Beyond Self Storage, which operates 18 facilities in eight states, is responding to coronavirus concerns by placing a higher level of focus on virtual service through its “COVID-19 Conscious” options. The company is supporting social distancing by offering contact-free storage-rental processes including online reservations, remote customer support and no-touch building access, according to a press release.

“We have always had these options, but potential customers are just now starting to see the relevancy of our offerings and are placing greater value on such amenities,” said Lara Anderson, director of marketing.

Beyond has also rolled out enhanced cleaning practices throughout its stores, offering sanitizing stations for customers and modified office hours to accommodate additional site maintenance.

“As many industries are slowing down, we are already seeing an immediate need for storage due to the ramifications this virus is causing to our economy and future customers’ lives,” Anderson said. “We are committed to ensuring our communities feel confident renting with us, even in times as these.

To help local college students who’ve been displaced by the pandemic, Beyond is offering the first month free on many of its storage options. The company is also taking measures to protect its employees and customers by postponing acceptance of donations to its Charity Storage program, practicing social distancing during any necessary in-person transactions, ordering protective wear, and continuing staff education on recommended procedures by the Centers for Disease Control and Prevention.

“The success and safety of our team members is paramount. This does not only apply to our onsite employees, but our corporate employees as well,” said Anderson, noting that a company-adopted travel freeze means its newest location in Tempe, Ariz., will be remotely opened in the coming weeks. “We are doing everything we can to flatten the curve.”

Beyond operates facilities in Arizona, Florida Illinois, Kansas, Maine, Maryland, Michigan, Minnesota, Missouri and Pennsylvania. It plans to expand into five more states and reach more than 40 locations in 10 markets by 2020. The portfolio is owned by NorthPoint Development, a development, management and leasing firm that’s principally focused on the industrial, multi-family, senior living and self-storage markets in the Central United States.

 

Update 3/23/20 – The ISS World Expo has been postponed to July 21-24, and the show’s four self-storage Q&A sessions have been rescheduled accordingly. Greenberger’s Legal Q&A will now take place on July 23, 4:30-6 p.m. The three other open-forum discussions (Investing & Development, Management & Operation and Technology & Security), will occur on July 23, 11 a.m. to noon.

No action is needed from show participants who registered for the original April dates. All attendee and exhibitor registrations will be automatically transferred to the July event, according to show officials.

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3/4/20 – The Inside Self-Storage (ISS) World Expo, April 14-17 at The Mirage Hotel & Casino in Las Vegas, will offer four open-forum sessions that’ll allow participants to interact with industry experts and peers. Open to all attendees and exhibitors, the first three topic-focused events will take place 11 a.m. to noon on April 16, addressing Investing & Development, Management & Operation and Technology & Security. The Legal Q&A With Jeffrey Greenberger will take place 4:30 to 6 p.m. the same day.

The Investing & Development Q&A will cover a range of topics including self-storage financing, real estate, construction materials and methods, development activity, feasibility, site design, and more. It’ll be moderated by RK Kliebenstein, leader at Coast-to-Coast Realty Advisors LLC, and Caesar Wright, president of Mako Steel Inc.

The Management & Operation Q&A will cover customer service and experience, marketing, staff issues, revenue management, sales, and other topics relevant to the daily operation of a self-storage business. The discussion will be led by Anne Ballard, president of marketing, training and developmental services, and Stacie Maxwell, vice president of marketing and training, for Universal Storage Group.

The Technology & Security Q&A will provide insight on all manner of technological tools and strategies including access control, mobile apps, management software, kiosks, automation, video cameras and more. The moderators are Thomas Brooks, managing director for PTI Security Systems, and Robert Chiti, CEO for OpenTech Alliance Inc.

In his session, industry attorney Greenberger will advise operators on a variety of self-storage legal issues including lien laws, rental agreements and the Americans With Disabilities Act. Attendees are encouraged to have their questions ready for this unrecorded session.

The ISS World Expo comprises four days of education, networking and exhibits. Designed for self-storage owners, managers, investors, builders and vendors, it draws approximately 4,000 professionals from around the world. Attendees can choose from three registration packages to participate in workshops, seminars, roundtable discussions, open-forum Q&A sessions, an evening cocktail reception, vendor presentations, and more.

This year’s event will feature 100-plus presentations and approximately 200 industry product and service exhibits. It’s produced by Inside Self-Storage, which has provided informational resources for the self-storage industry for more than 29 years. Additional educational offerings from the brand include a monthly magazine, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

 

Self-storage owners often wonder, “How can I earn more money and also protect my investment without additional overhead?” The answer is to offer tenant insurance or a tenant-protection plan. These products are quite different, however. How do you decide between them?

There are several critical areas to examine, which should help you make a fair comparison between these unique offerings. No matter which plan you choose, it’s imperative to understand your customers’ attachment to their “valuables” and their pain if these possessions are lost or damaged.

Benefits

In the rental agreement, many self-storage operators insist the tenant assume full risk for damage or loss to his stored goods and be responsible for his own insurance coverage. While this approach may be seen as “playing it safe” when it comes to liability for a loss, it’s becoming increasingly difficult to defend in court and may ultimately prove costly if a major loss occurs. A court defense and the negative impact to your business reputation are expensive and potentially damaging to future earnings.

There’s a better way. With a well-crafted lease and addendum, you can transfer or assume the risk for tenants’ property in exchange for a monthly premium or fee. Self-storage tenant insurance or protection plans help you in several ways:

• They provide protection for tenants stored belongings without the added cost or hassle of dealing with a homeowner’s or renter’s insurance policy.
• There’s profit to be had. With a tenant-insurance plan, it’s a commission; with a tenant-protection plan, it’s an “administration fee.” Either way, it’s cash flow.
• These products bring a new level of service to customers and help reduce your general liability.
• The importance of reputation management is at an all-time high. One negative review could be detrimental to a company. These products help ensure customer satisfaction in the event of a tenant loss.

Qualifications

Whichever program you offer, it’s important to be familiar with all its facets, particularly regulatory compliance, and how it works from an operator’s and customer’s perspective. Here’s a quick overview.

