By Magen Smith

Self-storage revenue management isn’t just about sending rate-increase letters when your bank account gets low. It’s the process of getting every dollar from your storage facility that the market will allow. It’s an overall strategy of effectively managing potential and actual revenue to maximize return. It encompasses competition review, facility assessment, market analysis, pricing and staff participation.

This article addresses three key components of successful revenue management: renting units for what they’re worth on each and every sale, managing prospects and their needs, and raising rental rates. By following these guidelines, you’ll increase physical as well as economic occupancy and, ultimately, overall facility revenue.

Renting Units at Their True Worth

The first step in proper revenue management is to rent your storage units for what they’re worth on each and every new rental. The price of each unit depends on availability, consumer demand, and the urgency and method of the rental.

There are three ways customers can experience your facility before they become a tenant—online, by phone and by visiting the property. Let’s look at how you can better manage your rates through each of these methods.

Online. Most people will check out your facility online before they call or stop by. If you don’t have a website, get one. If you do have a website, you need to decide whether to post your rates. This is a much-debated topic in our industry. While operators are split on this, most potential customers like to see prices online.

If all your competitors publish their rates and you’re in an aggressive market, you should probably push out your pricing. Keep in mind that failing to do so might lead people to assume you’re more expensive than the others.

If you do publish your prices, what rates should you use? If someone is searching online, you might assume he’s in the early stages of looking for storage and weighing factors such as cleanliness, convenience, price and security. Make sure your website showcases your facility in all these areas. Since you need to determine which price will convert this person to a tenant, a cut rate may not be the best idea. Knowing what your competitors display on their websites is crucial because you don’t want to be too far from the market price in either direction.

Remember that cheap units increase occupancy but not cash. Cash is king. A common practice in self-storage is to put the lowest-priced unit in each size on your website and then upsell the prospect when he visits the facility.

By phone. Having a conversation is priceless when it comes to selling your facility. If you simply quote the price and hang up, you’re losing a ton of money. If this is your current approach, you need some sales training immediately. Consider using a script that takes the prospect through a series of questions and gathers information before you ever offer a price.

The goal of every call should be to end with a closed sale. Make sure you’re tracking phone calls against rentals to determine your close rate, which is the number of closed sales divided by the total number of calls. Knowing this will help you determine what price to quote the customer and how to use the phone as an effective sales tool.

Visiting the property. If someone took the time to drive to your facility, there’s little reason he should leave without signing a lease. Just as it’s common to quote a lower price on the phone, the rental rate is usually higher when someone walks in off the street—and with good reason.

If someone is going to come to your facility to get a price, he’s primed to rent, and you’ll be saving him from driving all around town. If you have a good understanding of the competition and can close the sale while assuring the tenant he’s getting great deal, everyone will be satisfied.

Managing Prospects and Their Needs

Prospect management involves pricing the customer along with the storage unit. This takes a great deal of salesmanship and may not be easy for all facility managers. However, if you can do it correctly, you’ll add revenue to your facility’s bottom line. To begin understanding prospect management, you need to answer the following questions:

• Who is the prospect? Is he a businessperson who has a company account and can handle a higher price? Is he a college student on a budget?
• When will he begin storing items, and how long will he stay? If the prospect is starting right away, urgency is high and he may tolerate a higher price. If he won’t need a storage unit for three months, he may have some time to price shop and would be less likely to pay a premium.
• What will he be storing? Is he storing grandma’s antiques, and you have the only climate-controlled facility with great security? Talk up your amenities and quote that higher price with confidence.
• Why is he storing? Are you renting to a businessperson who needs to store items while he’s out of the country for a year?

Once you understand a little bit about the prospect, you can decide which unit is right for him. Just as all prospects can handle a different price, each unit can be priced differently. Not all 10-by-10s are equal. Here are two stories to illustrate my point.

Sally is a student on a budget. She needs to store her stuff right away because she’s headed off to college in another state. She’s planning to store her childhood items for the next few years until she finishes school and settles down. We’re going to rent Sally a 10-by-10 in the back corner of the building. She doesn’t need to access her unit very often, so she doesn’t need one near the front. If we give her a price that’s slightly lower than the street rate, she’ll be happy and so will we.

