Self-storage real estate investment trust (REIT) Life Storage Inc. intends to expand its facility at 3154 Union Road in Cheektowaga, N.Y. The company wants to demolish two single-story buildings and replace them with a three-story, climate-controlled structure. The new building would nearly triple the business footprint from 5,918 to 14,400 square feet, according to the source.

“The proposed building will be constructed in an area which is currently building and pavement, and as such, there will be no increase in impervious area for drainage considerations,” said Timothy MacVittie, construction project manager, in the development-review application.

The project would expand the property’s climate-control offerings. The facility also offers acceptance of customer deliveries, moving and packing supplies, truck rentals, and vehicle storage. Features include 24-hour access, perimeter fencing and video cameras for security, according to the Life Storage website.

Based in Buffalo, N.Y., Life Storage operates more than 700 self-storage facilities in 28 states under the Life Storage and Uncle Bob’s brands. Its portfolio of owned and managed facilities comprises more than 50 million square feet.

Source:
Cheektowaga Chronicle, Union Road Life Storage Proposes Three-Story New Build

The new General Data Protection Regulations (GDPR) went into effect throughout the European Union (EU), including the United Kingdom, on May 25. These regulations require self-storage operators to change the way they gather, store and use personal data from customers, staff, suppliers and the public.

The EU decided there should be uniform standards for data protection across Europe and these standards should no longer be addressed through individual legislation in each country. This lead to the drafting of the GDPR. In addition to affecting businesses in Europe, these regulations put conditions on businesses that trade with the EU, even if they’re geographically outside it.

The new laws have had a significant impact on self-storage operators in Europe, particularly those that gather video footage on their properties, as this is considered sensitive information under the GDPR. They also give individuals more power to understand and control how their data is used, including rights to amend and remove it. Following are the more significant elements of the legislation that impact self-storage operators.

A Dedicated Officer

While the appointment of a dedicated data-protection officer may not be a requirement for all self-storage businesses, depending on their size, it’s difficult to implement the requirements of the GDPR without having a representative who’s accountable for data protection. Facility operators must decide who will be responsible for implementing the new regulations and controlling facility data. This should be a person who’s senior enough in the operation to make the required decisions.

Privacy Statement

While all businesses should already have a robust privacy statement, the GDPR requires extensive changes to this, and it now needs to be readily available to everyone who provides data to your business. This means that before a customer provides you with any information, through any means, he must be offered a copy of your statement. It must include details of how his data will be used, the legal means for collecting it, the means for the customer to change or repeal his data, and the way in which your business will protect the information.

Consent

It’s now necessary to add opt-in consent boxes to all points where customer data is collected for marketing. If your business intends to contact customers for marketing purposes, or to pass customer details on to other businesses for the same purpose, then customers must “opt in” to provide consent. This can’t be a pre-ticked box on an online form or contract; it must require the customer to click, tick or take some action to provide consent.

Find and Remove Data

Every business needs a system for finding all sources of a customer’s data—and removing it, if necessary. You must be able to copy the information, supply it to the customer and delete it if requested.

While this may seem simple, a customer’s data might be stored in multiple locations, including facility-management software and physical files and letters, such as rental contracts, late notices, invoices, etc. Self-storage operators must have a structured approach for storing and finding this information so all personal details can be deleted or anonymized if necessary.

Data-Breach Policy and Procedure

Every business needs a procedure in place to address a data breach. Depending on the nature of the breach, who needs to be contacted? How can they be contacted? Does the supervisory authority need to be notified? Do you need to notify all your customers, staff and others whose data you store? This all needs to be covered in a clearly documented policy for relevant staff.

Staff Training

The impact of a data breach or non-compliance with the GDPR can have a devastating impact on a business. Maximum fines are the greater of €20 million or 4 percent of the business’ turnover. It’s essential that all staff understand the importance of protecting personal data and procedures are followed at all times. Ongoing training will be necessary to ensure this.

A Defined Purpose

A key element of the GDPR is you can only keep data if you have a legal basis to do so. Fortunately, the bases provided are quite broad and include legitimate business interests. However, self-storage operators must still consider all the data they keep and whether they have a right to keep it.

This is particularly pertinent to historical data, such as that of customers who no longer store with you, or inquiries from prospects who never converted to customers. This information was gathered for a specific purpose, and once that purpose is complete, the data should be removed. The theory behind this is if a breach occurs, the impact should be limited. For self-storage businesses, it means categorizing data so it can be removed when it’s no longer required, usually no more than six months after the inquiry or contract termination.

