this spring. Founded in 2006, Attic operates three facilities in Greater London.

Eagle Self Storage intends to build a new facility in Hendersonville, N.C. Plans call for seven buildings on the 7.4-acre site at 2310 Asheville Highway. The project would comprise 99,330 square feet, with traditional units and some large enough to store RVs. The planning board is expected to consider the application in April. Owned by the Salvaggio Family, Eagle operates one other facility in Hendersonville and two locations in East Flat Rock, N.C.

Extra Space Storage received approval from the planning commission to expand its facility in Gilroy, Calif. The operator plans to construct a two-story, 30,978-square-foot building at 8900 Murray Ave., on an area currently being used for vehicle storage. The 4-acre property contains 73,154 square feet of existing storage space. Headquartered in Salt Lake City, Extra Space is a self-storage REIT that owns or operates more than 1,921 self-storage properties nationwide and in Puerto Rico.

A group of developers has proposed a mixed-use project for Boise, Idaho, that would include apartments, retail and self-storage. Kai Pacific, RGJ Cole Rd. and South Beck & Baird Landscape Architecture are seeking to build a five-story structure on a 2.13-acre parcel at the corner of Cole Road and Denton Street. The ground floor would contain 1,000 square feet of retail space, a management office, self-storage units and parking. The remaining floors would offer 136 apartments. Additional parking would be available in an underground garage. A public hearing is scheduled for March 8.

Development firm Mequity Cos. and Ramrock Real Estate are converting a former parking building in New York City’s Flatiron District to a CubeSmart facility. Mequity purchased the site in 2019 for nearly $32.2 million. Once complete, the eight-story structure at 41-47 E. 21st St. will offer 64,360 rentable square feet. Cerberus Capital Management provided the $35.1 million in financing. The borrowers were represented in the transaction by JLL Capital Markets, a global provider of capital solutions for real estate investors and occupiers. The team included senior managing directors Steve Klein and John Rose, managing director Geoff Goldstein, and associate Mitchell Kaliner.

Powerhouse Properties Ltd. opened a new facility in Orangeville, Ontario, Canada, that’ll be branded under the Bluebird Self Storage name and managed by Life Storage. The property at 207197 Highway 9 comprises 70,000 square feet in 486 units. Powerhouse specializes in small and mid-size commercial and residential projects in Southern Ontario. Bluebird operates facilities in six Canadian provinces.

Rapid Building Solutions LLC is converting a former Kmart in Jacksonville, Fla., to 125,632 square feet of drive-through self-storage. Partners affiliated with Rapid purchased the store at 5751 Beach Blvd. last year. Based in Winter Garden, Fla., Rapid offers site-planning assistance, custom engineering and installation.

The Warren, N.J., Zoning Board of Adjustment is scheduled to review a proposed self-storage development next week from Rica Properties LLC. The plan calls to demolish an existing residential structure and build a three-story, 104,206-square-foot facility on 2 acres at 256 King George Road. The project would require a use variance for self-storage as well as other variances for building height, floor area coverage and a residential buffer. The city’s environmental commission recommended against the project in December, arguing it would negatively impact a nearby forested area and wildlife. Commissioners said rooftop solar panels should be required if the project is approved.

Salt Grass Point Farms Mini Storage received approval to build a facility in West Ocean City, Md. Plans for the vacant property off Maryland Route 611, just south of Snug Harbor, include construction of eight buildings comprising 75,000 square feet. The facility will resemble a “family horse farm out in the country,” said Chris Larmore, one of the project’s partners.

Storage Sense, which operates 140 facilities nationwide, opened a new location in Knoxville, Tenn. The facility at 6410 Deane Hill Drive offers more than 700 units. It’ll be managed by Storage Asset Management, a property-management and consulting company.

Tariq Khalil of Storage USA Realty MA LLC is building a self-storage facility in North Attleboro, Mass., on the site of the former Handy & Harman factory at 72 Elm St. He purchased the property for $3 million. The plan is to demolish the older buildings that date back to the early 1900s, which are in disrepair, but preserve a section of the 93,000-square-foot office building that was constructed in 1981. Khalil will add 19 prefabricated steel buildings to the 6-acre site and install a second story on the retained structure. Vacant since 2000, the factory was once used for electroplating in the electronics and jewelry industries. The state completed an extensive environmental cleanup at the site a few years ago. Khalil previously converted a former metals-processing plant to self-storage in Cumberland, R.I.

