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Raleigh, NC, Leads U.S. Self-Storage Supply Growth

Article-Raleigh, NC, Leads U.S. Self-Storage Supply Growth

Though the Raleigh, N.C., Metropolitan Statistical Area (MSA) ranks No. 42 in the United States in number of self-storage facilities, it has the industry’s fastest growth rate of supply among the nation’s top 50 MSAs. In the next year, 1.9 million net rentable square feet of self-storage is expected to come online in Raleigh, representing a 23.1 percent increase, according to a study released by STR Inc., a global supplier of data and information services for the health-club, hotel and self-storage industries.

As of January, Raleigh had 168 operating self-storage facilities comprising about 8.1 million net rentable square feet, with 42 percent independently owned and 58 percent affiliated with a chain. The operators with the largest presence in the market are Ample Storage, Life Storage Inc. and Public Storage Inc. The average size of the existing facilities is around 48,500 net rentable square feet, the report states.

Of the 48 Raleigh-area storage development projects being tracked by STR, 12 are expansions to existing properties. Within the pipeline of new construction, 13 are under construction, while 19 are in the planning phase and four are in the final stages of planning. STR predicts 29 of the projects will be complete in the next year.

Raleigh’s self-storage supply has been trending upward since 2013, growing 37.8 percent through 2017, according to commercial real estate services firm Marcus & Millichap. The growth has paralleled increases population, which grew 15.3 percent (1.3 million people) from 2010 to 2016, the STR report states.

“When combining U.S Census Bureau data and STR’s ranking of the Top 50 largest MSAs for self-storage, Raleigh’s population growth from 2010 to 2016 ranked third, behind only Austin, Texas, and Fort Myers, Florida,” wrote STR analysts.

STR believes the self-storage growth rate in Raleigh as well as other U.S. markets is likely to slow in the near term. “We expect in the not-too-distant future—whether that’s six months, 12 months, 18 months, I can’t tell you—that the pipeline will start to flatten out, and the percentage of projects in the pipeline that make it through to completion will go down,” Anne Hawkins, executive vice president of STR, told a source.

STR launched a self-storage database in 2015 designed to offer development and performance reporting. A reporting page on its website allows industry professionals to share information about new self-storage developments in the United States including expected completion dates. STR uses its collected data to provide aggregated market-segment data, competitive benchmarking, construction pipeline reports and industry forecasts in the sectors served by the company.

Sources:
STR, Raleigh Self-Storage Supply Growing Faster Than Any Other Top 50 MSA
SpareFoot Storage Beat, Raleigh Leads U.S. in Self-Storage Supply Growth, Report Says

UK Self-Storage Association Hosts 'Day at the Races' Networking Event in Chester, England

Article-UK Self-Storage Association Hosts 'Day at the Races' Networking Event in Chester, England

The Self Storage Association of the United Kingdom (SSA-UK) will host a networking event on May 10 at the Chester Racecourse horseracing track in Chester, England. “Day at Chester Races” will be held in conjunction with Ladies Day, which is part of the venue’s Boodles May Festival, according to an e-mail sent to SSA-UK members.

The event offers attendees exclusive use of the trackside marquee positioned on the last furlong of the course. The area is equipped with race guides and betting facilities as well as television monitors to follow the races. In addition to networking possibilities and the races, attendees will have access to drinks throughout the day, a hot-plated lunch, and afternoon tea and snacks, the e-mail stated.

“Last year was a huge success—a beautiful day, lots of food and drink, and even a few big winners,” SSA-UK officials said.

The Chester Racecourse is the oldest horseracing track still in use in England. Nearly 300,000 people attended last year’s races, according to the e-mail. Ladies Day is described as “an intoxicating mix of competitive handicaps and top-class group races, contrasting with the vibrancy of an enthusiastic stylish crowd—an amalgam only Chester can deliver.”

The association event will be held in conjunction with major sponsor Active Supply and Design Ltd., a self-storage builder. Other sponsors include PTI Security Systems, insurance broker Reason Global Ltd., and portable-storage providers Mr. Box Ltd. and Willbox Ltd.

The SSA-UK is the trade association for the self-storage industry in the United Kingdom. Its mission is to support member operators and vendors, promote best business practices, and raise public awareness.

