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From the 2017 ISS Expo: Closetbox VP Discusses Synergy Between Valet Storage, Self-Storage

Video-From the 2017 ISS Expo: Closetbox VP Discusses Synergy Between Valet Storage, Self-Storage

In this video, filmed at the 2017 Inside Self-Storage World Expo, Chris Griego, vice president of valet-storage company Closetbox, talks about the relationship between the burgeoning valet-storage market and traditional self-storage. He explains how the two business models can support each other and what’s ahead for the valet-storage industry. Read more about the ISS World Expo in this article recapping the event.

Man Found Shot at Virginia Beach, VA, Self-Storage Facility

Article-Man Found Shot at Virginia Beach, VA, Self-Storage Facility

A man is in severe condition after being shot last night at a self-storage facility in Virginia Beach, Va. Police were called to Premiere Storage at 2420 Virginia Beach Blvd. just after 9:30 p.m. to investigate the incident. The man was taken to a local hospital, according to the source.

Authorities haven’t released much information about the shooting, including why the man was on the property. Police initially said the shooting happened at a nearby storage business, but later clarified the facility name.

Police are asking anyone with information to call the crime line at 888.LOCK.U.UP.

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Attic Self Storage in King's Cross, England, Hosts Art Exhibit to Help Those With Learning Disabilities

Article-Attic Self Storage in King's Cross, England, Hosts Art Exhibit to Help Those With Learning Disabilities

Attic Self Storage, an English self-storage operator with two facilities in the Greater London Area, hosted an exhibit at its King’s Cross facility last week to showcase work by artists of Artbox London, a nonprofit supporting people with learning disabilities. Held in the facility’s reception area at 270-276 York Way, the display featured 50 pieces that would’ve otherwise been placed in storage at Islington Arts Factory, a multi-arts community center that partners with the charity. The exhibit’s success inspired the storage operator to keep the art on display permanently, according to the source.

“The evening was a huge success,” said Madeline Alterman, who founded Artbox in 2011. “The artists just loved seeing their work on display. We also sold quite a number of pieces, which really made everyone’s day.”

Attic had been seeking a local charity to support when company director Frederic de Ryckman came across Artbox. “When we visited Artbox at the Islington Arts Factory, we were hooked. Meeting Madeline and the artists was inspiring,” he said. “We’re only a small business, so our support has to be focused. And we felt, in Artbox, we had really found a worthwhile cause.”

The exhibit is open to the public. Plans for a second Artbox benefit are underway, the source reported.

Artbox offers art workshops and sponsors trips to museums and galleries in Central London. It also provides its exhibition and sales opportunities so artists can earn an income from their work. The students partner with volunteers to create art in a variety of mediums, including collages, painting, embroidery, model-making, photography and print-making.

Founded in 2006, Attic Self Storage operates a second facility in Bow, a district in London’s East End.

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Switzerland-Based ExtraPlatz Looks to Market Mobile-App Technology to US Self-Storage Operators

Article-Switzerland-Based ExtraPlatz Looks to Market Mobile-App Technology to US Self-Storage Operators

ExtraPlatz, a Switzerland-based self-storage startup company that opened a fully automated facility last year in Wolfhausen near Zurich, intends to bring its integrated smart-lock and software technology to North America. The operator is using its first facility as a proof of concept to demonstrate how customers can book a unit online and then download a mobile app that provides instant access to the facility and reserved storage space, according to a press release.

The smartphone app is available for iPhone and Android devices. Once a unit is booked, tenants gain entrance with a personal code communicated via Bluetooth, the release stated. “Logistics companies can book storage space at any time and cancel it when it’s not needed anymore; and this [is] with just one click,” company officials said. “This helps their bottom line, and becomes worth a premium to them.”

ExtraPlatz is looking to partner with companies that can help bring its technology to U.S. self-storage operators, according to the release. “Self-storage is not going to disappear. Instead, it is becoming an even more essential part of the global logistics infrastructure,” officials said. “ExtraPlatz is building the software and partnerships that not only increase comfort for traditional clients but ultimately aim at increasing value and profits.”

The Wolfhausen self-storage facility comprises 860 net rentable square feet in 23 units. The company intends to open additional locations in the Zurich market this year, the release stated.

Founded in 2014, ExtraPlatz is owned by Fruchtlänge 7 AG, a full-service agency specializing in administrative, management and technical services for the real estate sector.

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Self-Storage Legislation Passes in Arkansas, Montana

Article-Self-Storage Legislation Passes in Arkansas, Montana

The governors in Arkansas and Montana have signed new self-storage legislation into law. Arkansas Gov. Asa Hutchinson signed two bills in March, with one addressing the disposal of sensitive documents left by delinquent tenants and another regarding the sales of abandoned vehicles. Last week, Montana Gov. Steve Bullock enacted updates to the state’s Self-Storage Facilities Act that allow e-mail communication with tenants and public notification of lien sales in a “commercially reasonable manner” other than a newspaper. The measures were supported by the national Self Storage Association (SSA).