Robert is a sales representative with a corporate account. He needs storage for his inventory because he’s run out of room to keep it at home. He’s going access his unit at least weekly. We’re going to rent Robert a 10-by-10 right near the front door. He’ll happily pay higher than street rate for a premium location, and we can potentially sell him 24-hour access as well.

This type of dynamic pricing works best if you have a range of rates for each unit instead of a set price. It’s more work for the manager to price the customer instead of simply pulling a number from the computer, but it can be well worth it. Just as you can price each unit size and location, you can change your rental rates based on prospects’ needs. Those who do it well will reach a higher occupancy, have more satisfied customers and increase facility revenue.

Rate Increases

Few things cause more stress for self-storage operators than rate increases. You worked hard to get your tenants to sign the lease, and now you’re worried that some will leave once an increase letter hits their mailbox.

Did you know most rate increases only yield a 1 percent move-out? Operators worry about a mass exodus that usually never happens. Plus, while you’re stressing out over applying the increase, you aren’t executing it, which means you’re losing money. How much can you afford to lose before you finally decide to add a rate hike across the board? Here are some tips to help you increase rates for some or all of your existing tenants:

Assess what tenants can bear. Most storage operators agree increases should be standard for all tenants, no matter who they are or how long they’ve stored with you. This removes your personal guilt over the fact that you’re raising the rate on “sweet Mrs. Jenkins,” who’s battling cancer and just lost her husband. What kind of monster would increase her rent?

If you have trouble looking at the tenant roster and making the decision to raise rates, then just apply a standard increase for everyone and get on with your busy day. Most self-storage management software includes an automatic rate-increase module that allows you to set a certain level of escalation each month and not worry about it.

However, there’s some value to raising rates based on the tenant. For example, consider making a list according to the last time each tenant experienced an increase. This may allow you to increase rates more often than you would with a “flat” setting. You may also know who can bear more and who can’t. There’s no rule that says you have to raise everyone’s rate by 6 percent. While some can handle a 10 to 15 percent increase, you may be more comfortable with a 5 percent hike for Mrs. Jenkins.

Consider your timing. You also need to decide when to apply an increase. Look at your move-in/move-out history and determine when you traditionally have a busy month of move-ins. A great time to do a rental adjustment is 30 days before a busy month. If you have more move-outs due to the rate surge, you’ll get a move-in at a higher rate the next month since your street rate is likely higher than what the former tenant was paying.

Depending on your location, climate can also help you time those move-outs. No one in the South wants to move stuff out of a storage facility in the middle of summer. Those in chilly states will avoid vacating during the winter. Read your lease agreement and see how many days’ notice you’re required to give tenants before changing the rate.

Do damage control. Learn how to respond to tenants complain about their increase. What will you say? You can offer a number of explanations. Perhaps your property taxes went up this year, you made facility improvements, or the market has changed and you’re simply keeping up with it. Be armed with information about the last time rates were changed and by how much so you can handle grievances with ease.

Also decide ahead of time if you’ll allow concessions for customers who do protest. Will you split the difference with the tenant for six months or perhaps lower his rate? Or will you stick to your guns and risk losing a customer? Again, few tenants leave a storage facility because of a nominal rate adjustment. If you present your upset tenant with valid reasons for the hike, more often than not, he’ll see the reasoning behind it and accept it for what it is. If you do have a move-out or two, you’ll be able to rent those units at the new, higher rate.

Many Moving Parts

As you can see, revenue management involves many moving parts and a lot of planning. It starts with the price at which you originally rent the unit. You also have to examine your customer’s needs rather than simply quote a rental rate based on unit size and availability. Finally, stay on top of rate increases, keeping in mind what tenants can bear, your timing and how you’ll handle any fallout.

Pricing is an art and a science. Getting valuable training on revenue management is the best way to earn top dollar for your facility. Consider using a range of prices so you have some flexibility, then follow the guidelines above to increase your closing rate.

Magen Smith is a former self-storage manager turned certified public accountant (CPA). Her company, Magen Smith CPA LLC, helps storage operators understand the financial side of their business. Services include monthly financial management, simplifying bill-paying functions, revenue management and strategy. For more information, e-mail [email protected]; visit www.selfstoragecpa.com.

