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Identifying and Reaching Unique Self-Storage Customers

Article-Identifying and Reaching Unique Self-Storage Customers

By Tim Schlee

Whether your self-storage facility just opened its doors or has been going strong for years, it’s always a good idea to take a deeper look at the demographics you want to target. Some are obvious—homeowners with too much junk, students who don’t want to drag all their belongings home for the summer, and businesses that need a little extra office space. Others, however, are not so obvious.

Every facility owner and manager should have an intimate knowledge of the area in which his facility is located and the potential customers available to reach. There are many populations all around us that could be tapped as a marketing resource.

Transient Populations

These are people who frequently move, whether back and forth between fixed locations or continuously from one destination to the next. Anybody who is on the move can use self-storage. Students, as mentioned above, are a prime example of a transient population who don’t want to take all their belongings with them. Military personnel is another. Whether they’re on base or heading overseas, a storage unit can save service members a lot of hassle and allow them to keep their belongings safe.  

There are also smaller transient populations to consider, such as the elderly in nursing homes. Something must be done with all the stuff left behind in their former house or apartment, and many times the easiest way to deal with it is to put it in storage. If your facility is near a nursing home, speak to the management and set up a referral system. Care centers want to make moving into their facility as easy as possible for their tenants, and if that includes recommending a storage facility for a tenant’s belongings, they may love to do so.

Brainstorm ideas about the transient populations near you. If you’re in a state capital, look into politicians who travel home when they aren’t in session. A storage facility in Singapore even stores equipment for a circus when it’s not on the move. Wherever there’s a person on the go, there’s a person who might need storage.

Seasonal Recreation

Any companies that store large recreational equipment, especially items that are only used during a specific part of the year, are an easy target for self-storage. Many boaters, for example, do not have room for their boats at home or would rather devote the space to something else. If you’re near a lake or ocean, consider offering storage for large vehicles. If you already do, ramp up your focus on boats.

Similarly, target campers if you’re near a national park or some other large campground. RVs take up a huge amount of space, so many people would rather store them with you than at home in their driveway or backyard. Many homeowners’ associations don’t even allow RVs or other large vehicles to be parked on the street or in the driveway.

Speak to nearby apartment complexes and let them know you can accommodate RVs. Most multi-family residences don’t offer this kind of storage but would hate to turn away interested renters simply because they cannot accommodate a large vehicle. If they can recommend their tenant to you, everyone ends up happy. You can even speak with local RV retailers and strike a deal in which they store their excess vehicles with you.

Other seasonal recreational equipment might include skis or surfboards. Obviously, these are not as large as vehicles, but many people, especially those who live in apartments, do not have the space for them.

Collectors

People collect all kinds of things. Sometimes, a collection grows too large for a home, so they turn to self-storage for safekeeping. Do some research into the collector communities in your area.

Is there an art museum in your neighborhood? Perhaps you could market climate-controlled storage to art collectors who don’t currently have the space to display their art. Even better are wine or car collectors. These kinds of collections require a special kind of care, one that you as a storage facility can often provide, such as climate control to keep wine at the right temperature and humidity, or covered parking so a tenant’s car is safe from the elements.

Local Demographics

Manhattan Mini Storage had great success making topical and often very political advertisements in downtown New York. You don’t have to be so bold, of course, but knowing your demographics can help streamline your advertisements. Is the area around you liberal or conservative? If there’s a large population of gun enthusiasts, look into gun storage. (Note: It’s not legal in some states.) Is there a large green population? Look into ways in which you can make your storage facility eco-friendly, whether it’s something large like going solar or small such as offering recycling next to your trash bin.

Again, it’s a good idea to maintain a strong relationship with nearby apartment complexes or mobile-home parks. These kinds of living spaces are usually smaller and often don’t have room for all of the tenants’ belongings. But it also helps to know how many of your current tenants come from each community so you can adjust your marketing accordingly. If you tell an apartment manager five of his tenants already store with you, he’ll be much more inclined to recommend you in the future.

Another demographic to consider is local organizations such as churches. Similar to small businesses, these places might not have enough space and usually don’t have the means to expand easily. Storage become a convenient solution. Since larger organizations usually have enough space or the money to expand, target smaller ones such as local groups, churches, nonprofits, etc.

