Inside Self-Storage is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Sitemap

Articles from 2004 In August

Toughing It Out

Article-Toughing It Out

Toughing It Out
When the going gets rough, Duffy gets going

By Kimberly Hundley

IN his 34 years, Inside Self-Storage columnist Scott Duffy has been down, but hes never been out. The founder of Self Storage Capital Group Inc. doesnt know how to give up, which is fortunate, because his setbacks would have most of us brandishing our lily-white flags. If triumphing over adversity and beating the odds was an Olympic sport, Duffys place on the podium would be guaranteed.

A born entrepreneur, Duffy started his first company while a freshman studying business at the University of San Diego. His life derailed during junior year after a car accident in Mexico left him with two brain hemorrhages and a months-long recovery period. Duffy was forced to drop out of school. Unable to read or even watch TV, he listened to music and inspirational tapes, including those by motivational guru Tony Robbins.

Duffy was so intrigued with Robbins presentation, he decided to work for the best-selling author and speaker. I tried to apply for a job as an intern, and they offered me something much bigger than that. To this day, I dont know why, says Duffy, who joined Roberts team at the age of 20 as international representative, selling programs and conducting workshops throughout the United States and Canada.

Cherishing the Plateau

Just one year later, Duffys hectic schedule shuddered to a stop. He was back in the hospital, having sustained severe injuries in a bicycling accident. This time, recovery would take a year. Duffy was understandably frustrated. Why him? Why again? But his experiences with Robbins and other inspiration specialists fortified him against despair.

Working for Tony enabled me to work one on one with some incredible people, including top athletes, entertainers and community people, who had overcome significant personal or professional challenges to get where they were, Duffy says. I had this reference about what a person could and couldnt do. I believe what we can do is absolutely incredible. What we usually do can be disappointingbut we have this unbelievable potential that most of us havent been able to tap into.

Two key pieces of advice helped Duffy through his healing. He remembered the words of writer George Leonard about how a persons development map includes plateaus. You need to be able to recognize when you are on the plateau and love that, because that is where growth and progress take place, says Duffy. Another thing that stuck with me was the saying, You are going to have good days and bad days. But you wont know which is which because you dont know what you are going to make of the experience. Duffy emerged from the accident determined to enter the budding dot-com industry in San Francisco as a businessman.

Darkest Hour

Breaking into the highly competitive technology business would prove to be one of Duffys biggest challenges. He applied everywhere he could, hopping from couch to couch in friends homes while maintaining an apartment with his sister in Los Angeles. He was running out of money and occasionally sleeping in his car. Then the crucial moment arrived: Duffy was down to his last $100 and knew hed be bunking in his vehicle again. Was it time to give up his dream?

I had to make a decision in that moment. Was I going to settle and take a job close to home, or was I going to figure out a way to get into the technology business? What I did was drive home, grab my things, pawn them, pay my sister the back rent, take the remainder and go right back up to San Francisco. And it was shortly thereafter that I got a job. You might call it my darkest hour. I would say it was one of the best days of my life.

Duffy used his pawn money to buy pizzas for a brand-new company, Infoseek, pasting a photo of his face inside the boxes. Company officials loved his chutzpah, but said to wait a few weeks for an interview because the sales rep was out of town. Disappointed to come so close with his finances near nil, Duffy boldly persevered. Its just the way Im built. When I have a goal, I am committed to doing everything necessary to make it work, he says.

Ultimately, Duffys career would read like a Whos Who of dot-com giants. He joined the startup team for Quote.com, which sold for $78 million to Lycos. He launched West Coast sales and opened offices for CBS Sportline, and boosted revenue for Xoom.com as vice president. In 2001, Duffy moved to the Fox Sports Internet Group, closing a major distribution deal for the company. By the time he left the tech sector in search of new entrepreneurial opportunities in real estate, hed never have to worry about where to sleep again.

The Road to Storage

Deciding to depart Fox wasnt easy, but Duffy felt a pull to return to his familys traditional business of real estate. I wanted to focus on building businesses based on passive income, generating businesses that pay you while sleep. He asked his brother for advice, saying, Whats 180 degrees from what I now do? The answer was unexpected: self-storage. Duffy researched the industry and fell in love with it. I saw a big market, a highly fragmented market and a relatively unsophisticated market. All that combined looked like a great opportunity.

