Real estate developer Don Kellebrew and property owner Robert Hager Jr. have filed plans in Napa, Calif., to build a self-storage facility on a 1.2-acre, flag-shaped lot. The asset would comprise 25,700 square feet in about 77 units. The $3 million project would include three single-story buildings and an office at 3117 California Blvd., according to the source.

Plans include wine storage and units designed to store other “precious items,” Kellebrew told city officials in a description letter last month. The project would also include an “architectural cosmetic wall” along the property line adjacent to Highway 29. The theme would evoke the Napa Valley’s wineries.

Though the property abuts Highway 29, tenants would access the facility off a driveway from California Boulevard. The target site is north of the driveway, while a Van Winden Landscaping business sits to the south. The lot has been vacant for about 15 years and previously housed an auto dismantler, the source reported.

Hager purchased the land in March for $905,000 for the purpose of developing self-storage. Local demand can support an increase of up to 20 percent more units, he told the source. “I like that it’s a flag lot,” Hager said. “It’s got a private entrance.”

The parcel is near another self-storage project proposed in March by developer Wayne O’Connell. The facility at 1890 Pueblo Ave. would comprise 40,000 square feet in 375 units.

Yardi Systems Inc., which provides management software for self-storage and other types of real estate, has expanded its Yardi Matrix self-storage data-services platform to 125 markets from 99. The asset-management and business-development tool now includes 26,535 properties, 1,398 of which are tracked as “new supply.” The properties comprise 1.4 billion square feet and encompass 83 percent of the U.S. population, according to a press release.

Matrix is intended for use by analysts, investors, lenders and property managers who underwrite and manage commercial real estate, the release stated. Its resources include ownership and management information, in-place debt, rents by unit size and comparison reporting, and sales-history data. The platform is available for multi-family, industrial and office properties in addition to self-storage.

“Matrix is now the largest data set for market intelligence and competitive analysis in the self-storage sector,” said Jeff Adler, vice president of Yardi Matrix. “The recent expansion is the latest example of Yardi’s commitment to providing the industry’s leading tools for identifying and executing development, management and underwriting deals.”

Yardi develops and supports software for the management of property and real estate investments. Its suite of programs includes accounting, ancillary processes, operations and services with portfolio-wide business intelligence and platform-wide mobility. Based in Santa Barbara, Calif., and founded in 1984, the company serves clients worldwide from offices in Asia, Australia, Europe, the Middle East and North America.

The Storage Group (TSG), an Internet-marketing company serving the self-storage industry, has added a rental-rate tracking tool to its platform. The Market Intel service provides customers with rate-comparison information and average price differences from competing storage operators within local markets. Rates can be viewed by unit size, type and other metrics, and a map displays the facilities used in the comparison, according to a press release.

“Facilities will be able to gain a competitive advantage over other self-storage facilities in their local target market with the information that is displayed in Market Intel,” the release stated. “Facility owners and management can then use this data to make data-driven strategic decisions, such as adjusting prices to make sure they are in line with the local market and deciding which storage unit sizes to build during expansions.”

Customers can access Market Intel within the “Performance Dashboard” of the TSG platform. “We are excited to launch this tool and see the success that it will bring to self-storage facilities across the country,” said Steve Lucas, chief operating officer.

Based in Maitland, Fla., TSG provides online tools and marketing solutions to the self-storage industry. The company's services include local-listing management, mobile websites, online rentals, pay-per-click advertising, search engine optimization, social media marketing and website development.

Storage Deluxe, a Manhattan-based self-storage owner and developer, has acquired a Storage Quarters facility in Flushing, Queens, N.Y., for $27 million. The property at 31-40 Whitestone Expressway comprises 110,000 square feet of storage space. It’ll be managed by self-storage real estate investment trust CubeSmart and branded under its name.

Plans are underway to refurbish the existing building and construct a new 57,000-square-foot adjacent structure. Upon completion, the property will contain 167,000 square feet of storage space in more than 2,000 units, according to a press release.

Storage Deluxe currently owns six storage facilities in the Queens market, including one in the College Point neighborhood. The properties total more than 700,000 square feet in 10,000 units, the release stated. In 2012, the company converted an existing structure in Flushing into a seven-story, mixed-use property comprising 198,000 square feet of storage space. The facility at 41-06 Delong St. also includes 38,000 square feet of retail/industrial flex space on the ground floor.

In April the operator opened another mixed-use project, this time in Bronx, N.Y. The 2-acre site contains 104,000 square feet of storage space in 1,900 units as well as 24,000 square feet of ground-floor retail space.

Founded in 1998, Storage Deluxe has developed 46 projects totaling approximately 5 million square feet, including 42 self-storage facilities, three art-storage facilities, 58,000 square feet of retail, and an exotic car-storage property.

In 2011, the company sold 22 of its New York storage facilities to CubeSmart for more than $560 million. At the time, it also transitioned day-to-day management of its remaining properties to CubeSmart. Storage Deluxe has remained active in the New York Metro area since the portfolio sale, completing 19 acquisitions, and the company is aggressively seeking new development and acquisition opportunities.

