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From the 2019 ISS World Expo: Warren Dazzio Discusses Tax-Reform Strategies for Self-Storage Operators

Video-From the 2019 ISS World Expo: Warren Dazzio Discusses Tax-Reform Strategies for Self-Storage Operators

Business tax laws are a point of concern for many self-storage operators. In this video filmed at the 2019 Inside Self-Storage World Expo, Warren Dazzio discusses how the 2017 Tax Cuts and Jobs Act and changes to the Qualified Improvement Property provision impact our industry. As executive vice president of Cost Segregation Services Inc., he offers specialized insight to how some tax-reform strategies can benefit storage operations and cost segregation can help maximize cash flow. Dazzio presented a full seminar on the topic during the expo. Copies are available for purchase at iss-store.com.

Read more about the 2019 ISS World Expo in this article recapping the event.

Storage Deluxe Builds 7-Story Self-Storage Facility in Bayonne, NJ

Article-Storage Deluxe Builds 7-Story Self-Storage Facility in Bayonne, NJ

Update 7/10/19 – Storage Deluxe has completed construction on its seven-story self-storage project in Bayonne. The property at 186 E. 22nd St. is adjacent to a retail strip center and near a recently opened Costco. It’s also within 1.5 miles from a proposed development that calls for 4,500 residential units, about 81,000 square feet of retail space, and a 218-room hotel, according to a source.

An earlier report misidentified the site address as 160 E. 22nd St.


9/14/17 – Storage Deluxe, a Manhattan, N.Y.-based self-storage owner and developer, is building a new facility in Bayonne, N.J. Expected to be complete in November, it will be managed by self-storage real estate investment trust CubeSmart and branded under its name, according to a source.

The property at 160 E. 22nd St. was leased for 99 years from Alessi Organization Management LLC, according to the source. Storage Deluxe plans to tear down an existing structure to build its 120,000-square-foot facility. Building permits have already been filed with the city.

The site is near the Bayonne Crossing shopping center off New Jersey Route 440 and across from another Alessi project, a new commercial retail center. Alessi will earn $60 million over the term of the lease, according to Eugene Rivera, director of the commercial real estate division for Pure Properties, who brokered the deal. The firm is the U.S. brokerage arm for Dixon Advisory, an Australian-based investment-management firm.

Storage Deluxe recently purchased a Storage Quarters facility in Flushing, Queens, N.Y., for $27 million. Also managed by CubeSmart, the property at 31-40 Whitestone Expressway comprises 110,000 square feet of storage 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 1970 and headquartered in Bayonne, Alessi develops, leases and manages commercial, industrial and residential properties in New Jersey.

Pogoda Launches Self-Storage Growth Initiative Behind New Director of Acquisitions

Article-Pogoda Launches Self-Storage Growth Initiative Behind New Director of Acquisitions

Update 7/10/19 – Pogoda Cos. closed on three Michigan self-storage properties during the first half of the year as part of its growth strategy for the Upper Midwest. Together, they comprise 170,666 net rentable square feet in 1,521 units. All three facilities have been rebranded as National Storage Centers and will undergo renovations. Two are slated for expansion, according to a press release.

The four-story property at 1100 Oakman Blvd. in Detroit comprises 52,470 square feet in 543 units. The former Devon Self-Storage is Pogoda’s first Opportunity Zone investment. Renovations include a new management office and signage, LED lighting, a new roof, and tenant amenities. The company also intends to add 40,000 square feet of climate-controlled space, the release stated.

In Pontiac, Mich., the company acquired the former Bloomfield Mini Storage at 800 Martin Luther King Blvd. S. The facility comprises 43,156 square feet in 353 units. Renovations include new doors and roofs, LED lighting, a redesigned office, security upgrades including new cameras and gates, new asphalt and landscaping, and upgrades to the county roadway. Pogoda intends to remove a concrete median to allow tenants to turn left from the street onto the property. It will also install a traffic light.