Liberty Investment Properties Continues to Expand Southeast Self-Storage Portfolio

Article-Liberty Investment Properties Continues to Expand Southeast Self-Storage Portfolio

Liberty Investment Properties Inc., which develops and operates commercial real estate, has purchased a new self-storage facility in Tampa, Fla., in partnership with private investors. The three-story property at 5045 W. Cypress St. is days away from opening, according to a press release.

It’ll be managed by self-storage real estate investment trust Extra Space Storage and branded under its name. Located in the Westshore Business District, which includes Tampa International Airport, the facility contains 550 climate-controlled units.

“We are extremely intentional about the location in which we are developing new storage product,” said Adam Mikkelson, president of Liberty. “Our unique understanding of demand and providing a quality product for our customers are top priorities for our organization.”

Liberty was represented in the transaction by Jeff Dervech, president of real estate firm Dervech Real Estate Inc.

With a significant commercial investment presence in the Tampa market, Liberty is positioned for ongoing growth throughout the Southeast. Earlier this year, it opened a four-story storage facility in downtown St. Petersburg, Fla., as well as its third WoodSpring Suites, an extended-stay hotel.

Based in Orlando, Fla., Liberty focuses on income-producing assets and related equity and debt investments on behalf of individual and institutional investors. The company was founded by husband and wife Mike and Melissa Mikkelson, who built their first self-storage facility in 1988. It has diversified to offer a range of investment, asset-management and development ventures in the self-storage and hospitality industries. It’s storage portfolio includes 12 facilities in the Southeast, with several new developments planned for 2018.

Source:
Newswire, Liberty Investment Properties Continues to Expand Southeast Portfolio

Self-Storage Talk Featured Thread: Requiring Tenant Insurance

Article-Self-Storage Talk Featured Thread: Requiring Tenant Insurance

The majority of self-storage operators today require tenants to have some sort of insurance to protect their stored belongings in the event of loss or damage from theft, flood, fire or other disaster. Customers can often provide proof of insurance through their personal renter’s, homeowner’s or business plan. As an added layer of defense, many storage facilities also offer some sort of tenant insurance or tenant-protection program. But though the benefits to these policies are numerous, some tenants still refuse to participate, either failing to provide proof of coverage or declining to buy into the facility’s program.

In a recent thread on Self-Storage Talk, the industry’s largest online community, members are discussing their insurance mandates and how they deal with customers who don’t comply. What advice can you offer on this risk-management topic? See what others have to say and join the conversation.

Sounds of Storage Podcast: NSAT Executive Tamara Fischer Shares Self-Storage Secrets to Success

Audio-Sounds of Storage Podcast: NSAT Executive Tamara Fischer Shares Self-Storage Secrets to Success

In short order, self-storage real estate investment trust (REIT) National Storage Affiliates Trust (NSAT) has become one of the nation’s most prominent operators of owned and managed facilities. Its business model has allowed it to amass a portfolio of 540 properties in 29 states comprising 34 million net rentable square feet. What’s the secret behind the success? Find out in this informative podcast.

Inside Self-Storage (ISS) Contributing Editor Tony Jones speaks with Tamara Fischer, executive vice president and chief financial officer, to learn more about the REIT’s unusual structure of participating regional operators (PROs), the philosophy behind its growth strategy and its long-term goals. Fischer will assume the president’s role on July 1. If you’re a self-storage owner, you don’t want to miss this insight to why NSAT’s corporate structure has allowed it to scale so quickly, where the company sees its biggest opportunities moving forward, and how it views the end game for its PROs.

NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. It ranked as the No. 5 facility owner and as the No. 4 facility-management company in the ISS 2017 Top-Operators Lists.

To access additional installments in the "Sounds of Storage" series, visit the ISS podcasts page.

Tamara Fischer, Chief Financial Officer, National Storage Affiliates Trust

SmartStop Self Storage CEO Named Semifinalist for Regional Ernst & Young Entrepreneur of the Year Award

Article-SmartStop Self Storage CEO Named Semifinalist for Regional Ernst & Young Entrepreneur of the Year Award

H. Michael Schwartz, CEO of SmartStop Asset Management LLC, a Ladera Ranch, Calif.-based diversified real estate company that manages 114 self-storage facilities in Canada and the United States, has been named a semifinalist for the Ernst & Young Entrepreneur of the Year 2018 Orange County Region Award, according to a press release.

