Self-storage development is once again picking up as lending becomes more favorable and new demand for the service grows. This ISS News Desk takes a closer look at what’s driving new development, who’s building and where, and offers predictions for the year. Plus, learn about the new Inside Self-Storage Developers Conference, June 3, at the Jacob K. Javits Convention Center in New York City.
As information flows faster and the world feels smaller, many self-storage facilities are enjoying the benefits of cutting-edge technology, which can help operators accomplish many tasks. Every storage business needs two key elements to be successful: customers and professional staff. There are new tools on the market that can help you find both. This article focuses tools you can use to track marketing efforts and sales leads and recruit quality staff.
How can operators turn more rental inquiries into actionable leads and reservations? Next, how do they turn a larger portion of those leads and reservations into rentals? Through better data collection and improved sales skills.
There are two types of technology that will help you turn more prospects into renters. First, there are tracking tools that follow incoming calls and Web visits from ad campaigns, tracking sales results by campaign and salesperson. Second, there are call-recording and -evaluation tools that help storage owners assess the quality of interaction between their employees and potential customers.
There are many call-tracking systems on the marketing that allow storage operators to see which marketing campaigns are bringing in inquiries and the conversion rates of those efforts. Some include call-tracking phone lines with built-in recording and evaluation features. Some even offer a lead-management or customer-relationship-management component that helps to ensure efficient lead follow-up.
For those unfamiliar with lead tracking, here’s how it works: You associate a unique phone number with each marketing campaign—for example, one on your billboard, another on your print ad, another on your website, etc. The technology tracks how many leads and reservations are generated by each and records each call. You can listen to calls from specific campaigns to see if there’s a difference in the type of prospect attracted by each. You can also use the recordings to evaluate employee sales skills in relation to specific marketing efforts.
For instance, you might know from watching your statistics and listening to calls that the people who respond to your ads on the student-association website of your local college have a unique set of concerns and respond to certain offers. You can use this information to perfect the ads and establish a special call-handling method for this campaign. You’ll also be able to determine the optimal follow-up timing. All these actions will boost your conversion rates.
If you’re not using lead-tracking technology, put this on your radar and get it done this year. You could easily boost conversion rates 10 percent just by watching the numbers and taking simple actionable steps that become apparent in the process.
If you layer a set of more efficient lead-management practices on top, you could raise your conversion rate another 10 percent. If you think all this tracking and coaching and managing sounds like a big nuisance, you’re right. But a nuisance worth 20 percent of improvement in conversion rates could be a very profitable activity.
The other area where technology shows great promise is in the recruitment of self-storage managers. Most storage companies are too small to have a human resources department with people specializing in recruitment, compliance, benefits and payroll. This means they're either spending a great deal of time managing these processes, or they're skipping steps and making a lot of potentially costly mistakes.
If your employment process isn't thorough, you may be hiring managers who are not well-suited for the position, causing a lot of turnover, training issues, and poor customer-service and sales interactions. The cost to replace an ill-suited hire is tremendous. The price of providing less than stellar sales and service experiences is unfortunate and unnecessary.
Fortunately, there are companies streamlining the recruitment process through online services. For example, Active Screening enables storage owners to handle the application process, new-hire paperwork, background checks and other screenings online.
If you’re doing your new hiring correctly, you have a stack of paperwork and hours of preparation every time you need to fill a position. Being able to automate and digitize this process is a cost- and time-saver and helps you avoid poor hiring decisions. Sometimes storage owners hire people too quickly because they don’t want to go through the hassle of doing background checks for multiple candidates. I understand the desire to avoid mountains of paperwork and endless hours of interviewing. However, hiring is one of the most important decisions over which every owner has control.
Using an online system is a way to free yourself from the red tape and concentrate on the people side of recruitment. You'll be more deliberate in your decision-making process and hire a well-suited candidate.
There are many other ways technology can help storage operators save time and money. New tools emerge every day. Spend some time each week investigating these products and services. If just one proves to be worth a 20 percent increase in your sales-conversion rates, you’ll know you’ve made the right investment.