The largest of the three facilities is at 5215 Curtis Road in Traverse City. The property comprises 75,040 square feet in 625 units. Planned renovations include new fencing and signage. Pogoda also intends to convert an existing building to climate control as well as add boat/RV storage to the site. Future expansion could include up to 25,000 square feet, according to the release.

The company expects to acquire three more properties in the region before year-end. “We are what I would call patient, aggressive buyers,” Pogoda said. “We are able to pay all cash, which has separated us from the herd, and are strategically selecting stores that complement our existing portfolio in Michigan and Ohio. We are educated buyers with many years of self-storage experience and are willing to sit back and wait if necessary. This has allowed us to pick up properties that were priced much higher just months ago.”


2/20/19 – Pogoda Cos., a Farmington Hills, Mich.-based self-storage operator that also provides third-party management services, has launched an “aggressive growth campaign” to expand its existing portfolio in Michigan and Ohio and possibly other states. The initiative is spearheaded by Adam Pogoda, who was recently hired as director of acquisitions, according to a press release.

Since January, the company has closed on one property and has multiple deals under contract that are expected to close during the first half of the year, the release stated.

Adam Pogoda joins the firm from New York City-based East End Capital, a private-equity real estate company. As vice president, he was responsible for finding and sourcing acquisitions in the metropolitan area, and assessed more than 300 deals per year, facilitating the purchase of $1.5 billion of properties. He specializes in structuring deals, discovering value-add potential within properties and finding operational deficiencies, the release stated.

“The strong reputation built by Pogoda Cos. over the last 30 years has given me the platform and network to put my 10-plus years of experience in real estate to work in identifying and sourcing strategic acquisition targets,” Adam Pogoda said. “We are well-positioned to take advantage of the more favorable pricing that we have been seeing in the market, and we have been making aggressive, all-cash offers, which have served us well in getting sellers’ attention and giving us a competitive advantage.”

Based in Farmington Hills, Mich., Pogoda Cos. is a self-storage operator with approximately 2 million square feet of self-storage space in Michigan and Ohio. The firm also provides brokerage, consulting, investment and management services to the self-storage industry through Pogoda Group Inc. and Pogoda Management Co.

Woodland, CA, City Council Extends Self-Storage Moratorium to August 2019

Article-Woodland, CA, City Council Extends Self-Storage Moratorium to August 2019

Update 7/10/19 – The moratorium on new self-storage development in Woodland, Calif., has been extended several more times. The most recent unanimous vote, on July 2, pushed it out another 45 days as city officials continue to assess zoning parameters for the business type, a source reported.

An extension for an “interim urgency ordinance” was also passed and will remain in effect until May 20, 2020. The order aims to “protect the public health, safety, and welfare from an event separate and distinct from the circumstances that give rise to the interim zoning ordinance imposing a moratorium on all mini-storage facilities citywide,” Norris said.

The city has 17 self-storage facilities, including 10 in the industrial/light industrial overlay districts, five in the corridor mixed-use area and two in the regional commercial district. Officials have also received an application for building permits for a conversion project of an existing property on the northeast corner of Pioneer Avenue and Tide Court, and an application that was previously submitted for a new development on the southeast corner of Main Street and Matmor Road.


11/10/17 – Woodland officials have extended the city’s moratorium on self-storage development through December 2018. The Nov. 7 decision was made partially as a precaution, allowing planners to complete zoning changes that dictate where the city allows self-storage in the future. Though it’s possible those changes could still be complete by the end of this year as originally planned, Hiatt told the council the extension was advisable, according to the source.

No one spoke for or against the ban continuance during a public hearing, and the council passed it without debate, the source reported.

City staff has recommended two projects given administrative approval prior to the final adoption of the 2035 General Plan and council moratorium be allowed to proceed. Extra Self-Storage, which operates 11 facilities in Northern California and Northern Nevada, has received building permits for a property at 1425 Cannery Road. A Storequest Express project at 1610 Tide Court is already under construction.