“I am honored to be selected as a semifinalist for the prestigious and competitive Entrepreneur of the Year awards program, amongst so many game-changing professionals who are breaking the mold,” Schwartz said.

The awards program has honored executives “whose boldness drives them to change the world and who demonstrate extraordinary success in their businesses” for more than 30 years, the release stated. It’s conducted in more than 145 cities in 60 countries.

The Orange County Region award winners will be announced during a gala event on June 22 at the Monarch Beach Resort in Dana Point, Calif. Up for recognition are “managers and owners of private or public high-growth companies in the region that demonstrate unparalleled accomplishments,” the release stated.

SmartStop has approximately $1.5 billion of real estate under management. Its self-storage portfolio comprises about 8.3 million rentable square feet. It’s also the sponsor of Strategic Storage Growth Trust Inc., Strategic Storage Trust II Inc. and Strategic Storage Trust IV Inc., all public non-traded REITs focused on self-storage assets.

ISS Blog

The Tech Evolution and Why Self-Storage Operators Need to Grow With It

Article-The Tech Evolution and Why Self-Storage Operators Need to Grow With It

There are only two gas stations close to my home. One is on an extremely busy intersection, so getting in and out is a challenge. It also has just eight pumps, which are almost always occupied. The other is easier to access and has more stands, but it’s not in a direction I frequent. Until recently, both stations had outdated pumps that were often out of order or had troubling processing transactions using debit or credit cards. This would force customers to go inside the store to pay, negating the whole “pay at the pump” convenience.

In addition, the keypads had faded numbers, and the viewing screens were either scratched or simply impossible to read after years of sun damage. For these reasons, I rarely visited either station and, instead, traveled a few miles further to a larger store that featured newer, faster and easy-to-use pumps.

This changed after one of the stations upgraded all its stands. The new slick machines are touchscreen, quick and attractive. They even feature a small TV screen that airs feed consisting of news, entertainment and, of course, commercials to entice you inside for a cold beverage and a hot dog. And although the gas is a bit higher than at the station I used to go out of my way to frequent, more often than not, I’m willing to pay the difference simply because of the sheer convenience. It’s close to home and the new tech is easy to use.

I may not be a Millennial, but I’m still spoiled when it comes to technology. I’m impatient if a Web page takes too long to load. I expect to be able to use my debit card anywhere I go, so I rarely carry cash. I pay all my bills online and hardly ever step foot in a bank. If I didn’t enjoy grocery shopping, I’d probably opt for online ordering as well. And I’m not alone in this.

Everywhere you look, companies are retooling and renovating to bring technology to the masses. Retailers like Walmart, Fry’s Food & Drug Stores and Target are adding more self-checkout stands and boosting their online ordering options. Amazon opened its first checkout-free grocery store in January. Travelers today enjoy the convenience of kiosk check-in at the airport and even at some hotels. Everywhere you look, you’ll find some form of technology that simply makes life easier.

The self-storage industry is experiencing its own tech evolution. More operators are embracing new technology, from online billpay to kiosk rental stations. The May print edition of Inside Self-Storage, which lands in subscribers’ mailboxes this week, delves into this technology shift and how operators are being affected. It features articles on automation, live chat, the cloud, mobile, the Internet of Things and so much more.

Sadly, there are still many storage operators who have yet to see the value in technology. There are facilities that still don’t have a website and even those operating without some kind of management software. While there are markets and tenants who are OK with “tech-less” storage properties, the majority of today’s—and tomorrow’s—customers won’t be. Here are few ways you can get up to speed.

Maintain an awesome website. You don’t need a ton of flash, but you do need an online presence. Find a pro who can create a simple site that provides the basics but is still rich with features and search engine optimization. Also, make sure it’s mobile-friendly!

Get social. At the very least, you should have a Facebook page. If you can add Twitter to the mix, that’s great, too. Social media is all about building your rep in the community, not pushing out this week’s specials.

Consider automation. There are a ton of options that will help you streamline your operation. They include self-serve kiosks, online reservations and billpay, call centers, and more. All will free up your time to better serve your customers.

Lean on your software. Today’s platforms have so many capabilities. You can access loads of data about your customers, how your facility is performing and even let it drive rental increases.

