If you’re going to build a self-storage facility in a crowded market, two components are essential: visibility and convenience. Thomas and 83rd Self Storage, the newest store to open in the bustling yet successful Phoenix market, has those elements in spades.

Located near one of Phoenix’s main freeway arteries, the store—named after its prime location—takes the quest for a good site to a new level. The facility is close to the freeway and also en route to Phoenix’s nearest lake, just 30 minutes out of town; the new Arizona Cardinals stadium, complete with restaurants, movie theater and shopping; plus an ample supply of homes, condos and apartments. Adding to all that, the store takes advantage of frontage along 83rd Ave., a busy channel connecting the north and south ends of Phoenix and its nearby suburb, Glendale.

The facility, owned by a group of investors, is just under 165,000 square feet on 4.⁵ acres. Construction began in March 2007, with the store opening a year later. As in most cities and towns, the construction called for attention to aesthetics. “There’s no doubt there’s a demand for higher-end architecture and this would certainly qualify for that,” says Tarik Williams, vice president of TLW Construction Inc. The Mesa, Ariz., company, a full-service general contractor, led the project.

One of the biggest challenges was the two-story buildings, two of which are located on the property. “The city wanted them to be hidden,” Williams says. To appease the city board, the two-story buildings were reconfigured to the interior of the project. Plus, exterior buildings were restricted to a height of 18 feet.

To create an upscale aesthetic appeal, curvilinear architecture was incorporated. There are arches around the perimeter with larger ones dominating the front office, a 1,000-square-foot building that also includes a retail area and manager’s office. Other architectural elements on the property are linear, which creates a unique contrast of shapes.

The property is managed by Professional Self Storage Management. The company will be responsible for hiring, training and managing the onsite team, and assume other duties such as preventative and ongoing maintenance, bookkeeping and accounting functions, sales and collections, marketing and advertising. The management software is manufactured by Sentinel Systems Corp.

All Access

Another key component to the design was customer convenience. The second-story units are climate controlled, and there are four elevators. “The number of elevators makes it very convenient and there are also eight staircases,” Williams says. “That tends to be an issue when trying to rent a second floor unit. So we made sure the elevators are as tall and wide as possible.” In fact, the original design called for smaller elevators. “We increased the height by a foot and the depth by 6 inches,” Williams notes. “Basically, if you can’t get into the elevator with your sectional couch, you’re not going to rent up there.”

Wide driveways accommodate trailers, boats and other toys. “It was a really flat sight so there weren’t a lot of elevation issues,” Williams says. “In order to maximize the site usage, we had to store some of the drain water underground.”

High-End Security

TLW turned to Azstar Communications in Mesa, Ariz., to install the facility’s integrated security system. Azstar chose security components from PTI Integrated Systems for the project. In addition to traditional security measures, such as gate access, keypads and electronic door strikes, Azstar also installed keypads on the facility’s two-story buildings, restricting access to the buildings’ tenants only.

The front office has two 42-inch flat screen monitors: one for video surveillance, another for site graphics, including occupancy and delinquent accounts. And the property’s 24 cameras are linked to a 32-channel DVR recorder, an upgrade over previous DVR recorders. “The 32-channel DVR has become more affordable in the last year,” explains Greg Sherwood, Azstar’s director of self-storage. The 32-channel DVR simplifies recording. “The manager only has to maintain and operate one video system,” Sherwood adds.

Another security component more self-storage developers—and tenants—are looking for is advanced intercom systems. Azstar installed an above-average system that includes not just an intercom, but also music and a paging system. The facility features an intercom every 75 to 100 feet. “It’s very customer friendly,” Sherwood notes. “The music tends to make people feel more comfortable, especially in the large buildings.”

For more information, call TLW Construction at 877.392.1656, or Professional Self Storage Management at 520.320.9135.

Video surveillance was first used by the military in the 1940s. In the early ’70s, analog cameras or closed-circuit television (CCTV) prevailed in the market, giving criminals second thoughts.

