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Vote in Poll, Discuss Summer Business on Self-Storage Talk

Article-Vote in Poll, Discuss Summer Business on Self-Storage Talk

Summer tends to be hectic at self-storage facilities. It's a popular time for tenants to want access to their boats and RVs and recreational vehicles. Likewise, with all of the new marriages and recent college graduates, people are invariably on the move this time of year, not to mention the fact that in most parts of the United States, the weather is actually conducive to moving.

All of these factors should equate to an uptick in business, but with the economy plodding through a phantom recovery, that uptick is not a certainty. This week's poll on Self-Storage Talk, the largest online community in the industry, asks members, "How Is Business This Summer Comparing With Last Year?" In early voting, it appears this summer is being kinder to facilities than last year was. But member and moderator shaekirk has an interesting take: "I think in 2009 and 2010, people were considering 'storage' a financial burden, so they emptied their units and ran for the hills. Then the length of stay became much shorter. Now, people are downsizing, or moving in with family members, so length of stay is increasing again. Business is much, much better in my corner of the [Bay Area.] I don't think it says much for the economy, though."

Let us know how things are going at your facility by voting in the completely anonymous poll. If you want to elaborate or respond to shaekirk's post, feel free to post in the discussion thread.

All posters must be registered members. To become a registered member (if you're not one already), visit http://www.selfstoragetalk.com/register.php. It's completely free and takes only a few minutes.

Governor Signs New Self-Storage Legislation in Maine

Article-Governor Signs New Self-Storage Legislation in Maine

Last Thursday Maine Gov. Paul LePage signed Legislative Document 1428, "An Act To Amend the Laws Governing Self-Service Storage in the State," which includes improvements desired by the state's self-storage facility operators. The Maine Self Storage Association (MeSSA) and national Self Storage Association have led the effort to reform the statute. LD 1428:

  • Repeals the newspaper-publishing requirement for a notice of sale.
  • Defines "abandoned leased space," "electronic mail" and "verified mail."
  • Adds all-terrain vehicles, off-road vehicles and recreational vehicles to the definition of "personal property."
  • Determines that liens attach on the date the occupant leases the space.
  • Allows the operator to access a delinquent storage unit after 45 days and make the determination of whether it has been abandoned and contains only trash or holds legitimate goods and should proceed to lien sale.
  • Explains how to deal with motor vehicles; the self-storage operator may have the motor vehicle towed with no liability to any party.
  • Revises the lien-notice requirements. Operators previously had to send two notices, one via Certified Mail and the other via First Class Mail. Operators must still send two notices, but the allowable methods have changed. One can be sent by any method that provides for verification of mailing, and the other can be sent by e-mail or First Class Mail.
  • Reduces the amount of time that operators must hold a sale-proceeds balance from an indefinite period to only 90 days.
  • Sets the maximum liability of the self-storage operator.
  • Gives the operator the right to immediately take possession of the leased space and dispose of property if the occupant abandons the space.

Right from the beginning, we were very confident, said Rhonda Hallett Pope, MeSSA president. Were very excited about this. It makes things much more clear and easy to follow, and it will save [self-storage operators] a whole lot of money.

Though a lot of people contributed to the successful journey of the new legislation, including Rep. Jon Courtney, the senate majority leader and lead sponsor of the bill, Pope especially credits MeSSA Vice President Mark Adler, who devoted a lot of time and energy to working with lobbyists on the effort.

Detailed information about the bill can be found at www.mainelegislature.org/legis/bills/display_ps.asp?snum=125&paper=SP0442&PID=1456.

This year new self-storage legislation has been passed in California, Illinois, Nevada and Tennessee. Other state self-storage associations are also pursuing modifications.

Developer Requests Rezoning for Self-Storage, Truck Rental for Empty Site in Georgia

Article-Developer Requests Rezoning for Self-Storage, Truck Rental for Empty Site in Georgia

The Coweta County Commission in Georgia is considering a proposal for a self-storage facility that will include truck rental.