Tron Jordheim is the chief marketing officer of StorageMart and director of PhoneSmart. He has consulted for many self-storage companies and spoken at industry events in Canada, Mexico, Spain, the United Kingdom and the United States. Prior to joining StorageMart, he managed one of Culligan’s top U.S. bottled-water franchises. For more information, visit www.phone-smart.net.
MiniCo Insurance Agency LLC, a provider of insurance products for the self-storage industry, has launched a contractors liability-insurance program for New York development contractors. Coverages include general liability and excess liability. Rick Krouner will serve as president of the newly created casualty division, company officials said in a press release.
The program will be available through New York wholesalers and targets several contractor types including commercial and residential, general, and trade and artisan.
“With its 40-year history of program administration, MiniCo offers a dynamic platform to build the casualty division,” Krouner said. “The new contractors liability program is the first of many casualty-insurance solutions to be developed and offered by MiniCo.”
“MiniCo’s continuing effort to develop new insurance programs for a variety of industries will benefit from Rick’s many years of experience and in-depth knowledge of the casualty-insurance market,” added Mike Schofield, president and CEO of MiniCo.
Phoenix-based MiniCo has provided self-storage insurance programs since 1974. The company offers multiple specialty property and casualty insurance products for a variety of unique industries and exposures and carries an A.M. Best rating of “A.” MiniCo is a member of the Aran Insurance Services Group of Rockville Centre, N.Y.
Group First International (GFI), a Hong Kong-based distribution company that serves as the exclusive international marketing and sales representative of Store First, the storage brand of U.K.-based real estate developer Group First, is targeting potential self-storage investors outside the United Kingdom. GFI is a separately owned and managed company, according to the source.
The Store First model differs from traditional self-storage in that units or entire floors are sold to investors, often businesses, with full property title on a leasehold basis up to 999 years, according to the source. The minimum leasehold is 250 years, according to Group First, which typically handles the sub-lease renting and management of space on behalf of investors for an annual fee, the source reported.
“Being a property developer, Group First builds the storage facility, which contains the individual storage units, and then sells these units, through Store First, to investors, who can buy anything from a 25-square-foot space to an entire floor,” said James Young, chief operating officer for GFI.
An advantage to investors is not having to pay the British value-added tax because the purchase price per storage unit is below the £79,000 threshold for a business property. This enables them to rent storage units at a lesser rate than competitors, according to the source.
GFI is marketing the self-storage investment strategy to financial advisers, real estate companies and other financial intermediaries. Entities that already have a large presence in Store First storage properties include the British National Health Service (NHS). “The NHS has a floor in one of the properties, and British Gas has two floors, with a third pending," said Mike Starvis, GFI’s CEO. "Another Store First tenant is Monster Beverage.”
Behind the success of the Store First self-storage model, Group First is expanding the concept to long-term vehicle storage through a new division called Park First. GFI is in the process of securing international marketing and sales rights to Park First and other Group First products, according to the source.
Earlier this year, GFI changed its name from DV Global Capital Ltd.
Group First’s property portfolio includes residential, business, self-storage and vehicle storage assets. The company operates 11 Store First storage facilities in northwestern England and one in Scotland.
Update: 4/21/2014 – The Uncle Bob’s Self Storage at 1380 Broad St. recently opened with 582 units. Amenities include video cameras, Wi-Fi and 24-hour access upon request. The interior design includes brushed-aluminum finishes and custom-tinted concrete flooring, according to a company press release. It also features an internal sound system that plays local radio.
The property is half a mile from the Chattanooga Convention Center and accessible from the central business district, the University of Tennessee at Chattanooga campus and the Lookout Mountain neighborhood.
“The Southside Historic District is transitioning from industrial to vibrant and welcoming, and we are excited to be part of this movement,” Sapra said. “This facility has been designed to a high-architectural standard and will fit right in with the aesthetic of the area.”