Lawai Cannery Self Storage & Warehousing in Kalaheo, Hawaii, hosted a garage sale on July 12 to benefit the Kauai Special Olympics (KSO), the local chapter of Special Olympics, a nonprofit that provides year-round sports training and athletic competition in Olympic-type sports for children and adults with intellectual disabilities. The proceeds will benefit KSO’s 115 athletes, according to Jocelyn Barriga, area coordinator. Lawai Cannery Self Storage also provides KSO with storage space, said facility spokesperson Lorna Santos.

Despite rain and humid weather, the garage sale had a good turnout, the source reported. Special Olympic athlete Chaunci Cummings and her coaches manned a booth at the event, which also included food vendors. Cummings is the only athlete from Kauai, Hawaii, to participate in the Special Olympics World Games, July 25 to Aug. 2, in Los Angeles. During the state games on Oahu, she earned a silver medal in the 100-meter dash and a gold medal in shotput. Ikaika Morita-Sunada of Oahu, Hawaii, and Isaiah Wong of Kona, Hawaii, will also represent Hawaii at the Games, which will feature athletes from 170 nations competing in 17 sports.

Lawai Cannery Self Storage regularly hosts garage sales to help local charities and other organizations, including one in April that benefited the Kauai Robotics team. The hosting beneficiary coordinates vendors and the sale, Santos said.

KSO relies solely on grants and donations to fund its operation. “We work with between $65,000 to $75,000 a year to operate the program, including getting trophies, awards and shirts for our athletes. We are grateful and appreciative of whatever help we receive,” Barriga said.

Lawai Cannery Self Storage is owned by SuperSpace Storage, which operates 45 facilities in Arizona, California, Hawaii, Texas and Utah.

A female prospective customer and the self-storage facility manager at A B Mini Storage in Wichita, Kan., got into a non-violent altercation this past weekend after the customer found herself accidentally locked inside the property at 511 W. MacArthur Road. Charity Harris told the source she drove her vehicle through the open security gate after a truck exited. When no one answered at the office and she tried to leave, Harris discovered she couldn’t exit the property without a gate card.

"I pulled in right here where it clearly says that the customers pull to the right," Harris told the source. "A truck was coming out and the gate opened up, so I went inside. Once I tried to leave, I realized I couldn't get out."

When Harris reached the manager by phone, she was told she would have to wait up to 30 minutes for the manager to arrive, according to the source. When it started to rain, Harris said the manager called her back to tell her it would be another 10 minutes, but then was told 45 minutes later that she would have to wait out the storm. The unidentified female manager allegedly told Harris she wouldn’t “risk her life” during the downpour, the source reported.

When the manager finally arrived, the two women openly expressed being upset with each other. “She flips me the bird, and out of frustration, I flip the bird back," Harris told the source.

After Harris left the property, she received a text message from the manager calling her dumb and saying, in part, “I wouldn't rent you a [expletive] dog house; it's too good for you. The manager told the source Harris was being “just as inappropriate and aggressive,” but admitted she may have been out of line with the text message.

Harris said that when she entered the property, she was following instructions on signage posted on the security gate. She requested that the self-storage business update its signage to help prevent someone else from becoming trapped inside. "There's no signs that say once you get inside this gate it is locked," she said.

The Inside Self-Storage (ISS) Store, an e-commerce website providing research and education products for industry professionals, is now offering all 45 of the education sessions recorded during this year’s ISS World Expo in Las Vegas as on-demand video. The presentations cover topics related to self-storage ownership, management, marketing, development, construction, investment, financing, risk management and more.

Priced at $20, the videos are available for purchase at insideselfstoragestore.com. Customers who buy videos are able to view them immediately from an embedded player inside their account. The videos are viewable anywhere, on any device with an Internet connection.

The seminars held during the 2015 ISS Expo, the industry’s largest conference and tradeshow, featured self-storage experts presenting in 10 education tracks. The on-demand videos cover all sessions recorded in their entirety. The recordings are also available in DVD format, individually as well as bundled by track and in larger discount packages.

Conceived as a central hub that allows self-storage owners, operators, developers and investors to obtain cutting-edge information and resources, the ISS Store is owned and operated by ISS, a dynamic services provider that has served the self-storage industry for nearly 25 years. The brand includes ISS magazine, the ISS Expo and Self-Storage Talk, the industry’s largest online community.