As the name implies, CCTV is a closed system. Video is transmitted to a limited set of monitors using coaxial cables. Today, the technology has evolved to digital to the point that it has truly revolutionized video surveillance. Digital video is dominating modern-day security for homes, businesses and public entities. In this article, we’ll take a look at why digital video has become so widespread, its advantages and costs.

What Is Digital Video Surveillance?

The continuously increasing computing powers of personal computers (PCs), the greater availability of high-speed Internet access, networks, and the advent of wireless technology have propelled the emergence and popularity of digital video surveillance. CCTV or analog systems transmit video to specific local monitors for viewing and are confined to that physical location. Digital video systems, however, can be transmitted to multiple viewing and/or storage sites by utilizing network infrastructures and IP (Internet Protocol) technology to transmit video over a network or the Internet. Before the digital world, CCTV cameras were hooked up to a VCR for recording video. Today, the same CCTV cameras can be digitized using a digital video recorder (DVR), network video recorder (NVR) or network DVR.

What’ so great about digital? Going digital has added more functionality and flexibility to video surveillance. Video can now be transmitted wirelessly. Camera systems are no longer tethered to cables, thus, larger areas and locations—once impossible to cover due to lack of connectivity—can now be covered by cameras without degradation of video quality. Video can now be stored digitally without the need for a massive amount of ancient VCR tapes. These systems also allow remote access to cameras using a PC connected to the network or the Internet, or even your personal cell phone.

A new breed of digital camera, the IP or network camera has emerged in the last few years. IP cameras operate over a computer network. No special recording box is required—any PC can be used as a recording mechanism. These cameras produce high-quality images. Some have advanced features that include tools such as video analytics, compression technologies, remote video monitoring and enhanced search capabilities. With these technologies, finding specific events or points in time are faster, easier and more economical.

Why Change to Digital Video Surveillance?

The most common security measures employed by self-storage companies are access control, alarm systems, perimeter barriers, video surveillance and traditional guard services. Compared to alarm systems, video surveillance is simply more effective. Police have been understandably reluctant, slow at best, to respond to reported alarms due to their high frequency.

In fact, they are so common that the expression itself—false alarm—has rapidly become a cliché in modern English. Owners of alarm systems have even been fined for false alarms in many municipalities. Video surveillance, whether performed by a property owner or a central monitoring station, provides live visual verification, thus eliminating false alarms.

Traditional guard services are still effective, but can be cost-prohibitive and unreliable. In areas with low labor rates or high cost of living, guards might be tempted to look the other way for a piece of the action.

CCTV technology has been around for years and will probably survive for many more. But the major movement currently in the security field is the convergence of physical security and information technology (IT), exemplified by the proliferation of digital video surveillance.

Costs, Choices and Common Sense

Whatever you decide for your security system, make sure that it’s future-proof. Don’t invest in equipment and systems that will be outdated or obsolete in just a few years. Long-term overall cost must be taken into consideration as well as initial expense. CCTV cameras may be relatively cheap compared to IP cameras, but over time, it will be more costly to repair equipment that is nearing extinction. As with any newer technology, as it matures, IP camera prices and cost of ownership will be driven down.

Total deployment costs and overall return on investment must also be taken into consideration. Although CCTV cameras may be cheaper, they are often more expensive to deploy. Expensive coaxial cables typically cost 30 percent to 40 percent more than a high-quality network cable. One coax cable must be attached to each and every camera and threaded to a multiplexer, which requires another coax cable feed from the multiplexer to the monitoring screen or recording device. IP cameras use Ethernet cable. One cable can forward images simultaneously from hundreds of cameras within the network.

Whether you flip through the Yellow Pages or search the Internet for digital video surveillance, you will face hundreds of choices. Beware of integrators selling you on a “digital system.” When they sell you a DVR or NVR system, only the recording medium is digital—the camera is still analog or CCTV. A true digital video surveillance setup consists of IP cameras that can be networked and generally provide higher-quality images. Any PC or server can be used as the recording medium.