Last year, Duffy formed Self Storage Capital Group Inc., a real estate investment company specializing in developing, acquiring and managing self-storage facilities. The company creates syndications that include institutions and private investors.

Duffy says the groups market outlook is what differentiates his company from others. Our mantra is patience. I believe most of todays real estate investors are like day traders at the height of the dot-com boomthey dont really know what they are getting into. I believe we are experiencing nothing more than a good, prolonged real estate cycle. I am busy preparing our company and laying the groundwork so when this bubble bursts, we are in the right place at the right time.

Self Storage Capital Groups ultimate goal is to close deals that are win-wins for partners and investors. The company recently launched an acquisition and development division based on feedback from partners. We want to make the process of buying and developing a self-storage business turnkey, Duffy says.

Inspiration

Duffys story was featured earlier this year in Entrepreneur magazine, which is tracking his foray into self-storage. Though Duffy will always find encouragement in the teachings of Robbins and other successful people who have shared their insights, his main inspirations these days are wife, Tera, and pug dog, Sarah.

The secret of slaying obstacles and fulfilling potential is all about attitude, if Duffys life is any indication. I think what has de- fined my careerwhether its been personal challenges or going into difficult business situationsis that Ive been successful in turning those things around and creating a win, he says.

Does Duffy have any advice for those striving to make it in the business world today? First, align yourself with people you trust and genuinely like, he says. Second, be patient. Dont get caught up in the hype. If the numbers dont work, they dont work. And it nearly goes without sayingdont be too quick to believe youre having a bad day. It could be the start of something beautiful.

For more information, call 310.656.0900; e-mail [email protected]. Duffy also contributes a bimonthly column to Inside Self- Storage titled Business in Development.

Building Modernizations

Article-Building Modernizations

Building Modernizations
Options to upgrade any storage facility

By Doug Carner

Your storage facility has an established community presence and is nearly full. So why should you care about modernization? It makes financial sense. Upgrading is a capital investment that optimizes the value of a facility and reduces operating expenses while increasing income and improving your marketing advantage. If your facility is earning less than $200 per unit per year in bottom-line profit, it is time to renovate and raise your rents. Even if you already receive a healthy return on your investment, you can increase revenues by incorporating a few simple upgrades.

Self-Service Kiosks

The most important upgrade is also the most frequently ignored: the enhancement of the customer-service experience. Improving tenant convenience is the ultimate facility upgrade. There are a few simple modernizations that can produce an amazing effect on your bottom line.

The most desirable customer-service upgrade is the addition of an automated attendant, or kiosk, which has become a welcome part of everyday life, from the bank ATM to the state-lottery terminal. Hundreds of kiosks are in active service at storage facilities nationwide. The newest models are designed for outdoor use and greet customers before they enter your facility.

A kiosk can handle the entire move-in process, including the rental contract, tenant insurance, payment collection, assigning a gate code and dispensing a door lock. Most models even accept cash. Small storage locations can install a kiosk in lieu of hiring a resident manager. Larger facilities can supplement their labor with these 24/7 sentinels of customer service. A good kiosk system should cost less than $7 a day.

Curb Appeal

Now lets consider your facilitys curb appeal. Since you see your business every day, seek the opinion of fresh eyes. Ask a friend or a realtor what kind of first impression your business makes. If the facility looks outdated or dark, think about adding a fresh coat of paint and colorful trim. A simple rain awning above your frontage units can add color and impact.

Consider adding a nice facade to the exterior of your rental office. Although this will not increase your usable square footage, it will present visual pizzazz that entices drivers to notice you. Make this frontage part of your marketing efforts by adding a sign, but use a minimalist approach to avoid a cluttered appearance. If your sign cannot be seen from the main road, add a freestanding billboard instead.

Next, look at your landscaping. Are your trees and shrubs due for pruning? Have your plants become aged or oversized? Foliage should balance a facilitys stark walls and repetitive doors. Select plants and trees appropriate for your climate, produce color in the spring, and have minimal growth throughout the year. If you plan to add additional landscaping, it must enhance but never obscure your frontage, and should not provide a means for thieves to scale your perimeter.

Walk around your facility at night and look for places where a thief could hide. If you see a dark corner or driveway, consider an upgrade to your lighting. Use metal halide lights to shine on perimeter areas and driveways. Replace incandescent light fixtures with bright energy- efficient florescent units. Your business will look safer, and newer, energy-friendly fixtures can reduce your total electric bills.