Tenant insurance is the transfer of risk from your tenant to an insurance provider/carrier in exchange for payment. This is a two-party contract. The company must provide the tenant with a contract (policy) that outlines the terms of coverage and his rights therein.

Selling tenant insurance requires an agent or producer license representing one of two classifications in all 50 states. A special limited license is available for self-storage operators in about 34 states, with legislation pending in a few others. The limited license simplifies the licensing process for facility employees. There are fees associated with it, and staff training is sometimes required.

States without a special limited license require a “full” property and casualty license to represent an insurance product at the counter. Self-storage owners and managers would need to fulfill the obligations required by their state’s insurance commission. Errors and omissions insurance is usually required.

In California and other states, the courts have ruled that a tenant-protection plan is not insurance. It’s essentially a three-party contract. The tenant and facility operator are the first and second parties. The tenant contracts with the operator as part of the conditions of the lease agreement, via a signed addendum. In consideration of the payment of an additional fee per month, the operator will protect the tenant from property damage. The plan’s limits are indicated in the addendum.

The third party of this protection plan is added when the self-storage owner purchases a contractual liability-insurance policy that assumes any liability to the tenant on his behalf. This is a “reinsurance” agreement. The owner becomes legally responsible only if he’s negligent or breaches some other duty to the tenant and the tenant suffers a loss. The provider receives a portion of the administrative fees. In this case, the storage operator isn’t required to be licensed. It’s the agent selling the contractual liability-insurance policy who must be licensed.

The first factor in deciding on a program is whether your state is one that requires limited licensing for self-storage tenant insurance. If your state doesn’t have a licensing law, you can’t legally sell insurance without an insurance producer or agent license for each person offering the program. In this case, your option is to offer a protection plan. Call or visit your state’s insurance department if you’re unsure about the licensing requirement. If considering a protection plan, make sure the agent offering your policy is licensed for property and casualty.

Pricing

When setting rates or commissions, a tenant-insurance carrier must follow each state’s guidelines. Rates can’t be arbitrarily adjusted by the facility operator, who’s now an insurance agent. Your carrier must submit any changes to the state’s insurance department for review and approval.

Note: Any insurer, agent or producer who gives or offers some benefit other than those specified in the policy to induce a customer to buy insurance is considered “rebating.” This is illegal in most states. Most tenant-insurance plans will pay actual cash value. This is a depreciation-based model.

Self-storage operators who offer a tenant-protection plan set their own administrative fees and share the profit with the policy provider in an agreed split. Some plans require a “self-insured” fund to underwrite a specified number of claims. This pool is usually paid to the protection program. Other plans are looking for a minimum amount of participation and paid month by month, depending upon the plans sold. Rates and fees aren’t set by the state’s department of insurance, and most tenant-protection plans pay replacement cost.

Note: Neither program will provide a “gain” via a claim for one’s contents or items. This is against insurance regulations.

Sales

It’s an absolute must to establish ongoing communication with tenants. This communication should start with the sales presentation at the counter. To encourage participation in a tenant-insurance or -protection program:

• Create sales material and a promotional video that tout the benefits of your program.
• Train and incentivize staff to sell your program.
• Share examples of tenants who suffered a loss and had “peace of mind” because they were protected by a plan.
• Convey that a loss reported to one’s homeowner’s insurance provider won’t get the same treatment as one reported through a tenant-insurance or -protection plan.
• Explain that the deductible for most homeowner’s policies starts at $500, while for most tenant-insurance or -protection plans it’s $0 to $100.
• Finally, communicate that the premium on a homeowner’s or renter’s insurance almost always increases after a claim, which isn’t the case with a tenant-insurance or -protection plan.

It really isn’t a hard decision. These plans are good for your customer. They also serve your profit, protection and reputation-management needs much better than having nothing at all!

Revenue

What are the revenue-generating aspects of these programs? With tenant insurance, providers pay a commission based on rates they each file at your state’s department of insurance. These rates are established within a set parameter and must be approved by the state. They may not be changed except by a new filing.

Many tenant-insurance providers base their commissions on a fixed percentage of a sold plan or on a fee basis per policy. The profit may be non-existent for low-production self-storage facilities. For mid- to high-production facilities, it could be in the tens of thousands to six figures per year.

Tenant-protection programs pay an administrative fee, which is either a percentage of the tenant retail price or a set fee per plan based on a “rate per $1,000.” In the case of the latter, the owner can set his own profit above this fee based on sales. Most protection programs will produce in the tens of thousands to six figures per year, too. In either case, self-storage operators have often realized this product offering to be their second-highest profit center after rental income.

Depending on the program, there are other profit advantages. The higher the coverage amount sold, the more profit received. Thus, many owners are going from smaller $8 plans to $12 or even $15 plans as the minimum offering. The higher-priced plans also consider the growing value of tenant contents being stored, such as electronics and valuable sport or business equipment.

Many owners use the sale of their insurance or protection plans to incentivize their managers or cover a portion of employee salaries and benefits. Thus, they see more profit and higher employee morale. For some, this profit center will raise their portfolio value by eight to 12 times the annual residual income received from their program.

Ongoing Costs

Each state requires self-storage operators with tenant-insurance programs to receive training, a license and errors and omissions (E&O) coverage. You also need to consider the opportunity cost to start and sustain your program. Some programs require an upfront premium deposit or funds to initiate, including money to protect against initial individual or aggregate claim costs. Each insurance program has its own standard for determining these upfront costs.

Tenant-protection programs require little to no upfront cost for the training, license or E&O coverage. However, there are several that require a minimum upfront setup fee. Finally, there are protection programs that require a “premium deposit” or funds to initiate the program and “self-insure” against initial claims.

Customer Service

Paramount in your decision of whether to offer tenant insurance or a protection plan and which provider to choose is whether a company is customer-oriented and will respond quickly to your customers. Remember, it’s your facility’s reputation on the line. Tenants want their claims handled quickly and fairly, so make sure you understand the provider’s claims process and how efficiently the client is served.