These are a just few ways technology can help improve your operation. Plus, more innovations are emerging all the time. There will be a learning curve for some technology, but it’s well worth the effort!

What technology are you employing at your self-storage facility? Add a comment below or on Self-Storage Talk, the industry’s biggest online community.

Self-Storage Zoning Request Denied in Rogers, AR

Article-Self-Storage Zoning Request Denied in Rogers, AR

A zoning request from MAKB Enterprises LLC to develop self-storage on a 4-acre parcel in Rogers, Ark., was shot down this week by the city’s planning department following opposition from residents. Owned by Oakley Chapel United Methodist Church, the property on Dixieland and New Hope Roads is zoned residential/multi-family and commercial. MAKB sought a designation of warehouse/office, according to the source.

During Tuesday’s meeting, a debate ensued about the city’s code and how self-storage use should be interpreted. Bill Watkins, the attorney representing MAKB, stated the area already has multi-family and commercial properties. “The city code’s language says that warehouse/office property should be close to other commercial and industrial zones, and there is commercial on the corner,” he said, noting the nearby Kum & Go gas station. The project also meets the requirement of being near arterial and collector streets, Watkins said.

Several residents spoke against the rezoning, citing concerns about increased traffic, potential crime and a decrease in home values. Betsy Reithemeyer, a city alderman who owns property near the proposed site, said the “warehouse/office” designation wasn’t appropriate for the area. “It is near a commercial ... and I'd like to see some type of development, but I'm asking that the commission deny it,” she said.

Resident Alicia Allred expressed concerns about pests at the facility as well as the threat of crime, noting the Kum & Go station was robbed two weeks after opening. Other community members questioned if the property’s lighting would intrude into their homes.

Watkins asked the attendees not to dismiss the project based on the negative image of self-storage. He pointed to an attractive storage facility near one of the city’s large churches.

Ultimately, the planning commission determined the warehouse zoning wasn’t appropriate for the area. “I've driven by this area a million times on the way to work and I don't see it going to warehouse,” said commissioner Tony Noblin.

Based in Fort Smith, Ark., MAKB Enterprises is led by Patrick Byrd.

Source:
Northwest Arkansas Democrat Gazette, Rogers Storage Units a No-Go for Dixieland and New Hope Intersection

Austin, TX, Entrepreneur Launches 'Crampt' Valet Self-Storage Service

Article-Austin, TX, Entrepreneur Launches 'Crampt' Valet Self-Storage Service

Entrepreneur Kevin Knebel, CEO of document-management firm Contego Information Management, has launched Crampt Inc., a startup business specializing in valet self-storage in Austin, Texas. The company uses an online platform that allows customers to schedule item pickup, maintain a visual catalog of stored belongings, and schedule delivery of items to their home.

While other valet-storage operators have concentrated on by-the-bin storage and delivery services, Crampt targets residents who don’t have adequate home storage by offering four packages ranging from “Small” to “Extra Large.” Items are stored in a climate-controlled, secure warehouse, with space allotments based on cubic feet. The Small package provides 200 cubic feet for $73 per month, while the Extra Large plan offers 1,200 cubic feet for $284 per month, according to a company press release.

Individual items and bins are photographed, secured with zip ties, and tagged with unique identity codes. Customers aren’t allowed to visit the storage warehouse but can manage their belongings and schedule return deliveries through the company website. Pickups and deliveries are billed at $39 per hour. Single-item deliveries are $20. Expedited deliveries are available for an extra $20.

“People mean well when downsizing, but then store stuff for an average of five years and never touch it,” Knebel said. “Temporary storage units become long-term hoarding spaces. Crampt makes storage more useful and accessible.”

Based in Austin, Contego specializes in the storage and digitizing of physical documents for the education, finance, government, healthcare, human resources, insurance, legal, and oil and gas industries.

Sources:
BusinessWire, Austin Entrepreneur Launches Storage Company to Take the Hassle out of Downsizing and Self-Storage
Crampt, Website

Self-Storage REITs Schedule Conference Calls to Discuss 1Q 2018 Financial Results

Article-Self-Storage REITs Schedule Conference Calls to Discuss 1Q 2018 Financial Results

The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have announced when and how they will reveal their earnings statements for the first quarter of 2018, which ended March 31.