Additional Security

You can enhance a tenants impression of personal security by adding intercom stations at elevator lobbies and near outdoor light fixtures. Music-paging speakers are also a plus. These are wired systems with wireless options for hard-to-reach zones.

This would also be a good time to review your video surveillance. Replace older black-and-white cameras with high-resolution, lowlight, color models. Wall-mounted dome housings, unlike box housings, will disguise the cameras actual direction of view as well as discourage vandalism. Replace office and lobby cameras with specialty versions that will not be blinded by direct sunlight and can see in total darkness.

The newest cameras are auto-trackers that will automatically pan, tilt and zoom in on any motion. This means a pole-mounted camera will capture a clear, zoomed view of a license plate as a car enters your property. Then, this same camera will automatically swing around for a facial close-up as the person enters your lobby or office. Tenants and would-be thieves see this camera motion and know they are being monitored. You can even have any after-hours motion trigger a siren and summon for an armed response. These new cameras are like having a salary-free security guard on duty 24/7.

Most of your security upgrades will be transparent to tenants and may not translate into a marketing advantage or higher rentals. For example, switching from a time-lapse video recorder to a digital system improves playback clarity and off-site monitoring; but your tenants may never see this. However, if your video system supports individual camera passwords, you can promote this improvement. For example, it allows a tenant storing an RV on your premises to view his vehicle via the Internet at any time.

Modern drive-up access keypads become a marketing upgrade when a tenant can insert his drivers license as a gate code or his credit card for a delinquent rent payment. Commercial-grade keypads have the familiar telephone-style metal keys, while older keypads have rubber or plastic keys that are vulnerable to abuse. Cheaper keypads use flat-panel keys vandals can render unreadable with a simple can of spray paint. If keypads look cheap or vulnerable to your eye, they will to your tenants as well.

Individual door alarms are a great upgrade and an income source. Hard-wired alarms are completely hidden from tenants, but wireless models serve as a visual crime deterrent. Some wireless systems allow you to purchase alarms as needed, renting them only to the tenants who want premium security. The newest solutions have moved away from the crowded 900 MHz band and can operate for almost 20 years between battery changes.

Unauthorized door openings, after-hours movement, or the interruption of perimeter beams can invoke a security system to respond. Sirens are standard but only effective if someone is close enough to hear them and attentive enough to care. Telephone dialers and remote monitoring are useful, but only when timely help can arrive. Your security system should have several levels of self-sufficiency to automatically disable exits, activate floodlights and capture a video record of the entire event. There are hundreds of potential response con- figurations, and a skilled security vendor should be able to propose upgrade options to match your specific needs.

Miscellany

Some facility upgrades are easily wrapped into a larger maintenance project. For example, if your driveways need resurfacing, consider adding bollards to protect the corners of your building. If your perimeter chain-link fence needs repairs, consider switching to a more attractive, wrought-iron fence.

Another upgrade is the addition of a profit center. Consider converting a portion of your rental office into additional retail space. Move your historical tenant records, maintenance supplies and other office nonessentials into a company unit. Now push the managers counter back a few feet, and use the newly open floor space to sell boxes, tapes, dollies, markers and moving organizers.

Even if your office space is limited, you can add wine-rack-style shelving behind the counter. Each shelf then becomes a rentable mailbox drop unit, producing hundreds of dollars in additional monthly revenue. As you expand your traffic flow and tracked units, confirm your management and access products are not limiting your capacity to grow.

Another upgrade opportunity involves the use of your undeveloped land. Consider incorporating another business, such as a drive-thru car wash or a convenience store, which can complement the self-storage business model. Or you can simply level the ground and offer RV parking. You gain yet another income source while offering more reasons for potential customers to visit your facility.

With each upgrade option you consider, ask yourself if the capital investment required will optimize the value of your facility, increase income, reduce operating expenses and improve your marketing advantage. Skilled vendors can guide you through your options and ease their implementation.

