BiG Storage Ltd., a six-facility self-storage chain in Chesire and Lancashire, United Kingdom, received awards this month from the U.S. Self Storage Association, the Self Storage Association of the United Kingdom and the Federation of European Self Storage Associations (FEDESSA). The company received awards for "Support to the Community 2010" and "U.K. Facility of the Year" at FEDESSA's recent conference tradeshow in Berlin, Germany.

The community-service award recognized BiG Storage for organizing Christmas Toy Appeal, a donation drive that amassed 10,000 toys for charities and hospitals; the sponsorship of a professional basketball team that promotes good health habits to youth; and a gala ball that raised money for The Prince's Trust, an organization that helps troubled teens and young adults. The company has been involved in more than 20 community-related projects in the past 18 months.

BiG's current community endeavor is Rhino Mania, for which it is a presenting partner. The project raises funds for the Hospice of the Good Shepherd. In addition, the company has purchased and donated a rhinoceros name BiG Deva to community club Chester FC, and is opening a zoo including more than a dozen animals on the front lawn of its Sealand Road site in Cheshire, England.

The facility-of-the-year award was for BiG's Handforth location, which beat out more than 800 facilities across the country.

Source: ChesterChronicle.co.uk,  Big Storage Scoops Two National Awards

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A mechanical failure at Paramount Storage in Deerfield Township, Ohio, caused a fire today that destroyed at least four self-storage units. The blaze broke out at the 3835 Park Drive facility just after 5 a.m. and was caused by some type of mechanical failure in a pole barn on site, according to authorities. Crews from Deerfield and Hamilton Townships as well as Loveland and Mason battled the fire for approximately three hours. No injuries were reported, and damage estimates have not yet been released.

Source: Middletown Journal, Mechanical failure cause of self-storage fire

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Access Self Storage of Humble, Texas, was recently sold to Wedge Real Estate Holdings Inc., which owns and operates 20 self-storage facilities under the names Stor-A-Way and US Storage throughout Austin, Houston and Dallas. The single-story, 85,125-square-foot facility was operational as of November 2009 and offers a mix of 585 units including office/warehouse space, climate control and enclosed RV parking.
 
The seller was represented in the transaction by Steve Mellon, vice president and director of the Self Storage Group at Grubb & Ellis Co. Joshua Jacobs of Page Partners also helped procure the buyer.

 
“This facility was a logical fit for the buyer’s existing portfolio of self-storage properties and contributes to the company’s strategy of building economies of scale,” said Mellon.  “The property features excellent visibility off of FM 1960 and offers excess land for future expansion.”
 
Grubb & Ellis is a Houston-based commercial real estate services and investment firm. The company employs 6,000 professionals in more than 100 company-owned and affiliate offices.

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The Arizona Self Storage Association (AZSA) awarded Bill Cole, owner of B.C. Cole Auctioneers, with its 2010 Pioneer Award during the closing ceremonies of association’s 12th annual conference and tradeshow last month. Since 2005, the organization has annually presented this award to an association member who contributes substantial time and service to the local self-storage industry, exemplifying the association’s mission of statewide professionalism.
 
Cole has been involved in the self-storage industry since 1992. An active sponsor and supporter of AZSA, he played a significant role in implementation of the association’s statewide auction website. He was a charter member of AZSA and served on its board of directors for six years.

B .C. Cole Auctioneers, which has specialized in self-storage lien auctions since 1992, is used by more than 220 storage facilities in Arizona. The company has more than 1,700 storage auctions scheduled for 2010. It also provides a professional lock-cut service, currently used by more than 75 facilities.

Past recipients of the Pioneer Award include Richard Marmor, attorney with The Arbour Cos.; Hardy Good, founder of MiniCo Inc.; Bill Alter, a broker with Rein & Grossoehme Commercial Real Estate; Bob Schoff, president and chairman of the board for National Self Storage; and Chris Rudel, president of The Rudel Co.

Founded in1996, the AZSA was created to strengthen the self-storage industry in Arizona, promote professional standards and quality, and present a unified voice on issues affecting the industry in the state and in its communities. The association has more than 500 facility and vendor members.

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I recently assembled a roundtable of real estate experts to discuss the state of self-storage in the north-central region. I’ve asked them to comment on the state of the industry market in their areas and share their thoughts on how the industry will perform in the future. Joining us in the discussion are: 

• Bruce Bahrmasel, Landstar Realty Group, Chicago
• Robert Brehmer, NAI Daus, Cleveland
• Larry Goldman, RE/Max Best Associates, Overland Park, Kan.
• Chris Hitler, Investment Real Estate Specialists, Mequon, Wis.
• Greg McDonald, Magnum Real Estate, Minneapolis
• Jim Soltis, Preview Properties.com, Brighton, Mich.