Highway 34 Investors LLC has requested a rezoning change from Old C, old commercial, to C-8, heavy commercial district, to allow for self-storage. C-8 zoning includes retail and services which require areas for open storage.

The proposed development encompasses 5,023 square feet on the south side of Highway 34. Included in the square footage is U-Haul truck/trailer rental, 3,358 square feet of showroom/office space, and 1,665 square feet for warehouse/storage space.

The Coweta County Commission will discuss the rezoning at its July meeting.

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Idaho Self-Storage Owner Battles County Over Stormwater Fees

Article-Idaho Self-Storage Owner Battles County Over Stormwater Fees

A self-storage owner in Asotin County, Idaho, is among several business owners fighting the city over stormwater fees.

Jeff Port, owner of Adeles Mini Storage, has raised rental rates to keep up with the fee, which can reach nearly $5,000 annually for some business owners. Residents only pay about $60 a year.

When developing the property, Port said drainage was an important consideration. The facility features a drain on a slab that goes into a catch basin. From there its piped into a drain that runs down the driveways. Water on non-permeable surfaces runs through a similar system.

Port spent nearly $20,000 on the stormwater drainage system. He also pays $1,400 annually to the county.

In light of Ports stormwater system, the group that regulates the countys stormwater fees is considering a way to compensate him.

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Designing Self-Storage Projects: Reasons to Hire an Architect

Article-Designing Self-Storage Projects: Reasons to Hire an Architect

By Kenneth K. Carrell

Before I get to the 101 uses for a dead architect, lets discuss why you should use a live one to design your self-storage facility. One of the most common things I hear from property owners is, Architects are too expensive. Why do I need to hire one? Besides the obvious answer, which is architects need the money, there are a number of very good reasons to use an architect for the design of your project.

Maximized Building Area

To begin, an architect who specializes in self-storage design understands how to lay out a site to obtain the most efficient use of the land. On one of my earlier projects, an engineer had originally designed a self-storage facility to include 45,000 square feet of gross building area. After reviewing his plan, I discovered the site could actually provide a minimum of 65,000 square feet. Once redesigned by an architect, the project contained 72,000 square feet.

Solutions for Odd-Shaped Parcels

Owners often solicit assistance from companies that deal in the design and construction of steel buildings. These companies are great at developing rectangular sites, providing standard-size buildings and layouts at a reasonable cost. Ive sometimes referred clients to these companies in the past because they would have spent too much on architectural services for such a straight, simple design.

However, companies that manufacture pre-fabricated structures dont excel at creating customized designs. When a site has an odd-ball shape, rectangular buildings wont cut the mustard. They tend to leave gaps between the property line and the back of the building that could be designed as usable space. When a site is an unusual shape, an architect can help you maximize the building area. Every square foot of unused property represents wasted money.

Aesthetics

Something owners dont always take into consideration is the exterior design of their self-storage facility. Jurisdictions sometimes want a really attractive project, and owners sometimes do, too. An architect can generally provide a more eye-catching project, which will help bring in more customers. One project I worked on included a tower element that was visible from about a half mile away. Customers were drawn to the facility before it was even finished, as they could see the tower from a long way off.

Building-Code Knowledge

The current building-code book has more than 1,300 pages of rules and regulations. Architects deal with building codes every day. An architect will spend a few hours examining the codes to determine how much building can go on the site, how tall the structures can be, etc. Trying to design a project without checking the codes can result in one that is too big, throwing off the pro forma. And thats just one of many issues presented by building codes.

Overcoming Zoning Challenges

Architects can help a project progress through the governing jurisdiction more smoothly. Ive worked on both sides of the process. As an architect, Ive presented many projects to planning commissions and city councils. And as a former planning commissioner, I watched architects and owners present projects to the commissionsome successfully, some not.

Because architects deal with the rules and regulations of government on a daily basis, they understand the codes and guidelines necessary to design a project. Some jurisdictions almost require you to use an architect without coming right out and telling you that. Some can make the entitlement process fast, and some can drag it out in an attempt to discourage construction.