Store Here Self Storage, which operates more than 15 facilities across 13 states, has opened a new location in Racine, Wash. The company converted a single-story, industrial facility at 1220 Mound Ave. to 150,000 net rentable square feet of indoor self-storage. Store Here owns, manages and provides capital to facilities in major metropolitan and rural areas.

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2/10/21 – The global self-storage development pipeline continues to be extremely dynamic. Inside Self-Storage regularly covers new projects being planned and approved as well as zoning and other municipal issues. Following is activity taking place in February 2021.

A-Metro Self Storage received site-plan approval last month to build a facility on 10.6 acres in Altamont, N.Y. Plans for 4774 Western Turnpike includes three climate-controlled buildings—two at approximately 10,000 square feet and one at 6,100 square feet—and an 8,700-square-foot drive-up structure. It’ll also contain 12 vehicle-storage spaces with canopies. A-Metro also submitted a variance application to the zoning board requesting concessions on items such as sprinkler installation, a 100-foot building buffer, and six-foot-high screening between the industrial and residential districts.

Gypsy Moth Storage is building a facility in the Pantheon Park business complex of Wolverhampton, England, on land it purchased from U.K. self-storage operator Lok'nStore Group PLC. Expected to open in early 2022, the project will comprise 52,600 square feet. Lok'nStore will consult on the project’s development and manage it once complete. Founded in 1995, Lok’nStore operates 34 self-storage facilities in Southern England.

Officials in Hendersonville, N.C., are scheduled to hold a neighborhood compatibility meeting this week to discuss a four-story self-storage facility proposed for the intersection of Aiken Road and Signal Hill Road. Lemart Realty Inc. and property owner North Main Street Properties of Hendersonville LLC jointly applied to rezone the vacant, 1.83-acre site from low-density residential to a conditional highway business use. The facility would comprise 15,800 square feet in 246 units.

Real estate developer C. Sam McGee intends to build a facility in the South Hall area of Flowery Branch, Ga. The project at 7038 Spout Springs Road would comprise 61,000 square feet in seven buildings. It would cover 5.6 acres of a 34-acre site that has development challenges due to a significant portion being in a designated flood plain. McGee has applied to rezone the property from agricultural-residential to light industrial. As part of negotiations, he agreed to donate 2.5 acres for a detention pond and frontage needed for the widening of Spout Springs Road. The Hall County Planning Commission is scheduled to review the project on Feb. 15. Planning staff recommended against approval in part due to inconsistencies with the county’s comprehensive plan. The Hall County Board of Commissioners is scheduled to make a final decision on March 25.

Real estate and development firm Poverni Sheikh Group is converting space at the Mall at Prince Georges in Hyattsville, Md. Plans call for 90,000 square feet of drive-in self-storage at the subgrade level that’s expected to be complete early next year. Baltimore-based Poverni has developed similar projects in Baltimore and Rockville, Md. It also has a 110,000-square-foot facility under construction in District Heights, Md.

Self-storage owner Mike Pride is developing a new Scarborough Storage Solutions in Scarborough, Maine. The facility at 192 Innovation Way will comprise 550 units across 10 buildings at the Innovation District, in the Downs mixed-use development. The project is expected to be complete in August. Pride owns two other Maine facilities, including another under the Scarborough name and one called Pride Storage Solutions.

The Vermilion, Ohio, City Council last week rejected a zoning request from Todd Sommer, who sought to develop a self-storage facility on 6 acres of his 35-acre parcel on Liberty Avenue. It’s the second time the council has rejected the request due to opposition from adjacent neighbors and other community members. Sommer reconfigured the plans he had submitted in October, removing the use of shipping containers as storage units and increasing the setback from the road. He also pledged to donate the remaining acreage to Lorain County Metro Parks.

Storage 365, which operates 12 facilities in Colorado, Minnesota and Texas, is building a new location in Richardson, Texas. Slated to open this summer at 350 Buckingham Road, the project will also contain three to five retail spaces.

U.K. self-storage operator Storage Giant has submitted a proposal to the Walsall Council to build a mixed-use development in Willenhall, West Midlands, England. The project will include indoor and drive-up self-storage plus eight business suites. The vacant parcel is between Lower Lichfield Street and Wood Street. Founded in 2007, Storage Giant operates five facilities in England and five in Wales.