How have self-storage occupancies and leasing activity held up over the last year? What’s your prediction for the next six months?

Bahrmasel: In most markets in Illinois, the last year showed declines in occupancy and rent. In the past few months, there has been a turnaround in these areas, but it’s possible the increases are seasonal. The next six months will tell us whether the recovery will hold up. 

Brehmer: Throughout Ohio, occupancies seem to be holding up, with the exception of projects that should not have been built. Rents are flat, and leasing activity is pretty much consistent. Some owners reported an increase in short-term business due to homeowner foreclosures.

Goldman: In general, 2009 was a tough year for owners in Arkansas, Kansas and Missouri, with occupancies dropping and concessions increasing. The hardest-hit areas were vacation areas and communities where development and facility expansions got ahead of themselves and markets were overbuilt a few years ago. The strongest areas last year were ones that didn’t attract a lot of attention from developers or enjoyed a strong agricultural base. Nearly across the board, occupancies are coming back slowly in 2010.

Hitler: Business has been rather good for Wisconsin storage owners. A recent survey of 80 owners shows the average occupancy at 90 percent, which is a couple points lower than 2008, but certainly not a huge drop. Activity has picked up in the last three months but, historically, spring and summer tend to be stronger times of year than winter for most storage owners. It’s hard to say whether it’s an indication of stronger economic fundamentals or simply the cyclical nature of the business.

McDonald: Self-storage occupancies in Minnesota have been flat or slightly declining over the last 12 months. Some owners expect to see a seasonal increase during the summer months, but many find that tenants are turning over at an increased rate.

Soltis: Throughout Michigan, there has been a reduction in occupancy over the last year for most operators. However, I did speak with a few owners who noticed a slight increase in the beginning of 2010. Many are trying to maintain their business by offering free rent concessions and other incentives until the market makes a recovery.

Are self-storage facilities in your market changing how they advertise?

Bahrmasel: Owners are certainly exploring ways not be tied to Yellow Pages ads. Internet-based alternatives are the most popular advertising methods, but social media hasn’t been explored very much by owners in Illinois.

Brehmer: Advertising methods in Ohio haven’t changed dramatically in recent months. Most facilities have some type of free-rent promotion while others offer free use of a moving truck. I’ve noticed an owner employing text marketing. The facility has a text number customers can dial to learn about the property. This type of advertising is relatively new and, along with social medial, will likely become a good way for self-storage owners to reach college students and other young customers familiar with the technology.

Goldman: I’m seeing little advertising activity in social media, but the shift from print advertising to Internet marketing is accelerating as owners are looking for more bang of their buck in their marketing budgets.

Hitler: Social media hasn’t yet caught on in Wisconsin, but more owners are using websites and search-engine ad words to advertise their facilities. Given the relatively strong occupancy levels, owners haven’t had to substantially increase the use of promotions to generate new rentals.

McDonald: Minnesota is slowly seeing a shift from traditional print advertising to more Internet advertising and other types of media such as TV and radio. Owners in the larger markets of Minneapolis and St. Paul are focusing most of their marketing resources on their websites, and some are trying social-media marketing. In the smaller markets of northern Minnesota, print ads in the Yellow Pages and newspapers, along with billboard advertising, are still the primary methods.

Soltis: In Michigan, several owners are promoting their facilities with free rent concessions. Owners are always looking for additional ad venues to increase traffic, but it may take a while before these alternative sources become their primary advertising methods.

As we see large investors re-enter the acquisitions market, should potential sellers hold off for a while longer, or is now a good time to sell?

Bahrmasel: Many potential sellers in Illinois have seen their values erode over the past couple of years and, as a result, they may not be able weather the next trauma. They’re concerned about getting reasonable financing when their loans come due, and worried that higher interest rates may devalue their properties further. If they’re thinking about selling, they may want to do something sooner rather than risk uncertain circumstances later.

Brehmer: Selling is a timing issue. Some owners seem to be motivated by projected capital-gains changes, others by financing rolling over. Owners who are considering selling should consult a qualified real estate professional to make sure they understand all the market factors before deciding on the timing that’s best for their situation.

Goldman: The seller’s individual circumstances should be the deciding factor. There’s not a lot of transaction velocity in this area, but there wasn’t much velocity even a few years ago when financing was looser, as sellers were not eager to part with their storage projects. The concern I have going forward is the threat of inflation and significantly higher interest rates.

Hitler: Transaction activity has slowed down 30 percent to 40 percent in the previous 12 months due to a difficult lending environment and unrealistic seller expectations on property value. These factors, coupled with near historic lows in financing, have created pent-up demand among strong, well-qualified buyers for appropriately priced facilities and, consequently, a very favorable selling environment. In addition, owners who are likely to sell in the next 12 to 18 months should accelerate those plans, because it appears capital-gains taxes will be increasing next year and will reduce the after-tax proceeds sellers keep.