By Murphy Klasing

One of the most difficult problems to address and foresee in the workplace is employee theft, and self-storage owners aren’t immune. Studies by the U.S. Department of Commerce, corporate-training firm American Management Association and other organizations estimate employees steal more than a billion dollars per week from their unknowing employers. Some studies estimate that nearly one-third of all bankruptcies are caused by employee theft, and it takes approximately $20 in sales to offset every $1 stolen.

Every year, companies of all sizes go through the heartbreak of dealing with a corrupt employee. Management may have indications of the problem through declining profit, unexplained inventory shortages and rumors. Often, however, they’re ill-equipped to investigate and properly handle this ever-increasing problem. Let’s take a look at how to detect employee theft, steps you should take if it happens at your self-storage business, and why you should prosecute.

The Savvy Thief

With the increase in sophisticated technology, employees are devising more clever ways of taking money from employers. A top-level executive in a Houston-based company recently pled no contest and received seven years of probation for submitting false expense reports. He’d submitted more $50,000 in false expenses before he was caught. In another matter, an employee used a credit card swiping machine to place refunds totaling more than $250,000 on his Visa debit card over a two-year period. He was discovered by his own bank, which became suspicious of the large credits to his account through point-of-sale return.

Self-storage facilities can be ideal places for employee theft. Not only do managers often work alone, they’re exposed to cash from rental payments and ancillary sales. As the owner of a storage facility, you need to get into the mind of a thief and consider possible opportunities for pilfering. Are there crafty ways your staff could take cash, fake entries, overstate vendor bills or otherwise embezzle from your business?

Watch for red flags, such as missing petty cash or retail items, units that have locks but show vacant in your management software, or a large number of waived fees or discounts being offered. It’s critical you examine any and all chances for employee theft and take steps to prevent them. Have procedures in place for all aspects of your business, from handling cash transactions to providing refunds.

Get on the Case

If you discover a theft, it’s important to move fast to collect as much data as possible. Too often, employers move immediately to terminate the employee and lose a critical opportunity to gather information that could be used to prosecute the person and possibly recover some of the lost money.

Don’t worry—you don’t have to be a trained crime-scene investigator. If the theft involves expense reports, simply gather your data and contact your vendors to verify whether the expenses actually occurred. Obtain the employee’s personal file, and download and save copies of his e-mails. Also copy and save any phone logs, Internet activity, security pass-card logs and video surveillance.

The importance of gathering all this information can’t be overstated. Many state district attorneys’ offices are willing to assist in prosecuting employee theft, but they need evidence. Since it usually involves a paper trail that can be overwhelming, they need someone to gather the details if prosecution is to have a chance.

Criminal vs. Civil

Once you’ve gathered the information, meet with an attorney experienced in this area of law to discuss the next move. He’ll review the material, counsel you on the evidence and witnesses he may need, and assess whether a crime has been committed or the incident is merely civil in nature.

It’s generally believed that if someone takes something that doesn’t belong to him, it’s stealing. Although this is mostly true, “taking” isn’t always prosecutable in an employee/employer relationship.

For example, if an employee has use of a corporate credit card, uses it for personal expenses and fails to repay the employer, it’s more of a breach of the employee’s fiduciary duty than a crime. However, if he takes his supervisor’s corporate credit card and uses it for personal gain, forging his supervisor’s name to charges, a theft has occurred. Instead of sifting through the facts of each case, a self-storage owner can hire an attorney experienced in employee law, who can make decisions about whether to prosecute or sue the manager, or both.

Prosecuting the Crook

You may be wondering what the benefit is to prosecuting your manager. Perhaps you’re thinking, “I’ll never see the money anyway, so why waste my time?” The reality is if someone has stolen money but has no criminal record, that person has a chance of walking away with only probation if, as a condition, he pays back the money. Not too surprisingly, an employee seems to find the money to recompense an employer if it means he won’t go to jail.

Most states protect the property rights of individuals from civil judgment; therefore, the best chance for recovering stolen funds is through a criminal prosecution. However, a civil lawsuit is a great backup because it allows for other avenues of collection. For example, if the employee used the money to purchase cars, jewelry or other items, the employer may be able to attach those items to satisfy the judgment. Bank accounts can be garnished, and even some investment accounts can be attached. A civil lawsuit is also a great mechanism for gathering witness statements through depositions.

A tragedy that typically occurs is the storage owner confronts the employee and fires him, with the employee never to be seen or heard from again. The problem with that approach is the owner makes no attempt to investigate what was taken or mitigate his losses. More tragically, the employee is likely to walk down the street to another company and start stealing all over again.