Research each provider’s claims-paying record and financial strength. You can easily do a Google search or check with fellow operators you trust. With tenant insurance, always get a copy of the policy terms and conditions so you’ll understand how it affects your tenants. With a protection plan, get a copy of the lease addendum. In both cases, read the fine print!

Here are some other important considerations:

• Which company will provide the best training and support for your employees?
• Which offers the best marketing and addendum materials?
• Does the provider offer tenant forms that clearly lay out the terms and conditions for each party?

In his book, “Life, the Truth, and Being Free,” Steve Maraboli said, “A lack of clarity could put the brakes on any journey to success.” Keep this mind, and you’ll be in great shape with whichever product you decide makes the most sense for you and your self-storage business.

Terry D. Anderson is CEO and president of Arizona-based Tenant Property Protection, which partners with self-storage operators nationwide to provide protection of tenant goods while maximizing facility revenue. He has 37 years of experience in nonprofit, retail and professional services. For more information, call 877.575.7774; e-mail [email protected]; visit www.tenantpropertyprotection.com.

OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology, is offering self-storage operators free use of its online rental software for six months to help them deal with the impact of the coronavirus pandemic, which has caused many businesses to reduce in-person interaction and close offices. INSOMNIAC Online can be embedded quickly within a self-storage operator’s website to help facilities process unit rentals remotely, according to a press release.

The cloud-based software allows prospective tenants to select a unit, sign a rental agreement, pay for the storage space and ultimately move-in by using any Internet-connected device, the release stated.

“Self-storage operators are doing their best to keep their facilities open for business, while also limiting in-person interactions. The ability to rent units online could have a big impact for them,” said Robert Chiti, chairman and CEO. “We are making our online rental tool available in hopes of helping self-storage operators rent units without needing a manager present. OpenTech is here to support the storage industry, and we will continue to do whatever we can to help self-storage operators.”

The free offer does include a one-time setup, training and customization (STC) fee, though the STC is waived for any existing INSOMNIAC Live! and INSOMNIAC kiosk customers, according to the release.

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.

Update 3/23/20 – The ISS World Expo has been postponed to July 21-24, and the show’s legal-themed offerings have been rescheduled accordingly. The Advanced Legal Workshop presented by Zucker will now take place 1-5 p.m. on July 21. Greenberger’s seminar, “You Might Need a Self-Storage Lawyer if…”, will take place at 1 p.m. on July 22, with his Legal Q&A moving to July 23, 4:30-6 p.m.

No action is needed from show participants who registered for the original April dates. All attendee and exhibitor registrations will be automatically transferred to the July event, according to show officials.

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2/28/20 – The upcoming Inside Self-Storage World Expo, the self-storage industry’s largest conference and tradeshow, will feature several events providing information on legal concerns that affect facility owners and operators. Attendees to the event at The Mirage Hotel & Casino in Las Vegas, April 14-17, can participate in a four-hour workshop, a 50-minute seminar and a one-and-a-half hour Q&A focused on issues of legal liability.

The Advanced Legal Workshop, 1 to 5 p.m. on April 14, is designed to help owners and managers maintain compliance with federal, state and local laws. Taught by attorney Scott Zucker, partner at Weissmann Zucker Euster Morochnik & Garber P.C., the session will cover issues pertaining to property development and construction, employment, rental agreements, and tenant-insurance sales. Zucker will also discuss how to handle tenant claims, enforce a lien, and respond to government requests to search units. The workshop will answer questions about legal obligations and how to avoid liability. Access to the workshop can be purchased a la carte or via an All-Access Pass.

As part of the show’s Operations Track of education sessions on April 15, the seminar “You Might Need a Self-Storage Lawyer if…” will focus on instances in which operators should call an attorney. Presented by attorney Jeffrey Greenberger, partner at Greenberger & Brewer LLP, at 1 p.m., the session will address the most common situations in which the wrong course of action could unintentionally cause personal or company liability. Attendees will need to purchase a Seminar-Track Package to access this offering.

Greenberger will also host a Legal Q&A on April 16, 4:30 to 6 p.m. Open to all attendees, this annual event has been lengthened due to its popularity. The open-forum style allows participants to receive expert insight to their most pressing legal concerns. The unrecorded session is designed to arm attendees with actionable advice.

The ISS World Expo comprises four days of education, networking and exhibits. Designed for self-storage owners, managers, investors, builders and vendors, it draws approximately 4,000 professionals from around the world. Attendees can choose from three registration packages to participate in workshops, seminars, roundtable discussions, open-forum Q&A sessions, an evening cocktail reception, vendor presentations, live product demos and more.

This year’s event will feature 100-plus presentations and approximately 200 industry product and service exhibits. It’s produced by Inside Self-Storage (ISS), which has provided informational resources for the self-storage industry for more than 29 years. Additional educational offerings from the brand include a monthly magazine, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

My wife doesn’t understand why the price of certain goods and services doesn’t remain constant. For example, why is a beach-condo rental more expensive this week than next month? I explain that our capitalist system is based on supply and demand, and rates rise and fall accordingly.

Like my wife, far too many self-storage operators fail to understand this concept. They operate their facilities in a state of stasis. Their rates never change and there’s no thought to supply and demand. They must have established their businesses as not-for-profit enterprises!

There are two important elements to any effective self-storage pricing program: street rates and existing tenant rates. If you aren’t regularly reviewing and adjusting both based on market supply and demand, you’re losing money. Here’s why rate management is important and how to do it successfully.

Sad But True

Successful hotels, car-rental companies, airlines, bed and breakfasts, retailers of every stripe, service companies of every type, and self-storage operators all have one thing in common: Their rates rise and fall with supply and demand. Their prices are dynamic, never static. They recognize that their businesses are for profit, and that one of their most important tasks is to maximize the return on their inventory (storage units) and, therefore, their investment.

I saw one extreme example of poor rate management just recently while conducting a market study. In a modest-sized Midwest town, the average rate for a 10-by-10, non-climate-controlled unit was $52 per month; but the old Public Storage facility in town was charging $130. You’d think that some of its competitors, all of whom had highly occupied sites, would wake up and realize they could charge at least a few dollars more. Unfortunately for them, that wasn’t the case.