The GDPR will change the way many companies do business, including self-storage. It’s important to educate yourself on these key regulations to protect your data, your customers and your operation.

Rennie Schafer is the CEO of the Federation of European Self Storage Associations, which represents the self-storage industry in Europe. For more information, visit www.fedessa.org. 

Consumer demand for self-storage in parts of Idaho and Washington is outpacing supply in some areas of the region, which has seen a spike in self-storage construction permits the last three years. Kootenai County, Idaho, and Spokane County, Wash., along with local municipalities, issued 46 self-storage building permits worth $14.1 million in fees through November last year, reminiscent of the area’s previous boom in 2007 and 2008, according to the source.

In 2007, developers in the same market were issued permits for 62 projects, with 54 approved the following year. The recent trend is in stark contrast to the market in 2012, in which the same area produced only two approved permits, the source reported.

“In the past two and a half or three years, growth has been exponential,” said Todd Beadle, facility manager at Chester Self Storage, a property owned by Dugan Development Co. in Spokane Valley, Wash. With the 350-unit facility at near full capacity, Dugan is adding another 70 units, Beadle told the source.

Demand is being partly driven by the local housing market, which has also changed the duration of stay at Chester, according to Beadle. “People rent for much shorter periods of time,” he said. “They have a very specific need. They’re selling a house and they’re relocating, so they need storage for six months.”

Residential downsizing is also contributing to storage needs because homeowners don’t want to get rid of their possessions, according to John Patrick Wood, who’s building a 100,000-square-foot All Seasons Mini Storage just south of Spokane International Airport.

Self-storage developer Steel Structures America Inc. has built nearly 900,000 square feet of storage space across the region in the last three years, which is four times the volume it constructed the previous three years.

“We’re seeing such an increased volume of people moving to the area,” said Justin Sternberg, co-owner of the contracting firm. “Rents are rising. Units are relatively scarce, and people are asking to rent units before we complete the projects.”

Source:
Journal of Business, Self-Storage Demand Booms in the Inland Northwest

Hong Kong firefighters battled a fire for nearly nine hours last week in the 15-story Wing Chai Industrial Building, which houses an Apple Storage self-storage facility on the fourth floor. The fire broke out on the ninth floor about 10:15 p.m. on Tuesday, apparently from paper and plastic material. Responders extinguished the blaze by 7 a.m. on Wednesday. No injuries were reported.

Three water jets and four breathing-apparatus teams were dispatched to the three-alarm fire. Officials estimated about 10 people made their way to safety from inside the building. No damage to the self-storage business was reported.

Opened in 1969, the building is one of hundreds in the city built before 1973 that were not subject to fire requirements, according to the source. Industrial buildings and self-storage businesses have fallen under government scrutiny after two devastating fires killed two firefighters in 2016.

Investigations brought fire and safety violations against 764 Hong Kong self-storage facilities from the Fire Services and Buildings Departments. Storage operators and the Self Storage Association Asia have been working with officials on coming up with reasonable regulations and oversight.

Hong Kong Security Chief John Lee Ka-chiu indicated last November that the government intended to draft a bill this year to improve fire-safety equipment in industrial buildings constructed before 1987, according to the source.

Source:
South China Morning Post, Hong Kong Firefighters Put Out Early Morning Third-Alarm Blaze at Old Industrial Building

Update 6/8/18 – U-Haul has announced several more projects and acquisitions for spring 2018.

The company plans to convert a vacant Kmart store in Houma, La. to self-storage. It opened a temporary showroom at 133 Monarch Drive in March that offers moving and packing supplies, trailer and truck rentals, towing equipment, and U-Box portable-storage containers.

The 100,860-square-foot building sits on a 9.08-acre lot. Once renovated, it’ll include 900 interior, climate-controlled units. Propane and hitch installation will be offered later.

“This building has been vacant for more than two years, and we are eager to put our adaptive reuse program to use in Bayou Country,” said Patrick Allen, president of the U-Haul Co. of Southern Louisiana.

U-Haul is also renovating a Kmart store in Shawnee, Okla., that it acquired in April. The company opened a temporary showroom on the 8.1-acre property at 2323 N. Harrison St. Once complete, the 84,000-square-foot building will contain 677 interior, climate-controlled units.

