Storage King Group, which operates 142 self-storage facilities in Australia, is expanding its presence in two Melbourne suburbs. The company recently added units to an existing site in Hoppers Crossing and opened a new facility in Truganina.

The Hoppers Crossing facility at 71-75 Forsyth Road now contains 540 units, up from 275. In operation for more than 13 years, the location has won several company accolades, including this year’s “Merchandise Sales” award, according to property manager Kylie Willan.

The Truganina site opened in May at 477 Doherty Road. “We’re very happy to be part of the Storage King family,” said property manager Vicki Chandler. “We offer outside shipping-container storage, along with all the packaging needs the business is known for.”

Additional customer amenities at the company’s facilities include an online space estimator, truck rental and courier services.

Willan also announced that her location will participate in two charitable activities in October. For the entire month, the site will donate $1 for every pink tea chest sold to the McGrath Foundation, an Australian breast-cancer support and education charity. The facility will also host a “Garage Sale Trail” on Oct. 27. “It will be a great family day, with a jumping castle, fairy floss and popcorn, a coffee van, and a special guest to entertain kids,” she said.

Founded 20 years ago, Storage King operates facilities in the Australian Capital Territory, New South Wales, Queensland, South Australia, Victoria and Western Australia.

Source:
Star Weekly, Business Matters: The Mighty Monarchs of Storage in Truganina, Hoppers Crossing

24-7 Self Storage Ltd. of King’s Lynn, England, is sponsoring 12-year-old kart racer Aaron Alexander as he competes in four Honda 200 Cadet Kart Championships. Per the terms of the sponsorship, the storage operator will get its logo on Alexander’s vehicle, some race-day hospitality and a signed, framed photo of the racer, according to Alexander’s website.

Alexander a student at King Edward VII Academy, is the English championship-points leader in Cumbria, Leicestershire and Middlesborough, and a close second in Oxfordshire. His racing has attracted fans, sponsors and media coverage, according to the source.

“We are the newest storage facility in King’s Lynn, and we are delighted to be able to support this talented youngster,” said Mark Comer, director of 24-7 Self Storage. “Who knows? Aaron might even do as well as Norfolk Formula One legend Martin Brundle if he can get the right level of support.”

24-7 Self Storage is in the Hardwick Industrial Estate at 26 Rollesby Road. It offers traditional storage units, 20-foot shipping containers, and yard and vehicle storage.

Source:
Lynn News, West Norfolk Karting Ace Secures Sponsorship Deal
Aaron Alexander, Website

By Jeffrey B. Turnbull and Lucas J. Turnbull

The goal of any self-storage development should be financial success, and the best way to accomplish that is to carefully plan the basics: site selection, unit mix and layout. To many first-timers, the industry business model is simple: Buy land, build and make money. Once upon a time, it was almost that easy. Today, it’s much more complex.

Many markets are experiencing greater competition, higher land and building costs, and additional regulatory burdens. We’re seeing the use of more climate-controlled and multi-story buildings, due in part to trends in consumer demand. As a result, self-storage facilities are becoming much more expensive to develop, with longer lease-to-stabilization times. Even so, they continue to be a solid investment choice.

Choosing the right site and creating a well-designed unit mix and layout is critical, especially for a first-time developer. These are the fundamentals of a successful storage business, whether you’re building your first or fifty-first facility.

Site Selection

Site selection is the most important factor in determining success. You generally want a location that’s highly visible, with good access, on a major road. The site should be in a high-growth area or one that’s clearly in the path of progress. In addition, you need a good combination of demographics, with higher than average household income and population growth in a three-mile trade area. Finally, the location should have minimal existing or planned self-storage competition, particularly within that first mile.

If you’ve discovered an area that’s underserved, chances are other developers have noticed it as well. Check with the local building authority to see what’s headed that way before you start to develop. You don’t have to let competitive forces sway your decision, but be aware of all existing and planned projects.

Of course, the property must be large enough for your planned development and have access to the proper utilities, such as water, sewer and electricity. It should also be properly zoned.

What’s important is you understand that not all land is good for self-storage. Just because you inherited it or bought it at a bargain doesn’t make it a desirable location. A good site must have the above attributes. If it doesn’t, you need to keep looking for one that does.

Typically, a single-story development might require 3 to 5 acres, depending on topography and shape. A multi-story site will come in at 2 acres or so. Always have an exit strategy for any site you choose, with the ability to terminate the contract if the permitting or zoning doesn’t go your way. The bottom line is the ideal site gives you a high level of comfort.

Unit Mix

Self-storage unit mix is normally a product of population density and income levels. For example, areas of higher income will typically demand more security and climate-controlled features; apartment dwellers will want smaller units, say 5-by-10s; and suburban or commercial-oriented markets will call for more large spaces, such as 10-by-20s.