Doug Carner is a former member of Self Storage Associations Western region board of directors. He is also the vice president of QuikStor Security & Software, a California-based company specializing in access control, management software, digital video surveillance, and kiosk and corporate products for the self-storage industry. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

The Best of the Best

Article-The Best of the Best

The Best of the Best
Building luxury storage

By Bruce Jordan

Building luxury storage is all about being responsive to a certain set of market conditions, designing for customers needs, and eliminating barriers to new business. It is not about white-gloved attendants catering the storage experience, but making customers feel welcome, secure and positive.

Since the darker agesa time when dark, confined, cluttered and poorly apportioned offices were the self-storage normwe have developed a much clearer understanding of the average customer. Here is what we know:

  • The majority of self-storage customers are female.
  • An aesthetic architectural design will be looked on more favorably by the local community.
  • Self-storage is more a retail than an industrial use.
  • A sense of order contributes to a persons perception of security.
  • Colors also influence peoples perception, and bright, cheerful spaces are preferred over dark, dingy ones.

The best of the best facilities will consider all these factors in their design. The goal is to maximize the positive attributes and minimize the negative ones. Well-designed facility will have higher absorption rates and potentially higher rental rates, retain more customers, and wear better over their lifetimes.

As self-storage projects have found their way out of industrial zones and into commercial centers, aesthetics and design have played an increasingly key role. Since the majority of new projects undergo scrutiny by a planning commission or design-review board, it becomes important to have an architecturally responsive design to obtain approvals.

Upon Entry

Luxury self-storage starts with the street facade, office and entryway. These areas are most obvious to the public and will set a facility apart from competition. A facility with curb appeal and attractive architecture is more likely to be remembered by prospective tenants and accepted by the community. Attention to detail will result in a more pleasant and functional space that provides managers a better work environment.

The entry sequence should be obvious and straightforward. The office should occupy the most prominent position so customers know exactly where to go. A colorful, well-landscaped entry and walkway will make a good first impression.

When customers arrive, they should be able to see into the office through large windows. High ceilings and taller windows all contribute to a more luxurious office without a significant increase in cost. They also introduce more natural light into the office while giving managers more outward visibility. An open office is more inviting, user-friendly and allows for better display of the retail area, interior signage and logos.

When a customer enters the office, he should be facing the service counter and manager. An attractive backdrop to the counter provides an opportunity to showcase the security system, facility logos, an American flag or even some fresh-cut flowers. Ample counter space and storage allows for an uncluttered, organized appearance. The retail areas should make use of color and lighting and accentuate displays.

A small seating area will allow patrons to be comfortable and review rental agreements at a leisurely pace. Some facilities have even had success with work stations, where customers can make calls or plug in a laptop computer. Consider adding a small play area for children, which is a great way to showcase that 5-by-5 show unit. A conference room is another possible addition, particularly in urban markets and those with a higher percentage of businesses. It can be used by customers accessing business or personal documents, and can include a refreshment area with coffee, bottled water and maybe a few items from the local bakery.

If the facility has a wine-storage area, it should be visible from the service counter to effectively market the space. Wine storage is increasing in popularity in luxury facilities. While it isnt suitable for every market, and can certainly add to a facilitys ambiance.

Finally, office size is an important consideration and should be related to the size of the facility. A large office would be 2,000 to 2,500 square feet; a medium-size office would be 1,200 to 2,000 square feet; and a small office will be approximately 600 to 1,200 square feet. It stands to reason a facility of 130,000 square feet will have more traffic than a facility of half that size and require a larger office.

Exterior Details

Contextual or thematic architecture becomes more important as more cities strive to preserve the historical basis of their communities. Furthermore, horizontal and vertical offsets, towers, cupolas, eye-catching materials and colorful landscaping are far more interesting than flat facades and bland color schemes.

Facility access points should be architecturally accentuated so customers know exactly where to park and enter the facility. A colorful canopy or a change in color or materials will make the entry more prominent. Entry gates are a key aspect of a facilitys curb appeal and can also be functional. For example, double entry gates separated by pilasters can work as kiosks. Not only do they separate entering and exiting vehicles, they can contain keypads, video screens, intercoms and seasonal signage. Landscaping can be added to the kiosk area for a colorful touch.

While a spacious office and great curb appeal contribute to the luxury feel of a facility, less obvious areas are equally important. For example, access and loading areas can be critical to a facilitys success, particularly in the case of urban multistory sites. These spots should be well-lit, secure and colorful. A canopy-covered loading area is a great place to secure lighting, security cameras, and speakers for intercoms and piped music. It should also include lots of room for maneuvering, convenient cart storage and direct access to elevators for customer convenience.

