Self-storage operator Extra Space Storage Inc. has partnered with Thanks Again LLC to create a program that will allow its customers to earn miles for their favorite airlines as well as other popular rewards when they reserve a self-storage unit. When an Extra Space customer reserves a unit with a debit or credit card that has been registered with Thanks Again, he will receive rewards such as 500 bonus Delta SkyMiles.
 
There is no fee to become a member of Thanks Again. Interested consumers simply visit Thanksagain.com/ess, register any credit or debit card of their choosing, and select any one of the bonus reward options. Once enrolled, Thanks Again members can easily place a reservation for a self-storage unit and automatically earn their preferred reward by visiting Extraspace.com or Thanksagain.com.
 
Headquartered in Salt Lake City, Extra Space is a self-storage real estate investment trust that owns or operates 766 self-storage properties in 33 states and Washington, D.C. The Company's properties comprise approximately 510,000 units and more than 55 million square feet of rentable space.
 
Headquartered in Tyrone, Ga., Thanks Again is a merchant-funded consumer-rewards network that allows consumers to earn extra rewards every time they spend money with participating businesses. Thanks Again works with more than 20,000 companies.

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Detroit-based Ideal Shield, a manufacturer of bumper-post sleeves, guardrails and handrails, has released its new Goal Posts to protect loading docks and doors from damage by trucks and forklifts. The product protects doors of almost any width ranging in height from 8 to 16 feet. Goal Posts work in all plant, warehouse and distribution-center settings that have dock or high-speed doors.
 
Made of schedule-40 steel pipe and sleeved in quarter-inch, OSHA yellow, high-density polyethylene thermoplastic, Goal Posts are delivered in three sections for core-in or base-plate installation. They are maintenance-free and easy to install wherever door protection is a concern.
 
In business since 1996, Ideal Shield has five manufacturing facilities. As the holder of 43 patents, with an additional seven pending, the company provides protection solutions to fit many facility needs.

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If you’re thinking about adding records storage as an ancillary service to your self-storage operation, one of the most perplexing decisions is the selection of software. This article discusses the factors you should consider. 

About 10 or 12 years ago, records storage was considered an anathema in the self-storage business. These days, it’s the No.1 ancillary service for added long-term revenue. Hundreds of storage facilities have joined the ranks of commercial records management.

There are many considerations to make when starting a records-management service, including space, marketing and labor costs. But one of the most difficult decisions is which software to buy.

To begin, the cost of software should never be the most important factor in your choice. The majority of records-management software providers are high-integrity companies with many users around the globe. Each has a small business package priced for initial entry to the business. Each includes the software, training, technical support and, usually, at least one bar-code scanner with the purchase.

These software packages are typically similar in their initial pricing but have uniquely structured pricing for the long run, so you’ll need to understand what happens after the initial installation and in the year after the business is in full operation. One way to get this information is by asking each software vendor for an online demonstration of the product.

Here are some questions to ask every vendor when shopping for records-management software: 

• What is the cost of the software in the initial version and what does it include? (Software version “X,” training, technical support, bar-code reader, etc.)
• How does the price escalate? Is it based on the number of items in storage, revenue, transactions, or some other factor?
• What are the training options?
• How many people can receive the initial training and what does additional training cost?
• What are the hardware requirements (get this is writing) including computer(s), network connectivity, Web access, Web seat licensing fees, Web page with portal to the operating software, firewalls and security, printers, scanners, fax and other devices?
• What are the bandwidth requirements: DSL, cable or T-1 line?
• What are the technical-support requirements on the vendor’s side for initial setup and support? Are there any technical-support limits during the first year?
• What are the annual licensing fees and do they include technical support and annual upgrades? (Typically, this ranges annually from 18 percent to 22 percent of the initial investment.)
• Does the software have an imaging module or interface, a document repository feature, or support “scan-on-demand” features?
• Is there a user group? If so, how often do users meet and where?
• Is there a software blog or forum to discuss issues within the community?
• Is there a Web-based client interface (shopping cart) for order processing?
• Does the company provide user-friendly documentation to train clients in Web-based ordering?
• Is the system work-order-based? How does it operate in actual practice?
• Is there an error-reporting system?
• What are the internal controls to assist the user in avoiding critical mistakes and losing control of inventory?
• Is there a backup system included in the software? What happens if a backup is lost? Will the vendor assist with recovery?
• Does the software include a billing system? Will it bill at the company, department or user level?
• Does the billing system interface with an accounting system such as QuickBooks, Peachtree or others? 

User-Friendliness of the System

These questions are common for the purchase of any operating software. None of these systems are completely intuitive; they require the manager to understand the system and how it works on an intimate basis. Operating software for any business is more complex than using Microsoft Office or QuickBooks. It requires business, accounting and technical knowledge, and “power users” are few and far between.

My purpose is not to frighten you away from the commercial records-management business, but to provide sound criteria for good judgment in choosing the right software that fits your operation’s needs. Speak with at least two or three users of the software after viewing the vendor’s demo. Ask for references, and then ask each reference for other industry referrals.

Choosing records-management software is one of the most important decisions you’ll make. Make sure it’s the right one for you and your business.
 