The facility is Uncle Bob’s sixth in the area. “The city of Chattanooga has always been kind to Uncle Bob’s, and we are confident our customers will enjoy this new downtown facility,” said William Tierney, area manager of Uncle Bob’s Chattanooga storage facilities. “We look forward to continue serving the greater Chattanooga area.”
Uncle Bob’s Self Storage is owned by Sovran Self Storage Inc., a real estate investment trust that acquires and manages self-storage facilities. The company operates more than 450 facilities in 25 states.
"Downtown Chattanooga has emerged as an attractive destination for entrepreneurs and residents that are seeking a great quality of life," said Nitesh K. Sapra, company principal. "This facility will provide support to the residential and economic growth that the city is currently experiencing."
The Chattanooga facility is expected to be completed next spring. The company recently completed a similar facility in the Inman Park neighborhood of Atlanta, officials said.
NitNeil Partners is a regional investment firm that specializes in the acquisition and development of self-storage properties. The company owns 14 facilities comprising more than 700,000 square feet of rentable space.
A self-storage development proposed for an area near Swan Lake in Vernon, British Columbia, Canada, is facing opposition from the local zoning board. Members of the Regional District of North Okanagan (RDNO) board have reviewed the facility plans three times but remain lukewarm about the project. Board member Mike MacNabb called it “a very poor use of land,” noting the area’s rich farmland and proximity to the lake, which is a fishing and camping destination.
The proposed facility would include four buildings and 107 self-storage units. Although the property’s eastern parcel at 6628 Pleasant Valley Road is currently zoned for service commercial, the western parcel requires rezoning to allow self-storage.
MacNabb questioned whether a self-storage facility would provide any benefit to the community or simply cater to tourists and seasonal residents. He also said board members need to discuss the long-term development plans for the Swan Lake corridor.
RDNO Board Member Bob Fleming, who represents the Swan Lake area, said the board’s hands are “somewhat tied,” as self-storage development is permitted under the current zoning.
The rezoning application will require final RDNO approval.
By Kay Miller Temple
When it comes to four-legged companions, the truism “you can choose your friends, but not your family” requires modification. Pets are often chosen as friends and then become like family, playing a key role in a person's day-to-day life—sometimes even at work. Not only do self-storage operators have love and respect for their own pets, many use their business acumen and community presence to assist other animals in need.
Self-storage is a very people-focused enterprise, and self-storage managers who live with a pet on site or bring one to work may find their pet's friendliness and warmth can be a real boon for the business. When Geraldine Goldberg, owner of Arcata Bay Self-Storage in Arcata, Calif., was working on her facility website, the designer asked how people identify her. She couldn't say what people remember about her, but they always remember her dog, Poppy. "Well, that's your brand," the designer said.
Since then, Poppy and Goldberg appear together in all facility advertising. The mixed-breed rescue dog is golden in color and likely part Golden Retriever and even some Border Collie, Goldberg says, because she has a "working dog mentality." She even has her own job description for when she's on the storage property: Always be on the leash except when playing ball in the fenced back lot. Only bark at the bad guys. And remember police officers and letter carriers are friends.
Goldberg is aware that her "brand" may deter some customers, and that's perfectly OK with her. "People know right off the bat there's a dog here, and if they don't like dogs, they are not going to rent from me, and that's just fine," she says. "And if they like dogs, which I find most people around here do, they want to rent from me."
While many pet breeds are ideal for long days at a self-storage facility and will interact favorably with tenants, there are some types that might not be simpatico. When his manager, Lynne, came to work at Kram-It Self Storage in Grove City, Ohio, facility owner Zac Zeune had no problem allowing her to bring her beagle, Nemo, to the office. Although friendly, Nemo doesn't often venture from the office, preferring to stay nestled in his bed under the desk. "For customers who like dogs and knows he's there, well, Nemo will come out," Zeune says. "Especially if he thinks he hears food."
