By Kay Miller Temple

Today's self-storage design is unrecognizable compared to its simple origin of metal boxes with roll-up doors. Many self-storage operators have branched out from traditional storage-unit rentals and begun incorporating ancillary products and services to make their facility a one-stop shop for customers. Today's trends for facility design include options for add-on profit centers and additional revenue opportunities.

Design Impacts Retail Revenue

Millions of marketing-research dollars have determined that when it comes to retail sales, keeping just the right amount of inventory in stock, in line and straight on shelves, moves more product, says Kevin Leebrick, manager for Advantage Self Storage in Indian Trail, N.C.  He uses display details that show effort. “For example, I put boxes in stacks of five and rotate them by 45-degree angles,” he says. “That takes some time but makes for a more modern look, and a look that shows you care about the store.”

From a facility-design perspective, there are other things self-storage operators can do to inspire retail sales, and they don't necessarily require lots of real estate. “Space is a plus, but not a must," says Robert Vodraska, national account manager for Supply Source One, a division of Schwarz Supply Source and supplier of retail products to the storage industry.

For example, operators can install LED screens in their retail area to punch up the look. “Go big or go home,” says Mathieu Seguin, director of operations for A1 Mini U-Stor-It in Ottawa, Canada. The facility’s 50-inch TVs provide a reasonably priced but tech-savvy look that displays dynamic messaging. Prices for boxes and other products are visible on screen and can be easily changed. “It looks streamlined, professional, and provides a point of motion that immediately engages customers as they walk in the door,” Seguin says.

Rearranging the furniture can also improve office design. The retail area should be periodically reshuffled to add a new vibe, says Bruce Jordan, president of San Clemente, Calif.-based Jordan Architects Inc. “It should be clearly visible from the customer-service counter and designed so customers can circulate around and view the display.”

New trends in retail design also create an atmosphere that says “green,” with openness and great lighting, according to Nancy Wagner, marketing vice president of Chateau Products Inc., a supplier of retail products. Glazed concrete floors, sleek white surfaces, and corrugated, galvanized metal walls get the job done, she says. “Chrome fixtures on parchment walls create the green, friendly look.”

Design and Records Storage

With more and more companies pushing their business records off site to save on valuable office space, self-storage operators who accommodate records storage—either simplistically or via sophisticated services—will find a solid revenue stream. The records-storage model has evolved since its introduction to the self-storage industry, and operators have various options. Those who wish to provide more formal records-management services will find the design launch is a team sport.

“It takes the collective effort of knowledgeable professionals working together with the self-storage facility owners/managers to successfully transition from space rental to records storage,” says Karen Hall, owner of Archive Storage Solutions LLC based in southern California.

An important consideration to any records-storage design is security. Units should protect records from water, fire and rodents, says Cary F. McGovern, owner of Fileman and File Managers Inc. in the Greater New Orleans area. Operators should be mindful when choosing which units to allocate for records storage, he says. "It's always better to use the largest storage units or open space available for record storage."

Adding Ambiance to Wine Storage

When it comes to wine-storage design, facility operators should defer to the needs of their tenants. While some desire a club-like atmosphere in addition to environmental controls, others are merely looking for a safe place to store their bottles.

Customers looking for ambiance appreciate amenities such as ornate stonework and leather furnishings, says Patrick Gilroy, co-owner of Wine Storage Bellevue in Bellevue, Wash. The facility has enhanced its offerings by adding free Wi-Fi and a computer with access to cellar-tracking software. “The Amoroso Room is typically reserved for clients—and in some cases made available to the general public for a fee—where they can host private, wine-oriented functions such as a tasting or celebration event,” Gilroy says.

In contrast, other wine-storage customers are seeking storage that focuses on the elements of aging fine wines. Security is one of those fundamentals, says Bob Womack, facility manager and storage consultant for Allstate Self Storage in Phoenix. Appropriate lighting, optimal humidity and temperature, and minimal vibrations from noise and music complete the list. All these features can still be offered at a price 75 percent lower than club-oriented facilities, he adds. “Our experience has been with peace of mind about environmental conditions. Our renters get a great value at no extra cost.”

