By Leonard Pecker

A successful online self-storage auction requires some planning and organization. While this takes a bit of time, the results are worthwhile. It all begins with creating a great listing. Following are some guidelines to keep in mind.

List Early

Online auctions attract a great number of regular buyers who will log on to the auction site, sometimes several times a day, to view new and upcoming sales. Because of this, it’s wise to list your auction as soon as you know the legal sale date, even if it’s several weeks away.

Not only will this entice more bidders, it’ll draw traffic and awareness to your storage facility. When the auction officially starts, there should be an acceleration in the bidding process, as bidders have had an advance view of the unit contents. At the same time, the listing serves as legal notification that an auction of a delinquent locker will take place, which might encourage your tenant to pay the arrears.

Determine Duration

While some self-storage operators believe in a long auction duration—one to two weeks—a three- to five-day window is sufficient to attract a large number of bidders and empty the units quickly. Obviously, the quicker a unit is sold, the faster the bidder pays, which is good for the storage business. Long auctions tend to attract bids in the last few days, as many bidders won’t return to view the listing until the auction is near its close. On the other hand, a duration of less than three days can result in some bidders missing the auction entirely, which defeats the purpose.

Choose an Open/Close Time

An online auction should start on a weekday, not a weekend or legal holiday. It should also start at 10 a.m. and close at noon or 1 p.m., which allows both parties time to communicate during business hours about payment and pickup. Written notifications of winning bids are sent automatically to the buyers and sellers.

In the case of posting multiple units, you can stagger the closing times by five minutes. Many bidders are bidding on many units simultaneously. A five-minute delay between each auction end time will avoid anyone being shut out and allow people to continue bidding. Of course, it’s to your advantage to attract as many bids as possible.

Use Photos

Multiple, quality photos depicting each unit’s contents are the most important selling tool for generating maximum revenue. Clear, sharp, well-lit, well-focused pictures are essential to attract buyers and the highest bids.

Take pictures from outside the unit from the left angle, right angle and head on. If possible, take close-ups of the high-value contents such as TVs, computers, tools, appliances and furniture as well as any sealed boxes with contents listed on the side. Most sellers post five pictures. Too many photos become repetitive, while using too few fails to sufficiently project the potential value to prospective bidders.

Write a Good Description

A well-written but short description can highlight the value of the merchandise within the unit. A generic teaser may also create more bidder interest. The description should include the unit size and whether it’s climate-controlled, plus a list of miscellaneous items, household goods or furniture, if applicable. When specific high-value items are visible, such as appliances, electronics or tools, note them. In the case of a unit with boxes and bags, you can add the quantity or just note it has “several.”

Set a Starting Price

This is a key element to achieving a successful result. While there’s temptation to start high, this might deter some bidders, as the final price could be too costly for them. Unless high-priced merchandise in visibly excellent condition can be seen in the pictures, the number of bidders will be low if the unit is priced too high.

Starting the bid in the $25 to $50 range will often attract final bids of $500 to $800. In cases where the merchandise isn’t clear—for example, the unit is full of boxes or bags—a starting price of less than $25 is advisable.

Include Terms and Conditions

Always include your standard terms and conditions, for example, deadline and method for payment, facility business hours, contact information, and forfeiture of merchandise if the transaction isn’t completed. Also include any additional stipulations that are legally required or part of your company’s policies. This might mean phrases such as, “no warranties on condition of merchandise,” “sold as is,” “right to remove listing if tenant pays arrears before auction closes,” etc.

The online-auction listing is a self-storage operator’s silent salesperson. The more you put in to it, the better the results. By formulating a great listing, you can reduce your bad debt and increase your profit.

Leonard Pecker is the director of customer service for iBid4Storage.com, an online storage-auction marketplace where sellers and buyers in North America can benefit and prosper. For more information, call 855.402.4243; e-mail [email protected]; visit www.ibid4storage.com.

Pennsylvania-based Moove In Self Storage has expanded into the Baltimore market with the acquisition of Security Mini Storage and Beltway Mini Storage. The two properties combined comprise 69,508 square feet of rentable space in 957 units and are near the intersection of Interstates 695 and 70. They will be rebranded as Moove In locations and managed by Investment Real Estate Management (IREM).