It’s important to note that your financial return per square foot (PSF) usually diminishes as the size of the unit increases. For example, if your market will support $70 for a 5-by-10, you’re achieving a rental rate of $16.80 PSF. It’s doubtful the 10-by-20 will support that same rate. This doesn’t mean you should build a higher proportion of smaller units, though. A store with 50,000 net rentable square feet might have more than 500 storage units or as few as 300, depending on the market. You must build the unit mix to the market, not to skew the PSF return.

Site Layout

To discuss site layout, let’s focus on single-story, as it would normally be easier and less costly for a first-time developer to build. During the layout process, we typically involve a professional civil engineer with experience in self-storage design, which can be invaluable. The goal is to maximize the net rentable square footage. You need a site that’ll accommodate a minimum of 50,000 square feet, constructed all at once or in phases.

The layout is primarily a product of the shape and topography of the land parcel, but many other factors come into play, including:

• Fire code and use of fire equipment (with the possible requirement of automatic fire-suppression systems)
• Storm-water rules in your municipality
• Other local zoning rules with setbacks and landscaping requirements

We normally factor in all the setbacks, easements and storm-water restrictions first, and then sketch the layout. Next, we try to determine how much climate-controlled vs. non-climate-controlled storage can fit on the site. Then we look at accessibility to each of the buildings and individual units, ensuring it’ll be easy for customers. If it isn’t reasonably simple for tenants to drive in, get to their unit and store, they’ll go elsewhere.

The takeaway is you need to find the right site and design the unit mix and layout based on the market. Doing your research and spending time with professional engineers and planners will help you succeed in your first self-storage development. Remember, it’s a process that’ll involve a considerable amount of your time and money, but the reward will be worth it.

Jeffrey B. Turnbull is president of Kodiak Mini Storage II LLC. He’s been involved in the self-storage business as a developer, operator and owner for more than 20 years, and is currently developing a new store in Charlotte, N.C. He’s a licensed attorney in North Carolina, a licensed real estate broker in North and South Carolina, and a past president of the North Carolina Self Storage Association. He’s a regular contributor to “Inside Self-Storage,” and a speaker at various industry events. To reach him, e-mail [email protected]. 

Lucas J. Turnbull is a project manager for Kodiak Mini Storage II LLC. He’s overseeing the construction of a new 65,000-net-rentable-square-foot facility in Charlotte, N.C. A graduate of Clemson University, he’s a licensed real estate broker in North Carolina. To reach him, e-mail [email protected]. 

ShedSpace Ltd., a peer-to-peer self-storage marketplace, has launched in England. Similar to other shared-economy networks, the company provides an online platform through which people in need of storage connect with local hosts willing to rent available space in their homes. The business is initially serving Southern England, according to the source.

Those with available space can list it at ShedSpace.com. Offerings can include attics, garages, spare rooms, closets or other areas. Those in need of storage can search by location and size of space. They then can book with a host and pay online. ShedSpace handles the administration work and insurance, the source reported.

“ShedSpace is a new way to store items locally, with someone you can trust, and gives you the flexibility you need,” said Nicole Bean, marketing manager. “The inspiration behind ShedSpace was to help communities come together and support one another through the sharing economy.”

The company was founded by Grant Drummond and Adam Elcock of Christchurch, England. Drummond came up with the idea about a decade ago but said Internet limitations prevented him from moving forward at the time, the source reported.

“Perhaps you have a garage you never really use, or a loft stuffed with items you could place elsewhere, or maybe you’re looking to turn an empty nest into a nest egg. Maybe you have a great space under your stairs or a driveway that’s always free during the week,” Bean told the source. “All of these spaces could be making you money while you sleep, eat or do your day job.”

ShedSpace becomes at least the fourth peer-to-peer storage marketplace to launch in the U.K. Dutch-based Storage Share B.V. kicked off its U.K. service last year, while Stashbee and YesWeStock Ltd. launched service in 2016.

Source:
Daily Echo, Shedspace Launched by Christchurch Pair

The Midlothian, Texas, City Council approved an ordinance amendment on Tuesday that will allow for the development of a Freedom Self Storage facility. The property is near the intersection of Farm-to-Market Road 66 and McAlpin Road. The site will rent office space in addition to storage units, according to the source.

Prior to the vote, council members voiced concerns about the traffic impact of the office space on the neighborhood. As a solution, they’re limiting use of that space to professionals such as accountants, attorneys and doctors.

“The two 15,000-square-foot office spaces will be broken up into smaller spaces,” said Donald Jones, president and CEO of Donald Jones Consulting & Service LLC, who represented the developer. The company provides self-storage management, consulting, acquisition, feasibility and development services.

Source:
Waxahachietx Daily Light, Midlothian City Council Approves Storage Facility, Upgrades To Water, Sewer Lines

Police shut down Shogun Self Storage in Spokane, Wash., last week for years of alleged code violations. A 150-page abatement warrant filed on July 12 in Spokane County Superior Court describes the business as a “drug nuisance property,” according to the source. The facility at 905 E. 3rd Ave. has been under investigation since 2011. It’s now boarded up.