“This area of Oklahoma has been lacking the quality self-storage that U-Haul can offer,” said Scott Brackin, president of the U-Haul Co. of Oklahoma City. “And our customers in Shawnee have been driving 25 miles outside the city to find affordable self-move equipment and services. A state-of-the-art facility to meet these basic needs is a must.”

U-Haul also acquired the former OrangeOnions Warehouse Outlet at 21930 Miles Road in North Randall, Ohio. Operating out of a temporary showroom, U-Haul Moving & Storage of South Beachwood offers 90 outdoor storage units. Once repurposed, it’ll contain more than 800 interior storage units. The company also plans to allocate warehouse space for more than 100 U-Box containers.

“We've been working to expand our operations in Cuyahoga County for years. We are thrilled to move on to the next step,” said Scott Ochocki, president of the U-Haul Co. of Cleveland. “This space will fit our needs perfectly to meet customer demand. We’re excited for the opportunity to serve the North Randall community for years to come.”

U-Haul officially opened its two-story conversion project at 1549 Mount Zion Road in Morrow, Ga. U-Haul Moving & Storage at South Lake operated out of a temporary showroom since the 2016 acquisition. The renovation of the former Cambro Manufacturing Co. warehouse yielded a new 75,471-square-foot facility with 1,200 interior, climate-controlled units. The property also features a U-Haul Re-Use center for sharing boxes and gently used household items. Additional offerings include hitch installation, towing equipment, propane sales and portable storage.

The facility hosted a grand opening on May 23 that included refreshments, giveaways and property tours.

“This building was a real eyesore. Squatters almost burned it down, and it had been neglected for more than 13 years,” said Jon Scoville, president of the U-Haul Co. of Western Georgia. “You could hardly tell there was a building behind all the overgrowth. Now, we are excited to introduce our full line of services at a completely renovated facility.”

In addition, U-Haul acquired the former Lewis Hat Co. factory in Truro, Nova Scotia, Canada, with plans to convert it to self-storage. Though the property is U-Haul’s third in the province, it’s the first in city.

A temporary showroom has been opened at 24 Court St. while the 69,060-square-foot warehouse is repurposed. Once complete, it’ll contain 560 interior, climate-controlled storage units. Professional hitch installation will be offered later. The company expects to open the first phase in January, according to a source.

“This building is full of history and character,” said Tracey Higgs, president of the U-Haul Co. of Atlantic Canada. “We are honored to clean up this property and become part of the heart of Downtown Truro. Preserving the history of this area is important to us. We know the community will love the finished product.”

The existing building sits on 1.41 acres and was constructed in sections, beginning in 1938. The factory once employed more than 900 people and was part of a larger business empire of the Lewis family. More recently, it was used as a bowling alley and for self-storage. U-Haul plans to preserve some remnants from the building’s prior uses, according to a source.

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5/15/18 – U-Haul plans to convert a vacant Kmart store in Alton, Ill., to self-storage. The company opened a temporary showroom at 2851 Homer Adams Parkway last week that offers moving and packing supplies, and trailer and truck rentals. U-Haul is currently leasing the building, but plans to purchase the entire shopping plaza. The deal is expected to close in August, according to Jeff Lockridge, manager of media and public relations for U-Haul.

Seminary Plaza comprises 146,840 square feet of space, which includes the 85,000-square-foot Kmart on the east side. A Schnucks grocery store anchors the west end of the strip mall. The grocer and another tenant, Rent-A-Center, will remain open, according to the source.

Plans for the 1980s structure include installing 700 interior climate-controlled storage units. The facility will also offer professional hitch installation, propane sales and a re-use center.

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5/10/18 – U-Haul presented plans for its Lake in the Hills conversion to village trustees on Tuesday. The former Dominick’s Pharmacy could be leased to a retail company, while the nearby suites will be used for self-storage and a company showroom, according to the source.

“We have a solid tenant who is interested, and if that falls through for some reason, we would still market it as available,” said Heather Skelton, who represented U-Haul during the meeting. “We do not have a signed lease agreement, but it’s a pretty solid lead we have.”

The three tenants currently occupying the suites on the south side of the building would be displaced so U-Haul could add a retail showroom and 60 indoor climate-controlled units. The parking area would be used for rental trucks. The project would require a zoning change to accommodate the storage units and vehicle parking, the source reported.