Cary F. McGovern has been in the commercial records-management industry for 32 years. He has assisted more than 500 companies in 23 countries enter and excel in this unique business. He is a member of ARMA International and PRISM International, and is a speaker at numerous industry tradeshows and conferences. To reach him, e-mail [email protected]; visit www.fileman.com.

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After several months of rescheduled meetings, battles with an environmental group and an appeal to the Ontario Municipal Board (OMB), a developer in Dundas, Hamilton, Ontario, Canada, has lost his bid to build a self-storage facility on land the city wants to maintain as open space due to its proximity to an environmentally sensitive area called Cootes Paradise.

The OMD ruled against J. Douglas Hammond, of First Dundas Leasing Ltd., in a 37-page ruling released Thursday. The property was rezoned in 1998 as special open space, permitting recreational and commercial use. Hammond bought the land after the rezoning. Developing self-storage would require a change to industrial use.

A year ago, a planning committee unanimously turned down the proposal due to public opposition which included 70 personal letters and more than 1,500 petition letters. The citizens’ group, Protect Our Dundas, would like the area to become part of an urban eco-park.

Hammond appealed the 2009 decision by the city council to reject his rezoning application for the two-hectare property.
After a four-week hearing, which included 15 witnesses and 82 exhibits, the OMB said permitting the storage facility would represent “a fundamental shift” in the planning context for the property.

Source:  The Spec,  OMD Nixes Dundas Project

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I-5 Self Storage in Tustin, Calif., was awarded the 2009 National Self Storage Facility of the Year in the Conversion Category by Mini-Storage Messenger.

“It has been my long-time dream to create the finest self-storage facility available, with critical focus on the customer experience,'' said Owner Randy Scott Wong. ''Without a doubt, this focus has brought great rewards.”

Wong overcame many challenges when converting an old industrial site into a self-storage facility, which was enthusiastically described by a Tustin councilmember as ''a four-star resort,'' at the Ribbon Cutting Ceremony.

The facility encompasses 180,000 square feet of rentable space on 7 acres. The project is a mix of existing renovation and ground-up construction. It took roughly six years for acquisition, design review, development and construction.  

Amenities include complimentary Wi-Fi access, independent work stations, fresh coffee, conference room, and package acceptance. I-5 Self Storage offers 24-hour recorded cameras, individual unit alarms, RV, boat and classic-car storage, free move-in trucks, automatic lighting and biometric security.

Wong previously worked in the motorsports industry so the facility’s features car-enthusiast décor, and hosts car shows and other community events.

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Designmaster Fence is a welded-wire fencing system for residential, commercial and industrial fencing projects. The system consists of panels, posts, steel brackets, gates and other fencing accessories.

All components are galvanized class-one, and customers can choose from eight different colored powder-coats. The Designmaster Fence qualifies for LEED-certification points. Comes with a 10-year warranty.

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San Diego Self Storage (SDSS) is contributing to a bicycle drive in March to help athlete and activist Emmanuel Yeboah fill a shipping container with used bicycles and sporting equipment for the children of Ghana, Africa, Yeboah’s birthplace.

Donations of used bikes and sporting goods can be made at the Magdalena Ecke Family YMCA in Encinitas, Calif., every Saturday and Sunday in March. SDSS will provide storage space at Encinitas Self Storage to store the bikes and equipment prior to loading the shipping container, and supply a truck for transporting the bikes to the storage facility.

"We were incredibly moved by Emmanuel’s inspirational story and his desire to provide the children of Ghana with bikes,” said Steve Teixeira, SDSS director of property management.

Yeboah was born in 1977 with a severely deformed right leg. In 2001, he rode 400 miles on a bicycle donated by the Challenged Athletes Foundation across Ghana to heighten awareness for fellow countrymen with disabilities. In 2002, while visiting San Diego, physicians performed surgery and fitted him with a prosthetic leg.

Yeboah’s story has been memorialized in the award-winning documentary, “Emmanuel’s Gift,” narrated by Oprah Winfrey. To donate a bike, call 858.776.6813. To learn more about the Challenged Athletes Foundation and Yeboah’s quest to build schools in Ghana, visit www.challengedathletes.org.

Founded in 1972, San Diego Self Storage is one of the largest locally owned and operated self-storage providers in San Diego County with a network of 15 neighborhood self-storage facilities and additional facilities in Los Angles and Orange County.

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The Illinois Self Storage Association (ISSA) continues its efforts to fight the implementation of sales tax on self-storage leases. ISSA has been meeting with key legislators to outline its opposition.

With the State of Illinois on the brink of bankruptcy ($12.9 billion deficit), legislators are looking at all possible ways to generate revenue. In his budget address on March 10, the governor called for a $4-billion-plus increase in revenue and a $2 billion in spending cuts. ISSA will continue to push its arguments to remove self-storage from the list of services targeted to be taxed. 