Consider using a suspended ceiling system with integral lighting in elevator lobbies to make these areas more user-friendly. An exterior window will introduce natural light and give customers better orientation. Also consider adding intercoms to these locations and at prominent hallway intersections to give patrons a greater sense of safety.

Luxury self-storage is not about designing the Ritz; its about carefully considering the customer and making the experience as satisfying as possible. Some will say luxury storage is too expensive as well as unnecessary. In certain markets, that will be the case. In a majority of markets, however, luxury storage can be achieved by careful planning, attention to detail and only a relatively small increase in cost.

The economics of a shorter absorption period, higher rental rates and more stable overall facility will usually balance the increase in construction costs. In markets dense with storage sites, luxury storage can be the best way the beat the competition.

Bruce Jordan is president of San Clemente, Calif.-based Jordan Architects Inc., a full-service architectural firm specializing in the design and entitlement of self-storage projects. For more information, call 949.388.8090; e-mail [email protected]; visit www.jordanarchitects.com.

Storage Development: Cleary Defined

Article-Storage Development: Cleary Defined

Storage Development: Cleary Defined
Cost-effective solutions to the construction process

By Bret Ellis

The most important aspect of self-storage construction is proper planning. Building should be treated like any other business venture and pursued with a complete understanding of the process. You have to plan before you can determine your costs. Identifying the key elements of your project and providing sufficient information to achieve your vision is difficult and should be given its due course.

The construction process for self-storage is similar to any other type of project management. The better prepared and informed the players, the more likely they are to reach a cost-effective outcome that reflects the initial concept. There are three components to development that will yield a successful storage site:

  • A clearly defined scope of work
  • A clearly defined schedule of values
  • A clearly defined line of communication

Scope of Work

Preplanning is not limited to blueprints; however, construction plans are the most effective means of delivering an owners program to the builder, local municipalities and product vendors who will be involved in the project. Poor plans can create a domino effect that leads to delays, extra costs and even a final result that does not meet the owners desires.

A fatal mistake made by many inexperienced developers is to skimp on the architectural package. Neglecting to prepare an adequate design can have tremendous impact on the overall project. In fact, architecture is one of the most common sources of extra costs and claims in the construction industry, neck in neck with civil costs at 30 percent.

A complete architectural design package defines the exact scope of work expected from the builder and the final product you expect. Think of contract documents as an instruction manual for ensuring your vision of the facility is what actually gets built. They are the translation of your ideas into a universally accepted format for construction. The plans and specs are the medium through which your facility will be built and are a crucial part of your business plan. Following are some guidelines to creating a quality set of construction documents:

  • Commit the funds. Architectural fees average between 2.75 percent and 6.25 percent of overall construction costs (exclusive of land value).
  • Pick the right architect. Has he worked in the industry before? Talk to past clients and references. Was the architect prompt in responding to problems? Did the developer incur extra costs due to shortcomings in the contract documents? Talk to the contractors who built the architects projects and ask about the quality and completeness of the plans and specs.
  • Instruct the architect of your intent. Define your program and its requirements by specifying what you want to build. Try to provide a complete description of the physical attributes of the facility. Include services to be provided, any special construction issues, amenities to be offered, aesthetic expectations, and any specific ideas you have with respect to the final product.
  • Create an exit plan. If you need to walk away from the project for any reason, you need to be able to do so amicably and without undue costs. To achieve this, always ask your architect to divide his fees into the following categories: code research, schematic drawings, civil package, architectural and engineered drawings, permitting, and site visitation and conflict resolution (usually an hourly rate).
  • Participate in the process. Define milestones in the design process and conduct a thorough review. If you need assistance in plan interpretation, bring help along. A qualified general contractor or construction manager can often identify shortcomings in the contract plans and specs that could later turn into change orders and extra costs. It is important to conduct this review often enough so your designer doesnt get off on a tangent, which could produce the need for corrections and the redrawing of plan sheets. A good architect should welcome this review process, as he will want to get it right the first time. Redrawing does not make money for an architectural firm.
  • Question everything. Code interpretation is difficult at best. Looking at issues from all angles allows for different interpretations.
  • Contract the work. There are several prewritten contract documents supplied by the American Institute of Architects (AIA) that can be used with your architect and contractor to protect all parties. They have been tried and tested in the courts and are an excellent method of defining the scope of work, methods of payment, time frame and general conditions of the project. To get a listing or more information, visit www.aia.org.