The properties contain 13 single-story, drive-up buildings constructed of split-face block with metal roll-up doors. Investment Real Estate Construction (IREC) will work on renovation improvements including new signage, office refurbishment, new roofing, perimeter fencing and keypad-operated gates.

IREM and IREC are branches of York, Pa.-based Investment Real Estate LLC (IRE), a property-management and consulting firm specializing in the self-storage industry, which brokered the deal.

“This transaction was one of the most creative that we crafted in our 17 years of selling self-storage facilities,” IRE CEO John H. Gilliland said in a press release. “We worked hard over many months to make it a true win-win scenario for the seller and buyer. Various estate tax, legal entities, leasing options and management strategies were employed to make it all come together. All of the professionals involved in both sides of the transaction are to be commended for their creativity and hard work.”

Since its inception in 1998, IRE has provided brokerage, construction, management and development services to facility owners and investors.

Prior to this transaction, Moove In Self Storage operated 12 facilities in Huntingdon, Lancaster and York counties in Pennsylvania.

U-Haul International Inc. recently purchased Mountainside Self Storage in Copperas Cove, Texas. The property at 1091 W. Highway 190 encompasses 39,731 net rentable square feet of storage space and 441 units, including outdoor parking spaces. Built in 1997 at the base of a mountain, it’s on nearly 4 acres and has frontage along Highway 190.

Copperas Cove is part of the Killeen-Temple-Fort Hood metropolitan statistical area, which has a population of 350,000, according to a press release from Bellomy & Co., the Austin, Texas-based commercial real estate investment services firm that brokered the deal.

Bill Bellomy, Michael Johnson and John Owens of the company had the exclusive listing to market the property on behalf of the local seller and procured the buyer. With additional offices in Houston and Lubbock, Texas, Bellomy & Co. focuses on the sale of self-storage, industrial, office and retail properties nationwide.

Established in 1945, U-Haul International Inc. has more than 40 million square feet of storage space at more than 1,000 owned and managed facilities throughout North America.

 

 

Proguard Self Storage, which operates six facilities in the Houston area, is now offering wine storage at its location near the Museum District, an area consisting of 20 museums, galleries, cultural centers and community organizations. The facility’s new wine-storage area offers a range of unit sizes capable of storing 21 to 519 cases. It’s accessed via an HID Global card reader and computerized coded keypad. Each unit has a slip-in, deadbolt cylinder lock and is individually armed. The area also features security cameras.

The temperature for the wine storage is kept between 54 to 57 degrees and at a relative humidity of 58 percent to 65 percent, according to a Proguard press release. The units have Icynene closed-cell insulation to block air and moisture. The temperature is tested every 30 minutes, and the area features a natural-gas generator in case of power outages. In addition, wine bottles are stored in the dark to prevent any unwanted quality changes and ensure the aging process happens as intended.

Proguard Self Storage facilities offer a range of amenities including free loading carts, intercoms, extra-wide driveways, covered loading/unloading area, and moving and packing supplies.

Simply Self Storage, which operates facilities in the United States and Puerto Rico, recently donated $1,000 to Sharing and Caring Hands, a Minneapolis nonprofit organization that provides programs and shelter for those in need. Thirteen staff members from the operator’s properties in Kansas, Minnesota and Missouri recently presented a check to the charity’s founder, Mary Jo Copeland.

“I was impressed with the positive energy of Mary Jo Copeland. It's one thing to read about a charitable organization, but seeing the facility and meeting the volunteers at Sharing and Caring Hands made me reflect on myself and focus on being a good person. It was a great experience being able to visit Caring and Sharing Hands,” said Greg Young, manager of the Simply Self Storage facility in Vadnais Heights, Minn.

Founded in 1985, Sharing and Caring Hands serves 20,000 meals each month to community members. The organization provides food, clothing and transportation assistance. It also operates a dental and medical clinic, a children’s center, and Mary’s Place, which offers transitional apartments for homeless families with children.

Simply Self Storage recently announced its plans to donate $100,000 to local charities this year. Earlier this month, staff members delivered a $1,000 donation to SafeHouse of Seminole in Sanford, Fla.