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I recently assembled a roundtable of real estate experts to discuss the state of self-storage in the Southeast. I asked them to comment on their local markets, including occupancy levels and pricing. Joining us in the discussion are:

• Allen Barnhill, Omega Properties Inc., Atlanta
• Bill Barnhill, Stuart LaGroue and Shannon Barnhill Barnes, Omega Properties Inc., Mobile, Ala. 
•  P. John DeStefano, Commercial Investment Group LLC, Charleston, S.C.
• N.J. “Joey” Godbold, Percival McGuire Real Estate, Charlotte, N.C. 
• Grady Riggs, Long and Foster Real Estate, North Bethesda, Md.
• W. Frost Weaver, Weaver Realty Group, Jacksonville, Fla.

1. Why is the Southeast a good place to invest in self-storage at this time?

Allen Barnhill: Self-storage offers a great combination of risk and return for a real estate investor. Over its history, and even more important, through the recent economic upheaval, self-storage has proven to be one of the most resilient and consistent performers of any commercial real estate investment category. 

DeStefano: The root causes of the current economic downturn are the same factors that drive demand for self-storage (loss/change of job, downsizing household, etc.). Self-storage has proven to be somewhat resilient over the past 18 months compared to other property types (retail, office, multi-family, residential). Self-storage is also well-positioned to recover more quickly than other property types that are dependent on job growth and economic stimulus.

Godbold: We’re seeing self-storage holding up well in this market compared to other real estate investments. While occupancy rates and collection issues are haunting operators, the industry hasn’t been hit as hard by the recession as most office and retail products. Investors are disenchanted with the stock market and are looking for more tangible and predictable investments, and they see that in self-storage.

LaGroue: Potential investors should purchase self-storage properties because, as a whole, the storage sector has continued to outperform almost all other asset classes of commercial real estate and will most likely continue to do so. Self-storage has certainly felt the pains caused by the recession with declines in occupancy and income figures.

However, it has not been affected as badly as retail, office and industrial, and I don’t anticipate that it will. There will also be some buying opportunities from owners or sellers who have upcoming maturities they are unable to refinance due to a lack of funding.

Riggs:Historically, we know self-storage owners tend to sell only when they experience life-changing events, and their decisions are not driven by the commercial real estate market. Entry barriers are generally high for self-storage projects, so as long as an investor can get financing, a well-placed and managed facility is still a good, solid cash-flow generator.

Weaver: There are two primary categories of self-storage properties today, and different types of potential investors. Class-A self-storage properties can provide a stabilized cash flow with less risk than other types of commercial properties. In general, the price for these properties is less than replacement cost.

There’s a broad second category of properties that have experienced decline in occupancy based on the economy and the significant decline in new housing starts. These are not returning a net income that can be capitalized, but can be purchased at prices significantly below replacement cost. For the entrepreneur, there is significant upside as the economy in the local area improves. 
 
2. Has there been any major shift in occupancy or rental rates in the Southeast states? What are the current self-storage rental rates in your major market areas?

Allen Barnhill: In speaking with owners and managers throughout Georgia, we’ve found, on average, occupancy and rental rates are down but not dramatically. Many owners have continued to add customers and hold steady on rental rates. Common factors for these facilities are good location, supporting demographics, viable local economy and strong management. Climate-controlled 10-by-10 units range from $90 to $125 per unit, and 10-by-10 non-climate-controlled units range from $50 to $75 per unit.

Bill Barnhill: With the exception of some specific overbuilt markets, rental rates have generally held steady, although more concessions are being offered. Overall economic rental rates are lower by as much as 10 percent in some areas. In the Florida Panhandle, a 10-by-10 climate-controlled unit will bring $100 to $125. Regular outside units are in the $60 to $65 range.

DeStefano: Of the 10 properties we’re managing or actively marketing for sale in South Carolina, the general trend has been a drop in occupancy of 5 percent to 10 percent. Rates, however, have held steady. The actual performance is reflective of proactive facility management. We have a couple of facilities that have actually experienced rate and occupancy growth over the past 12 months, while competing facilities have seen declines.

Godbold: Owners in North Carolina are indicating that occupancy rates are down somewhat, depending on local market conditions such as unemployment and general demographics. Many managers report a loss in the vicinity of 10 percent from 2007 occupancy rates. That, however, is compounded by an increasing problem with collections.

Many operators are being more lenient with evictions and lien sales as they try to retain tenants—often long-term and loyal tenants. We have not seen operators move to decrease quoted rates, though many are offering specials.

Riggs: In the mid-Atlantic states, occupancy rates are down across the board 10 percent to 15 percent as economics are forcing customers to shed expenses. Rental rates haven’t really changed, but owners are giving more concessions like free rent or even free one-day truck-rental rebates for new customers.

Weaver: There has been a significant downward shift in occupancy in some areas in North and Central Florida. This has been impacted by the lack of new housing starts and self-storage tenants who’ve vacated their units for economic reasons. Rental rates have been maintained, but many facilities are offering discounts as an incentive to new tenants.

For class-A properties, a 10-by-10 standard unit is $65 per month, and a 10-by-10 climate-controlled unit rents for $80 per month. In the smaller markets, the rental rates are typically 10 percent to 15 percent less. 
 
Michael L. McCune is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self-storage buyers and sellers and operates SelfStorage.com, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE. 

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