If a trusted employee violates your trust, don’t give up hope. Instead, work toward recovering what was lost.

Murphy Klasing has a wide range of appellate, arbitration and trial experience, successfully handling numerous litigation matters. With more than a decade of experience in the self-storage industry, he serves as counsel for Public Storage Inc. in Texas, and has defended matters involving allegations of breach of contract, code violations, employment issues, fraud, negligence, personal injury, premises liability and theft. To reach him, call 713.961.9045; e-mail [email protected]; visit www.wkpz.com.

Bloomingdale Self Storage and Budget Self Storage in Brandon, Fla., are acting as drop-off sites for Lifecycles Tech E-Waste Recycling, a Tampa, Fla.-based Tampa, Fla.-based recycler and disposer of electronic waste (e-waste). The Bloomingdale facility at 912 East Bloomingdale Ave. and the Budget property at 607 East Bloomingdale Ave. accept old electronics such as cell phones, computers, copiers, digital-picture frames, fax machines, gaming systems and printers. Cables and monitors, electrical chargers, cords, household appliances, and networking equipment can also be donated.

Lifecycles was launched in 2012 by Brian Gansz, who formerly worked in the information-technology industry. “I saw a need for a way for the community and businesses to dispose of electronic devices other than to throw them in a landfill,” Gansz told the source. Lifecycles disassembles the electronics so they might be reused, refurbished or recycled. The company also erases sensitive data from the devices.

In addition to picking up discarded items at the self-storage facilities, Lifecycles holds fundraisers. Last month, the company helped a girls’ softball team raise money through e-waste recycling.

Open every day, Bloomingdale Self Storage offers climate-controlled storage as well as online billpay and reservations.

In addition to its storage property in Brandon, Budget Self Storage operates 13 facilities in Bradenton, Sarasota, St. Petersburg and Tampa, Fla.

Real estate developer James Petrocelli received unanimous approval from city officials this week to convert a vacant building into a 30,500-square-foot self-storage facility in Brightwaters, N.Y. The former car-repair and rental facility at 59 Orinoco Drive will be converted into a two-story, 28-foot-high storage facility containing 428 units. It’ll be the largest commercial project in a decade for the mostly residential village of Brightwaters, which rarely has applications for industrial or commercial development, according to the source.

The project was both criticized and supported by residents during a public hearing on July 6, the source reported. Some said a storage business was “unnecessary and potentially dangerous” for the area. "I don't really feel the residents are serviced by this," said Phillip Singer, who lives in the community.

Another resident said he preferred Petrocelli’s previous proposal for the parcel. “I'd rather have senior housing than mini-storage," said Carmine Chiappetta, adding that city officials should develop a master plan before allowing development.

Resident Mark Mulvey supported the project, calling it an improvement over the site’s vacant buildings. "I like the idea of turning it into something that generates income for the village," he said, calling it the least offensive use of the property.

Petrocelli’s attorney, Raymond Giusto, called the vacant building "an eyesore" and "subject to vandalism," during the hearing. He added that self-storage would be "one of the most benign, non-offensive uses of this property. There's hardly another use that has lower intensity.”

Petrocelli received a variance from the village's zoning board of appeals in October to operate self-storage. The facility will be open daily from 6 a.m. to 9 p.m. Petrocelli agreed to the board's request to limit Sunday hours from 9 a.m. to 9 p.m. 

Update 7/10/15 – Developer Pearl Street Commercial LLC revised the design for its self-storage project on Virginia Road prior to meeting with the city council this week. The changes eliminate the construction of nine storage buildings that would have been added to the property and instead expand the existing building earmarked for conversion, according to the source. The city council unanimously approved the changes.

Schwartz’s new plan is to either increase the overall capacity of the single-story building to 91,598 square feet or create an even larger facility at 118,618 square feet by adding a mezzanine, the source reported. The original plan called for 67,574 square feet of combined space. Local demand will ultimately determine the full size of the facility, according to the developer.

Construction could begin within three months, according to Richter. A second phase of the project could include additional expansion and parking spots for vehicle storage, but those plans would need to be approved by the city, according to the source.

Once open, the self-storage facility will be managed by a third-party company, Schwartz said.