Do Your Research

Most important, do your research. Find out who lives, works or congregates near your facility. There are nearly infinite marketing possibilities beyond the ones mentioned in this post, and the only way to know which ones are available to you is to take a look around. It can help to get ZIP code demographics or lists of businesses in the area. Every storage location is unique, and your job as a marketer is to find out which populations your facility can accommodate best. It might take a little effort, but, it’s worth it.

Tim Schlee is a Kansas City native who studied English and linguistics at Truman State University. He is a content writer for StoreageAhead, which offers Web-marketing technology for the self-storage industry, including lead-generating search engines and facility management software. For more information, call 913.954.4110; visit www.storageahead.com.

MiniCo Offers Tenant-Safety Checklist for Self-Storage Operators

Video-MiniCo Offers Tenant-Safety Checklist for Self-Storage Operators

There are a number of proactive steps self-storage owners and managers can take every day to help ensure their property is safe. This includes sharing information with their tenants. In this video from MiniCo Insurance Agency LLC, the company offers a checklist of safety tips operators can use to create awareness with their tenants. It includes such notables as warning customers about stacking items to high in their units to not storing flammable objects.

Self-Storage REITs to Release 1Q 2014 Financial Results, Conference Calls Announced

Article-Self-Storage REITs to Release 1Q 2014 Financial Results, Conference Calls Announced

The four U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have announced when and how they will reveal their earnings statements for the fiscal quarter that ended March 31.

CubeSmart

CubeSmart will release its quarterly financial results on May 1. An accompanying conference call will be held at 11 a.m. ET on May 2. A live webcast of the conference call will be available from the investor-relations page of CubeSmart.com. The dial-in numbers are 888.317.6016 for U.S. callers, 412.317.6016 for international callers and 855.669.9657 for Canadian callers.

After the live webcast, the call will remain available on CubeSmart's website for 30 days. In addition, a telephonic replay of the call will be available through June 1. The replay dial-in number is 877.344.7529 for domestic callers, 412.317.0088 for international callers and 855.669.9658 for Canadian callers. The reservation number is 10044146.

CubeSmart owns or manages 540 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.

Extra Space Storage Inc.

Extra Space will release its quarterly earnings on April 28 after the market closes. The company will host a conference call at noon ET on April 29 to discuss the results. Hosting the call will be CEO Spencer Kirk, along with Scott Stubbs, executive vice president and chief financial officer.

During the call, company officers will review first-quarter performance, discuss recent events, and conduct a question-and-answer period for registered financial analysts. All other participants will have listen-only capability.

The phone number for the call is 800.510.9691 for U.S. callers and 617.614.3453 for international callers. The conference ID is 19951039. The conference-call playback, which will be available through May 4, will be accessible at 888.286.8010 in the United States or 617.801.6888 internationally. The conference ID is 91966208.

The conference call will also be available on the investor-relations page of ExtraSpace.com. Those who wish to listen online should visit the website at least 15 minutes before the event start time to register and install any necessary audio software. A replay of the call will be available online for 30 days.

Headquartered in Salt Lake City, Extra Space owns or operates 1,052 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 700,000 units and 78 million square feet of rentable space.

Public Storage Inc.

Public Storage will release information about its first-quarter earnings on May 1. A conference call is scheduled for May 2 at 1 p.m. ET to discuss the results.

For the live conference call, the domestic dial-in number is 866.406.5408. The international dial-in number is 973.582.2770. The conference ID is 25942930. The live webcast will be available through the investor-relations page of PublicStorage.com and will be accessible on demand until May 16. For the conference-call replay, the domestic dial-in number is 800.585.8367, the international number is 404.537.3406, and the conference ID number is 25942930.

Based in Glendale, Calif., Public Storage has interests in 2,200 self-storage facilities in 38 states with approximately 141 million net rentable square feet. Operating under the Shurgard brand name, the company also has 188 facilities in seven European countries, with approximately 10 million net rentable square feet.

Sovran Self Storage Inc.

Sovran will issue its quarterly results after the market closes on April 30. The company will conduct a conference call to review the financial results on May 1 at 9 a.m. ET.