U-Haul also plans to make changes to the building on Randall Road, and offer space to the displaced tenants. “Our intent is maybe to split the two suites and then move the three units completely over, but we’d work that out with them and have been in touch with all three,” Skelton said, adding that space for the retailers is also available in Crystal Lake and West Dundee, Ill. “We are not just going to evict them.”

The trustees were pleased with U-Haul’s vision for the site. “I’m excited for the use of it not going to be a storage facility but used for retail,” said trustee Bob Huckins. “The fact that they purchased it and are willing to work with us is exciting.”

U-Haul will next present its plan to the planning and zoning commission.

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5/8/18 – Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage facilities across North America and frequently recycles existing structures for its new locations, has recently acquired several properties it will convert to self-storage. It’s also working on current conversion projects and expanding two existing locations.

U-Haul purchased the Centre at Lake in the Hills shopping center in Lake in the Hills, Ill., with the intent to convert a portion of the nearly 100,000-square-foot building. The property at the corner of Algonquin and Randall Roads was acquired for $5.05 million in an online auction in March, according to a source. It’s currently 17 percent occupied by various retail companies.

U-Haul representatives recently met with village staff to discuss plans for the complex, which includes the former Dominick’s Pharmacy. “We are having positive discussions. We have a couple of retailers that we know that are highly interested in partnering with U-Haul to utilize the property,” said Jen Clough, village administrator. U-Haul was scheduled to present its plans to the village board today.

A former Fred Meyer grocery store in Palmer, Alaska, will also become a U-Haul facility. The company was awarded the winning bid for the vacant property at 650 N. Cobb St. The deal is expected to close in the next month, according to John Norris, president of the U-Haul Co. of Alaska. “We are working closely with city officials and our neighbors in Palmer to make this a reality,” he said. The facility will open with a temporary showroom in June.

U-Haul is also transforming a former Kmart retail store in Yakima, Wash., to self-storage. The property at 2304 E. Nob Hill Blvd. has been vacant for more than a year, according to a source. U-Haul Moving & Storage at East Nob Hill offers moving and packing supplies, towing equipment, truck and trailer rentals, and U-Box containers. Once renovated, the 116,702-square-foot building will contain 1,000 indoor, climate-controlled units. Propane, hitch installation and vehicle storage will be added later to the 11.54-acre property.

The former Atlantic Express Corp. headquarters in Staten Island, N.Y., is also being repurposed to self-storage. U-Haul Moving & Storage of Port Richmond opened a temporary showroom at 2111 Richmond Terrace, which includes several smaller buildings that once housed auto-body shops. U-Haul filed a permit to demolish some buildings on the 9.36-acre parcel and construct a new seven-story structure. “Atlantic Express had built a newer building, so we will keep that,” said Will Wolff, marketing company president for U-Haul.

Once complete, the business will offer storage, moving and packing supplies, trailer and truck rentals, and U-Box containers. The facility has yet to be designed, but is expected to open in early 2020.

U-Haul also acquired the former May’s Drug Warehouse at 1410 E. 7th St. in Joplin, Mo., with plans to expand its existing facility at 2521 E. 7th St., about a half-mile east. Once renovations are complete on the 44,682-square-foot warehouse, it’ll offer 368 climate-controlled and drive-up units. U-Haul also plans to build a warehouse on the site to house 142 U-Box portable-storage containers, and will allocate parking for 20 large trucks.

“This building had been vacant for more than 10 years and was being used as a dumping ground,” said Aaron Self, president of the U-Haul Co. of Missouri. “We are eager to put our adaptive reuse program to use in Joplin because we can preserve the history of May’s Drug Warehouse while beautifying the area and providing a much-needed service to our neighbors.”

U-Haul recently added self-storage to an existing 2.11-acre property in Waco, Texas. U-Haul Moving & Storage at 200 Texas Central Parkway opened in 1995, and offers moving and packing supplies, and truck and trailer rentals. Construction began in 2016 and took 18 months to complete, according to a press release. The property now comprises 16,023 square feet of storage space in 372 climate-controlled units. It also includes a warehouse to store 100 U-Box containers.

The company hosted a ribbon-cutting ceremony on April 18 that included property tours, giveaways and refreshments. “This will be our first climate-controlled self-storage facility in Waco as we look to invest more into this growing community,” said Matthew McMillan, president of the U-Haul Co. of North Austin.