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3/10/15 – The Crystal Lake, Ill., City Council unanimously approved the self-storage conversion project from developer Pearl Street Commercial LLC after reviewing revised architectural designs.

The new design altered the entrance off of South Virginia Street, added brick columns along the east side of the building, replaced the metal siding with faux brick, and changed the color pallet. Councilmember Ralph Dawson called the new look “totally acceptable” after describing the original design as “horrible” during a previous meeting, the source reported.

The rest of the overall project plan remains the same, according to the source. Pearl Street Commercial intends to open the converted lumber warehouse this year.

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1/30/15 – The Crystal Lake, Ill., City Council unanimously approved the preliminary zoning petition from developer Pearl Street Commercial LLC on its proposed self-storage conversion of a former lumber warehouse but rejected a sign variance and asked to see revised architectural designs.

The planning and zoning commission had earlier rejected a sign variance, and the council denied the developer’s request for additional square footage for signage that will be posted at Dartmoor Drive and Virginia Road as well as Rakow and Virginia roads.

Pearl Street Commercial contended that self-storage is a retail-oriented business and should be allowed to have retail-sized signage, but the council largely rejected that notion. “It’s really not retail,” Mayor Aaron Shepley said. “This is not an impulse stop. No one’s going to say, ‘I’m on my home from work, honey. I think I’ll stop by the storage facility and see if they have any space.’ They’re going there because they want to go there and they have something to store.”

The variance was also opposed by Phil Murphy, owner of Next Door Self Storage, which operates several Illinois facilities including one in Crystal Lake. Murphy argued the Virginia Road facility should be held to the same standards as other storage businesses in the city, according to the source.

Council members also expressed concern about the facility’s appearance and asked for revised designs to be considered by the planning commission and city council when the developer returns for final approval.

“For all of this show ... you haven’t changed the front of that building other than color,” Council member Ralph Dawson said. “That is a horrible looking front building on Virginia [Road]. I cannot believe we can’t do something better than that. There’s no way I would approve this if you don’t come back with other architectural drawings. You’re not getting my vote.”

The developer also requested to change the wrought-iron-styled fence recommended by planners to chain link along Rakow Road and a multi-use trail that runs behind the building.

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1/13/15 – Members of the Crystal Lake, Ill., Planning and Zoning Commission voted unanimously to recommend a self-storage conversion project proposed by real estate developer Pearl Street Commercial LLC. The project at 201 S. Virginia Road would convert a former lumber warehouse to self-storage and include new construction of nine smaller storage buildings. The city council will consider the commission’s recommendation on Jan. 20, according to the source.

The developer intends to convert the former Alexander Lumber building into 24,000 square feet of climate-controlled storage space. The structure would be configured to allow vehicles to drive through it. The nine smaller buildings would not have climate control. The remaining 6.3 acres would be subdivided for future development and could include outdoor vehicle storage, according to the source.

The proposal the city council will review includes a landscape plan and fewer parking spots than originally proposed. Landscaping could prove a challenge because the former lumber yard is mostly covered by impervious surfaces, the source reported.

In their recommendation, planners rejected the developer’s request for a sign variance. Pearl Street Commercial proposed to erect two free-standing signs on the east and south sides of the property to attract potential customers traveling on Virginia and Rakow roads, but both signs exceeded city limits of 6 feet high and 32 square feet, the source reported. In its proposal, Pearl Street Commercial argued self-storage is a retail-oriented business and should be allowed to have retail signage, according to James Richter, the city’s planning and economic development manager.

Pearl Street Commercial plans to open the facility this year.

The four publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have announced when and how they will reveal their earnings statements for the fiscal quarter that ended June 30.

CubeSmart

CubeSmart will release its financial results for the quarter that ended June 30 after the market closes on Aug. 6. An accompanying conference call will be held at 11 a.m. ET on Aug. 7. A live webcast of the conference call will be available from the investor-relations page of CubeSmart.com. The dial-in numbers are 877.506.3281 for U.S. callers, 412.902.6677 for international callers and 855.669.9657 for Canadian callers. To avoid delays in joining the call, participants can pre-register at http://dpregister.com/10068647.

After the live webcast, the call will remain available on CubeSmart's website for 30 days. In addition, a telephonic replay of the call will be available through Sept. 7. The replay dial-in number is 877.344.7529 for domestic callers, 412.317.0088 for international callers and 855.669.9658 for Canadian callers. The conference number is 10068647.