In Arkansas, House Bill 1585 enables self-storage operators to destroy sensitive documents left behind by delinquent tenants that contain personal data related to bank accounts, credit cards, medical information, passports and Social Security. Operators can enter a storage unit explicitly to inspect for sensitive documents as long as the unit has been in default for longer than 45 days, according to the measure. Meanwhile, House Bill 2158, allows operators to sell abandoned vehicles in accordance with established state statutes.

In Montana, House Bill 402 is a comprehensive revision to the state’s self-storage lien law. It establishes that operators may enforce a lien if tenants are in default for more than 60 days and advertise the auction outside of the local newspaper. It also allows operators to set late fees of $20 or 20 percent of the monthly rent due, whichever is greater, and remove abandoned vehicles when tenants exceed 60 days of delinquency. Operators may also communicate with tenants via e-mail.

“Fifteen states are still in play with storage legislation, but with many legislatures concluding their regular sessions in the next month or so, more results from the 2017 effort should be in soon,” SSA officials said in a May 1 e-mail newsletter to its members.

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Proposed Birdneck Self Storage Facility Causes Concern in Seatack, VA

Article-Proposed Birdneck Self Storage Facility Causes Concern in Seatack, VA

The Virginia Beach, Va., City Council appears to favor a new development proposed by Birdneck Self Storage owner Ryan Powell in the Seatack neighborhood, but the project isn’t without controversy. Powell wants to build seven single-story storage buildings on Bells Road near his existing facility, but residents in the historical African-American community believe the project is too close to homes and will hurt property values. Though the planning commission didn’t recommend the project, the council has already approved a zoning change from residential to light industrial, according to the source.

Though Seatack is one of the nation’s oldest black communities, its proximity to the Oceana Naval Air Station has slowly eroded its size. Much of the neighborhood is in a designated crash zone for military planes. In 2005, a federal commission indicated Oceana might be forced to close if Virginia Beach officials didn’t prevent residential development near the base and clear the area of 3,400 homes, the source reported. Since the city complied with the federal request, it has rezoned many residential lots to commercial and industrial uses, according to zoning administrator Kevin Kemp.

As a result, many businesses have taken over land no longer considered inhabitable for homeowners. The property on which Powell wants to build previously contained three vacant homes, which were cleared last month, according to the source.

The area has become a hotbed for self-storage development due to demand from the military base and residents living in oceanfront condominiums who need more storage. There are currently more than 20 self-storage facilities in the vicinity of Oceana, including four on a two-mile stretch of Birdneck Road. The Birdneck Self Storage site would be the first on the east side of the road nearest to houses, the source reported.

Though Powell will be required to plant trees to create a buffer between the self-storage facility and residences, several homeowners believe the business will encroach the houses and further damage the community. “I wanted a relaxing, quiet space. I feel like that is going to be gone now,” said Thomi Gill, whose property shares a border with the proposed storage site. “It is an uneasy feeling. Even though they are going to plant trees, a storage facility is not something you want to be a neighbor to.”

“To me, it is like no unencumbered time without people coming and going into the storage units,” resident Scott Sonier told the source. “By having the industrial around, all of the homes on our street get devalued. Eventually, people are going to move out.”

Ten years ago, the block along Bells Road contained seven houses, but just three remain today, Ron Agnor, the city’s assistant real estate assessor told the source.

Powell has owned Birdneck Self Storage on the corner of S. Birdneck and Bells Roads for more than 30 years. Though his existing facility offers customers 24-hour access, the new facility would limit operation from 7 a.m. to 9 p.m. on weekdays and 8 a.m. to 8 p.m. on weekends.

The report didn’t specify when the council is expected to make a final decision on the project.

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ISS Publishes Podcast on the Effect of the Trump Administration on Self-Storage Real Estate

Article-ISS Publishes Podcast on the Effect of the Trump Administration on Self-Storage Real Estate

Inside Self-Storage (ISS) has released a new installment to its Sounds of Storage podcast series titled, “Michael Mele Discusses the Trump Administration Effect on Self-Storage Real Estate.” The seven-minute interview with the senior managing director of investments for Marcus & Millichap addresses industry real estate trends and how the sector is performing. Mele also offers insight on potential interest-rate increases and how legislative variations could impact owners and investors. This audio and others in the series can be accessed by visiting the ISS podcasts page.