CubeSmart

CubeSmart will release its first-quarter financial results after the market closes on April 26. An accompanying conference call will be held at 11 a.m. ET on April 27. A live webcast of the conference call will be available from the investor-relations page of CubeSmart.com. The dial-in numbers are 877.506.3281 for U.S. callers, 855.669.9657 for Canadian callers and 412.902.6677 for other international callers. To avoid delays in joining the call, participants can pre-register and receive a special dial-in number and PIN at http://dpregister.com/10118701.

After the live webcast, the call will remain available on the company website for 30 days. In addition, a telephonic replay of the call will be available through May 27. The replay dial-in number is 877.344.7529 for domestic callers, 855.669.9658 for Canadian callers and 412.317.0088 for other international callers. The conference number is 10118701.

CubeSmart owns or manages 987 self-storage facilities across the United States. Its operating portfolio comprises more than 60.5 million square feet.

Extra Space Storage Inc.

Extra Space will release its earnings report after the market closes on May 1. The REIT will host a conference call on May 2, at 1 p.m. ET, to discuss its financial results. Hosting the call will be CEO Joe Margolis, who will be joined by Scott Stubbs, executive vice president and chief financial officer.

During the call, company officers will review 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 855.791.2026 for U.S. callers and 631.485.4899 for international callers. The conference-call playback will be accessible at 855.859.2056 in the United States or 404.537.3406 internationally. The participant passcode is 2887645.

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.

The full text of the earnings report and supplemental data will also be available on the company website immediately following the earnings release to the wire services.

Headquartered in Salt Lake City, Extra Space owns or operates more than 1,480 self-storage properties nationwide and in Puerto Rico. The company’s properties comprise approximately 1 million units and 112 million square feet of rentable space.

Life Storage Inc.

Life Storage will issue its quarterly results after the market closes on May 2. The company will conduct a conference call to review the financial results on at 9 a.m. ET on May 3.

The call can be accessed at 877.737.7051 within the United States or 201.689.8878 internationally. Participants can pre-register and receive a passcode and unique PIN at https://bit.ly/2Hxpv9y. 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 LifeStorage.com.

The webcast will be archived for 90 days. A telephone replay will be available for seven days after the meeting by calling 877.481.4010 and entering conference ID 27725.

Based in Buffalo, N.Y., Life Storage operates more than 700 self-storage facilities in 28 states, under the Life Storage and Uncle Bob's Self Storage brand names. Its portfolio of owned and managed facilities comprises about 49 million square feet.

National Storage Affiliates Trust (NSAT)

NSAT, a Maryland REIT, will reveal its earnings statement for the quarter that ended March 31 after the market closes on May 2. The company will conduct a conference call to review the financial results the same day at 1 p.m. ET.

The call can be accessed at 877.407.9711 within the United States or 412.902.1014 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 NationalStorageAffiliates.com. A replay of the webcast will be archived for 30 days.

A telephone replay will be available by calling 877.660.6853 in the United States or 201.612.7415 internationally. The conference ID number is 13646795.

Headquartered in Greenwood, Colo., NSAT is a self-administered, self-managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. metropolitan statistical areas throughout the United States The company has 540 self-storage facilities in 29 states comprising approximately 34 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage

Public Storage will host a conference call on April 26, at 2 p.m. ET, to discuss its financial results. The REIT hasn’t announced when it will release its earnings report but typically issues it after the market closes the day before the call.

Participants can pre-register for the call at https://bit.ly/2HL8wi3. A live webcast will be available through the investor-relations page of PublicStorage.com. The webcast is usually accessible for two weeks. The company hasn’t released the dial-in numbers or IDs for the call and replays.

Based in Glendale, Calif., Public Storage has interests in 2,386 self-storage facilities in 38 states, with approximately 157 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

Sources:
CubeSmart, CubeSmart Announces the Date of Its First Quarter 2018 Earnings Release and Conference Call
Extra Space, Extra Space Storage Inc. Announces Date of Earnings Release and Conference Call to Discuss 1st Quarter 2018 Results
BusinessWire, Life Storage, Inc. Announces Date and Time of 1st Quarter 2018 Earnings Release and Conference Call
BusinessWire, National Storage Affiliates Trust Announces 2018 First Quarter Earnings Release and Conference Call
Public Storage, Q1 2018 Public Storage Earnings Conference Call

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