CubeSmart owns or manages 615 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.

Extra Space Storage Inc.

Extra Space will release its financial results for the quarter that ended June 30 after the market closes on July 29. The company will host a conference call at 1 p.m. ET on July 30 to discuss the results. Hosting the call will be CEO Spencer Kirk and Scott Stubbs, executive vice president and chief financial officer.

During the call, company officers will review performance, discuss recent events, and conduct a question-and-answer period for registered financial analysts. All other participants will have listen-only capability.

The phone number for the call is 855.791.2026 for U.S. callers and 631.485.4899 for international callers. The participant passcode is 75402312. The conference-call playback, which will be available through Aug. 4, will be accessible at 855.859.2056 in the United States or 404.537.3406 internationally. The participant passcode is 75402312.

The conference call will also be available on the investor-relations page of ExtraSpace.com. Those who wish to listen online should visit the website at least 15 minutes before the event start time to register and install any necessary audio software. A replay of the call will be available online for 30 days.

The full text of the earnings report and supplemental data will also be available on the company website immediately following the earnings release to the wire services on July 29.

Headquartered in Salt Lake City, Extra Space owns or operates 1,146 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 775,000 units and 85 million square feet of rentable space.

Public Storage Inc.

Public Storage will release information about its second-quarter 2015 earnings on July 29. A conference call is scheduled for July 30 at 2 p.m. ET to discuss the results.

The dial-in numbers for the live conference call are 866.406.5408 for U.S. callers and 973.582.2770 for international callers. The conference ID is 80673533. The live webcast will be available through the investor-relations page of PublicStorage.com and will be accessible on demand until Aug. 15. For the conference-call replay, the domestic dial-in number is 800.585.8367, the international number is 404.537.3406, and the conference ID number is 80673533.

Based in Glendale, Calif., Public Storage has interests in 2,258 self-storage facilities in 38 states, with approximately 146 million net rentable square feet. Operating under the Shurgard brand name, the company also has 193 facilities in seven European countries, with approximately 10 million net rentable square feet.

Sovran Self Storage Inc.

Sovran will issue its quarterly results after the market closes on July 29. The company will conduct a conference call to review the financial results on July 30 at 9 a.m. ET.

The call can be accessed at 877.407.8033 within the United States or 201.689.8033 internationally. Management will accept questions from registered financial analysts after prepared remarks. All others are encouraged to listen to the call via webcast from the investor-relations page at UncleBobs.com. The webcast will be archived for 90 days. A telephone replay will be available for 72 hours after the meeting by calling 877.660.6853 and entering conference ID 13613645.

Based in Buffalo, N.Y., Sovran operates more than 500 facilities in 25 states under the Uncle Bob's Self Storage brand name.

Author Charles Dickens opened his epic novel “A Tale of Two Cities” with a line that seems applicable to where we find ourselves today in the self-storage industry: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…”

It’s the best of times due to the fact that interest rates are as low as they’ll be in our lifetimes, and self-storage has become a mainstream investment vehicle. You no longer have to explain to your banker or possible investors what the industry is all about. On the other hand, it’s the worst of times because of all the money chasing our business, the lack of quality properties available for sale, and the increased competition for potential development sites. Land prices are at record levels in many communities, and the lack of properly zoned parcels makes it difficult or, in some cases, impossible to find a parcel on which to build.

In this “age of wisdom,” some storage builders and owners are diligently doing their homework, turning over all the rocks in their target market to find their best prospect. However, the “age of foolishness” has brought out countless others who’ve started to believe that “if you build it, they will come.” “I already own the land” is often repeated as justification for building in a specific location.

Finding a solid self-storage site has gotten more challenging as our industry has become increasingly competitive. There are no perfect sites left in the United States. Every location now involves some trade-offs and risk. The key is to consciously balance those drawbacks from the very beginning.

If you’re planning to build a new self-storage facility, this article covers some factors to consider when searching for a plot of land. Many are items that few people think about at the start of their quest but can have a huge impact on the outcome of a project. I’ll also discuss the characteristics of a good site for new construction.

Things to Consider

Site selection involves balancing the target market’s demographic profile with the characteristics of the parcel. You’ll need to research several different aspects of the area.