Established in 1945, U-Haul owns more than 44 million square feet of storage space. The company’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, has led to dozens of conversion projects in recent years.

Sources:
PR Newswire, U-Haul to Showcase Company's Newest Self-Storage Facility in Waco
SI Live, New U-Haul Self-Storage Facility Coming to Staten Island
PR Newswire, Adaptive Reuse: U-Haul Repurposing Vacant Kmart for Self-Storage in Yakima
Northwest Herald, U-Haul Buys Former Dominick’s Site, Shopping Center in Lake in the Hills for $5 Million
KTUU, Following Debate, U-Haul, Not Shooting Range, Will Buy Old Palmer Fred Meyer Building
Markets Insider, Growing Joplin: U-Haul Adding New Self-Storage, Jobs with Warehouse Acquisition
Northwest Herald, Lake in the Hills U-Haul Plans to Leave Dominick's Space Open for Retail
The Telegraph, U-Haul Opens at Old Alton Kmart, Will Expand After Buying Seminary Plaza
PR Newswire, U-Haul Reveals Plans for Newest Company-Owned Facility in Southern Louisiana
PR Newswire, U-Haul at South Lake's Grand Opening to Showcase 1,200-Plus Self-Storage Rooms
PR Newswire, U-Haul Preserving and Repurposing the Old Hat Factory in Truro for Self-Storage
PR Newswire, U-Haul Repurposing Vacant Kmart for Self-Storage in Shawnee
PR Newswire, Warehouse Makeover: 800 New U-Haul Self-Storage Rooms Coming to North Randall
Truro Daily News, U-Haul to Create Self-Storage Units in Former Lewis Hat Factory in Truro

Savvy self-storage operators are taking advantage of technology to gain a competitive edge and command a premium price in the marketplace. They’re enriching new facilities by installing the latest tools, and protecting existing ones with upgrades. This enlightened approach to competitive positioning is based on the idea that today’s consumers are seeking the rewards technology can deliver in the areas of security and convenience, and willing to pay for an enhanced experience.

Enhancing the Customer Experience

Experience management is a recognized business discipline influencing a wide range of commercial sectors, including self-storage. In a competitive environment, the customer experience (CX) can be a differentiator that builds brand loyalty, protects margins and drives more dollars to the bottom line. Developing effective CX strategies starts with becoming more customer-centric and looking at interactions through the consumer’s eyes. The goal is to increase participation and engagement, which means identifying all the points of connection where customers research, compare, buy and use products, from start to finish.

Consumers who are seeking self-storage will generally start with an Internet search. They’ll focus on finding a site in their community and then extend their search by visiting websites, taking virtual tours and reading online reviews. Eventually they’ll select one or two locations for onsite visits. This means the self-storage CX starts with multiple touch points in the both the digital and phyical worlds.

CX-Based Technology Strategies

Jason Bohman is president of Southern Optimized Security Systems in Hiram, Ga., which specializes in low-voltage installations of video surveillance, access control and burglar-alarm systems. He’s an advocate for using technology during the design phase to improve the CX.

“Honestly, I think architects and engineers that design [self-storage] facilities should have a clearer understanding of how our industry is changing technologically,” Bohman says. “We are not just creating 10-by-10 boxes anymore, but rather, an experience.”

Bohman describes how his company uses technology to enhance the CX for self-storage clients: “I have become a huge fan of the marketing aspects of security, not just the security portion of it. We add our own flavor to the video surveillance by installing things like public-view monitors in the elevator lobbies, and pinhole cameras in the entry-gate keypads, and smart TVs that allow streaming advertisements and such. We also like to add personalized wording to the keypads’ LCD screens.”

Bohman believes technology can be a key differentiator for protecting a storage facility. “Not only do we install audio amplifiers, we make sure they are public-address (PA) amplifiers, so the site manager can do an ‘all-call’ to every speaker in the facility,” he says. “We also install wireless access points (WAPs) to all floors in a multi-story site, so Internet connection loss is not an issue. I think these are some of the little things most folks miss that can be added with a nominal investment, and I believe it is the little things that set your facility apart from the other sites just down the road.”