Schedule of Values

A schedule of values is the tool used by the design and construction industries to break down the construction estimate into understandable, separate items of work. The numbering system used is called the Construction Standard Index (CSI). It is globally accepted in construction and will be consistent from coast to coast. The CSI-formatted schedule of values allows for a better understanding of the costs to be incurred and a more thorough bid review. Insist that the potential contractors use the format of your choosing (or your architects) to assist you in the selection process.

There are several distinct advantages to requiring the schedule of values from potential contractors. The developer can use it to look for potential cost savings or overruns in the estimate. For instance, if your foundation costs are coming in twice as high as projects previously built, you may need to re-evaluate the design. Short or under-bid items should also raise a red flag, since they can lead to delays or even additional costs. Its important to realize the lowest bid is not always the most cost-effective. Often, a bid that is substantially lower than those of the competition indicate items of work were missed in the estimates.

The schedule of values is highly effective in managing monthly draw requests. If your schedule indicates your contractor is 80 percent complete in item 04-200, Unit Masonry, it is easy to verify by on-site inspection whether this is accurate. Without the breakdown, many items might get overpaid in advance, and your ability to manage the project is decreased. AIA forms G702 and G703 are the preferred documents for draw requests. When used together, they provide for accurate billing and payment procedures using your schedule of values, retainage practices and previous billings to ensure you pay the right amount against the contracted sum.

Line of Communication

Construction management is the marshaling and allocation of resources required to build the intended project as outline in the contract documents. These resources include labor, materials, equipment, architectural and engineering services, time, and money. The process involves organizing a wide variety of skilled workers and specialists; leading them in the implementation of the plan; monitoring progress against baseline objectives; and making adjustments to ensure the original goals are achieved. Its not an easy task. But as in any field, the better informed the team members, the more apt they are to succeed.

Proper methods of communication must be determined and consistently used so all players in the project know what is expected of them, when it is expected, and how they are to accomplish it. Verbal communication doesnt work adequately for construction, especially when it is provided at field level. A tradesperson standing 5 feet deep in concrete will not always remember the owner told him to tell the superintendent to tell the project manager that the paint for the office walls should be tan. Issues important enough to be stated in the field are important enough to write down.

Over the years, a series of communication tools has been adopted by the industry to clarify issues, stipulate intents and outline costs. Your architect and contractor should be familiar with most of them and welcome their implementation. The terms differ as you cross the country, but the intent and content remain the same:

  • Requests for Information (RFI)The RFI typically represents communication between the contractor and the architect. Information regarding plan interpretation, differing site conditions, and general construction requests is addressed in this format. As an owner, you should request to be copied on all this correspondence to stay informed and understand the ongoing issues that could affect your project.
  • Requests for Pricing (RFP)An RFP is originated by you or your architect when you need to know what an addition to the project will cost prior to beginning the work.
  • Cost Proposal (CP)This is the reply to the RFP from your contractor. You can insist these proposals are also broken down into a schedule of values.
  • Change OrdersThese are issued after cost proposals are agreed upon and authorized for construction. Change orders become a legal contractual document, and again, the AIA is a good source. It is also important for an owner to realize change orders can actually save money in some instances. Credit or no-cost change orders are common in construction and, in some instances, are necessary to keep a project on budget. Creative construction management or value engineering can help identify these issues.

Along with understanding and using the proper method of communication, it is important to ensure the right people are being properly informed. Before the project begins, always determine who will be the representative and main contact for the contractor, architectural firm and owner. Make sure they are available, prompt, authorized to make necessary decisions, and have adequate knowledge to perform their designated tasks. For instance, the architects draftsman is not qualified to make design decisions that relate to structural issues, code requirements or life-safety issues.

Construction is a complicated process that can often lead to disputes. Following the three rules outlined above does not guarantee your projects will be free of challenges, but it will reduce the number of problems you have and greatly enhance your ability to address and resolve issues when they arise. This simple concept of properly planning your project, organizing your costs, and informing participants is nothing new. Businesspeople use this practice every day to succeed in their ventures. Why should one of your largest investments be treated any differently?