Boat- and RV-Storage Design Gets Sophisticated

One ongoing trend in the development of boat and RV storage is a condo-style design. “Typically, these units are larger and have more 'bells and whistles,' like motor-operated doors, individually metered electricity, more sophisticated security, and option upgrades like mezzanine systems,” says Angie Guerin, national sales manager for Mako Steel Inc., a Carlsbad, Calif., company that designs, supplies and installs steel buildings for the self-storage industry.

However, even traditional RV-storage operators are adding more physical amenities. Nick Sheldon, owner of the new 17-acre Tucson RV Storage in Tucson, Ariz., says service designs such as dump stations, wash stations, and a good selection of pull-through or back-in space selections are still important.

The design elements for these self-storage add-on business models only touch on the limitless capacity for what the industry holds most dear—the creative, revenue-generating use of each square foot of space. Operators who’ve taken on the design challenge are enthusiastic about results.

For example, the amenities designed into Magellan Storage in Torrance, Calif., are really paying off, says manager Keyana Yarber. The facility’s coffee bar, conference room and retail area offer customers everything they need. “The benefits from our unique design are in gaining long-term, loyal customers and an amazing relationship between the customer and staff,” she says.

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].

By Rob Kaminski

“You’ve just got to find me cheaper boxes, Rob!” He was an old friend and a solid self-storage operator who always dealt with the ups and downs of his business with a confident calm. Today, however, he seemed near panic. “What’s going on?” I asked him over the phone. “Well, the wife and I were at Walmart and there they were—moving boxes! And you wouldn’t believe their prices! Why, they’re going to kill my retail business!” he almost moaned.

Today, it seems like everybody has decided to try selling packaging materials. Walmart, Home Depot, office-supply stores, heck, even pharmacy chains are dabbling in packaging. And hardware stores stock the same disk locks that was once reserved for self-storage businesses.

The bad news is most of them can afford to peg prices below those of the average self-storage business. The good news is storage operators can still outsell them. In fact, the industry has been doing it for quite a while now. The proof is retail vendors are experiencing increased sales to their customers, despite these new players. Here’s how you can outfox those big-box stores.

(With Apologies to Al Gore) A Convenient Truth

Self-storage operations have one advantage over big-box stores: a pre-qualified customer base. The other stores exist because they carry just about anything a customer could want. So the people walking in have the most diverse needs you can imagine. Your walk-ins are there to store or move stuff. Period.

Whether they intend to rent a unit, a truck or both, that’s their primary transaction. Of course, if it’s a unit, they’ll need a lock and you’ve got the right kind. They could waste gas shopping to save a couple of bucks, but if your price seems reasonable, you’re a lot more convenient. If their stuff needs to be packed, they’ll need packaging materials. Again, you’ve got exactly what they need right there and you’re more convenient.

But what about those big-box prices? Won’t your renters recall them? Maybe. Most likely not. People tend to have a rough idea of the cost of frequently bought items. Locks and packaging materials don’t fall into that category. Even if they recall Walmart’s price range, if your prices are close enough, you’re still more expedient. After all, if price were everything, there would be no convenience stores.

(With Apologies to David) Targeting Goliath

Once my phone friend realized he was worrying too much about losing customers to the big-box stores, I asked if he’d like to have them lose customers to him. Although Walmart may prominently display packaging materials or put them in an ad from time to time, compared to its other products, they are slow-movers. The same goes for Home Depot and all the other chains. The net result is few people who aren’t going to rent storage or a truck think of these stores when they need packaging.

Instead, they think they can get empties from supermarkets and such. But today, stores bale empty boxes for recycling. So imagine if each time they’ve passed your site, they saw fence banners and other signage trumpeting "We Sell Boxes." Or if when they Googled "boxes," "moving supplies" or "packaging materials," your location appeared at or near the top. Or if your past renters told them about you. Then you’d be taking business way from the big-box stores. Sweet.

The idea is to become your community’s big-box store. Here are a few steps you can take to make this happen.