Planning and Budgeting for New Sites

Security and access-control technology should be analyzed from the perspective of owners and tenants, Bohman says. “I think rather than discuss bits and pieces of equipment, we should really concentrate on what low-voltage systems are designed to do in a self-storage facility. Are we securing the office? Are we opening a sliding door? Are we streaming music to lessen the sounds of creaking floors? Although these all sound like simple questions, we are on the right track with our train of thought.”

Bohman is also willing to address how developers and contractors should be budgeting for technology systems. “I’ve found that low-voltage systems, whether they be for security, telephone or audio, should encompass around 2 percent to 3 percent of the overall project budget,” he says. “For example, a $10 million project should include approximately $200,000 in systems. In our region of the country, that number is currently closer to 0.5 percent to 1 percent of the overall budget. But I think we will see an increase over the next five years as more solutions come into play and automation takes over the traditional way of managing a site.”

Solutions That May Be Overlooked

The fundamental value proposition of a self-storage facility is secure space, which means operators should consider the technology solutions that are best matched to the demands of that promise. It’s a good idea to consult with expert technicians when planning for site security.

Bryan Sweeney, senior technician and sales for SOS Security Solutions Ltd. in Surrey, British Columbia, has identified some of the solutions that may get overlooked by owners or general contractors. “We shouldn’t assume that any one system is sufficient for securing a site,” he says. “Layering security is important. Controlling the access points gives you a record of ingress and egress at the gates of your facility. Surveillance systems can document license plates, faces and movement throughout your site. Facility and perimeter alarm systems work great as a preliminary indicator that your site has been breached, and they provide an audible and visual response that deters criminals from lingering. And finally, individual locker alarms are an important line of defense against customer-content theft. These systems work in harmony to protect your staff, customers and assets.”

Bohman has also identified some security features that may get overlooked in the planning stage. “I like to include a panic button at the front desk, in case of emergency, as well as a backdoor exit,” he says. “Other features to consider are intercoms in the hallways, large flat screens that show the camera views and electronic rules signs, walk-through gates next to the lift gates, plus a camera aimed at the front door so customers instantly see themselves on the big screen. Also, Web cams for each customer photo that can be dropped into their ledger. Operators should always require the tenant’s Social Security number and a valid photo identification that can be copied.”

Customized Solutions

Delivering an enhanced CX is a proven approach for retaining tenants, and customized solutions build customer loyalty by offering features that aren’t easily duplicated by competitors. In turn, improved retention means more dollars go directly to the bottom line, because it’s easier and less expensive to keep existing tenants than to acquire new ones.

The customized solution is well-illustrated by a recent SOS project. “In 2017 we secured a facility with 32 private wine cellars, and each door was equipped with proximity access control,” Sweeney says. “These were private rooms, not sheet-metal lockers, which made the site unique. We also installed a number of access-control points, each to be used by a different customer, which meant we needed to create over 32 different access-control areas in the software, as well as over 32 different access levels.” The end result was a solution that reflected well on the operator and created a superior CX for the high-end wine connoisseurs who became tenants.

Upgrading With New or Emerging Technologies

Self-storage owners can protect their existing sites with technology upgrades that improve security. Sweeney has identified the risks associated with relying on outdated equipment and technology. “Operators are at risk if their equipment can’t deliver the quality data that allows them to take action against criminals or people with malicious intent,” he says. “Older, low-resolution cameras will rarely give you the pixels per square foot you need to recognize a license-plate number or collect facial detail. This information is crucial in identifying an individual for apprehension after a crime has been committed. And failure to alarm both the building and the locker-alarm points allows criminals to traverse physical obstructions such as doors, windows and gates, without being detected. This failure places your business at an increased risk of break-in.”

SOS delivered a sizable upgrade in 2017 for a customer who wanted to retrofit units with wireless door alarms. “This site was large, with 1,900 lockers to be secured,” Sweeney says. “This solution gave the operator the ability to monitor the position of every door and secure a unit without gaining access to it, which was a convenience. Securing that many units without acquiring a single key is amazing.”

Bohman sees technology upgrades as a way to enhance the CX, improve customer loyalty and produce quality referrals. “It only takes one or two disgruntled customers to express their frustration that a clicker didn’t work, or something happened on the site and the camera wasn’t working that day. Those things have a trickle-down effect that negatively impacts referrals and potential clients. I’ve seen it happen many times in the past when this risk could have been easily avoided by properly preparing the site and conducting regular systems checks,” he says.