Bret Ellis is president of New Orleans-based Ellis Contruction Inc., a full-service general contractor licensed to work in Alabama, Florida, Georgia, Louisiana, Mississippi and Texas. The company provides feasibility studies, preconstruction work, design/build and general contracting, and construction management. For more information, call 800.924.0036; e-mail [email protected]; visit www.ellisconstruction.com.

Self-Storage Roof Systems

Article-Self-Storage Roof Systems

Self-Storage Roof Systems
Top it off right

By Wayne Woolsey

The most basic components of a self-storage building can be the most difficult to master. When it comes to selecting and installing your roof system, there are a multitude of factors that will affect construction. The most notable of these are roof type, pitch, penetrations, insulation and drainage. This article provides an overview for the novice developer. While the roof installation may seem simple, critical details can mean the difference between a profitable business and a bed of insurance claims.

Roof Type

The first decision to be made is the type of roof panel to use. You can choose from screw-down panels or standing-seam roofing. Screw-down systems are somewhat cheaper but will not serve for the long term. Instead choose a standing-seam system with a 24-gauge panels to accommodate 5-foot spans. The panel finish should be Galvalume or a painted, not Galvanized.

Roof Pitch

In a self-storage application, you can choose a single- or double-pitch roof. Double-pitch roofing is preferred on a project that is 80 feet or wider, as shipping 80-foot roof sheets is not cost-effective in most cases. In this preferred installation, roof sheets are taken to the apex of the building and the ends of the panels folded to create a positive stop end. The joint is then covered with a ridge cap.

Due to lot sizes and building locations in relation to property lines, you may not be able to pitch the roof in both directions. In this case, you can pitch the roof sheets in one direction, using a roof step to eliminate expansion issues. Adding a roof step that accommodates gutters and downspouts will allow you to control and isolate water drainage from the roof. This design will help in the long-term maintenance of your standing-seam system.

A single-pitch roof involves caulking and screwing roof sheets together, which is just a leak waiting to happen. A standing-seam roof works on a floating-clip system. During expansion and contraction, which is likely to happen in extreme changes in temperature, the sheets rub together, creating elongated holes in their surfaces. The unfortunate thing about stitched roof sheets is once they start leaking, they are very difficult to repair. When you cannot use a single roof sheet due to excessive building width, stick to a double-pitch roof with a ridge cap or add a roof step.

Roof Penetrations

The goal of a standing-seam roof is to get all water that lands on its semi-flat surface to move as quickly as possible, without obstruction, to the gutters and downspouts. This is why it is particularly important to consider the placement and number of any roof penetrations.

The biggest penetration to the roof is the elevator shaft, which typically takes up an area of about 200 square feet. Unfortunately, it acts as a dam for water. After the roof type, the location of this huge water stop is the next design question that must be answered. The most logical choice is at the highest point on the roof line. This will allow the least amount of water to travel behind the shaft.

Air-conditioning units, vent pipes, roof hatches and smoke vents are other common roof penetrations. These should be kept to a minimum to avoid standing pools of water or opportunities for leaks. There are many mistakes that occur during installation of these fixtures, but the most common is failure to divert water from the roof pans. This can be easily accomplished by capping off the pans involved or installing diverter sheets. If you can prevent water from standing in the pans, you wont have to rely on caulking and rivets to maintain a watertight seal.

Another common mistake is choosing a poor location for a penetration. Most of the time, there are options, but they are often overlooked. Sometimes, penetrations are positioned to accommodate trades working below the roof, creating convenience for those installing plumbing, ductwork or electrical wiring. Ideally, penetrations should be kept as close as possible to the high side of the roof. In the case of multiple installations, they should be run in a line parallel with the roof sheets to ensure the least obstruction to water flow.

Insulation Systems

Insulation is critical, as metal roofs will always accrue some amount of condensation, which can damage tenants goods. Insulation is designed to resist heat transfer and is rated by R-value, or heat resistance. The greater the R-value, the more effective the insulation is at slowing heat flow. Roof insulation comes as either a vapor barrier or part of a complete climate-control system.

If you use a vapor barrier only, the minimum insulation required for the roof is R6, with a thickness of 1 inch to 2 inches. If your facility is climate-controlled, your insulation value will range from R13 to R19, from 3.5 inches to 6.25 inches. The important thing to remember about insulating your roof system is there are proper roofs for different climates. Consult your supplier if you are uncertain which product is best for your area.