First, you need to look at the rental rates of established facilities in the market. You might find a storage facility on one side of town earning an annualized equivalent rent of $8.25 per square foot, while the rate at a facility just 20 miles away is $10.75 per square foot. On which side of town would you rather build? Yes, the land will probably be more expensive on the upscale side, but the difference in construction costs will be zero.

On the list of site-selection criteria, the performance and location of existing competitors is vital to examine, but there are other factors to consider and obstacles you may encounter. Keep in mind a site’s gross square footage may not produce the buildable acreage you anticipate. Here are some possible reasons why:

• A storm-water retention pond is necessary and can easily eat up half an acre.
• The wetlands area with its beautiful cattails must be set aside, per city zoning regulations. Often, there will be a buffer area around the pond as well. Say good-bye to another acre.
• The Army Corps of Engineer’s Flood Plain Map shows the far corner of the parcel is in the 50-year flood plain. You can’t build on that ever.
• A Phase 1 and then Phase 2 Environmental Assessment reveals you have petroleum contamination from a prior use as a truck-parking lot. Will your lender even consider offering a loan after you spend the money to clean it up?
• You could lose half an acre for the community’s landscaping or green-space requirement.
• You can’t build under the overhead power lines that bisect the land. There may be an option, however, for outside vehicle parking if the zoning code allows it.
• You could be facing new competition. Ask at the zoning or building department if there are any new facilities in the pipeline for your assumed market area.
• You can’t forget about the mandatory front, back and side-yard setbacks. That 100 feet from the road, 25 feet in the rear and 35 feet on both sides take another chunk of buildable acreage.

Ingress and egress will also have a huge impact on whether a site is buildable. Your proposed parcel may have a drive-by rate of 35,000 vehicles per day, but what happens when entry to your property is hampered because the department of transportation won't allow a “right turn in/right turn out” curb cut? How far will customers have to drive to make a U-turn? Will it be a deal-breaker for some potential tenants?

And please don’t think the 90,000 vehicles per day driving by the back of your proposed site, which abuts the interstate, is outstanding. People are driving at 65 to 75 miles per hour along that stretch of road, and there may be no exit in either direction for 10 to 15 miles. No one is looking at your facility as they rush to and from work. It’s better to have road frontage on a highway with just 8,000 to 10,000 vehicles driving by, with most being local residents. Remember, one of the primary reasons people select a storage facility is because they’ve driven past it.

Another big hurdle is possible “impact fees.” This has become institutional blackmail in many communities. Municipalities are saying, “You want to build on your land? This is what we want from you.” One developer had to buy a fire truck to get his project approved—crazy, but true. These are just some of the reasons a site may not be ideal for a new self-storage project.

What Makes a Good Site

At this point, you might be asking, “So what’s a good site?” The answer to this depends on how much storage space you’re looking to build. For a single-story, 65,000-square-foot facility in which 60 percent of the property is drive-up units, you would need roughly 3 to 3.5 acres. This also depends on the other requirements outlined above, which could lead to the need for a 4.5- or 5-acre site. If you’re going vertical, you can possibly build a two- or three-story facility on 1 to 2 acres of land.

Again, the level and quality of established competition can’t be overlooked. Simply put, the answer is “less is better”; but don’t ignore the qualitative measurements in addition to the math. A properly zoned “by-right” parcel is a whole lot better than trying to get a property rezoned. Anything that avoids a public hearing is preferable.

Finding a site that gives you the opportunity to risk an investment in self-storage isn’t for the faint of heart. That said, this industry is still one of the best entrepreneurial opportunities for starting a new business. Not only do we have one of the lowest ratios of payroll costs to gross revenue, all of our operating costs are fixed, so once you achieve breakeven, every gross dollar in additional rental income is a net dollar. There are very few businesses out there that can make that claim.

Remember, everyone trying to enter your target market must overcome the same barriers to entry. Surround yourself with a team of professionals who can help you successfully navigate the site-selection process.

There may not be any perfect sites left, but I continue to see good and even great sites every day. It takes a lot of homework and “kissing a bunch of frogs,” but when you find that location with the positive characteristics, it’s worth your effort.

Jim Chiswell is an industry veteran and owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence, coaching and customized manager training. He’s a frequent speaker at industry tradeshows. To reach him, e-mail [email protected]; visit www.selfstorageconsulting.com.