7/21/17 – Woodland officials this week extended the original 45-day moratorium on self-storage development through Dec. 31, amounting to a ban of more than six months. Though officials speculated last month that the stay could ultimately be imposed for more than a year, Norris told the city council on Tuesday she expects staff to have completed the ordinance draft with new zoning codes by year-end.


6/12/17 – The Woodland, Calif., City Council passed a 45-day moratorium last week to prevent any new self-storage facilities from being developed while officials work on new zoning codes that will determine where future projects will be allowed. The development ban could last more than a year, however, because the city is working on a comprehensive zoning update to bring codes in compliance with the municipality’s 2035 General Plan, according to the source.

Principal planner Cindy Norris told the council the moratorium was needed due to several applications submitted to the city and the threat of oversaturation. There are 15 self-storage facilities in the Woodland market. Of those, eight are in an industrial district, four are along East Street, two are in a commercial district and one is in a commercial-service district, the source reported.

“In addition, the city currently has a number of either approved or proposed new mini-storage facilities,” Norris said in a written report. One application within the city has been permitted but hasn’t yet been built. Another project that is on county land but within the city’s “urban limit line” has also been permitted. A third application is in the pipeline but considered to be incomplete by officials, according to the source.

In her report, Norris warned officials that oversaturating the market with storage facilities could hurt local aesthetics and the economy. She also expressed concern that new projects could target gateway arterials into the city and reflect poorly on the city’s image.

The council settled on a 45-day moratorium, though councilmember Skip Davies suggested 180 days. Planning director Ken Hiatt indicated a longer stay would likely be needed and that he anticipated seeking a 12-month ban in July, the source reported.

City staff is working with a consultant to develop an interim zoning ordinance as well as the more comprehensive plan. Both will eventually be presented before the planning commission and council.

Sources:

Self-Storage Talk Featured Thread: Responding to Negative Reviews

Article-Self-Storage Talk Featured Thread: Responding to Negative Reviews

While a positive online review can do wonders for your self-storage business’ reputation, a poor one can wreak havoc, especially if it causes your overall rating to plummet. Because consumers put a lot of stock in reviews these days, you must pay attention to those posted about your facility and respond when necessary. Just be careful how you answer those that are less than stellar—even if they’re completely off-base.

In a recent thread on Self-Storage Talk, the industry’s largest online community, a member is grappling with how to address a bad review. Should she post a response on the review site? If so, what should it say? See what others have to say and share your advice.

Self-Storage Financing Strategies to Hedge Against the Next Recession

Article-Self-Storage Financing Strategies to Hedge Against the Next Recession

The U.S. economy is enjoying one of its most profound, expansionary periods in history. Interest rates are hovering near historic lows and the unemployment rate is the lowest it’s been in 50 years. Still, it would be an oversight to get overly comfortable with these ideal conditions. All this success should make self-storage investors ask: How long can these historically low rates last, and how can I protect myself?

The Markers

Historically, there tends to be an economic recession approximately every 10 years, and several key indicators suggest the next one may be well within sight. The first marker to consider is related to the unemployment rate. Counterintuitively, low unemployment is often a sign of a coming recession. As of this writing, unemployment is around 3.6 percent, the lowest it’s been since December 1969.

Another favored indicator is the inflation rate. For years, the Federal Reserve has signaled that inflation and unemployment are in a range where it would consider raising interest rates. Despite that, the personal consumption expenditures (PCE) price index—the central bank's preferred inflation gauge—is up just 1.5 percent on an annualized basis.

The most telling indicator, however, might be the current yield curve on U.S. Treasury securities. Historically, an inverted yield curve has been a leading indicator of a coming recession because it signifies higher interest rates on shorter-term vs. longer-term bonds. It has predicted the past seven recessions, with each one coming, on average, about 10 years apart. It’s been just over 10 years since the Great Recession ended in 2009.