In another study, the average cost of a 10-by-10, non-climate-controlled unit was less than $40 per month, and six of seven market competitors were 100 percent occupied. Apparently, none of them had the good sense to raise their rates. It really does seem that many operators have established their sites as not-for-profit organizations. Sad but true.

Why Raise Rates?

For some reason, the thought of raising rental rates, especially for your existing tenants, scares the heck out of far too many of you. Some seldom raise rates; others have never done it. There are always excuses: “Our customers are like family,” “Someone might move out” and “Everyone else raises rates, so we don’t.” None of these reasons are sensible or profitable. Some are downright silly.

Most expenses for a self-storage facility creep up year after year: taxes, payroll, utilities, etc. If your rates remain static, you’re going backward! Who signed up for that? The idea that a customer—who isn’t, in fact, family, and hasn’t co-signed your bank note—should never receive a rate increase is absurd.

The largest self-storage companies have spent a gazillion dollars to discover what works and what doesn’t, and they all use sophisticated revenue-management processes that systematically increase street and existing-tenant rates. As such, their revenue continues to climb. Unlike many mom-and-pop sites, they operate like the for-profit businesses that they are.

No matter how long you’ve been in self-storage, you aren’t smarter than those largest operators. If they’ve proven that systematic rate increases are right, profitable, easy and sensible, why would you think you know better?

Let’s look at how a simple $3 increase becomes $154,285 in facility value. Let’s say you have 300 tenants. You raise each of their rates $3 per month.

• 300 customers x $3 per month = $900 per month
• $900 per month x 12 months = $10,800 per year
• $10,800 in additional rental income per year = $154,285 in additional facility value (assuming a 7 percent capitalization rate)

That’s a significant increase in asset value just for applying a bunch of small increases. It’s almost magical. No one is going to move out over $3; and so what if they do? Do you pay your bills with occupancy or revenue? I hope you know the answer to that by now.

How to Raise Rates

Here are a few quick tips to help you manage your facility pricing and implement rate adjustments.

1. Raise the rent of every tenant at least yearly, on his anniversary date. I’ve had owners tell me they raise rates in January because it’s too cold for people to want to move out or in July because it’s too hot. (Yep, I laughed, too.) If you instead raise everyone’s rate on their anniversary date, your only expose one-twelfth of your rent roll to an increase at any given time and spread the workload over 12 months. Plus, tenants come to expect it and it’s not a big deal.

2. Make sure every tenant gets an increase. There are no “special customers,” no exceptions. You don’t want to ever be accused, rightly or wrongly, of exhibiting racism, ageism, sexism or any other “ism” as related to rate (or any other aspect of your business, including the application of late fees).

3. Send tenants a 30-day notice regarding their new rental rate. Do not cancel increases because two or three tenants complain. Self-storage isn’t a constitutional right, and if they really want to go to the trouble of moving their stuff to save $3, then so long. Run your business like a business, not a social experiment.

Recognize that it’s OK to make money—and steadily more of it over time—by operating a self-storage business. You also need to understand that if your facility is highly occupied at 85 percent to 90 percent or higher, there’s far more revenue to be made by raising rates on existing tenants than by renting out that last 10 percent or 15 percent of units that are vacant.

The Manager’s Role

A difficult aspect of implementing rate increases is objections from your onsite management. Some managers will offer excuses like “He’s a good customer,” “Everyone will move out” and “The competitor down the street doesn’t raise rates.” Again, none of these are sensible or profitable! What they’re really saying is, “I don’t want to deal with customers who complain.”

While some owners might have to replace managers who object too strongly or are unwilling to adhere to the rate-management process, most can overcome opposition through effective coaching and encouragement. They need to remind staff that they’re working at a for-profit operation. Facility expenses, including their pay, go up each year. To remain profitable, it’s imperative that rental rates also increase.

Owners also need to remind their managers that, yes, while a few tenants might protest, most won’t. You can’t run a business based on the grievances of a few customers.

Here are a few things managers must do when it comes to rate increases:

• They must be coached on how to handle that small handful of complaints.
• They must have the professionalism and confidence to properly deal with the situation.
• They must own the rate increases, not blame the owner or the home office. If they must blame someone to sympathize with the tenant, they shouldn’t be managing a storage facility.
• They must be prepared with an explanation. It might sound something like, “Yes, I understand how you feel. But I’m sure you understand that rentals of all kinds—apartments, warehouses, self-storage—raise rates from time to time as the company’s expenses go up. As you can see, we only increased your rate a modest amount, and your new rent doesn’t take effect until next month. We certainly want you to remain a customer but also understand if you’re unable to stay.”
• They must not be allowed to forego or reduce rate increases for any reason. Every customer gets treated the same.

Implementing effective, systematic, professional, commonsense, profitable, responsible revenue management—both with posted street rates and those for existing tenants—is one of a self-storage operator’s most critical tasks. Initiate a process right now to increase the revenue and asset value of your facility. It’s time to establish your business as a for-profit entity!

Bob Copper is the owner of Self Storage 101, a consulting firm specializing in self-storage. Bob and his team have worked with hundreds of owners, operators and managers to maximize asset value, conducting countless due-diligence audits and helping owners position their facilities to sell. To reach him, call 866.269.1311; e-mail [email protected]; visit www.selfstorage101.com.

Update 3/23/20 – The ISS World Expo has been rescheduled to July 21-24, still at The Mirage Hotel & Casino in Las Vegas. In accordance with the new dates, the agenda for immersive workshops has changed, including those for the four new offerings previously highlighted. The events will now take place:

• Acquisitions Workshop, July 24, 8 a.m. - Noon
• Operations Workshop: Fundamentals, July 24, 8 a.m. - Noon
• Operations Workshop: Advanced, July 24, 1-5 p.m.
• Risk Management Workshop, July 24, 1-5 p.m.

The show will also still offer four workshops on July 21, focused on self-storage development (planning phase and building phase), digital marketing, and legal issues. To participate, attendees can purchase them a la carte or register for an All-Access Pass. Additional details are available at www.issworldexpo.com.