Founded in 1988, Storage Quarters operates a facility in Garden City, N.Y. In addition to self-storage, the property provides document storage and destruction, records management, and on-demand storage with pickup and delivery services.

Store House Storage LLC, a Texas-based self-storage operator, has opened a new facility in New Braunfels, Texas, its third location in the state. The property at 2416 FM 725 (S. Seguin Ave.) is between County Line and Klein Roads. It comprises 62,175 rentable square feet of storage space in 571 climate-controlled and drive-up units.

Property amenities include a business center, optional electrical hookups, LED lighting, online billpay, package acceptance, and a retail store that sells moving and packing supplies. Site security includes keypad entry and video cameras.

The new property will be operated by RPM Storage Management LLC, a self-storage consulting and management firm also located in New Braunfels.

The other two Store House facilities are in Aledo and Hudson Oaks, Texas. The Aledo property specializes in boat and RV storage.

 

Strat Property Management Inc., a third-party management firm and facility operator, has hired Travis Morrow as president of its self-storage division, effective Aug. 1. Morrow is joining Strat after 14 years as president of Arizona-based National Self Storage Management Inc., which owns or manages facilities in the Southwest. National’s portfolio will continue under Morrow’s supervision through a sub-management agreement between the two companies, according to a press release.

“This is a very unique opportunity for me, and I am looking forward to joining two first-class self-storage operations,” Morrow said. “I’m excited to become a part of the Strat team.”

Strat plans to have 66 storage sites under management by the end of the year, the release stated. It currently owns or operates 54 facilities in California and Texas. It also manages apartments, condos and townhouses.

“Travis has an extensive self-storage background and is truly a visionary in the industry,” said Strat CEO Don Clauson. “He envisions and shares the same concepts of our core culture. He is involved to an impressive degree in the national Self Storage Association and the Arizona Self Storage Association. We are fortunate to bring in someone who can take our already great operations to the next level.”

NSS operates storage properties in Arizona, California, New Mexico, Texas and Utah.

Doesn’t it seem like every business is trying to figure out the magic formula to attract Millennials (people born between 1981 and 2000)? These consumers comprise 27 percent of the population, according to advertising trade publication “Adweek.” From retail to real estate, it’s hard to find a commercial venture that isn’t swept up in the madness.

The self-storage industry is no exception. As the number of facilities and occupancy rates increase, so does competition. In this climate, earning the business of Millennials can be crucial to growing your business. But because these customers are tech-minded and wary of traditional marketing practices, your normally tried-and-true methods of attracting tenants may not work on them. Here are five things that will help you bring them through your door. 

1. Affordability

According to “Forbes” business magazine, 59 percent of Millennials would rather rent a house than buy one. This generation is also more likely to settle down later in life than previous ones. That’s good news for the self-storage industry, as those who rent and move frequently often rely on self-storage. You can capitalize on this trend by making Millennial customers aware of your flexible lease terms and other facility features, such as moving-truck rentals or an onsite retail shop that offers moving supplies.

Most important, perhaps, is this: 61 percent of Millennials say they rent because they can’t afford to buy a home. In fact, many even live with their parents because they’re crippled by student loans and a slow job market. It’s your job to show them how affordable self-storage can be by making them aware of lower priced units, discounts, promotions and anything that makes your facility the most budget-friendly option around town.

2. Authenticity

Millennials are skeptical of ads that seem like ads, so if you want to reach them, you have to practice non-advertising. Confused yet? Don’t worry, it’s actually quite simple. Exhibit authenticity by creating content for your website and social media pages that feels casual and even humorous. Show your personality by putting staff members in company videos rather than professional actors. When giving a Millennial consumer a facility tour, avoid traditional sales pitches in favor of an honest conversation.

Millennials expect good customer service in industries that weren’t previously classified as service-oriented. That’s why there are now apps that let you rate your driver, food-delivery guy and even the person who walks your dog. In the self-storage industry, that translates to authenticity. In other words, the old “be yourself” advice you got in grade school is finally spot on.

3. Online Presence

Nearly 20 percent of younger adults get their entertainment from the Internet instead of television, according to “The New York Times.” This is why it’s so important for your self-storage facility to have an online presence. This means having several active social media channels on which you post at least a few times a week and a website that’s modern and user-friendly.

Millennials tend to trust the advice of their peers over that of advertisers, so they look for storage facilities that are reviewed on Google, Yelp and Facebook. You can get good reviews by encouraging your existing customers to rate your business on Yelp or by running a social media promotion in which you offer a discount in exchange for liking your facility’s Facebook page.

In addition to having a digital presence, it’s necessary to engage with current and potential tenants online. When someone writes a review on Yelp, respond to it. When someone follows you on Twitter, message him to say “thank you.” The Millennial self-storage user looks for a facility with a solid digital presence but also expects the company to interact with consumers via online platforms.

4. Innovation

There’s a reason you’re hearing the word “disruptor” used as a compliment so often. Millennials love disruptors—individuals who innovate—in any industry.