If you have already invested thousands into an analog camera system don’t despair! In order for this older technology to benefit from all the functionalities of digital technology, CCTV signals can be digitized to mimic the features of IP cameras using video servers or encoders. Only then can a CCTV system be truly networkable and incorporated into a centralized management system.

Centralized management system of cameras allows a single access log in to all your cameras within the network. Unlike DVR systems, where you need to log in separately to every box, you can view all your IP cameras in one dashboard with one log in.

Applications for the Self-Storage Industry

Security. Providing security is a no-brainer. The presence alone of security cameras on your property is a significant form of deterrence. Criminals will shy away from properties with good camera coverage. However, some reckless or desperate criminals will circumvent cameras with disguises, or by covering or destroying cameras. Sure, these activities are recorded. The problem is it’s after the fact. By the time the incident is reviewed, the crime has already been committed and the criminal is long gone.

The only way cameras can be completely effective is when they are consistently monitored. As a busy property owner or manager, who has the time for that? Hiring a security guard to watch the cameras is cost-prohibitive. Not to mention the costs of equipment, a monitoring station, space and software required to do in-house monitoring.

You may not be responsible for a tenants’ property loss, but the probability approaches certainty that you will lose that tenant if you didn’t have adequate security to protect his valuables. Even worse, that customer will be sharing his negative opinion of your facility and won’t recommend your facility to friends and relatives.

There are some companies that offer real-time, digital video surveillance via the Internet at a fraction of the cost of hiring your own dedicated people or a security guard to monitor cameras. This is the newest and most cost-effective way to protect your property and realize the full potential of your investment in a digital IP camera system.

New Residual Revenue. There is very little differentiation in the self-storage industry. You can be creative by employing security as a marketing tool to create that differentiation—and justifiably charging a premium for that difference. Here’s an example. Say you have a 200-unit facility. Designate a “maximum security” area for customers that store more than just old clothes or furniture. Start small. Let customer acceptance finance the growth—two or three cameras can cover a significant number of units—and have a remote surveillance company monitor the cameras in real-time during off hours. You won’t need to hire a dedicated person to monitor the cameras.

Every tenant welcomes extra security, but not everyone is willing to pay a premium. You can market this special section of your facility to customers that store expensive jewelry, cars or use storage units for warehousing or inventory overflow. The shared cost of real-time video monitoring will not be a big burden when spread over several tenants.

Now, if you really want a state-of-the-art storage facility, you can equip certain units with inexpensive IP cameras and offer your customers the ability to access their own camera remotely, 24/7, wherever there is an Internet connection. Or if they don’t have the time, have a video surveillance company monitor it for them. With growing competition in a homogeneous industry, you need to be creative in differentiating your facility from the rest.

Self-serve kiosks. The concept of self-serve kiosks started with ATMs, self-serve checkouts at retail stores, and pay-at-the-pump gas stations. This concept has transferred to the self-storage industry.

Kiosks in the industry became popular in late 2003 as the newest way to increase operational efficiency and profitability. Kiosks extend a facility’s office hours—without having to hire a manager. New customers or existing customers can transact business 24 hours a day without human interaction. Some of these kiosks have built-in cameras.

But who is monitoring these cameras? Unless an area is crime-infested, event-based video monitoring may be more cost-effective for kiosks. How does this work? The remote surveillance company will only view the camera when motion is detected in areas you designate.

Unmanned facility with remote personnel. Beyond kiosks is the concept of an unmanned facility with remote personnel. In conjunction with kiosks, digital video surveillance allows facility managers to manage their properties remotely. This is highly efficient when you have multiple properties. You can literally see your entire operation in one computer screen view, simultaneously in real time, without having to log on to each individual facility or camera.

Video data you collect will allow you to assess day-to-day activities in your facilities and enable you to compare trends and activities across your properties. You will be able to track your traffic and generate data to help you improve operational efficiencies. With digital video surveillance technology, the possibilities are endless.