With a seemingly inevitable slump bound to take place soon, now’s the time for self-storage investors to act. The challenge for borrowers is how to protect their real estate investments and financial well-being with a recession looming. Logically, debt is an area in which investors may find themselves vulnerable when economic conditions become unsettled. For this reason, it’s critical to be well-versed in the various debt products available, to understand the potential positive and negative implications.

Bank Debt

The most common form of financing for self-storage owners is traditional bank debt. Bank loans are typically three- to five-year recourse with covenants attached to address defaults on the borrower’s end. As a reminder, loan covenants are conditions that obligate a borrower to fulfill or maintain certain requirements or, conversely, forbid him from undertaking certain actions. There are consequences if these conditions are fulfilled or not, depending on the situation.

Although common, bank loans can be problematic in times of economic uncertainty. One of the most obvious difficulties that can arise is the length of term. Historically, recessions last two to three years. Unless the timing is near perfect, borrowers with a three- to five-year loan are at risk of it maturing in the middle of, or immediately following, the slump. Keep in mind these are also recourse loans, which means borrowers aren’t only at risk of losing their property, they may be personally liable for damages (losses) sustained by the bank in the event of default.

In a recessionary environment, a borrower may find himself in a tough spot if an “itchy” lender is worried about its loan portfolio. Banks are heavily regulated and monitored. They follow guidelines and have a fiduciary requirement to act responsibly. Therefore, a bank lender may work to rebalance a loan or accelerate it to maturity if it perceives warning signs from the economy or even a borrower’s ability to make scheduled payments. It’s able to do this through the covenants included in the loan documents.

CMBS Debt

The good news is there are many other options available to finance self-storage. One is through the commercial mortgage-backed securities (CMBS) market. CMBS loans are typically 10-year, nonrecourse loans with fixed interest rates. More importantly, due to the broader nature of the construct of these deals, the lender’s ability to default or accelerate a loan is restricted and much more favorable for borrowers.

To be clear, this isn’t a legal article, and I’m not providing legal guidance here. Consider this more of a practical argument. All loan agreements include fine print and built-in remedies to protect the lender if the borrower doesn’t perform. That said, as long as a CMBS borrower continues to make payments, he can continue to operate business as usual. If the cash flow deteriorates beyond a certain level, the lender may have the right to start trapping the property’s cash flow through a “cash management” covenant; but even in this scenario, the borrower technically wouldn’t be in default or in jeopardy of the lender attempting to require a paydown.

In fact, prepayment in CMBS is problematic. Therefore, the borrower would most likely have to stop making payments entirely to default the loan. If that were to occur, the loan would enter a negotiated workout with the loan servicer.

Like banks, CMBS lenders have many rights included in their loan documents. Again, we’re simplifying something nuanced to make a point, but the bottom line is these loans can be structured with borrower-favorable protective elements that can be compelling in a recession scenario.

Although it’s a simple concept, borrowers should also consider the basic element of time as it relates to the loan-maturity schedule when considering their finance options. More specifically, by extending the fixed-rate loan term from five to 10 years, the borrower is far less likely to experience a loan maturity in the middle of a recession. With a historical pattern to fall back on, combined with some strategic planning, he may be able to time his refinance activity to bridge over what has been a somewhat consistent recession pattern simply by using longer-term, fixed-rate loans.

One final benefit of CMBS compared to bank debt is recourse, or borrower liability. CMBS loans are nonrecourse, which means the property itself—not the borrower’s personal financial empire—is the collateral. This is notably different from bank loans, which typically require a recourse guaranty, whereby the lender has access to both the property and the borrower’s personal finances to remedy a loss. So long as none of the recourse carveouts have been violated, a CMBS loan significantly limits the borrower’s personal risk exposure. In the doomsday scenario, a CMBS borrower can give the lender the keys to the property and walk away without fear that the lender will seek additional compensation or future judgment.

Planning for the Future

While even the most studied economist can’t tell us when the next recession will start, it’s safe to say one will hit soon. Rather than fret about what’s out of your control, create an action plan. It’s in every borrower’s best interest to have a roadmap for the future to ensure financial protection of a commercial real estate portfolio.