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2/7/20 – The Inside Self-Storage World Expo, the self-storage industry’s largest conference and tradeshow, will feature four new workshops this year focused on property acquisitions, facility operation and risk management. The event will take place April 14-17 at The Mirage Hotel & Casino in Las Vegas.

The Acquisitions Workshop, 8 a.m. on April 17, is designed for owners and investors interested in buying self-storage properties or increasing their asset value. Taught by Bob Copper, owner and partner in charge of industry consulting firm Self Storage 101, the four-hour session will cover best practices, how to increase revenue and asset value, and how to develop an informed decision-making process for potential future deals. He’ll also review several case studies to share specifics and tips as well as pitfalls to avoid around the transaction process.

The Operations Workshop: Fundamentals and Operations Workshop: Advanced will take place at 8 a.m. and 1 p.m., respectively, on April 17. They’ll be taught by Rick Beal, Magen Smith and Matthew Van Horn, co-founders of Atomic Storage Group, a full-service management company specializing in self-storage management, feasibility studies, marketing and consulting. In the morning, attendees will learn the basics of property management and guidelines for developing long-term strategies, getting expert insight to key operating metrics, hiring and training, revenue management, and more. The afternoon session will provide hands-on demonstrations and case-study-type approaches to common practices and challenges. It’ll take a deep dive into facility software, reporting, marketing, sales and other critical skills.

The Risk Management Workshop will be held at 1 p.m., led by several industry insurance experts and seasoned facility managers. Attendees will get an insightful look at risk prevention to avoid costly incidents, disasters and claims that can cripple a self-storage operation. Topics of discussion include insurance coverages and claims, cyber crime, general crime prevention, facility safety, disaster planning and response, and more.

The ISS World Expo will also offer four workshops on April 14, focused on self-storage development (planning phase and building phase), digital marketing and legal issues. To participate, attendees can purchase them a la carte or register for an All-Access Pass. Additional details are available at www.issworldexpo.com.

The ISS World Expo comprises four days of education, networking and exhibits. Designed for self-storage owners, managers, investors, builders and vendors, it draws approximately 4,000 professionals from around the world. Attendees can choose from three registration packages to participate in workshops, seminars, roundtable discussions, open-forum Q&A sessions, an evening cocktail reception, vendor presentations, live product demos and more.

This year’s event will feature 100-plus presentations and approximately 200 industry product and service exhibits. It’s produced by Inside Self-Storage (ISS), which has provided informational resources for the self-storage industry for more than 29 years. Additional educational offerings from the brand include a monthly magazine, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Update 3/23/20 – The ISS World Expo has been rescheduled to July 21-24, still at The Mirage Hotel & Casino in Las Vegas. In accordance with the new dates, the featured keynote address, “Moving Into Freedom: How Self-Storage Saved My Financial Future (and Can Save Yours, Too),” will be presented by AJ Osborne at 8 a.m. on July 22. The session is open to all attendees and exhibitors.

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2/13/20 – The Inside Self-Storage World Expo, April 14-17 at The Mirage Hotel & Casino in Las Vegas, will feature a keynote address focused on achieving financial independence through smart investing. “Moving Into Freedom: How Self-Storage Saved My Financial Future (and Can Save Yours, Too)” will be presented by AJ Osborne at 8 a.m. on April 15. The session is open to all attendees and exhibitors.

Osborne, who owns and operates 12 Keylock Storage facilities across the Northwest through Bitterroot Holdings, was diagnosed with Guillain-Barré Syndrome two years ago. He’ll share how his self-storage investments allowed him to maintain financial stability for his family. He’ll discuss why self-storage is a solid asset, how to improve underperforming properties, how to position a business for success in today’s market, and more.

Osborne has been active in the self-storage industry since the early 2000s. In addition to contributing articles to industry trade magazines, he shares his industry strategies and systems through his podcast and YouTube channel, “Self Storage Income.”

The ISS World Expo comprises four days of education, networking and exhibits. Designed for self-storage owners, managers, investors, builders and vendors, it draws approximately 4,000 professionals from around the world. Attendees can choose from three registration packages to participate in workshops, seminars, roundtable discussions, open-forum Q&A sessions, an evening cocktail reception, vendor presentations, live product demos and more.

This year’s event will feature 100-plus presentations and approximately 200 industry product and service exhibits. It’s produced by Inside Self-Storage, which has provided informational resources for the self-storage industry for more than 29 years. Additional educational offerings from the brand include a monthly magazine, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Update 3/20/20 – 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 March 2020.

Aleksei Bereznoi and Yury Gnesin, managers of 15699 Dixie Highway LLC, are seeking permission to build a seven-story facility in North Miami Beach, Fla. Plans for the 1.33-acre property at 15699 Dixie Highway include 163,660 square feet. The developers acquired the site, which contains a 3,800-square-foot warehouse, for $1.81 million in June. The architect is T.M. Design & Associates.

Affordable Storage LLC, which operates four facilities in Minnesota, is seeking zoning approval to convert the former Sportech building at 11074 179th Ave. N.W. in Elk River, Minn., to indoor, climate-controlled storage. Storage owner Keith Burnham told city officials, who support the project, that he plans to build 500 units and upgrade the property with a loading bay, mezzanine and elevator. Planning manager Zack Carlton and several councilmembers are backing a planned unit development to rezone the property, rather than change the city ordinance. Mayor John Dietz directed city staff to develop the strategy.

Hawaii Self Storage (HSS) is converting a former Bank of Hawaii Service Center in the Iwilei area of Honolulu to storage. Renovations have begun in a shared portion of the building at 909 Dillingham, which will add about 75,000 square feet of drive-up and interior storage in two levels. The first phase of the project will include an administration and reception area, along with new air-conditioning, lighting and security systems. Powered by a solar-panel system, the building is scheduled to open this year. A second phase, expected to begin this year, will add a five-story, 90,000-square-foot building. Clifford Planning and Architecture designed the project. HSS is leasing the existing building from Bank of Hawaii, which owns the 3-acre property. Founded in 2001, HSS operates six properties in Honolulu, Kapolei, Mililani and Pearl City.