Luz A. Berg is the senior vice president of operations and marketing for Iveda Solutions, a full-service IP surveillance company based in Mesa, Ariz. Iveda Solutions specializes in real-time Internet-based video surveillance services using a combination of network cameras, a secure data center and intervention specialists. For information, call 800.385.8616; visit www.ivedasolutions.com.

Maurice Pogoda, president of Pogoda Management Co., Michigan’s largest operator of self-storage facilities, recently sent a letter to fellow business owners in the state, urging them to support efforts toward reducing the Michigan Business Tax (MBT), which received a 21.99 percent surcharge during budget proceedings last year. In addition to the surcharge, legislative changes were made that significantly impact the commercial real estate sector and the value of property. According to Pogoda, companies from across the state have reported experiencing a 200 percent to 400 percent tax increase due to the new MBT and surcharge.
 
Pogoda advised business owners to immediately contact their legislators and ask for a repeal of the surcharge as well as a number of other changes. He also explained that they can join the efforts of the Michigan Chamber of Commerce, which is spearheading legislation to repeal the surcharge. The chamber’s website contains a sample letter to legislators that owners can personalize for their own use.
 
Pogoda said letters should ask legislators to: 

• Eliminate the MBT surcharge
• Reinstate the 10-year Investment Tax Credit
• Include real estate in the definition of inventory for the purposes of “purchases from other firms”
• Allow Common Area Maintenance to be deducted from gross receipts in calculating the new tax
• Offer a “fresh start” for allowed depreciation on all commercial real estate beginning Jan. 1

Concerned business owners can also participate in lobbying efforts being made by the Building Owners and Managers Association (BOMA). BOMA of Metropolitan Detroit’s Government Affairs Committee, along with professional lobbyists Scofes & Associates Consulting, will petition before Michigan decision-makers to protect the interests of commercial real estate. For more information, visit www.bomadet.org.
 
Based in Farmington Hills, Mich., Pogoda Management has approximately 3 million square feet of self-storage space under management in Michigan and Ohio. Founded in 1987, the firm provides brokerage, management, investment and consulting services to the self-storage industry. For more information, visit www.pogodaco.com.

Sales is about figuring out how to make the buying process less complicated but more attractive, streamlined and frequent. Sometimes it requires a lot of tweaking to current practices and fundamental shifts in strategy.

There’s an old military adage that says, “No plan survives first contact with the enemy.” In other words, the best planning only lasts until the barrage begins; then anything can happen. This is why the U.S. Marines spend so much time in training—to ensure everyone up and down the chain of command can improvise to achieve the ultimate goal, while only corporals and sergeants have decision-making power.

There's another old saying that has more to do with personal conflicts. It’s one I learned while growing up in Brooklyn, N.Y., where kids liked to talk tough: “Everyone talks big until they get punched in the mouth.” What can we learn from all this?

Lead and They Will Follow

Your sales strategies and day-to-day practices may satisfy all the basic rules of selling and may be comfortable for you and your staff, but the world is changing with every passing minute and, unless you have a way to anticipate, evaluate and adjust, you will be left behind. So each change should be carefully considered. Sometimes a minor adjustment will take as much effort, staff buy-in and time to complete as a major one. That's why most initiatives, instructions and constructive criticisms seem to fall on deaf ears.

It’s not that people don’t hear what you're saying, trust your judgment or want to follow your lead. They’re just busy doing all the tasks they do every day to run their lives and jobs. Most things we do come automatically from training. We don’t always think about how or why, we just do them. This is why the Marines spend so much time on training. They want a predictable response to unpredictable situations.

You need to spend far more time and effort on implementing and executing tweaks and shifts than you think are necessary. You must change people’s trained behaviors. This also means you must change the way they think and feel about the task, strategy and situation you are reconfiguring.