Mele joined Marcus & Millichap in 1999 as an agent specializing in the self-storage sector. He rose to senior associate in May 2002, vice president of investments in January 2008, senior vice president of investments in 2014, and senior managing director of investments in February. He’s also senior director of the company’s National Self Storage Group. Mele has closed more than 300 self-storage transactions totaling more than $1.5 billion in sales volume. He’s been awarded the Marcus & Millichap National Achievements Award, Chairman’s Club Award and the Chairman’s Circle of Excellence Award.

Mele has been a regular contributor to the ISS family of products, including the magazine, expo, website and store. His 2017 ISS World Expo presentation on self-storage real estate cycles and property values can be found at insideselfstoragestore.com.

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

Stratford, CT, Considers MARL Properties Self-Storage Proposal

Article-Stratford, CT, Considers MARL Properties Self-Storage Proposal

A zoning hearing for a new self-storage facility in Stratford, Conn., was continued on April 25 to allow the town engineer to address several questions in relation to possible flooding and a sewer line. Property developer MARL Properties LLC purchased the two-parcel, 3.2-acre site at 771-815 Barnum Ave. Cutoff, which is in a light-industrial zone near Main Street. It borders commercial, retail and residential zones. The site also includes wetlands and abuts the Longbrook waterway. It contains two vacant buildings and had been previously used for industrial and other purposes, according to the source.

The plans call for a three-story facility comprising 99,648 square feet of storage space in 900 units. It would include 20 parking spaces as well as loading bays and a basement that can be accessed from the back. The site’s current five driveways would be reduced to two, forcing a combined main entrance and exit.

The building would be 40 feet tall in the front and 51 feet high in the back due to a slope on the property. A tower with glass windows would dominate the front of the structure, according to architect Andrew E. Graves of BL Cos. “It’s in scale with the surrounding uses,” he said.

During the meeting, town engineer John Casey raised questions about flooding, the use of fill in a flood plain and an existing sewer line. Although Jeff Bord, the engineer representing MARL, addressed some of Casey’s concerns, the zoning commission asked the town engineer to review the revised plans, the source reported.

The project has received inland wetlands approval. A 50-foot natural buffer would be built near the brook and wetlands, and new trees would be planted along Barnum Avenue Cutoff. MARL also plans to undertake a “heroic cleanup and restoration of the wetlands” because the area has been used as a dumping ground, said John W. Knuff, the attorney representing the firm.

The sewer line would be relocated. A storm-water management system would treat water run-off before it’s released into the brook, Bord said.

Additional concerns from board members included the impact on abutting properties, driveway access and the facility’s outdoor lighting.

Dr. Louis Pieper, who owns the adjacent Barnum Animal Hospital, also expressed his concerns about the project. Although not entirely opposed to it, adding a driveway adjacent to one of his own could create problems, he said. Pieper also noted the area flooded in 2008, leaving abandoned vehicles and trash on the site.

Zoning chairman Stephanie Philips also questioned why the project doesn’t currently contain a retail element. Knuff noted retail wasn’t permitted in the area’s zoning.

MARL is based in Norwalk, Conn.

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ISS, VaultDrop Publish Case Study on Offering Free Cloud Storage to Self-Storage Customers

Article-ISS, VaultDrop Publish Case Study on Offering Free Cloud Storage to Self-Storage Customers

Inside Self-Storage (ISS) and VaultDrop LLC have released a new publication titled, “Case Study: Total Storage, The Profitability of Providing 'Cloud Storage' With Every Rental.” The free downloadable PDF explores how self-storage operators can improve occupancy and revenue by offering their customers cloud storage as an added amenity. Customers can use the cloud storage to store and share documents, music, photos and videos. They’ll also be able to receive their self-storage invoices and other information.

The study explains how offering free cloud storage can help a self-storage facility distinguish itself in a busy market. It includes details about program implementation at 10 Right Move Self Storage facilities in Texas.

This and other case studies can be downloaded from the Whitepapers page of the ISS Resource Center. Additional information about Right Move’s program can be found in a recent video titled, “ISS News Desk: Cloud Storage Opportunities for Self-Storage Operators,” which was published on the ISS video portal, Self-Storage TV, last month.

VaultDrop shared its cloud-storage concept during a Vendor Presentation at the Inside Self-Storage World Expo in Las Vegas this week. The session, “The Next Great Ancillary Product: Cloud Data Storage,” took place on Wednesday and was open to all registered attendees and exhibitors. The company also offered one year of free unlimited cloud storage to all event attendees. Registrants received a sign-up link in their show confirmation e-mail.

Launched in 2016, VaultDrop offers secure, unlimited cloud storage. Accounts are encrypted with contents divided and stored across multiple independently operated servers.

Founded in 2013, Right Move is a real estate firm specializing in the acquisition, development, management and operation of self-storage facilities. It manages storage properties in California, Louisiana and Texas.