In self-storage, being a disruptor means offering features and services that reflect the evolving needs of tenants. Your business can innovate by offering mobile or valet-style storage, or simply by offering something unique in your market. It can be something simple, like fresh cookies in your office, or more complex, like soundproofed units for band rentals.

5. Community Involvement

California-based shoe company TOMS became successful by promising to donate one pair of shoes to someone in need for every pair purchased. Its charitable instinct paid off and Millennials rewarded it with their business. Apply this same ideology to your storage facility and they’ll respond the same way to you.

According to a survey by “Fortune” magazine, individuals between the ages of 18 and 24 are more likely to buy products from a company that contributes to charity, so get involved on a community level. Become a drop-off location for a local charity or hold a food drive for a soup kitchen. You could sponsor a youth sports team or buy a booth at a local event.

You can also show your goodwill by going green. Consider starting a recycling initiative at your facility, installing solar panels or pledging to only sell moving supplies made of recycled materials.

Finally, get in touch with your local chapter of any young professionals networking group. This will help you gain commercial tenants who just so happen to be Millennials.

By incorporating affordability, authenticity, a strong online presence, innovation and community involvement into your existing practices, you can see a boost in occupancy. Keep it up and you’ll find that you’ve amassed a slew of Millennial self-storage users who’ll not only reward you with their loyalty but encourage their peers to do the same.

Krista Diamond is a staff writer for StorageFront, which allows customers to custom search and compare thousands of self-storage facilities. She’s a graduate of the University of New Hampshire and lives in Las Vegas. When she isn't writing about storage, she’s climbing mountains in the desert. For more information, visit www.storagefront.com.

Inside Self-Storage (ISS) and Tenant Property Protection (TPP) have released a new publication titled, “2017 Case Study: What Happens When the Unexpected Happens.” The free downloadable PDF chronicles how self-storage tenant losses were covered after a fire destroyed 313 units at Money Saver Mini-Storage in Portland, Ore.

The study provides an overview of the incident and how insurance claims were handled. It includes interviews with executives from the operator's management company, Storage Partners, as well as information on how property-protection programs can benefit self-storage operators and tenants.

This and other case studies can be downloaded from the Whitepapers page of the ISS Resource Center. Other recent publications, including case studies on transforming an underperforming storage facility, leveraging cloud storage and using mobile technology, can be downloaded from the same page.

Headquartered in Peoria, Ariz., TPP partners with self-storage operators nationwide to provide protection of tenant goods while enabling additional facility revenue.

For more than 26 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

The Charleston, W.V., Municipal Planning Commission has denied a request from real estate developers Josh Duncan and Donald Huber to rezone a residential parcel in favor of a self-storage facility. The application faced strong opposition from residents in the Sherwood Forest neighborhood, which is fronted by the Corridor G parcel, according to the source.

The commission referred to the project as a case of “spot zoning,” supporting the planning department’s assessment that the development would be “inconsistent” with the city’s comprehensive plan and benefit only the landowner. Adopted in 2013, the city plan recommends a gradual reduction in land zoned for commercial development, the source reported.

About 60 residents attended the meeting to speak out against the rezoning. The city also received 19 letters opposing the application. The group was represented during the meeting by attorney Kelly Elswick-Hall, who cited concerns about increased traffic and told planners that existing storage facilities in the area aren’t at full capacity. Elswick-Hall also indicated a company connected to Huber had been fined $340,000 for violating the Clean Water Act while developing a property in Minnesota, according to the source.

Other residential concerns included possible losses to property values and the potential for crime. The project would also require excavating a hillside that includes some homes.

Commissioner Rod Blackstone urged Duncan to examine other suitable commercial properties in the city.

The city council’s planning committee will also review the rezoning application.

Atlanta-based self-storage developer Mequity LLC has acquired a former Moving Man storage building in New York City for $15.6 million. Mequity intends to convert the structure into a seven-story self-storage facility comprising 40,593 net rentable square feet in 1,424 climate-controlled units. Construction is expected to begin during the third quarter, with completion scheduled for the second quarter of 2018.

The property at 465 W. 150th St. in the Sugar Hill area of Manhattan is primarily surrounded by residences, as well as some parks and recreational centers, the release stated. It’s also near City College of New York and Columbia University.

Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has co-invested $26.5 million in the development, its second with Mequity, according to a press release. The finished project will be managed by CubeSmart, a real estate investment trust and third-party management firm.

“Pretty much all of Manhattan is very undeserved with storage, so when there is an opportunity to work on a building like this and create a new, modern storage facility in Manhattan, it’s an opportunity that we want to take,” Mequity Principal Bill Marsh told the source.

In February, Jernigan Capital and Mequity co-invested in a Vinings, Ga., property. The project includes a building conversion and construction of an additional connected structure. The multi-story self-storage facility will comprise 103,561 net rentable square feet and is expected to be complete next year.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.

CubeSmart owns or manages 832 self-storage facilities across the United States. Its operating portfolio comprises 55.9 million square feet.