Giving Command

If you can’t get your staff members to ask 100 percent of the people walking into the store if they need to buy any boxes or supplies today, how do you expect to get them to make a major shift in sales strategy? The answer: training ... and more training.

But sometimes even changes of minor proportions are difficult to implement. What then? One strategy that leans toward success is to have someone other than you own the project. Pick a responsible staff member and give him ownership.

This is the person who should be responsible for moving the project forward from concept to completion, as if raising a puppy. It’s necessary to start small and go through all the steps needed to house train the puppy, get basic obedience in place and then develop it into a great family member. In the same way, a new project needs to be nurtured and raised to become just another part of standard day-to-day operating procedures, routines and habits.

Make sure to assign the task to someone who can rally the troops. The person is charged with shepherding the project from concept to completion, providing scheduled updates and progress reports, getting the whole team to pitch in.

Allow your commander significant time to train his troops and follow through with the plan of action. When the battle is won, congratulate your commander and troops, and give yourself a pat on the back for turning another sales strategy into success.

Tron Jordheim is the director of PhoneSmart, an offsite sales force that helps storage owners rent to more people through its call center, secret-shopping service, sales-training and Internet-lead-generation services. Mr. Jordheim is also a member of the National Speakers Association. You can read what he is up to at www.selfstorageblog.com; e-mail [email protected].

This summer, Central Self Storage will host six blood drives in cooperation with Stanford Blood Center at several of its facilities in California. The decision was made in response to an announcement that San Jose State University (SJSU) has decided to ban blood drives on its campus, where close to 1,000 units of blood were previously collected each year by Stanford and the American Red Cross.  
 
“I was saddened by SJSU’s decision to ban blood drives. Stanford Hospital saved my husband’s life in 1994, and donating blood is the right thing to do,” Cathi Rosas, regional manager of Central Self Storage, told the Alameda Sun. Due to increased use at area hospitals, Stanford Blood Center is significantly low in types O, A-positive and B-negative.
 
Rosas approached the blood center about holding drives during Customer Appreciation Days at Central Self Storage facilities in the San Francisco Bay Area. Existing tenants will enjoy hot dogs and soda; new customers will get a move-in discount; and blood donors will receive a credit good toward storage rental.
 
The first blood drive took place in Alameda on June 7. The remaining events will be held from 11 a.m. until 2 p.m. on the following Saturdays: 

• June 14, Burlingame
• June 21, Daly City
• June 28, Milpitas
• July 12, San Jose
• July 26, in Pleasanton 

Detailed location info can be found at www.centralselfstorage.com. To make an appointment, donors can call Stanford Blood Center at 650.723.7831 or 888.723.7831, or book online at http://bloodcenter.stanford.edu. They should be in good health with no symptoms of cold or flu. Prior to donating, they should eat well and drink lots of fluids. Donors will be asked to present photo identification at the donation site. The process takes about an hour.

Effective Jan. 1, 2009, self-storage facility owners in the state of Vermont will be granted legal protection under the Vermont Self Storage Facilities Act, signed last week by Gov. Jim Douglas. The bill, sponsored by Sen. Bill Carris of Rutland, Vt., had been delivered to the office of the Governor's Counsel for final approval on May 27. When the document received the Governor's signature on June 6, celebration swept throughout the Vermont self-storage and legal communities.

"This week, all of our collective efforts to bring a self-storage lien law to Vermont came to a successful conclusion," said Chris McGrath, executive director of the Vermont Self Storage Association and a strong advocate of the law. "All of us are delighted that this long process resulted in this success. And we wish to thank Sen. Bill Carris, who has been our 'champion,' as well as Thad Lorentz, who has been our most effective and persuasive advocate."

McGrath and the Vermont association are planning a meeting in the Rutland, Vt., area for July 22, at which time they will present the law as it was passed and signed. They will also recommend a proposed rental agreement and list of auction proceedings that comply with the statute, and members will get instructions on how to meet the statutory mandates. For more information, contact Judith Burke at 518.462.3333 or [email protected].