Identifying the Next Trends

Delivering a superior CX doesn’t mean doing everything for the customer. Sometimes the best strategy is to enable self-service functions users can see and appreciate. This approach matches the goal to increase participation and engagement.

Bohman is an advocate for technologies consumers use every day, including mobile devices and cloud-based software, noting the migration to these technologies is underway. “I think we are already seeing this transition with the Millennial generation,” he says. “What 18-year old doesn’t spend eight hours a day on his smartphone? Most of them don’t even know what a PC is, much less a CRT monitor or a dial-up modem. With the ability to search for a self-storage facility nearby, upload their personal data for their leasing agreement, and then pre-pay the first month’s rent, what more convenience could you possibly add? With the addition of apps that give tenants the ability to open gates and doors, everything is within a finger’s touch, literally.”

Sweeney emphasizes the benefits of remote access for operators that use cloud-based software. “The ability to monitor and control your site remotely is a powerful management tool,” he says. “It provides peace of mind and reduces unnecessary trips to the site.”

He also notes the security considerations implied. “It’s important to keep cyber-security in mind with networked or cloud-based systems. Be sure to hire a knowledgeable and trusted installation team when deploying a networked solution that is protecting your assets and well-being.”

Automating in the Near Future

As technology continues to evolve, self-storage operators will be able to automate some of the functions currently handled by onsite managers. Bohman and Sweeney believe automation and remote access will change how storage sites are equipped and managed.

“I think self-storage facilities will be 100 percent automated in the next five to eight years. Automation is not out of reach, but it will certainly require an upfront investment in the technology of the facility,” Bohman says.

Sweeney notes that both tenants and operators will benefit from these technologies. “Inevitably, like we’ve seen in the surveillance, access control, security alarm, and AV industries, we will see self-storage security make a shift into the Internet of Things (IoT),” he says. “Customers and owners alike will use smart platforms that connect to various control systems through their mobile devices. I expect operators will push for remote connectivity so they can monitor and control facilities from centralized platforms while off-premise. They’ll see fewer onsite service calls because their support teams will troubleshoot remotely via the connected IoT platform. There will be fewer false alarms with layered remote verification for video, access and alarm systems. Mobile connectivity, via IoT integrated systems, will improve productivity, especially when overseeing multiple facilities.”

Sweeney describes the daily routine for a site that’s more fully automated. He envisions that someday the facility manager will walk up to the store entrance and use a palm print to unlock the door and get any site error messages; turn on the coffee and lights; and forward to his phone or other device an instant update of what happened since yesterday’s closing. That update would show all areas of the facility are OK; all clients are paid up; three rentals occurred; and those new tenants were sent an e-mail confirmation and chose the following time slots to appear onsite today.

Maximizing the Customer Experience

While technology upgrades can provide the foundation for an improved CX, the best strategies address engagement in both virtual and physical settings and will include provisions for maximizing the investment through:

• Teamwork: Seasoned self-storage operators know this is a key component, so they train and retrain employees who interact with customers. Staff must be able to explain the features and benefits of any new technology, and they should be taught the best ways to answer questions and concerns.
• Communication: It’s appropriate to promote any technology improvements through advertising, press releases and social media.
• Evaluation: Customers are likely to share their good and bad experiences through social media platforms and online reviews, which means storage operators can evaluate the success of their strategies by monitoring online posts.

Self-storage operators can improve their competitive positioning by installing the latest technology in new facilities and upgrading existing sites with retrofits. High-resolution cameras, mobile technology, cloud-based software, wireless connections, remote management, tenant apps and automation provide the tools you need to attract and retain tenants.

Stan Hosler is a content writer for PTI Security Systems, a provider of access-control and security systems to the self-storage industry. Company products include keypads, wired and wireless door alarms, mobile apps, video-surveillance solutions, and security software that integrates with most management software on the market. To contact the PTI team, call 800.523.9504; e-mail [email protected]; visit www.ptisecurity.com.

For self-storage owners and investors trying to estimate the value of their property, a realistic understanding of an appropriate capitalization (cap) rate is crucial. The Self-Storage Custom Cap-Rates Report, prepared on demand by Colliers International Valuation and Advisory Services LLC, addresses applicable cap rates for specific properties and regions using the Colliers Rating System.

Based on a specific U.S. address supplied by the customer, the report analyzes comparable self-storage assets within the region as well as applicable cap rates by using eight performance and property metrics to rate a facility as class A, B or C.