Founded in 2003, Simply Self Storage is headquartered in Orlando, Fla. The company owns or manages 120 facilities in 16 states.

Simply Self Storage employees present Mary Jo Copeland (center), founder
of the charity Sharing and Caring Hands, a check for $1,000.

 

 

Janus International Group LLC, a manufacturer of self-storage roll-up doors and building components, has appointed Roc Hughes as vice president of international sales. Hughes was most recently employed by DBCI, a manufacturer of self-storage roll-up doors and other building components, where he was responsible for growing the company through sales and general-management capacities.

Hughes’ standing in the self-storage industry is vast will be a great asset as he assists Janus in its growth in Europe, Latin America and other emerging markets, company representatives said in a press release. He will operate from the company headquarters in Temple, Ga., as well as its new European office in Peterlee, England.

Janus acquired building manufacturer Gliderol Self Storage Solutions in Peterlee last October. Gliderol was founded in 2005 as a joint venture between Janus and Gliderol UK Ltd., a maker of rolling and sectional doors. Janus purchased the company outright to strengthen its brand presence in the United Kingdom and on the European continent, company officials said.

Janus has five U.S. locations as well as facilities in the United Kingdom and Mexico. The company recently announced its plans to open its first Midwest manufacturing facility in Butler, Ind. Slated to open in late summer, it will be the company’s fourth U.S. manufacturing facility. Self-storage and commercial door models will be manufactured and shipped from the new location. In December, Janus was acquired by Saw Mill Capital Partners LP, a private equity investment fund managed by Saw Mill Capital LLC.

US Storage Centers has purchased a two-property self-storage portfolio in Tucson, Ariz., from Lock-It Lockers Self Storage. Together, the assets comprise 77,750 net rentable square feet in 948 units. The facilities will be rebranded as US Storage Centers, company officials said in a press release.

“2014 has been about executing our plan for strategic growth in our core markets and especially in Arizona,” said Charles Byerly, president and CEO of US Storage Centers. “We now have a significant footprint in the Greater Phoenix market, and with the acquisition of these two well-located assets, we have now stretched our presence to the Tucson submarket.”

The Tucson properties are at 2825 N. 1st Ave. and 4115 E. Speedway Blvd.

“We look for opportunities where we can add value through operational and physical improvements, and these two properties meet our criteria perfectly,” added Mark McGilvray, executive vice president of US Storage Centers. “We see great potential for increasing revenue in these properties through our revenue-management and digital-marketing platforms. I’m very excited about the acquisition of these two storage facilities.”

Lock-It Lockers has one remaining storage facility in San Diego, according to its website.

Founded in 1985, US Storage Centers owns, operates or manages more than 75 self-storage facilities in 12 states including Arizona, California, Georgia, Florida, Nevada and Texas. It has more than 5 million rental square feet under management, including boat and RV storage.

G&G Boat ‘N’ R.V. Storage LLC received unanimous approval this week from the Queensbury, N.Y., Planning Board for a proposed self-storage facility that will comprise more than 60,000 square feet in 104 units. Owner Mike Giovanone intends to build the boat- and RV-storage business on a 4.1-acre tract at 74 Big Boom Road.

The facility will consist of two buildings. The first structure will comprise 27,942 square feet in 49 units, and the second will comprise 32,527 square feet in 55 units. Storage spaces will range from 14-by-38 to 14-by-45 feet, according to the source.

The project will incorporate perimeter fencing, computerized gate access and porous pavement for stormwater drainage. The site was previously used to stockpile soil, the source reported.

Giovanone also owns a 160-unit boat/RV-storage facility on Route 9P near Saratoga Lake, N.Y. He is the founder and president of Concord Pools & Spas, headquartered in Saratoga Springs, N.Y.

The entrepreneur initially received approval for a Concord Pools location in Queensbury, but Giovanone told board members that project was suspended because the pool and spa industry “just came off one of the worst winters it’s ever had in history.”