The call can be accessed at 877.407.8033 within the United States or 201.689.8033 internationally. Management will accept questions from registered financial analysts after prepared remarks. All others are encouraged to listen to the call via webcast from the investor-relations page at UncleBobs.com. The webcast will be archived for 90 days. A telephone replay will be available for 72 hours after the meeting by calling 877.660.6853 and entering conference ID 13580118.

Sovran operates 486 facilities in 25 states under the Uncle Bob's Self Storage brand name.

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Self-Storage Project in Elmont, NY, Receives Nassau County Tax Breaks

Article-Self-Storage Project in Elmont, NY, Receives Nassau County Tax Breaks

A development group led by real estate firm and self-storage operator The Hampshire Cos. of Morristown, N.J., received significant tax breaks last week from the Nassau County Industrial Development Agency (IDA) for a planned storage facility in Elmont, N.Y. The board unanimously approved a sales-tax exemption of $258,750 and $20,475 off the mortgage-recording tax. In addition, property-tax bills will be frozen for three years before rising slowly during the next 12 years, according to the source.

The $10.4 million project will feature a three-story building comprising 116,000 square feet of storage space. Daniel J. Baker, an attorney for the developer, told officials the project wouldn’t happen without the tax relief, in part because the parcel on Linden Boulevard was viewed as undesirable by other businesses. "There weren't many takers for the property besides my client," he said.

The storage business is expected to generate $3.5 million more in taxes for the county over 15 years than if the lot remained vacant, according to Joseph J. Kearney, the IDA’s executive director. "There is an unmet need for self-storage facilities," he said. "This is an absolutely suitable project."

The Hampshire project is one of at least six self-storage businesses to receive tax relief from the IDA. Others are in the New York communities of Amityville, Deer Park, Glen Cove, Hicksville and Lindenhurst, according to the source.

The decisions have not been popular with some critics who believe self-storage businesses do not generate enough jobs to warrant the tax benefits. Instead, they believe the incentives should be reserved for larger employers, the source reported.

"How is this company that is receiving 15 years of tax subsidies going to give back to the community?" asked Anita Halasz, executive director with Long Island Jobs With Justice, a local advocacy group.

In 2012, Hampshire sold a 10-property portfolio to self-storage real estate investment trust Extra Space Storage Inc. The real estate company retained ownership of a second portfolio, which includes four facilities in Puerto Rico, four in New Jersey and one in Richmond, Va. Extra Space Storage assumed property management of those facilities, which now operate under the Extra Space Storage brand.

The Hampshire Cos. is a privately held, fully integrated real estate firm that has been in business for more than 50 years. It acquires, develops, leases, repositions, manages, finances and disposes of real estate. The company currently owns and operates a diversified portfolio of 259 properties in 28 states totaling more than 23 million square feet, according to its website.

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Image Gallery Captures Highlights From 2014 Inside Self-Storage World Expo

Article-Image Gallery Captures Highlights From 2014 Inside Self-Storage World Expo

Inside Self-Storage (ISS) has published a new online image gallery, “ISS Expo 2014: Visual Highlights From the Self-Storage Industry's Biggest Show of the Year.” The free presentation showcases notable moments from the 2014 Inside Self-Storage World Expo, which took place March 30 to April 2 at the Paris Hotel & Resort in Las Vegas.

The gallery highlights all facets of the expo, which drew thousands of attendees from around the globe, who participated in seminars, workshops, social events, and product and service exhibits. Image captions provide details on education sessions, special events, exhibitors and head-turning attendees like hip-hop artist and reality-television personality Flavor Flav and NFL players Roy Lewis and Walter Thurmond. The gallery can be viewed at www.insideselfstorage.com/galleries. Other galleries can also be viewed through the same page.

The next ISS event will be a special one-day Self-Storage Developers Conference on June 3 at the Jacob K. Javits Convention Center in New York City. Designed for investors, developers and aspiring self-storage owners interested in the business as well as current operators with plans to expand their portfolio or renovate facilities, the limited-seating event will provide expert insight to ground-up construction, conversions and remodeling projects. Shared case studies will also be used to illustrate specific development strategies. Complete conference details and registration information are available on the ISS website.