• Outdoor signage: Ask your box supplier about fence banners, flags, pennants or anything that will catch the eyes of passing traffic. Bigger is better.
• Yellow Page ads: Though it’s not used as much today, if you’re paying for a Yellow Pages ad, look into simple additional listings under “moving supplies,” “moving boxes,” “boxes,” “packaging,” etc.
• Search engine optimization: Your Web-design company can explain how your website can be adjusted to attract more people looking for packaging supplies.
• Pay-per-click advertising: Though more expensive, in the right locale, this might be a traffic builder for you. Again, get guidance from the experts before making the investment.
• Mailers: If you’re regularly mailing to customers, include discount coupons for packaging that they can used or passed on to friends. A bit more ambitious? Send out packaging coupons to past customers.
• Community public relations: Churches often distribute food to the needy during holidays. Offer to supply boxes. Seek out other charities and fundraisers to help. That way you’ll connect with groups of people.
• Customer service: Big-box stores often can’t provide the kind of expert packing advice you can. Your supplier can give you in-store signage and employee-training materials to keep your staff at the top of their game.
• More customer service: Let your customers know about your full refund for unused boxes. It encourages them to buy more “just in case.” And make it your practice to help them get their purchase into their car.

Remember, shopping for packing and moving supplies where they rent a unit is a real convenience for your customers. Keep your prices competitive, and use your excellent sales skills to solve their packing needs.

When my friend and I last spoke about those big-box stores, he joked, “Who do you mean? Me?”

Rob Kaminski is vice president of Supply Side USA, a national distributor of packaging, moving and storage supplies for more than 50 years. He has helped self-storage owners improve their retail sales for more than 25 years. He has written numerous articles on the topic and speaks at industry tradeshows. For more information, call 800.305.6110; e-mail [email protected]; visit www.supplysideusa.com.

LoveSpace, a U.K.-based startup business specializing in valet self-storage services, has raised more than £1.5 million through the online crowdfunding platform Crowdcube. With less than two weeks left in its campaign, the company has exceeded its goal of £600,000, receiving support from 239 investors. LoveSpace will use the money to fund marketing efforts, a warehouse move and an expansion of its vehicle fleet, according to the source.

The company plans to hold an institutional round of investment at the end of the year, seeking to raise more than an additional £2 million. LoveSpace needs £500,000 in funding to break even and will use the remaining £1.5 million to fund international expansion, the source reported.

During the equity campaign, investors who contribute £25,000 or more will receive shares with full voting rights. Those who invest less than £25,000 will receive shares with no voting rights or pre-emption, according to the source. The largest single investment during the current round is £250,000.

LoveSpace officials indicated on Crowdcube that they planned to exit the business in 2017. Company chairman Brett Akker was co-founder of the car-for-hire club Streetcar, which sold to U.S. competitor ZipCar in 2010 for £32 million.

LoveSpace launched last November in partnership with property-management company Mainstay Group, which manages more than 35,000 buildings across the United Kingdom. The business targets consumers who do not have enough items to fill a small storage unit but want to temporarily store some belongings. It enables customers to store by the bin and offers pickup and delivery services.

A zoning change for a self-storage development in Columbia Falls, Mont., was unanimously approved by the planning board on May 14 after members debated the merits of the proposal and questioned the project’s aesthetics. The Columbia Falls City County Planning Board ultimately agreed to change the zoning for the property at U.S. 2 East from residential to commercial, despite some discussion about the city’s plans for the area.

Developer Ted Nichols presented his proposal for a self-storage facility on the 1.4 acres of land, which is near the city’s east entrance. The facility would include 40 to 50 units, an office and space for boat storage. The parcel is near Oh’s Body Shop along a busy highway, according to the source. Nichols told the board the noise from the highway limited the use for the property, which he purchased in 1994.

City planning officials began addressing the area around the city’s east entrance more than a year ago, after several property owners requested zoning changes and began submitting proposals for commercial development.

In response, Eric Mulcahy, the city’s planning consultant, drafted language for a new limited-business zoning district to strike a balance between the residential areas and commercial businesses along the U.S. 2 East region. The city council approved the language in August 2013, but voted against applying it to the U.S. 2 area in general.

During the planning-board meeting, Nichols addressed the aesthetics of the facility, noting it would not have a fence. He also provided board members with photos of a facility in Missoula, Mont., which he would emulate.

After a lengthy debate, the planning board opted to amend one of the 11 conditions provided by the city staff, which would set the facility’s operating hours from 7 a.m. to 10 p.m. daily. The board also requested the site plan include landscaping along the highway. The city council will consider the development at its June 2 meeting.

StorageMart, an owner and operator of self-storage facilities throughout the United States and Canada, recently collected shoes for a foster-care awareness campaign sponsored by the Central Missouri Foster Care & Adoption Association (CMFCAA). The storage company’s six locations in Columbia and Jefferson City, Mo., hosted a “Shoe In for Foster Care” drive from April 9 through May 12.