HFB LLC, which is owned and managed by Heartland Self Storage Inc., is constructing a new facility at 1204 S.E. 16th Court in Ankeny, Iowa. It’ll include a three-story, 30,000-square-foot building; two 7,500-square-foot single-story buildings; and a 9,750-square-foot single-story structure. HFB purchased the 6.6-acre parcel in March 2018 from Elwell Foundation for $965,330. Heartland owner Daryl Leise is developing a similar multi-story project at 6220 Village View Drive in West Des Moines, Iowa. Heartland also operates a facility at 1306 Prairie Drive S. W. in Bondurant, Iowa.

Real estate developer Hyde New Build Ltd. intends to include an Easistore Self Storage facility as part of its Kingston Wharf mixed-use project in Shoreham, England. The six-story storage structure would connect to a five-story complex featuring office space, a café and a gym. The project also includes 255 homes, a public riverwalk along the Adur River and a bike path. Easistore operates four facilities in Crawley, Edenbridge, Maidstone and Tunbridge Wells, England.

Kennards Self Storage, which operates more than 85 facilities in Australia and New Zealand, is converting the former Adelaide Mail Centre in Adelaide, South Australia. The company paid more than $40 million for the 58,805-square-foot building in the city’s central business district. Kennards is a family-owned business based in Sydney. It opened its first self-storage facility in 1973 in Moorebank, Australia.

Life Storage Inc., a self-storage REIT and third-party management firm, intends to develop a facility in the Germantown neighborhood of Philadelphia. The site at 33 E. Woodlawn St. is currently a surface parking lot owned by Philadelphia Suburban Development Corp., a regional developer. The six-story facility would comprise 131,700 square feet in 1,100 units. JKRP Architects is designing the project. The company fielded questions during a design review on March 3, with concerns raised that the blue, yellow and grey color scheme associated with the Life Storage brand wouldn’t fit aesthetically with the brick and stone architecture of the surrounding area. Life Storage has six locations in the metro area, but this would be its first facility within the Philadelphia city limits. Based in Buffalo, N.Y., the REIT operates more than 850 self-storage facilities in 29 states and Ontario, Canada. Its portfolio of owned and managed facilities comprises more than 61.8 million square feet.

A joint venture between Live Oak Capital Partners LLC, Lumpkin Development LLC and MacArthur Holdings LLC began construction on a self-storage facility in Stuart, Fla. The four-story facility at 700 S.W. Federal Highway will comprise 115,000 square feet in more than 860 units. It’s expected to open next spring. DC Construction Associates will serve as general contractor. IberiaBank is providing debt financing. Lumpkin operates 4 million square feet of commercial real estate in Alabama and Georgia. Family-operated MacArthur builds, owns and operates hotel, multi-family, office, retail and self-storage. Based in Atlanta, Live Oak Capital has acquired, developed and sold more than $100 million in commercial properties.

A proposed self-storage development in Old Lyme, Conn., raised questions during a recent zoning hearing now that the owner wants to add a maintenance shop to the building plans. Mar Holding LLC is seeking permission to construct four buildings ranging from 1,800 to 4,200 square feet at 224 Shore Road. One of the structures on the 1.7-acre site would be designed as a “shop/office” so the company’s owner, Frank Maratta, could store trucks and equipment used to maintain his other properties.

Engineer Robert L. Doane Jr., who represented Maratta at the hearing, presented new architectural drawings that modified the fourth building from 30-by-115 to 60-by-115 feet, with a roof height of 16.5 feet. Zoning-commission members expressed concerns about storing vehicles at the site and the lack of lighting and security measures planned for the property. Michael E. Cronin Jr., Maratta’s attorney, said his client would modify the plan if necessary. The public hearing was continued to April.

A mixed-use project that’ll include climate-controlled self-storage and retail space is under development in Boca Raton, Fla. Manley Storage Ventures (MSV), Rosemurgy Properties and Sentry Self Storage will begin construction of the three-story building on the 3.5-acre property at 7171 North Federal Highway in January. Once complete, it’ll contain 128,635 square feet. MSV is owned by Bruce and Jonathon Manley, the developing principals and managing partners for 60 self-storage facilities totaling 4.8 million square feet. Rosemurgy is a privately owned commercial real estate development, investment and management firm that focuses on multi-family, retail, self-storage, office and undeveloped land. Coral Springs-based Sentry has more than 25 properties under management in several states and works with 14 ownership groups.

Rane Property Management LLC is seeking approval to build a mixed-use property in East Amherst, N.Y., that’ll contain self-storage, commercial space and multi-family residences. Sean Hopkins of Hopkins Sorgi & McCarthy PLLC presented the plan on March 4 on behalf of the developer to the town board. The 7-acre property at 7621-7631 Transit Road is the former site of Bitterman’s Automotive. The proposal first appeared before the board in December, but has since been revised to account for the town’s floodway-density development standards, which require 30 percent of the site to remain unfilled. Plans include one two-story mixed-use building with eight apartments and 6,700 feet of first-floor commercial; three townhouse buildings with 12 apartments; and one detached garage. The six storage buildings would be available to tenants of Rane’s portfolio, which also includes Fox Creek Estates and Dockside Village. The units will “resemble high-end garages with sloped roofs, actual shingles, actual windows and stone around the base,” Hopkins said.

Wendy Merkel, owner of Room To Spare Storage at 7545 Transit Road, expressed concern about the project and whether the developer would open the units to the public if not filled by its apartment tenants. Merkel has lost 15 percent of her customers due to new competition, she said, and claimed Rane charges “half of what everyone else in the industry is.” When pressed by board members, Hopkins said Rane believes the demand is there but would likely consider opening the units to the public if it dwindles. Founded in 2012 and based in Bowmansville, N.Y., Rane owns a multi-housing portfolio of nearly 1,600 units. 

RH Rebel Storage will open a new facility in Minot, N.D. The project at 1908 Hiawatha St. S.E. will convert a 16,000-square-foot building that was previously used to store collector cars and items used for Minot’s annual Norsk Hostfest festival. Construction work on the climate-controlled building is complete, with outside concrete work and landscaping expected to conclude this spring. Founded in 2015 by Scott Bintz, RH Rebel operates two facilities in Jamestown, N.D., and one in Valley City, N.D.