Long-term, fixed-rate debt is a great way to weather a recession. Borrowers can currently lock into 10-year, nonrecourse, fixed-rate debt in the low to mid 4 percent range. This includes significant interest-only periods that can greatly enhance cash flow, if desired. Not only does this strategy allow investors to lock the interest rate at historical lows, it provides 10 stress-free years before your next loan maturity. No investor wants to be forced to transact or refinance during a recession, especially with an itchy lender that’s forcing the conversation through technical default criteria.

By taking advantage of long-term debt options at today’s exceptional interest rates, self-storage borrowers should be able to minimize the stress that often comes with a recession. With no certainty as to when the next decline will hit, there’s no better time than now to start looking at safer approaches to financing.

Shawn Hill is a principal at Chicago-based The BSC Group LLC, where he advises clients nationwide on debt and equity financing as well as loan-workout services for all commercial property types, with an emphasis on the self-storage asset class. To reach him, call 312.207.8237; e-mail [email protected]; visit www.thebscgroup.com.

Hong Kong Self-Storage Industry Growth Lags Behind Tech-Savvy Chinese Markets

Article-Hong Kong Self-Storage Industry Growth Lags Behind Tech-Savvy Chinese Markets

Despite getting a 10-year head start on the Mainland China self-storage industry, the Hong Kong market lacks technological advancement, according to two entrepreneurs who have self-storage experience in Hong Kong as well as Beijing, Guangzhou and other Chinese cities. While Chinese storage facilities often provide customers with digital access and online payment options, among other tech-based amenities, the Hong Kong market relies largely on tenant-supplied locks and physical keys for unit access, according to the source.

“You still need a key to open locks in Hong Kong, but here [in Beijing], all you need is a phone,” said Alan Tso Siu-hun, founder of CBD Self-Storage, which launched in 2014 and operates 43 facilities in Beijing, Guangzhou, Shanghai and Shenzhen. Chinese operators outside of Hong Kong were quick to offer technology solutions as a way to differentiate their businesses from competitors, he told the source.

CBD is among the operators that use WeChat, a Chinese smartphone application that allows messaging, mobile payments and social media access. Through the app, CBD customers can get technical support and open unit locks with their phones. It also allows tenants to assign unit access to third parties, the source reported.

“Hong Kong is lagging far behind in terms of Internet applications,” said Felix Wong Fu-yuen, who opened a self-storage business in Guangzhou two years ago and now operates 10 locations. Wong credited WeChat and other technology conveniences with helping grow the Chinese self-storage industry. WeChat was first released in 2011, around the time when the first self-storage facility appeared in Beijing, Tso said.

The number of self-storage facilities in Mainland China has grown 122 percent annually on average, with the number of locations recently jumping from less than 180 to more than 320, according to a 2018 survey conducted by Self Storage Association Asia. In contrast, the first Hong Kong self-storage facility opened in 2001. Today’s market has 369 locations, the source reported.

Those figures are down substantially from the number of self-storage facilities that were operating in Hong Kong before the market was subject to strict oversight and regulations in 2017. The government clamped down on the industry following two devastating fires that prompted safety concerns.

Source:
South China Morning Post, In Space-Starved Hong Kong, Self-Storage Industry Lags Behind More Tech-Savvy Mainland Rivals

Woman Dies After Being Pinned by Truck at Montreal Self-Storage Facility

Article-Woman Dies After Being Pinned by Truck at Montreal Self-Storage Facility

A woman has died from her injuries after she became pinned between a pickup truck and a wall last week at a Montreal self-storage facility. The accident happened Tuesday afternoon at Depotium Mini Warehouse at 3555 Crémazie Blvd. E., according to sources.

When paramedics arrived at the scene, the woman, described as being in her 40s, was in critical condition with serious injuries to her upper body. She was rushed to the hospital where she died overnight. Paramedics treated a second person at the scene, sources reported.