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

 

A New View of Self-Storage Expense Management

Article-A New View of Self-Storage Expense Management

It’s 9:20 a.m. on a Tuesday morning and your day has started off like most. You arrived at your self-storage facility at the normal time. You turned the key and opened the office. The lights came on, the computer fired up, the printer started spitting out your morning reports, and the coffee machine filled the air with the smell of fresh brew. Not bad.

Fast forward to 9:30 a.m. One of your customers, George, walks into the office. He’s at a loss. He entered his code into the access system, but the gate won’t open. This is odd because George is on autopay and his rent is current.

A feeling of dread slides down your spine. You notice your gate log doesn’t show anyone accessing their unit within the last 12 hours. You walk quickly from your office to the gate keypad and enter your manager code. Again, the gate doesn’t open. Now the adventure begins.

Your Role as Expense Manager

This scenario is nothing new to most self-storage managers. If you’ve been managing a facility for a while, you know things can go wrong. In your role, you’re a jack of all trades and master of none. You’re the facility life coach, interior decorator, bartender, moving and packing expert, maintenance person, and psychologist. You’re also the expense manager.

Some self-storage managers have more financial authority than others. Some participate in the development of their facility’s annual budget. Some have the authority to make decisions about site repairs and maintenance. But regardless of how much “power” you have at your facility, you can always network and make vendor friends, which can be incredibly useful in a pinch.

Networking is important because every major repair always comes down to “Did you call The Guy?” The Guy is the person who knows how to fix Problem A so it doesn’t turn into Problem B or C and allow the natives to become restless. The Guy can get to your facility quickly, fix the problem, and put you back in business.

What does this have to do with expense management? Now matter how involved you are in your facility’s budgeting, you’re still at the front line. This position allows you to affect the overall success—and revenue—of your property by keeping expenses in check.

The Gate Fiasco

There are two ways to increase a facility’s net operating income. You can increase revenue, which is something you should be pursuing regularly, and you can decrease expenses. One thing that dramatically affects both is time.

Let’s go back to the damaged gate. Most of the gate systems in our industry are serviced by a licensed (aka qualified) repair company that understands the hardware and software and how they work together. This software lets the gate know when to allow customers into and out of your facility—a fairly important function.

For the sake of discussion, let’s assume you’re a relatively new facility manager and you haven’t yet built a network of “qualified” service contractors. You call to a gate company and are told a repair technician can’t make it to your property for three days, which might as well be three years in self-storage time. You sit and wait. You can’t focus on marketing, delinquency calls, etc., because you’re too busy fielding customer complaints.

Finally, your repair person arrives. He checks out the gate and doesn’t understand why it isn’t working. Physically, it’s fine. It rolls up and down the track, the motor is functional, and it has power. He’s baffled. When you mention the gate is operated by software, you might as well be speaking Martian. This tech isn’t familiar with that system. He thanks you for the business, and leaves you with a bill for the $85 service call. You’re left with a broken gate.

At this point, customers are agitated. Your work days are starting to resemble the movie “Groundhog Day,” only the movie was much more fun. You decide to call the gate-software company and get a recommendation. It gives you the contact information for a licensed representative in the area. You call, and thankfully, this company can send someone out the next day.

You’ve now reached day five of your fiasco. The second service tech arrives and quickly diagnoses the problem. He says he needs to order a new board for the gate controller. It’ll take a day to get the part, but your nightmare is nearly over.

What Did You Lose?

On day six of your disaster, George walks into your office. He says he’s moving out. The situation with the gate made him realize that he should have thrown out all this stuff a long time ago anyway. George’s rent is $150 per month. He’s on autopay, he has tenant insurance, and he’s been receiving and accepting regular rate increases every year. He’s the customer you don’t want to lose! At the end of day seven, your gate is repaired and everything is back to normal—except you have two repair invoices to pay, and you lost George, which will cost you $1,800 in annual revenue.

This is just one example of how time can cost you money (and some of your sanity). How often does a situation like this arise? HVAC, electrical, computer and plumbing issues all rear their ugly heads from time to time. Having a stable of qualified and talented contractors will help you keep these expenses under control, even if you don’t have a lot of financial authority.

The time you save by addressing items quickly and effectively will help you protect your top and bottom lines. Keep your ear to the floor and be part of the community, and you’ll introduce yourself to every friend you’ll ever need, which will help you keep expenses in check.

Matthew Van Horn is a member of the operation team at Reliant Management, a full-service management company specializing in management, feasibility studies, facility acquisitions and joint ventures within the self-storage industry. He’s also president of 3 Mile Domination, a full-service self-storage marketing and strategy company. For more information, visit www.storesmart.org or www.3miledomination.com.