By Marc Goodin

Common design and construction mistakes can cost a self-storage owner immediate extra expenses and possibly long-term financial losses or aggravation because they can’t be easily corrected. The best self-storage designs require input from several professionals including a building manufacture, architect, civil engineer, contractors and, most important, an industry consultant.

In fact, one of the reasons we see many of the same construction mistakes repeated time and again is because the property owner didn’t hire someone with industry experience to oversee the development. While the design group typically has enough experience to do a good job for its specific expertise, the coordination and self-storage particulars are often left to the novice owner.

Don’t fall prey to common blunders. Here are 25 design and construction mistakes to avoid when building your next self-storage project.

Building Basics

A big mistake many first-time developers make is poor communication, whether with planning and zoning boards or vendors involved with the project. Be informed and communicate openly with all parties to avoid these errors.

• Not including all details in your site plans: Omitting information about phases or even the location of signage may require additional approvals from the city planning board, which will delay your project. If you’re not sure how many phases there will be for completion, show more. You can always combine phases and build more than one at a time. Likewise, include your site signage in your plans.
• Driveway radius at the town road is too small: A minimum radius of 25 feet for cars and a preferred entrance radius of 45 feet for large moving vans should be provided.
• Not including contractor specifications: You need more than good site plans to ensure construction is done right and on budget. In addition to having a solid construction plan, it’s important to include specifications for bidding and construction.
  Everything should be in writing, especially plan changes and associated fee changes. The contractor’s payment schedule should be included in each proposal. Any holdbacks should also be built in. All contracts should state, “The contractor shall review and accept any existing work related to his work prior to starting.” A 15 percent construction budget contingency is a must.
• Not realizing your development will likely take longer than you think: This often causes the biggest heartaches. Finding land, creating the site plan and building design, gaining municipal approvals and financing, and bidding and construction can all cause delays. If you work diligently but are prepared for these setbacks, you’ll enjoy the journey.

Site Selection and Design

From choosing the right site for development to deciding on the unit mix, this is where self-storage owners make the majority of mistakes.

• Choosing an out-of-the-way location: Certainly, veteran storage developers and novices have read why they should avoid this many times. However, we continue to see facilities that can’t lease up due to poor location. We often hear, “But I already own the land, so it’s free.” Don’t do it! Sell the land and buy on Main Street.
• Narrow drive aisles: The minimum aisle width required by most zoning and building regulations is 24 feet. Some owners can get away with tighter passageways, but it gets difficult to accommodate two-way traffic as well as safe parking and passing when the drive aisles are narrower. If you go tighter, it’ll be noticeable to your potential clients, and they’ll seek the competing facility that has wider aisles down the street.
• Not placing larger units on the facility perimeter: With 24-foot drive aisles between buildings, a car can just barley get into a unit. But along the outside edge of the facility, drivers have a couple of extra feet to maneuver. Bad drivers can use a couple of feet of grass, which is much better than hitting your building. You should also consider using 9-foot-wide doors for all 10-foot-wide spaces or at least for any units that will be dedicated to vehicle storage, notably the 10-by-20s.
• Access aisles for boat/RV-storage not large enough: A large RV or boat and trailer can be well over 45 feet long, requiring an equal length to pull out of its parking space. Wider or angled spaces can reduce the overall access aisles required.
• Storage units not visible from the road: You may have a lot of traffic on your road, but if potential customers can’t see the doors, it’s like being in the back woods with no traffic.
• Adding dead ends: I understand you can get more units by adding a dead end or two, but maybe you should consider a larger piece of land instead. Dead ends don’t make for prime, first-class self -storage. No one wants to do a K-turn to exit a facility.
• Choosing odd-sized buildings: They cost more and there’s often no reason for them. Since the raw building material comes in even, 10-foot lengths, 10-foot increments should be used for the building dimensions to minimize waste. I’ve also seen entire facilities with 10- and 20-foot-wide buildings, which doesn’t make sense because they can cost 30 percent more than the standard 30-foot-wide buildings.
• Not enough variety in unit sizes: Even if it’s clear you that need a high concentration of a certain unit size, it’s important to have a variety of sizes for faster lease-up and more profit. Just because the facility down the street is out of 10-by-20s doesn’t mean the majority of your units should be that size.
  There are a lot of factors to consider when determining unit sizes. For example, college towns and areas with high apartment density typically need more small units. During phase 2, you can adjust the units to better meet local demand. Here’s an ideal 100-unit ratio for a new facility:

• Not adding “show” units near the office: Typically, you take potential tenants for a site tour to help them determine what size unit they need and promote your facility. It’s nice to have one of each unit size just outside the office so you don’t have to walk to the back of the property.
• Not offering 5-by-5-by-4 units: These are small units stacked one above the other in a climate-controlled building. You may not need too many, but they’ll provide your highest rental rate per square foot. Since they’re the lowest-priced unit, they can also aid in your marketing efforts. You can truthfully advertise, “Units starting at just …”

Curb Appeal and Access

If your future customers are confused about how to get from the parking lot to your office, they won’t make the effort. Your site should be welcoming and easy to navigate. Here are some major flaws found at many properties.

• No office built during phase 1: Without a managed office, your lease-up period will be difficult and take much longer, and you may have to substantially reduce your rents. People don’t like to call for an appointment. Many rentals start as a simple inquiry from a person driving by.
• Office sales area that is missing or too small: A nice office and sales area with packing and moving supplies makes an important first impression and will increase your rentals and product sales. Don’t forget about windows. A lack of natural light in the office will make the area dim and feel crowded. Instead, think big and bright. It’ll help your clients get that “just feels right” sensation and rent from you.
• Sparse landscaping: Often the first impression people get of your facility is based on what it looks like when they drive by. What makes your facility stand out? An abundance of landscaping makes for a great drive-by impression. Manicured green grass and flowers are a must for curb appeal!
• Difficult navigation to the office: The office should be outside the security gate and perimeter fencing. It’s much more pleasurable to drive directly to a parking area near the office without going through a gate or fenced-in area. Also, tenants prefer the security gate to be closed even during business hours.
• No easy access to a customer bathroom: Your customers will use the bathroom. They shouldn’t have to look for it or need to go behind the counter to access it.
• Not including a 4-foot man gate: Since you’ll likely take potential clients for site walks to see units on a regular basis, a walk-through gate is convenient and makes the process quicker. Not to mention you’ll be in the “yard” several times a day doing chores. This makes the man gate a must for you as well as for potential clients who are coming to the office to find you.

Security

A quality security system is absolutely mandatory to the long-term success of a facility. This is not a place to cut corners. Here are some common mistakes often made by facility owners.

• Limited security measures: Perimeter fencing, computer-controlled access gate, site lighting and cameras are considered the minimum standard in the industry today.
• Lack of bollards: Bollards protect the keypads, gates and building corners. However, they’re often left out due to the $500-plus cost per bollard. It only takes a couple of accidents to make you wish you had them.
• Lack of site lighting: In addition to having enough lighting around the property, a light at the site entrance is also a nice touch. LED lighting is a must.
• Access keypad not properly aligned with gate limits: The keypad is often pushed to the edge of the pavement so it doesn’t appear to be in the way. But because it’s typically close to the gate, even a small offset makes the turn to the gate difficult for most drivers. The keypad location is often set before the gate is in place. Developers forget the gate is much smaller than the 24-foot driveway and don’t realize how much the offset truly is. Always stake out the gate opening and keypad, and then do a check with your vehicle before it’s installed.
• The gate-safety trip wire not installed under the final pavement course: This is the wire that’s installed on each side of the gate. It registers each passing car so the gate doesn’t shut on it. Too often, if the paving and gate contractor are not coordinated, a saw cut is made in the pavement to install the trip. In cold climates, this cut will never patch well, and the pavement will deteriorate year after year.

Whether you’re getting ready to embark on your first, fourth or 15^th self-storage construction project, heed the above warnings to ensure you build it right the first time and enjoy a long and successful investment.

Marc Goodin has designed hundreds of site plans for self-storage facilities and other businesses over his 25-year career as a professional engineer. He owns three facilities he designed, permitted and built, including one in Canada. He’s also the author of two books, both of which are available in the Inside Self-Storage Store. To reach him, e-mail [email protected]; visit www.selfstoragemarketing101.com.