If an employee's pet is permitted in the office, operators should consider the breed's temperament, Zeune says. Beagles are typically calm—something Zeune's own pet, a Jack Russell Terrier, is not. "As we like to say, he's just not 'work quality,'" says Zeune.
But Brandi Ulrey, president of Safe Stor Storage Centers of Salem, Ore., and Tacoma, Wash., has no qualms about bringing her Jack Russell to work every day. Manfred, aka Manny, is a 4-year-old rescue dog with dwarfism. His small size hasn’t stopped him from being the joy of the facility.
"Sometimes he can be a bit ‘bouncy’ for little kids, so we keep him in my office in the back," Ulrey says. "But he is definitely a people dog and, more specifically, a mama's boy."
Coco, a three-year-old Papillon, fits her breed’s description of playful and affectionate, says Richard Markle, resident manager for Alluvial Mini-Storage in Fresno, Calif. Papillons are named after the French word for butterfly, which describes the shape of the hair covering their ears. Coco has been greeting the facility's customers since the tender age of six months. "She loves people," Markle says. "But she's trained to not run around the counter unless we release her."
No matter the characteristics for which a breed is known, some pets will break from the mold and display other traits. Jim Stromberg, owner of M C Mini Storage in Houston, Minn., says his Cavalier King Charles Spaniel, Snickers, is anything but a lap dog. "In England, Cavaliers were used to keep rich women’s laps warm during buggy rides," Stromberg says.
Instead, Snickers functions as kind of a canine hearing aid. Stromberg suffers from an acute hearing loss in his right ear. Now he appreciates how Snickers' body language alerts him to sounds he no longer hears well, like a customer's arrival.
"When someone drives into the storage facility, he acts like a pointer," Stromberg says. "When he stares in a certain direction, I can look up and see who's coming in."
Dogs aren’t the only pets you find on site. Erika Amaro, manager at Brooklyn Park Mini-Storage in Brooklyn Park, Minn., keeps her cat, Harley, with her at work. Customers comment on Harley's mild manner—well, those who have actually seen her. "Harley just disappears when customers arrive and stays away for usually an hour," Amaro says. "That leaves little room for anyone who would complain about the unprofessionalism of having a pet a work."
Researchers have found that even brief interactions with pets can help a person decrease stress and experience an improved sense of well-being. Lisa Bakken, owner of A-Rite Place Self Storage in Colorado Springs, Colo., agrees. She recognizes that her managers may be animal lovers who find comfort in bringing their pet to work,.
"Since we are dog lovers, we understand how other people feel," she says. "Without one, the house isn't really a home; and we want our managers to be happy here and have things they love, like their dog."
Bakken admits she’s considered liability issues, but employee happiness is a priority. She believes having a small dog on site is fine, though she's temporarily set aside the "small dog" rule for her own pooch, an Irish Wolfhound named Ozzie, while she fills in and awaits the arrival of some new managers. "If we lived here all the time, we would not have Ozzie here, as it isn't fair to him," she says.
Ozzie, who is used to plenty of running room and grass, is tolerating the concrete and being fenced in. His good looks and large size make him a popular “photo op,” so many customers request photos of him to post on their Facebook pages, Bakken says.
Pets owned by tenants may also be common visitors to storage facilities, but an operator must have policies in place. For example, some stipulate that pets must remain in vehicles when on site. Others have no problem with pets so long as they're leashed and well-behaved.
Bakken clarified her policy for one curious tenant. "I asked him to imagine all 350 tenants bringing their dog with them and letting them run around while they are otherwise occupied in the storage unit,” she says. “My point was made.”
Goldberg is "firm and also friendly" about her policy that pets are welcome as long as they remain in the tenant's vehicle. "I simply remind them that Poppy works here," she says of instances when tenants question her pup's leashed presence.
Some self-storage businesses use of guard dogs for security, but any facility owner who’s considering this should first contact his insurance company, advises Dan Sommer, vice president of marketing and communications for MiniCo Insurance Agency LLC, a provider of specialty insurance products for the self-storage industry. The insurance provider should be apprised of the dog’s breed and training and where it will be kept during business hours.