Avoiding Mistakes

Architects also stop clients from making serious mistakes. I recently worked on a project in which the client wanted to park recreational vehicles on a piece of property before he had the citys approval. When he told me what he planned to do, I explained the potential political ramifications of parking RVs there before the planners gave their blessingeven if it was legal to do so. Planners have a tendency to stretch things out if theyre not happy. Architects are good at slowing down anxious clients.

Architects who specialize in self-storage design generally provide a better result than off-the-shelf packages from manufacturers of pre-fabricated structures; and they are definitely more reliable than architects who have never designed a self-storage facility. Better layouts, custom design and maximizing the site are just a few of the reasons to use an architect.

As to the 101 uses for a dead architect, ask any contractor. Just be sure to stop him when he gets to 102!

Ken Carrell is the owner of ARE Associates, a architectural firm specializing in self-storage. ARE has been in business more than 10 years, and Mr. Carrell has been in the architectural field for more than 30. He has designed more than 100 self-storage facilities and is licensed in several states. To reach him, call 949.305.4752 or e-mail [email protected] . For more information, visit www.areassociates.com .

Greener Pastures: Considering Environmental Self-Storage

Article-Greener Pastures: Considering Environmental Self-Storage

By Foy & Co. Investment Real Estate Services

Environmental building initiatives arent going away, and theres evidence that adopting green building standards and practices is the way of the future, even in the self-storage industry.

A 2009 study by Siemens and McGraw Hill Construction found that one-third of 180 U.S. corporate leaders surveyed anticipate becoming leaders in green and environmental initiatives by 2013. Green initiatives are viewed as primary building blocks for maintaining or developing an advantage over the competition. Nearly half of the studys participants (43 percent) see green activities, including environmentally friendly buildings, as part of their companys growth strategy.

Another survey conducted by Turner Construction Co., which offers construction-management services, looked at the benefits the commercial real estate industry may reap from adopting environmental building practices. The survey took findings from 800 green-building owners. The perceived benefits were:

  • Higher building value (79 percent)
  • Higher return on investment (63 percent)
  • Higher asking rents (62 percent)
  • Higher occupancy rates (52 percent)

Evidence suggests the trend toward greener business practices is continuing. Implementing environmentally friendly business strategies can potentially hold great value, and we cannot ignore the ecological and health benefits. Green buildings can potentially use one-third less energy and reduce water use by up to 50 percent.

Investment and Benefits

Although theres evidence to suggest the self-storage industry should consider environmental initiatives, there still appears to be some hesitation on behalf of facility owners. Building sustainable facilities is more expensive, but is it worth the cost? Will a considerable investment demonstrate higher return?

Lets face it, facility owners and operators will rely heavily on consumer conscience. Customers are looking for greener products and services, and environmental practices could certainly win over some self-storage seekers. But how many renters will be willing to pay more for a buildings sustainability is unknown.

At the moment, its a trial-and-error game for self-storage. There are facilities taking strides, making their facilities more efficient. Some owners have reported increased occupancies and sales as a result of the positive image generated by a more sustainable model. If environmental practices are the wave of the future and provide a competitive edge, greener initiatives are going to be increasingly important to consider. Here are a few ways to incorporate them into your self-storage operation:

  • Recycled materials. There are plenty from which to choose, and using them helps reduce waste and may lower building costs.
  • Solar panels. These generate electricity through photovoltaics that captures the suns rays. Any unused power generated could be sold back to the utility company. Added bonuses include rebates offered from federal and locals governments, and the potential elimination of monthly electricity bills.
  • Light bulbs. Replace regular light bulbs with fluorescent ones, making sure to dispose of old ones properly.
  • Recycling center. Some residents, particularly those who live in condominiums and apartment buildings, may not have access to recycling at their homes. Offering a recycling service could be of little direct expense to you but have a long-term advantage. A recycling center gives people a reason to visit your facility. Essentially, youve created a subtle marketing campaign while helping the environment.
  • Community gardens. Installing a rooftop or lawn garden around the facility could be a great addition and an interesting corporate citizenship opportunity. Urban gardening and farming groups are constantly looking for somewhere to operate. They may even need a unit to store their tools.