For nearly 25 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual Inside Self-Storage World Expo in Las Vegas, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

The Store Room Expands Self-Storage Facility in Salford, England

Article-The Store Room Expands Self-Storage Facility in Salford, England

U.K. self-storage operator The Store Room is expanding its facility at 671 Eccles New Road in Salford, England. The renovation, expected to take six weeks and cost £100,000, follows recent expansions at the company’s facilities in Bradford, Leeds and Leicester. To date, The Store Room has spent £200,000 on facility renovations. The company is already taking reservations for the new units, which will be available in mid-May.

The Store Room attributes its growth to an increase in consumer demand as the housing market in Salford and West Manchester improves, company representatives said in a press release.

“The early months of the year are normally quiet in the self-storage industry, but 2014 seems to be bucking that trend. Inquiries and customer numbers are significantly up over last year, and we need to make the investment in our Salford location now to increase its capacity so we can meet this extra demand,” said Jeremy Bradburn, managing director. “The recent improvement in inquiries from people moving a house is very encouraging and after a number of quiet years, we are very excited about the months ahead.”

The company is also seeing an uptick in business customers at all of its locations. The Salford facility’s proximity to several business areas is driving demand, company officials said. The property is near MediaCityUK, a 200-acre, mixed-use development site on the banks of the Manchester Ship Canal, and Trafford Park, an industrial estate almost entirely surrounded by water.

Established in 2007 and headquartered in Manchester, The Store Room operates self-storage facilities in the English communities of Bradford, Leeds, Leicester, Manchester, Preston and Rotherham.

 

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Centerville Self Storage in Woodstock, IL, Sold

Article-Centerville Self Storage in Woodstock, IL, Sold

Centerville Self Storage, a 47,650-square-foot facility in Woodstock, Ill., was recently sold to Sparkplug Capital LLC, a Boulder, Colo., company that operates the Red Dot Storage brand. The seller was Centerville Self Storage LLC.

Built in 2000, the property at 2105 S. Eastwood Drive features 10 single-story buildings with 322 units. Amenities include an onsite manager's office with retail center, security lighting, video cameras, electronically controlled access gate, chain-link perimeter fencing and drive-up units.

The buyer and seller were represented by Sean M. Delaney, vice president of investments for the Chicago/Oak Brook office of Marcus & Millichap Real Estate Investment Services and a director of the firm’s National Self Storage Group.

Marcus & Millichap has more than 1,300 investment professionals in offices nationwide and closed more than 6,600 transactions last year. The company was founded in 1971.

Red Dot Storage also operates one facility in Machesney Park, another in Rockford, Ill., and two in Yorkville, Ill.  

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Self-Storage Project Approved for Odd-Shaped Parcel in Bluffdale, Utah

Article-Self-Storage Project Approved for Odd-Shaped Parcel in Bluffdale, Utah

City officials in Bluffdale, Utah, have approved a conditional-use permit for a proposed self-storage facility along a narrow, 3.17-acre strip of property at 15883 Camp Williams Road. Construction on the 406-unit Towne Storage is expected to begin in May with a completion date scheduled for November.

The project faced opposition from neighboring residents who voiced concerns about increased traffic and poor accessibility. The city ultimately determined the self-storage facility would be “the least impactful use of the commercially zoned property,” according to the source.

The parcel was designated as a general commercial zone approved for gas stations, restaurants, retail and other services. Self-storage required a conditional-use permit. Property owners Sue and Rex Bingham said they had difficulty selling the lot because its long, narrow shape was not conducive to other types of commercial operations.

Mayor Derk Timothy supported the proposal as a sound alternative to other business types in the space. "You could definitely end up with much worse,” he said. “I would rather have these storage units than almost any other permitted use in this zone."

Gary Free, president of Towne Storage Management Co., argued the storage facility would have as much traffic impact on the area as three homes. "There may only be a few visitors in a day,” he said. “Parking is within the fortress. I cannot think of any commercial uses that have less impact."

Free also said the facility would be designed to blend in well with the community. It will be surrounded by brick walls and attractive landscaping, he said.