The accident was likely caused by a false maneuver or mechanical issue, according to Sylvain Lafrance, a spokesperson for Urgences-santé, the emergency-medical service that responded.

Depotium Mini operates seven locations in Quebec City. In addition to self-storage, it also provides mobile storage and moving services.

Sources:
News Montreal, Woman Dies After Being Pinned by Truck Against Wall at Storage Facility
Montreal Gazette, Woman Critically Injured After Being Crushed by a Truck In St-Michel

West Asia Self-Storage Operator The Box Supports Tree-Nation to Fight Climate Change

Article-West Asia Self-Storage Operator The Box Supports Tree-Nation to Fight Climate Change

The Box Self Storage Services LLC, which operates more than 30 facilities in West Asia, is supporting Tree-Nation, an online community that fights climate change through afforestation campaigns. The Box will plant a tree for every new self-storage customer, according to a press release. To date, 39 trees have been planted.

Each new tree comes with a certificate from Tree-Nation, which The Box will send to its customer as a token of appreciation. Tree-Nation will also provide the combined carbon dioxide compensation statistics for the planting, which The Box shares on its website.

Based in Barcelona, Spain, Tree-Nation is involved in 130 planting projects that include more than 111,000 citizens and 1,230 companies in 33 countries. Individuals and companies can choose from more than 300 tree species. The specifics of each species are documented to show donors the benefits they’ll provide to the community and environment, according to the group’s website.

Founded in 2007 and headquartered in Dubai, The Box offers self-storage and moving services. It operates facilities in Abu Dhabi and Dubai, UAE; Beirut, Lebanon; and Doha, Qatar.

Sources:
Mena FN, Dubai Based self storage Company, The Box, Join Hands With Tree-Nation To Make The Planet Greener
Tree-Nation, Website

Choosing the Right Social Media Platforms for Your Self-Storage Business

Article-Choosing the Right Social Media Platforms for Your Self-Storage Business

The self-storage industry is doing well, and facility operators have a lot on their plates! In fact, many of you reading this likely wear multiple hats: accountant, maintenance person, marketer, customer-service representative and many others.

When it comes to marketing, you want to prioritize and spend your time, energy and money where you’ll receive the greatest benefit. Otherwise, you might waste valuable resources on initiatives that are unlikely to drive meaningful results.

Social media platforms can be a cost-effective, efficient way to attract new customers to your business. Before you invest, however, it’s vital to understand which will garner the best results.

Your Goals

First and foremost, it’s important to set your goals as they pertain to social media. Are you interested in driving more leads, or do you want to increase your trust factor so you close more potential sales that already come through your website? Perhaps you want to leverage social media for business development and new-deal sourcing. It’s OK if you have multiple goals; just understand that each requires a different approach.

Bonus tip: Does your company already have corporate objectives for the year? If so, tie your social media initiatives into your overall that overall strategy.

Your Data

Next, look at your online-marketing data. Leverage Google Analytics, a free Web-analytics platform that’s super easy to use. You simply insert a little bit of HTML code on your website, and Google opens a world of data you can use to improve your marketing! For example, I like to regularly examine my company’s user-acquisition report, which makes it easy to drill down into social media. Google Analytics tells me the percentage of traffic we’re driving from each platform.

Before beginning any new social media initiatives, I always look at this information to understand what’s working for us right now. If I’m already getting a ton of traffic from a particular network, I know where our strengths are; and I’m a tremendous fan of doubling down on strengths. If something is already working in my social media campaigns, I’ll find ways to focus on and build that traffic source.

Each self-storage operation is different. One operator might have a great presence on Yelp, while another may truly thrive on Twitter. Rather than focus too much on competition, focus on what makes your business unique.

Bonus tip: If you don’t have a lot of marketing data for your business during a specific date range, simply expand it. It’s even acceptable to look at historical data to help draw conclusions.