"We've had drug activity, people being here all different hours of the night, people living in the storage units, which is a very dangerous situation," Lt. Dan Ervin told the source. "We've had a large number of calls for service at this location in the last year, including a domestic violence within a storage unit."

Police indicated that those caught living on the premises have included children. Repeated attempts to work with the owners to resolve the issues failed, according to the warrant.

Court documents list Shogun Inc., Jong Lee, and the Sam and Anne Thoen Foundation as plaintiffs, though they currently face only civil penalties. No criminal charges have been filed. The documents include previously filed warrants as evidence crimes were allegedly committed by tenants.

The Lee Family operated the Shogun Restaurant, which burned down in April, the source reported.

Tenants with items stored at Shogun are encouraged to call police at 509.625.3380 for information on how to recover their property.

Source:
KXLY, Shogun Self Storage Shut Down, Court Docs Allege Years of Code Violations

Robert Moser, president and CEO of Prime Group Holdings LLC, a New York-based real estate group that owns self-storage and other real estate interests, recently donated $2.5 million to the new pediatric emergency room being built at Albany Medical Center in Albany, N.Y. The gift was made to the $50 million medical center during its annual Light Up the Night fundraising gala, according to the source.

Albany Medical has raised $17 million of its $20 million goal. The 70,000-square-foot children’s facility, adjacent to the center’s primary ER, will be named The Massry Family Children's Emergency Center after donors who contributed $5 million toward the project. It’s expected to open next month, the source reported.

"Our gift reflects our family's commitment to improving the quality of everything that our region does for children," Moser said. "The pediatric emergency department—like The Cleft-Craniofacial Center at Albany Med, which we are also proud to support—is focused squarely on children, making a difficult time easier for them and their families. [It will also provide] a safe environment to get the best possible care and improve their overall experience. We are very pleased to be part of this important initiative."

"Thanks to the Moser family's generous donation, the children of our region will not only have access to excellent care from the finest and best-trained pediatric physicians and staff in our region, but they will receive it in a place of their own, a place that was created for children and families—a place like no other," said James Barba, CEO of Albany Medical.

The Moser Family contributed $2.5 million to The Cleft-Craniofacial Center last year.

Headquartered in Saratoga Springs, N.Y., Prime Group owns and manages more than 200 self-storage facilities in 23 states. Its operating portfolio comprises more than 13.5 million rentable square feet.

Source:
Times Union, Moser Family Gives $2.5M to Albany Med Pediatric ER

Washington-based Armor Storage LLC is opening its second location next month, at 3400 Mottman Road S.W. in Olympia, Wash. Designed by local architect Glenn C. Wells, Armor Storage West Olympia will comprise 123,054 rentable square feet in 579 climate-controlled and drive-up units. Additional features will include nearly 18,000 square feet of vehicle storage, U-Haul truck rentals, and retail center that sells moving and packing supplies.

Like the first Armor Storage facility at 3510 Marvin Road N.E. in Lacey, Wash., the new property will be managed by West Coast Self-Storage Group (WCSSG), according to a press release.

“We’re excited to be partnering with Armor again to manage their newest storage facility in Olympia. This will be the nicest, most secure storage facility in the area, and we’re proud to offer our storage knowledge and expertise to the residents of Olympia and Tumwater,” said WCSSG District Manager Scott Timmons.

WCSSG is an acquisition, development and property-management company headquartered in Everett, Wash. Its portfolio of managed and owned properties includes 39 sites in Washington, nine in Oregon and seven in California.

Reading Storage LLC, which operates 12 self-storage facilities in Pennsylvania, is seeking zoning approval to convert Hillside Swimming Pool in Reading, Pa., to self-storage. The developer has the site at 339 N. 14th St. under contract but has requested several variances, according to the source.

Plans for the community pool, which hasn’t been used in a decade, include demolishing the existing structures and building a new storage facility containing 250 units, said Ryan D. McFadden, managing partner. It’ll offer customers 24-hour access.

The developer presented the request to the zoning board last week, and a decision is expected on Aug. 8. In addition to approval for the conversion, the developer is requesting several variances related to parking, fencing and sidewalk requirements.

The Hillside Swimming Association has maintained the property and covered the water and tax bills since the site closed in 2009, said Mike Lerch, a member and area resident. “As shareholders drop out, this is getting more difficult to do,” Lerch said. “We are very committed to see that the property is used for something productive.”

The site has been on the market since 2009, but has had little interest because it’s zoned residential, said Randy Weidner, a broker with Re/Max of Reading who had the listing.

Founded in 2012, Reading Storage offers a mix of traditional self-storage, warehouse space and vehicle parking.

Sources:
Reading Eagle, Self-Storage Facility Sought to Replace Swimming Pool in Reading
LinkedIn, Ryan McFadden