Towne Storage operates 13 self-storage facilities in Utah and one in Las Vegas.

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Storage Solutions of VA Launches Itimizit Online-Inventory System for Self-Storage Customers

Article-Storage Solutions of VA Launches Itimizit Online-Inventory System for Self-Storage Customers

Storage Solutions, a Winchester, Va.-based self-storage operator, has launched a Web-application service called Itimizit that enables customers to rent only the space they need, manage stored belongings online and request valet pickup and delivery service for individual items. The company is hoping to franchise the service to other storage operators, officials said in a press release.

Through the application, residential and business customers can rent as little as 1 cubic foot of space, manage their belongings online and schedule pickups and deliveries through their desktop computer, tablet or smartphone. Noah White, CEO of White Properties Inc., the parent company of Storage Solutions, calls the service “microstorage” because of its space flexibility.

“Microstorage allows my customers to rent only the space they need, even if it is just 1 cubic foot,” he said. “As a storage operator, this is a great thing because it allows us to maximize the profitability and flexibility of our existing space.”

White came up with the idea after watching tenants struggle to locate specific items they had stored in their units. “I think any storage-unit operator has had the experience of watching a family of four pick through an entire unit just to find one item,” he said. “Whether they use self-storage or not, people just don't know what items they have or where to find them. I realized there is real value in helping people not only store but manage the whereabouts of their possessions."

Each item stored through the Itimizit system is given a unique, scannable code to make locating and tracking it easy through the app, according to the company’s website. Customers can bring belongings they wish to store to the facility themselves or schedule a pickup. When an item needs to be retrieved, customers can use the app to schedule an in-person pickup or have it delivered.

The service is targeted at customers who wish to store mostly seasonal items as well as those who may frequently relocate, such as military families, senior citizens and students. There are different minimum monthly storing prices for residential and business customers, as well as fees for preparing items for in-person pickup, placing items into storage and pickup/delivery services. When customers sign up for Itimizit, they receive three standard storage boxes delivered to their door at no cost, according to the website.

In addition, multiple users are allowed on a single account and are given individual logins. Customers can also use multiple pickup and delivery-destination addresses.

White and independent software developer Jason Wilkinson spent 18 months building the Web application. “Right away we knew that other storage operations would want to use Itimizit, so we built it from the ground up as a ‘franchiseable’ product,” White explained. “Suddenly, Itimizit went from something we would offer to our local customers to a true tech startup that would actively seek storage partners all over the country."

Founded in 1985, White Properties operates seven self-storage facilities in Virginia under the Storage Solutions brand name. The company’s portfolio is comprised of more than 200,000 square feet of self-storage space and 50,000 cubic feet of records storage. It also offers document-shredding, pack-and-ship, and e-cycle services.

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Locust Grove, VA, Board Approves Self-Storage Zoning Change

Article-Locust Grove, VA, Board Approves Self-Storage Zoning Change

The zoning board in Locust Grove, Va., approved a special-use permit on April 8 for a self-storage facility to be developed on nearly 11 acres of land after it faced opposition from nearby residents. The unanimous vote by board members rezoned two parcels totaling 10.9 acres from agricultural to limited commercial.

The city’s planning commission had previously recommended approving the zoning request by the original applicant, Stephan McLean, with one slight alteration, changing it from general commercial, which allows for a building height of 100 feet, to limited commercial, C-1, with a maximum height 40 feet.

McLean later left the project after learning about a required left-turn lane and costs associated with stormwater management. The project was then picked up by Ken Dotson of SJS Limited Co. and D & W Investments LLC. Dotson has agreed to perform a Transportation Impact Analysis when he submits the site plan to meet Virginia Department of Transportation regulations, according to the source.

The property is on the north side of State Route 20, about a third of a mile east of the intersection of Flat Run Road and abuts the nearby community of Lake of the Woods.

Three residents from the neighborhood and two others who live in the county spoke against the development during the zoning meeting. A letter from the Lake of the Woods Association expressing concern about stormwater runoff was also presented.

Supervisor Lee Frame, whose district comprises Lake of the Woods, said the developer will need to comply with the new stormwater law that goes into effect on July 1.

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