These are just a handful of green initiatives self-storage operators should consider. Do some research about environmental products, non-profit organizations and services in your community, and then determine which will best benefit your tenants and business.

Foy & Co. Investment Real Estate Services specializes in equity raising and brokerage services for the Canadian self-storage market. For more information, visit www.foyco.ca.

Video Leads to Arrest in Quincy, Ill., Self-Storage Burglary

Article-Video Leads to Arrest in Quincy, Ill., Self-Storage Burglary

Video surveillance of a burglary at Security Self Storage in Quincy, Ill., led to the arrest of a 48-year-old woman yesterday. Managers from the facility at 9200 Broadway St. contacted police on Wednesday regarding suspicious on-site activity observed the previous day. An investigation by the Adams County Sheriff's Department determined there had been a theft. The suspect was identified from video footage.

Nikki L. Gronewold was arrested Thursday afternoon after meeting with deputies and department investigators. She was charged with burglary and possession of stolen property and detained in the Adams County Jail.

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StorageTreasures Expands Texas and California Auction Listings

Article-StorageTreasures Expands Texas and California Auction Listings

StorageTreasures.com, a website for self-storage auction hunters, has increased coverage of auctions happening across Arizona, California and Texas. While the website covers auctions occurring nationwide and in Canada, its owners are seeking to ensure attendees in those particular states have a single source for accurate, real-time auction listings, according to a press release.

The website was also recently upgraded to include advanced capabilities for auction hunters and self-storage facility owners.

We are adding thousands of upcoming auction dates throughout the country, but since so much of our membership is concentrated in California, Texas and Arizona, we are prioritizing our efforts around these three states, said StorageTreasures President and Founder Lance Watkins. Later this month, well follow up with 10 to 12 additional geographies that we see as being key storage-auction markets.

StorageTreasures.com is a free self-storage auction locator and facility finder covering the United States and Canada. It offers storage auction schedules and site-specific guidelines for auction goers and facility owners.

Self-Storage Management Company Accountable Management Helps U.S. Marines Stationed in Japan

Article-Self-Storage Management Company Accountable Management Helps U.S. Marines Stationed in Japan

Accountable Management, a self-storage management and consulting firm in Florida, has partnered with Overseas Coupon Program, a couponing program assisting families stationed at overseas military bases. 

Accountable Management has adopted a Marine base in Iwakuni, Japan, sending coupons every other month since 2010 to help overseas families with their household grocery bills.

Couponing has become very popular and we love that were supporting families and our troops, said Lori Judd, project manager. The best thing about this program is they accept any manufacturer coupon including expired ones.

Launched in 1987, Accountable Management currently oversees the operations of more than 20 self-storage facilities in Florida.

Last year, Overseas Coupon Program provided more than ten million dollars in coupon assistance. More information about the program can be found at OCPnet.org.

Inside Self-Storage Launches Construction Survey, Participation Encouraged

Article-Inside Self-Storage Launches Construction Survey, Participation Encouraged

Everyone who works in self-storage, from facility managers to corporate CEOs to product and service providers, has a vested interest in the growth of the industry. They all rely on industry strength for a profitable business. Construction and development are important parts of the picture, as activity in these areas can provide insight to overall market power and saturation, which gets to the heart of supply and demand and competition.

Inside Self-Storage (ISS), a provider of informational resources for the self-storage industry, has launched a quick survey related to industry building activity worldwide. Targeted to self-storage owners and investors, the survey seeks to determine where self-storage facilities are being built, the types of projects being undertaken, the average size of these projects and more.

ISS encourages industry professionals to participate in the following simple questionnaire. The results will be shared with readers via the ISS website and magazine in upcoming months. A special report will be featured in the September 2011 issue, which focuses on self-storage construction and development.

A separate but related survey is being distributed to self-storage builders and developers. Questions about the surveys and their results can be directed to ISS Associate Editor John Carlisle at [email protected].