Each report provides a high-level view of cap-rate expectations based on Colliers’ completion of hundreds of appraisals per year and its conversations with a wide variety of market participants across the nation. It includes:

• An appropriate cap-rate range for the subject property
• Sections on national and local cap-rate trends
• Six hand-selected comparable properties based on the property information you provide at the time of purchase
• Photos and notes on comps to provide additional insight to market forces that impact sales price

Visit the ISS Store for full product details.

HPI Horne Storage, a joint venture between HPI Real Estate Services & Investments and self-storage developer Hugh Horne, plans to build a national portfolio across eight to 12 markets nationwide. The company has raised more than $30 million through its HPI Storage Fund I, intending to fund up to 10 projects. The company envisions developing more than 20 facilities in the next three to five years, according to the source.

The joint venture is currently building a 134,000-square-foot facility in San Antonio and has sites secured in Houston as well as Orlando and Tampa, Fla., said Jon Erickson, strategic investment partner for HPI. It’s also negotiating sites in Dallas, Denver and Los Angeles, the source reported.

The group has projected development costs of about $10 million, with up to $3.5 million of equity, though those figures could be much higher for potential locations in California and New York. “Therefore, we are looking to build a national portfolio of institutional assets that will be attractive to larger institutional buyers,” Erickson told the source. “This opportunity was solidified through the partnership with Hugh Horne.”

Horne is CEO and president of Horne Developments Inc. and Horne RPC Storage I L.P. Prior to launching his own companies, he held several executive roles at Public Storage Inc., Storageworld LP and Storage Spot Inc.

“Broadly speaking, we think of sufficient demand in the context of high occupancies and increasing rents,” Erickson said. “San Antonio, along with all the markets we are pursuing in Florida, Colorado, California and others, provides a market with strong population growth, increasing rental rates and in-place rental rates that warrant new construction.”

The company could potentially commit all the capital it’s raised thus far by the end of September, according to the source.

Headquartered in Austin, Texas, HPI Real Estate is a full-service commercial real estate firm with additional offices in Dallas and San Antonio. The company has more than 25 years of experience as owners, investors and managers of commercial real estate, according to its website.

Source:
Commercial Property Executive, Q&A: HPI, Hugh Horne Debut New Player in Self-Storage

Adam Baumann, the owner of three self-storage facilities and several other businesses in British Columbia, Canada, is the subject of a new book coming out soon. “The Upside of Hunger, a True Tale,” written by Roxi Harms, will chronicle Baumann’s immigration to Canada from Hungary, his time as a teenage World War II soldier and his business ventures. Proceeds from book sales will benefit the Adam Baumann & Roxi Harms Scholarship Fund, benefiting kids with promise who can’t afford tuition, according to Harms’ website.

Baumann and his wife, Jean, own OK Mini Storage and Penticton Self-Storage in Penticton, and Vernon Mini Storage in Vernon, as well as several other ventures. They met Harms while vacationing in Central America in 2011. During a shared dinner, Harms became intrigued by Adam Baumann’s story. The pair have collaborated on more than 400 recorded interviews and seven drafts of the novel, the website states.

Adam Baumann was born and raised in Hungary. He immigrated to Canada in 1951 and meet his wife at a dance two years later. The couple married the following year and moved to Penticton to open A. Baumann Masonry Ltd., where Jean Baumann worked as the company’s accountant.

The masonry company grew, and the couple opened the area’s first concrete-block plant on Camrose Street, now called OK Ready Mix. Additional business ventures followed, including several motels, the city’s first mini-golf course, the Sage Mesa housing subdivision, the storage facilities and St. Andrews Golf Course. In 1986, they built 86 Lakeshore, a condominium building across from Okanagan Lake Park. The Baumanns moved in there and still reside in the building.

“That’s my swan song, what I consider my greatest accomplishment,” said Adam Baumann, who created sketches of his vision for the project’s architect. “I’ve always been interested in architecture.”

The Baumanns also recently donated $30,000 to the South Okanagan Similkameen Medical Foundation, which is raising money for new medical equipment for the expansion of Penticton Regional Hospital. The $312 million patient-care tower to which the Baumann's contribution will be applied is expected to open next year, according to a source.

Sources:
Castanet, True Love Spurs Donation
South Okanagan Similkameen Medical Foundation, Young Romance Still Vivid for PRH Supporters
Roxi Harms, Website