SecureSpace Self Storage, which operates six facilities in California, Florida, New Jersey and New York, has opened a new location in Piscataway, N.J. The newly built three-story facility at 1518 S. Washington Ave. comprises 122,000 square feet of climate-controlled and drive-up storage. Based in Redondo Beach, Calif., SecureSpace is owned by InSite Property Group LLC, a development and real estate firm.

Storage Development Inc. (SDI) is building Storage Units Augusta in Augusta, Ga. The three-story project is near the northwest corner of Furys Ferry Road and Riverwatch Parkway. SDI is developing a similar facility called Eclipse Storage near the intersection of Washington Road and William Few Parkway in Evans, Ga. The sites are expected to be the first examples of multi-level, indoor self-storage in the cities, according to a source. Founded in 1995, SDI develops self-storage in the Southeast. It provides site selection, planning, permitting, site prep, metal buildings, construction and erection. SDI also owns pre-engineered metal-building company Rapid Building Solutions.

University Storage intends to convert a 38,610-square-foot industrial building in San Diego to self-storage. The operator acquired the 2.2-acre property at 5150 University Ave. for $7.7 million from San Diego Rescue Mission.

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3/20/20 – 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 March 2020.

112 New Brunswick Properties Urban Renewal LLC is seeking approval to tear down a 3,891-square-foot building in Hopelawn, N.J., and build a three-story self-storage facility in its place. Plans for the property at 112 New Brunswick Ave. and 105 Juliette St. include a mixed-use building that’ll comprise 124,766 square feet of self-storage and 3,600 square feet of ground-floor retail. The 1.5-acre brownfields site, which formerly housed Cypress Transport Co. and Prang Trucking, was designated for redevelopment in 2019 by the township council and appeared on the state department of environmental protection’s list of “known contaminated sites.” The planning board held a public hearing to review the request yesterday.

Dallas-based Bariso Lemon Grove Self Storage LLC intends to develop a four-story facility in Lemon Grove, Calif. The property at 8016 Broadway will comprise 77,500 square feet of storage space, along with about 5,500 square feet of retail. The facility is expected to open during the summer of 2021. The developer recently acquired the property from VM Holdings for $3.65 million. The deal was brokered by Laguna Beach, Calif.-based Self Storage Investment Services Inc.

Beyond Self Storage (BSS), which operates 15 facilities in nine states, opened a new location in Port Richey, Fla. A grand-opening celebration on Feb. 29 at 11435 US-19 included “Touch-A-Truck” in which attendees explored vehicles from Pasco County’s fire rescue, sheriff’s office, police department and other local businesses. The event also featured food, games, music and property tours. BSS is the operating brand for NorthPoint Development, a development, management and leasing firm that’s principally focused on the industrial, multi-family, senior-living and self-storage markets in the Central United States.

Real estate development company Brandon Storage Center LLC opened a newly constructed self-storage facility by the same name in Brandon, Fla. The property at 2711 Broadway Center Blvd. comprises 66,375 rentable square feet in 682 units. A March 19 ribbon-cutting ceremony will feature members of the local chamber of commerce. Open to the public, it’ll offer facility tours, music, games and prizes. The facility will be operated by self-storage owner and property-management firm Absolute Storage Management (ASM). Founded in 2002, ASM operates more than 100 properties in 13 states.

Clark Investment Group and Nuvo Development are seeking zoning approval to develop a $5 million self-storage project in Atlanta. The proposed site at 1599 Memorial Drive S.E. would be part of The Atlantic Shopping Center, a mixed-use development by Paces Properties. Based in Wichita, Kan., Clark is a private real estate development and investment company that specializes in self-storage. Founded in 2014, Nuvo Development is an affiliate of Winter Park, Fla.-based Nuvo Co. It offers architecture, development and engineering services to the self-storage industry.

The Powder Springs, Ga., City Council rejected, 3-2, a proposed development from real estate investment trust (REIT) and third-party management firm CubeSmart. The REIT sought a special-use permit to build on the northeast corner of C.H. James Parkway and Sweetwater Avenue, which is in a community-retail-commercial district. The project was opposed by residents in neighboring subdivisions, including a group from Sweetwater Landing, which submitted a petition with 500 signatures. CubeSmart representatives indicated they couldn’t guarantee full prevention of water runoff down a hill to a proposed 45-unit townhouse community called Sweetwater Townhomes. The REIT had also planned to include leasable retail space to make the project viable.

Elsewhere, CubeSmart opened a new facility in Sugar Land, Texas. The property at 15025 Voss Road comprises 91,500 square feet in about 700 units. The REIT owns or manages 1,172 self-storage facilities across the United States. Its operating portfolio comprises 79.6 million square feet.

Commercial real estate developer Galaxy Development LLC will build a three-story Lucky Pick Self Storage facility as part of a mixed-use project in South Worcester, Mass. The storage building at 29-49 James St. will comprise 71,000 square feet in more than 500 units on the former site of Gatto’s Greenhouses & Flower Shop. A separate, 6,000-square-foot structure is permitted for office or retail use. Construction is expected to begin in April and be complete next year. Galaxy acquired the 2-acre property in 2018 for $683,000. Based in Auburn, Mass., Galaxy has developed more than $250 million in projects during the last 10 years.

JNH Co. has begun construction on MoreStor Self Storage in Wichita, Kan. The project on the northwest corner of 143rd and Kellogg Streets will comprise 81,000 square feet in 350 units, according to Nick Howell of JHN. Mike Brand, owner of Michael J. Brand Plumbing Inc. and Cook’s Heating and Cooling Co., is a project partner. Construction is expected to be complete in October.