Fences, gates, lights, unit alarms and closed-circuit monitoring for security are preferred methods of security over guard dogs, says Kay Schaefer, senior underwriter for Deans & Homer, an insurance company with more than 35 years of experience in the self-storage industry. Both Sommer and Schaefer agree it’s good practice to inform your insurance company if you plan to have a pet on your property full-time.
While some storage operators are bringing their furry friends to work, others are working to support local animal organizations. Jeff and Peg Wilkinson, managers at Airport Self Storage in Salem, Ore., help to sponsor a dog-licensing amnesty program, which is now in its fourth year. Connected with Marion County Dog Services, the program offers two means of assistance: forgiving late fees and license violations, and providing reduced-cost vaccinations.
"We are also dog lovers, so it fell right into place as a community-action program," Jeff Wilkinson says. "Our community looks forward to it, and our neighbors with dogs need and appreciate it." The sponsorship also brings in prospective tenants, he says.
Joseph Sidawi, owner of Joshua Self Storage Solutions in Joshua, Texas, says his volunteer work led to a series of pet-centric community service. It started when the local Meals on Wheels (MOW) program needed someone to help deliver food for the inaugural Ani-Meals on Wheels. An experienced volunteer and animal lover, Sidawi was all in.
MOW provides homebound elderly and disabled people with home-delivered meals, daily personal contact, and support for individuals and their families. The pet-food service is free to MOW clients and provides provisions for cats, dogs, birds and fish. Joshua Self Storage employees deliver meals on the first Monday of each month.
The Ani-Meals program has been part of the organization’s local services since 2009 and expands to new communities each year. Joshua is the eighth town to receive the service in Johnson and Ellis counties. The organization has partnered with Joshua Animal Control, which stores the pet food at its facility and assists with pet-food donations.
"Getting to see the people with their pets—they are so grateful and thankful to have that food for them," Sidawi says. "More important, they also have more food for themselves."
Noting the community impact of Ani-Meals, Sidawi looked around and saw a need in other places, such as the local animal shelter. He asked tenants who were moving out of their units to donate anything they didn't want for a charity auction. With a local auctioneer volunteering his services and help from a supply business in a nearby town, Sidawi turned some of the auction proceeds into a trunk-load of canned pet food and rawhide bones for the shelter.
Sidawi likes to support non-kill animal shelters that usually depend on private funding and says it's easy to find many ways to help your community. "Always be vigilant and you can find things every single day to help out.”
In February, friendly self-storage rivals in Washington squared off to see which team could bring in the most food donations for Kitsap Humane Society (KHS). Reliable Storage Bainbridge and Reliable Storage Poulsbo battled Bainbridge Self Storage, Bainbridge North Storage and Pacific Storage in Poulsbo in the fundraiser. The food drive ultimately garnered about 2,000 pounds of pet food, according to Janice Danielson, manager of Bainbridge Self Storage.
In addition to facility operators, self-storage vendors also participate in animal-oriented charity efforts. The employees at Michaels Wilder, a marketing and talent-management services company, support several animals-in-need organizations, lending financial and volunteer assistance to events like the Fore Paws! Golf Tournament and Bikers for Boxers Poker Run. The company even created this 2014 calendar featuring employees with their pets.
Though animal-loving self-storage owners, managers, tenants and business associates may not recognize the name Anatole France, a French writer who died in 1924, his quote may resonate with all of them as they care for their own pets and look after animals in need: “Until one has loved an animal, a part of one’s soul remains unawakened.”
Kay Miller Temple is a physician and recent graduate from the master’s program at Arizona State University’s Walter Cronkite School of Journalism and Mass Communication. To reach her, e-mail [email protected].