Facebook, Twitter and Yelp

After looking at your marketing data, you’ll likely discover that Facebook, Twitter and Yelp are driving the bulk of your social media traffic. From a user-acquisition standpoint, these are the big ones. I like having a presence for our parent brand, Smart Self Storage, and for each individual property in the portfolio across all three networks. I also make sure our profiles are well-optimized and include:

  • Photo galleries with at least 20 images that express the look and feel of our facilities.
  • Descriptive text that clearly outlines what our business is all about and how it’s unique. Make sure you define your unique value proposition. It’s should be different than others in the marketplace and leverage your distinctive offering.
  • Regular, almost daily updates. On Yelp, we respond to reviews as they come in (positive and negative). On Facebook and Twitter, we leverage an application called “Buffer” to queue up and deploy content. Social media is real-time and must be managed that way.

Of course, you’ll want to factor in your own data. If your business is super strong on Twitter, by all means double down there!

Bonus tip: Yelp is incredible because it not only drives qualified leads but can increase your website conversion rate. These days, consumers are researching many competitors before making a purchase decision. Your prospects are checking your reviews before making their final choice, and great ones will help you close more sales.

Instagram, Pinterest and Snapchat

If you work for a larger self-storage company—say, a real estate investment trust or regional operator with 50-plus facilities—or you just love marketing and testing new concepts, it may be worthwhile to build a presence across Instagram, Pinterest and Snapchat. It really comes down to resources and passion. If you have a dedicated marketing team or social media staff, these platforms can totally make sense.

From my experience, they drive fewer leads but are growing rapidly. We’ve created Instagram and Pinterest profiles for some of our properties. That said, we’re lean on resources, so we don’t spend too much time on these platforms.

Bonus tip: Social media can increase employee morale. The main reason we have a presence on Instagram is one of our staff members has a true passion and expert-level knowledge on this platform. We let him run with his ideas and build our strategy, which works out wonderfully. Sometimes, to truly empower, motivate and leverage your best employees, you’ll want to venture into networks that offer a bit less upside. It’s a great long-term marketing investment.

YouTube

At my company, we’ve created a drone video for each of our facilities so prospective customers can get a feel for our properties. We host these on YouTube for two reasons:

  • It’s the second-largest search engine behind Google. We get discovered via our videos!
  • YouTube offers a cost-effective (free) way to embed video. Including videos on your own website is an amazing way to leverage social media while increasing your customer conversion rate.

Think about it from a consumer’s point of view. If he’s trying to decide between two self-storage facilities, the one with the helpful video may likely win!

Bonus tip: When you upload videos to YouTube, craft a detailed description that contains all your facility contact information. Leverage YouTube’s tags and custom thumbnails, too!

LinkedIn

Let’s say you’re more on the business development side of things. You’re interested in networking, finding land to build self-storage and doing deals. LinkedIn is the network for you.

Throughout my career, I’ve spent a tremendous amount of time on my LinkedIn profile. I keep it up-to-date and upload items from my work portfolio. I’ve even written blog posts native to the platform. My hard work has always paid off handsomely. By marketing myself on this website, I’m more connected to the entire self-storage industry.

Bonus tip: Only ask to connect with people you actually know. Be thoughtful and craft custom messages. That way, the recipients are more likely to remember who you are and accept your invitation.

Bring It All Together

When it comes to social media, there are so many opportunities—even more than I was able to include in this article. I imagine some of you are already feeling a bit overwhelmed, so I want to conclude with a note on efficiency. If you have limited marketing resources, I suggest focusing on LinkedIn, Yelp and YouTube. With these three, you can cover user acquisitions, conversions and business development. I wish you tremendous success with your social media this year and beyond!

Ian Lopuch is a business and marketing executive and a general manager with deep roots in technology. He’s also an investor with a lifelong obsession with cash flow. As a partner at Carlo Development LLC, the company behind Smart Self Storage, Lopuch handles responsibilities that include marketing and growth, commercial real estate development, technology, and executive leadership. He previously held leadership positions at some of Silicon Valley’s fastest growing startups. To reach him, call 650.241.9124; e-mail [email protected]; visit www.smartselfstorage.com.