Johnson Development Associates is developing a five-story Extra Space Storage location in Bayonne, N.J. The 124,960-square-foot facility will sit west of New Jersey Route 440 and border a new road that’ll run from East 24th Street to East 22nd Street. The developer will contribute about $200,000 for the road construction and another $150,000 toward the replacement of a pedestrian bridge, according to Joe DeMarco, redevelopment counsel for the city. In exchange, a 25-year tax abatement will be awarded. Spartanburg, S.C.-based Johnson Development operates more than 30 self-storage properties in the Southeast, all of which are managed by REITs CubeSmart, Extra Space and Life Storage Inc.

My Choice Self-Storage, which operates six facilities in Wisconsin, received approval to add two new buildings to its facility in Slinger. Both will be designed for the storage of boats, RVs and other large vehicles. Construction at 2010 American Eagle Drive will begin this spring, with additional phases developed in the future. My Choice is an affiliate of Dittmar Realty Inc., which specializes in land development as well as multi-family and self-storage property management and construction in Ozaukee, Washington and Waukesha Counties, Wis.

Lee Barwick of Pars Builders is developing a three-story self-storage facility on West Tennessee Street in Tallahassee, Fla. Expected to be complete in August, it’ll offer 589 climate-controlled units. The site is near several student-housing complexes, a U-Haul moving center and two apartment complexes.

Public Storage Inc., a self-storage REIT and third-party management firm, plans to expand an existing facility in Mountlake Terrace, Wash. The project at 21818 66th Ave. W. calls for the demolition of five single-story buildings, to be replaced by a four-story building and a single-story structure. The REIT will also include stormwater facilities, landscaping and improvements to frontage along 66th Avenue. Based in Glendale, Calif., Public Storage has interests in 2,483 self-storage facilities in 38 states, with approximately 169 million net rentable square feet. It holds a 35 percent interest in Shurgard Self Storage SA, which has 234 facilities in seven European countries, with approximately 13 million net rentable square feet.

Stein Investment Group, which operates the Space Shop Self Storage brand, is converting a former Toys R Us in North Olmsted, Ohio, into a mixed-use project that’ll include self-storage and a restaurant as an out-parcel building in the parking lot. The 42,000-square-foot building at 27048 Lorain Road has been vacant for two years. Expected to open in spring 2021, the facility will contain 600 units. Based in Atlanta, Stein owns 3 million square feet of self-storage.

Phoenix-based U-Haul International Inc., which operates more than 1,500 self-storage facilities across North America, is converting a former Kmart in Bristol, Tenn. The operator purchased the site at 2854 W. State St. for $3.3 million in January. Once complete, it’ll comprise 65,000 square feet in 800 interior, climate-controlled units. The site will replace U-Haul’s smaller facility across the street. Established in 1945, U-Haul operates more than 55 million square feet of storage space in North America.

W. P. Carey Inc., a global net-lease REIT that owns more than 100 self-storage facilities nationwide, intends to convert a former retail store at the York Galleria in Springettsbury Township, Pa., to self-storage. Town officials recently voted 3-2 to change zoning for the former Bon-Ton store to allow the project. The York County, Pa., Planning Commission had recommended against the zoning change. Based in New York, W. P. Carey is an investment-management company that oversees a global investment portfolio and has an enterprise value of more than $19 billion. Its diversified portfolio of commercial real estate includes 1,168 net-lease properties comprising approximately 134 million square feet.

The William Warren Group (WWG), a privately held real estate company that operates the StorQuest Self Storage brand, opened a new facility in Brooklyn, N.Y. The property at 507 Osborn St. is between Linden Boulevard and Newport Street. Founded in 1994 and based in Santa Monica, Calif., WWG acquires, develops and operates more than 165 self-storage facilities in 14 states.

New Sources:

Star News, Council Asks for Staff for Rezoning to Allow for Indoor Storage
Yahoo Finance, SecureSpace Self Storage Announces the Grand Opening of a New Self Storage Facility in Piscataway, New Jersey
South Florida Business Journal, Self-Storage Building Proposed in North Miami Beach
The Real Deal, New Self-Storage, Retail Facility Coming to Boca Raton
CT Examiner, Shore Road Plans Raise Questions at Zoning Hearing
Real Commercial, Kennards Self Storage Circling Aus Post’s Adelaide Mail Centre
Clarence Bee, Self-Storage Business Owner Clashes With Mixed-Use Proposal Over New Units
Business Record, Project Update: Ankeny Storage Facility
The August Chronicle, Multistory Self-Storage Hits Metro Augusta
Pacific Business News, Hawaii Self Storage to Add 7th Location at Bank of Hawaii-Owned Building
Philadelphia Business Journal, 131,000-Square-Foot Self-Storage Facility Planned for Germantown
REBusiness Online, San Diego Rescue Mission Divests of 38,610 SF Industrial Property in San Diego
RH Rebel Storage, RH Rebel Storage Expanding to Minot, ND
Worthing Herald, Images Show New Design for 255-Homes and Self-Storage Facility in Shoreham

Previous Sources:

GM Today, Slinger Self-Storage Complex to Expand
Bristol-Herald Courier, Repairs Underway to Convert Former Kmart to U-Haul Storage Center
The Famuan, Convenient Self Storage Location for College Students Is on the Way
NJ.com, Residential Projects and Extra Space Storage Receive 25-Year Abatements in Bayonne
Cleveland.com, Developer Transforming Vacant North Olmsted Toys R Us Building Into New Self-Storage Facility
What Now Atlanta, Three Story, $5MM Self-Storage Facility Planned for the Atlantic Shopping Center
My Central Jersey, Self-Storage Facility Proposed for Hopelawn Section of Woodbridge
Wichita Journal, Another Self-Storage Facility Going Up in Wichita Area
AJC.com, Powder Springs Denies Self-Storage Facility
Community Impact Newspaper, CubeSmart Self Storage Opens 700-Unit Facility in Sugar Land
Connect California, $4M Lemon Grove Self Storage Development Trades
Next MLT, Public Storage on 66th Ave W to Be Expanded With 4-Story Building
Worcester Business Journal, Work Begins on New Worcester Storage Facility
Yahoo Finance, StorQuest Opens Modern Self Storage Facility in Brooklyn, NY
York Dispatch, Springetts Changes Rules to Allow Mini-Storage at York Galleria