Berkeley Point Capital LLC, a lender and asset-management provider for multi-family properties, has expanded its finance options to include loans for commercial real estate such as self-storage, industrial, mixed-use, office, retail and non-agency, multi-family properties. Capital solutions include commercial mortgage-backed security and bridge loans, as well as Fannie Mae, Freddie Mac and Federal Housing Administration financing, company officials said in a press release.
"We worked diligently to broaden the range of financing options we offer to our clients, and are excited now to deliver a full spectrum of commercial real estate capital markets products for all major property types," said CEO Jeff Day.
"Multi-family financing has undergone dramatic changes over the last 10 years as consolidation in the industry has led to commoditized debt offerings,” added Michael C. May, management committee member at Berkeley Point and former executive vice president at Freddie Mac. “Clients are increasingly looking for a trusted provider that can address all of their financing requirements.”
Berkeley Point provides financing, loan-servicing and asset-management services. The company has more than 300 real estate professionals in 15 offices nationwide, and services a portfolio worth more than $26 billion encompassing more than 2,000 loans in 45 states and the District of Columbia.
A masked gunman carrying a semi-automatic pistol entered Sausalito Mini Storage in Sausalito, Calif., last week, tied up the manager and stole $200 in cash. The robber took money from the business at 415 Coloma St. and also demanded the employee’s wallet. He forced the worker to the floor, tying the manager’s hands and feet with plastic bindings before fleeing.
Local police and Marin County sheriff’s deputies searched the area for an hour after the incident, but the suspect was able to escape, according to the source.
The robber was described as a tall white male wearing a blue jacket, blue jeans and a blue cap. He also wore a surgical or dusk mask, according to Sausalito Police Lt. Kurtis Skoog.
Anyone with information connected to the robbery is encouraged to call Sausalito police at 415.289.4170.
Sausalito Mini Storage is part of the All Over Marin Mini Storage group of self-storage properties, which includes facilities in Corte Madera, Larkspur, Novato, San Anselmo and San Rafael, Calif.
Storage Post Self Storage, which operates more than 25 facilities throughout the Eastern United States, has appointed Robert M. Jackson to its executive leadership team as chief administrative officer and general counsel. He will be responsible for providing leadership on all legal matters including governance, compliance, litigation and risk management, as well as capital markets, joint ventures and investments. In addition, Jackson will lead the company’s finance, accounting, investor-relations and human-resources groups.
Jackson has two decades of real estate investment experience, focused on joint ventures and capital-markets activities across multiple product types. He has extensive knowledge of legal, tax and business-compliance practices, as well as real estate acquisition, development and disposition expertise, according to a company press release.
Most recently, Jackson served as senior vice president and general counsel for Cousins Properties Inc., where he was responsible for the delivery of legal services and provided executive leadership to the human-resources and information-technology departments. He was also previously a partner at Troutman Sanders LLP, where he advised public and private clients in connection with corporate and real estate matters, specializing in partnership and joint ventures.
"We are pleased to welcome Robert Jackson to Storage Post's executive team," said CEO Bruce Roch. "Robert is a proven real estate executive with a wealth of legal, real estate investing and leadership experience, which are attributes well-suited to our strategic needs, specifically around capital markets, joint ventures, acquisitions and development. I am confident Robert brings enormous complementary value to our team."
Jackson is an active member of his community, currently serving as a director of the Boys & Girls Clubs of Metro Atlanta and a team manager at the Tophat Soccer Club. He holds a bachelor’s degree in finance from the Indiana University’s Kelley School of Business, a Juris Doctorate with distinction from the University of Missouri-Kansas City School of Law, and a master’s in law in taxation from the University of Florida's Levin College of Law.
"I am excited to join Storage Post, and I look forward to contributing to the company's plans for continued expansion in the self-storage market, and working to scale first-class legal, finance, accounting, investor relations and human-resources functions,” Jackson said.
Headquartered in Atlanta, Storage Post has more than 25 locations in Georgia, Louisiana, New Jersey and New York. The company is expanding through self-storage acquisitions and new development.
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