As part of national Foster-Care Awareness Month, recognized May 1-31, CMFCAA’s goal was to collect at least 10,000 pairs of shoes, each representing one of the children currently in foster-care programs in Missouri. Ultimately, 4,800 pairs of shoes were collected and lined up on the lawn of the Missouri State Capitol Building in Jefferson City on May 13. CMFCAA staff members were available during the event to promote the organization and answer questions about the state’s foster-care program.

“The goal was to advocate for, raise awareness of and find forever families for Missouri’s foster children,” said Nicole Elliott, CMFCAA’s program director. “We were excited to see so many people come out to support us and were thrilled at how many people stopped and asked how they could best make a difference in a child’s life.”

Following the event, the shoes were donated to Hope for Caribbean Kids Inc., an organization that works in coordination with the Shoeman Water Project to help fund the building of schools in Haiti and the creation of clean-water programs in Haiti and Kenya.

“StorageMart has been a longtime friend and supporter of CMFCAA and Hope for Caribbean Kids,” said Sarah Little, marketing director for StoreMart. “We’re grateful for the opportunity to play a role in an event that not only benefits local communities, but also creates a ripple effect across the world.”

Founded in 2007 by former foster children and parents, CMFCAA is a nonprofit organization dedicated to educating, supporting and advocating for foster care and adoptive children in Central Missouri. The organization is assisting more than 640 foster families and 1,400 foster children across 13 counties.

Founded in 1999 and headquartered in Columbia, Mo., StorageMart owns and operates more than 149 self-storage properties in the United States and Canada.

 

U.K. self-storage operator Big Yellow Group PLC released operating-performance results for the fourth quarter and its 2014 fiscal year, which ended March 31. The company reported revenue of £17.7 million for its 54 wholly owned self-storage locations, up 11 percent from the same quarter a year ago. For the year, the company reported revenue of £72.2 million, a 4 percent increase from 2013. Its adjusted pretax profit was £29.2 million, a 15 percent increase from last year.

Year-end occupancy for Big Yellow’s wholly owned facilities was 69.8 percent, up 8 percent year over year but down slightly from 70.5 percent in September. Occupancy increased 2.1 percent during the quarter.

Net rent per square foot was £26.15 for the year, an increase of 6 percent from 2013. Revenue per available square foot was £20.64 for 2014, a 4 percent increase year over year.

"In an improving economy, we have delivered occupancy, revenue and cash-flow growth for the fifth year in a row following the deep recession in 2008 and 2009,” said Nicholas Vetch, executive chairman. “This performance illustrates the resilience of the Big Yellow business model and the self-storage market more generally.”

In April, the company opened a 70,000-square-foot Big Yellow facility in West London and acquired a 10-property portfolio from Armadillo Self Storage through a joint venture with an Australian consortium.

“New housing developments in London are at a multi-decade high, and as completions increase, this should translate into more housing transactions,” Vetch said. “Land in London and the Southeast continues to be increasingly scarce for non-residential development, which should benefit Big Yellow, as new supply of self storage facilities will remain constrained.”

The company raised its final dividend to 8.4 pence per share, a 40 percent increase from 6 pence last year.

Big Yellow Group operates 77 self-storage locations in the United Kingdom under the Big Yellow Self Storage and Armadillo Self Storage brand names, with most concentrated in Greater London. The portfolio comprises 4.6 million square feet.

The owners of Easy Access Self Storage, which has two locations in England, are looking for investors to fund an addition to its new drive-through facility in Trafford Park. Owners Bernard and Sue Bailey operate a 55,000-square-foot facility in Heaton Motor, Stockport, and opened the Trafford Park site in February. The couple is seeking £1.5 million to £2 million.

Trafford Park currently encompasses 8,000 square feet of storage space and 100 drive-up units. It is 60 percent occupied. The Baileys would like to add another 27,000 square feet of storage space and 400 units over the next two years.

Trafford Park’s first phase was financed by the Baileys and the Royal Bank of Scotland. The self-storage owners are meeting with local financers and potential equity partners.

The couple also plans to use their Trafford Park location as a model to build five to six additional facilities in North West, one of nine official regions of England, storage market over the next two years, Bernard Bailey told the source.