McDonald: The gap between buyers and sellers appears to be widening. Sellers need to be realistic about the value of their facilities and acknowledge the higher levels of vacancy and higher cap rates when pricing their facilities. It’s still a buyer’s market and will be for quite some time. Sellers should consider all these factors, along with their personal objectives, before deciding to sell or hold.

Soltis: There seems to be a reasonable number of investors in Michigan looking at deals from $500,000 to $3 million. Sellers should base their decision to sell or hold on the prevailing cap rates in their markets. We can offer property at below a 9 percent cap rate, but it would have to be a class-A facility with good actual upside.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self storage buyers and sellers and operates SelfStorage.com, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE; e-mail [email protected].

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The Argus Self Storage Sales Network (ASSSN) welcomed three new broker affiliates to its network. These real estate professionals will represent self-storage sellers and buyers in their respective territories.
 
Mack Browder of Crye-Leike Commercial in Memphis, Tenn., has been a real estate broker since 1985. His experience includes transactions in industrial, multi-family, office, retail and land. He has been recognized by the Memphis Realtor Association as a top producer and represents Argus in Tennessee.
 
Jared Jones has been with Bauer & Associates Inc. in Tulsa, Okla., since 2007 and specializes in self-storage brokerage, office and retail leasing and sales, and investment-property brokerage. Jones serves on the office advisory board for the Greater Tulsa Association of Realtors and is an active participant in the RCA Commercial Alliance and RCA Education committees. He also serves as president of the Oklahoma Self Storage Association and played an active role in the founding of the organization.
 
Richard Abedon is the executive vice president of Navarro Lowrey Properties Inc. Located in West Palm Beach, Fla., he represents Argus in the South and West Florida markets. Abedon has experience in the acquisition, development, site-plan approval, leasing and disposition of residential and commercial assets.
 
Based in Denver, the ASSSN was formed in 1994 to assist owners and investors of self-storage with their real estate needs. The network has 36 broker affiliates covering nearly 40 markets nationwide.

   
[From left to right] Mack Browder, Jared Jones, Richard Abedon

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Online relocation-services portal Movers.com released statistics for the second quarter of 2010 revealing the relocation patterns of U.S. citizens into and out of top cities and states. The data is based on Movers.com-assisted moves made during the quarter.
 
Florida took the lead for inbound moves during the quarter, with California trailing close behind. The two states switched places, however, when comparing the volume of outbound moves. Texas was the only other true contender in relation to people moving in, though New York, Georgia and North Carolina also made strong showings. New York and Texas distinguished themselves in outbound moves, displaying a flurry of relocation activity going both ways in these states.
 
The most popular major cities for Movers.com-assisted moves were Chicago, Houston and Phoenix. These cities also have the highest showings for outward migration, in the same order. The state with the highest ratio of inbound-to-outbound relocation is Texas, with North Carolina and Florida coming in second and third. These states are seeing population growth, according to Moving.com’s relocation statistics.
 
The states seeing the most people leave without inbound moves to replace them are Michigan, New York and Ohio.
 
Moving.com statistics show Dallas as the No. 1 inbound-to-outbound metropolis in the nation, followed by Houston. Phoenix takes a close third. The other side of the spectrum shows Detroit, San Jose, and Philadelphia as seeing the most outbound Movers.com-assisted relocations.
 
Movers.com provides free moving quotes for customers looking to move anywhere in the world. It is also the home of a wealth of moving guides and advice. For more information regarding moving trends, visit www.movers.com/moving-trends.htm.

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SMD Software Inc., provider of SiteLink self-storage management software, now has a new call-center interface for its SiteLink Web Edition.

Using a secure Internet connection, call centers can exchange real-time data with SMD's management software. Call centers can also quote up-to-date prices, specials and storage availability to customers. Web Edition collects reservations and inquiries so self-storage operators can convert them to paying rentals. It also reports tracking inquiries and monitors leads from all sources, including call centers, and tracks conversion ratios.

Established in 1996, SMD Software has more than 9,000 installations worldwide.

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Janus International, a supplier of rolling-doors and components for the self-storage, commercial and industrial markets, has added David Hanssen to its commercial/rolling-steel sales team. Hanssen has more than 20 years of experience in the rolling-steel industry, most recently as senior sales manager for The Cookson Co. He will be responsible for growing and managing the company’s Midwest-region sales efforts and will operate out of Dubuque, Iowa.
 
Headquartered in Temple, Ga., Janus manufactures sheet doors, self-storage doors and building components, rolling steel doors, and grilles.

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