Strategic Development Group LLC (SDG) intends to convert a former New York Boiler Co. Inc. building in Lansdale, Pa. The three-story self-storage facility on 1.75 acres along Route 309 would comprise 88,000 square feet in more than 500 units. It’ll be designed and built by York, Pa.-based Storage Contractors and managed by 180 Self-Storage LLC, a consulting management and firm based in Gilbert, Ariz. Also based in Arizona, SDG has development projects pending in Oklahoma and Pennsylvania.

Strategic Storage Trust IV Inc. (SST IV), a public non-traded real estate investment trust (REIT) sponsored by an affiliate of SmartStop Self Storage REIT Inc., opened a new facility in the Greater Toronto Area (GTA). SmartStop Self Storage at 50 Cityview Blvd. in Vaughan is a four-story facility comprising 103,000 square feet in 1,050 climate-controlled units. It was developed as a joint venture between SST IV and SmartCentres Real Estate Investment Trust, a Canadian REIT that specializes in retail real estate. Adjacent to a SmartCentres shopping center, it’s the third self-storage joint venture between the companies and SmartStop’s 16th location in the GTA.

Phoenix-based U-Haul International Inc., which operates more than 1,700 self-storage facilities across North America, intends to convert a former newspaper-production building in Carbondale, Ill. Acquired just last month, the 3.25-acre property at 710 N. Illinois Ave. houses a single-story, 48,106-square-foot structure that, once converted, will yield about 400 indoor units. Renovations are expected to be complete this spring. Established in 1945, U-Haul operates more than 68 million square feet of storage space in North America.

WA SS 16 AVE 20 LLC is building a self-storage facility in White Center, Wash., on the former site of Yarington's Funeral Home, which burned down last summer. The property at 10708 16th S.W. is in unincorporated King County.

The William Warren Group (WWG), a privately held real estate company that operates the StorQuest Self Storage brand, intends to build a four-story facility in Tenafly, N.J. The project at 22 Jersey Ave. will replace a two-story structure that currently houses a pool-maintenance company and auto-repair shop. It’ll comprise 77,594 square feet and two interior loading areas. WWG is seeking several variances including two for building height and lot coverage. The project is opposed by the owner of the commercial property across the street. The planning board is scheduled to discuss the project on March 10. Founded in 1994 and based in Santa Monica, Calif., WWG acquires, develops and operates more than 165 self-storage facilities in 14 states.

The Braselton, Ga., Planning Commission will hold a public hearing to consider a permit for a proposed self-storage facility at Cherry Drive and Green Street. The three-story project would comprise 95,000 square feet. If planners recommend for approval, the town council will hold a public hearing on March 4 to discuss the project.

New Sources:
Benzinga, Store Here Self Storage Announces Opening of New Facility in Racine, Wisconsin
BlueRidgeNow, Eagle Self Storage Looking to Open Fourth Location in Henderson County
Boise Dev, Self-Storage and More Apartments Planned Near Boise Towne Square
Commercial Observer Cerberus’ $35M Loan to Fund Self-Storage Conversion in Manhattan
Gilroy Dispatch, Split Commission Approves Expansion for Storage Facility
Harrow Times, Attic Self Storage launches a UK first in Harrow
Jacksonville Daily Record, Atlantic Self Storage locations
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WFMZ-TV, Strategic Storage Trust IV Opens Newly Constructed Facility Location in Greater Toronto Area

As you can imagine, operating 2 million square feet of self-storage across a dozen states in an unmanned format has its challenges. With no one on site to act as a human presence or deterrent, security has been a major focus for us since we launched 10 Federal Self Storage five years ago.

While we rely on many traditional security measures, we’ve also invested heavily in technology enhancements that strengthen facility management and monitoring from afar. Some of them also offer customer conveniences, which benefits our value proposition and, ultimately, the bottom line.

Let me walk you through our security program and how we keep an eye on things remotely. Many of these are great tools and strategies for any self-storage site.

The Bare Minimum

OK, let’s talk tactics. First, put yourself into the mind of a criminal. Like most businesspeople, he’s making risk vs. reward decisions. “Which self-storage facility can I break into with the least likelihood of being caught?” So, the goal is to make our property a risky proposition!

If you don’t have much to invest in security right now, at least make sure you do the following. These low-cost solutions make your site much less attractive to would-be crooks:

• Install great night lighting. We rent light poles from the local utility or buy LED wall packs and install them right on the buildings. Many come with their own solar panel, which is perfect if you don’t have power throughout the site.
• Install cameras—even if they’re fake—and post signs all over the place to indicate the site is under video surveillance.
• If you have an onsite apartment, let a police officer use it for free. You’ll end up with a police car regularly parked at your facility, which is a major crime deterrent.

Access Control

Now, let’s get into the good stuff: building defenses. It starts with a secure perimeter. We fence in every facility and have a controlled-access gate. In fact, we’ve started using two vehicle gates at every facility. The reason is that while the gate provides security, it also presents a possible point of failure. Specifically, if it becomes disabled because of a vehicle strike and the entry is blocked you end up with angry customers. Our goal is to get our incidence-of-failure rate to zero. Using multiple gates has been our best solution on that front.

Here’s where things start to get interesting. The legacy gate system works with a keypad. I don’t like keypads. A determined criminal will sit there and keep guessing at codes until he hits on one that opens the gate. When you see someone entering several random codes in a row, it’s a sign you’ve got criminal activity. So, we wrote an internal script to look for this signature and notify us of a likely break-in attempt. Many access-control and management-software companies now offer this same capability.

So, technology can alert us to an attacking criminal, but it gets better. The keypad will eventually go the way of the horse-drawn buggy. Already, better systems are being developed. For example, customers can use a mobile app or their phone’s Bluetooth to enter the gate. Plus, these tools only let in real renters! There’s no easy way for a criminal to spoof this system.

Door Locks

Moving inward from the perimeter, you need to secure your individual units. There are a lot of exciting technologies at this level centered around the door lock. Standard locks are on the way out. Next-generation models, whether electronic or mechanical, offer customers and operators new ways to manage unit entry.

Video Cameras

Cameras are evolving, too. Now, rather than providing a static window into facility activity from afar, they’re starting to leverage artificial intelligence (AI), allowing you to react in real time to onsite events.

AI cameras can read license plates or recognize faces and alert you if a specific vehicle or person has arrived. They can even recognize specific actions, such as someone who has fallen or is climbing over a fence. These cameras are even starting to be married with bi-directional audio systems so you can reach out to the person you’re viewing and inform him the police are on the way. If you don’t have the time to monitor your camera activity, there are controlled-access companies who can do it for a fee.

Intercoms

Thus far, to create a system we can access remotely, we’ve been using a standard daisy-chain of existing technology to make it work. It involves a Microsoft Surface Pro at the facility that runs a walkie-talkie-type app called Zello. The Surface Pro outputs to a 700W Denon receiver/amplifier that can drive up to 10 speakers, which we place throughout the property. To broadcast over the intercom from our corporate office, we simply bring up a specific facility in Zello and press the “Push to Talk” button.

It works great, however, the fewer systems we can run the better. As such, we’re very excited that the camera system we use now includes bi-directional audio. The microphone and speaker will be separate from the cameras but controlled from the same system. The audio is limited to 70 decibels, so it isn’t capable of broadcasting over the entire facility yet; but we believe it’ll be effective for certain locations now.

How Security Makes Money

Of course, implementing a good security program is the right thing to do for our self-storage tenants, and it makes us more money—but perhaps not in the way you might think. I don’t believe a customer rents at one facility over another because of advertised security features. In the end, it boils down to online reviews, which are important for two key reasons.

First, reviews play an increasingly important role in the buying decision. Customers today read and rely on them. If I’m looking to buy a product on Amazon and it has bad reviews, I don’t care how good the price is, I’m not going to buy it! It works the same in self-storage: Positive reviews drive business to your facility; negative ones drive it away. Bad security will result in negative reviews. Why take a chance?

Second, thanks to algorithms on search engines like Google, good reviews earn your business a better position in online search. The engines want to provide a good user experience, which means matching customers to the best options. The better your reviews, the higher you appear in search. That means more prospects find you, and you spend less on paid advertising.

Security isn’t free, but it can help you generate more revenue. Whether you’re using an unmanned model like we are or have onsite staff, my advice is the same: Add as much of it to your self-storage facility as you can and enjoy the many benefits.

Brad Minsley is a co-founder of 10 Federal Storage LLC, where leads the operations and development teams. He’s worked in the self-storage and multi-family industries since 2000, having participated in the acquisition of more than 2 million square feet of storage and 5,000 multi-family units. 10 Federal currently operates 17 unmanned self-storage facilities in the Carolinas and Virginia. To reach Brad, call 919.977.8987, email [email protected].