Drainage

You have installed and insulated your roof and sealed your penetrations. Now you need to consider the system by which water will drain from the roof: your gutters and downspouts. These are among the last items to be installed and common areas for problems. It is not unusual for architects to include insufficient gutters and downspouts in their designs to create the look they want for a facility. Yet they overlook the practical necessity of shedding water from the roof. While it is appropriate to keep aesthetics in mind, the No. 1 priority of the roof design should be to accommodate water runoff.

Water flow is critical. Therefore, roofs subject to large volumes of water or those with longer roof sheets need gutters and downspouts designed to carry the right amount of water per square foot of roof. As a general rule, you need one 4-by-4-inch downspout for every 1,200 square feet of roof area. The roof must also have the correct pitch for the gutters and downspouts to do their job. The minimum roof pitch for a standing-seam roof is 0.25:12. For longer distances, you may want to increase your roof pitch to 0.5:12 to get the water flowing off the roof.

Gutters must be installed with a minimum 1- to 3-inch gap between the inside face of the gutter and the outside face of the building. This is to protect the building in the event water overflows the gutters. It is also imperative to drip form the roof sheets. This is done by bending the last inch of the roof pans down toward the gutters. Failing to do this is another common mistake made by inexperienced installers. If the roof sheets are not drip-formed, it gives water the opportunity to flow back underneath the roof panel and into the facility.

Gutters for snow and ice need to be handled differently than those designed for normal rainfall. They will typically have added supports to accommodate the weight and a low-profile front to allow snow to exit the roof without removing the gutter with it. In areas subject to excessive amounts of snow and ice, it may be a good idea to add heat strips to the gutter to avoid ice-damming.

One final word of wisdom here: When you build a self-storage facility, the first three words that come to mind are location, location, location. I agree: location of the sun to location of the roof to location of the gutters. When possible, position the roof so the sun always shines on the gutters. This will help melt snow and ice and assist in drainage.

Following the above guidelines will help you avoid common mistakes in the design and installation of your roof system: inadequate roof type or pitch; insufficiently protected screw points; improper overlaps at flashings; excessive, misplaced or poorly installed roof penetrations; and lack of water drainage. Always follow the roof manufacturers guidelines or work with a qualified, trained professional to ensure the best possible installation.

Wayne Woolsey is sales manager for Kiwi II Construction Inc., which offers in-house installation, design and engineering services nationwide. The company specializes in light-gauge building systems, conversions, climate control and roofing systems for the selfstorage industry. For more information, call 877.465.4942; visit www.kiwiconstruction.com.

Inside Self-Storage Magazine 09/2004: Clever Vicars and Other Victories

Article-Inside Self-Storage Magazine 09/2004: Clever Vicars and Other Victories

Clever Vicars and Other Victories

By Jim Chiswell

Most of you can probably empathize with my feelings of being ripped off every time you buy ink cartridges for your office printers. I know it is a cost of doing business, but it still upsets me to pay hundreds of dollars a year for some black or colored dust.

If you share my sentiments, I have found a source that may interest you: a company called LaserMonks. Thats rightreal monks selling ink cartridges for printers! The Cistercian Abbey was founded more than 75 years ago on 500 acres in the rolling hills of Wisconsin and is home to a small group of contemplative clergymen. Let me share some of their story from their website:

Each monastery puts one monk in charge of the communitys temporal needs and activities. Among this persons duties as Steward of Temporal Affairs is developing and managing ways to support the group and its charities. Contrary to popular understanding, monasteries are self-supporting. A part of their day is given to some sort of remunerative work from which they support their modest living needs in the monastery; then they use the rest for charitable work. This particular group looked into various income projects, from growing Shitake mushrooms and raising Christmas trees, to building a golf course and conference center.

An income source based on a necessary consumable itemlike toner and ink cartridgeswas exactly what the monastery needed: a solid, consistent, revenue stream that would not be affected by difficult economic times. Everyone has to have toner and ink to print, especially businesses. And everyone wants to save money. Add to this the fact the monks use their profits to support their efforts in serving God and Neighbor as well as for good works and you have the ultimate win-win situation.

The manufacturers the group approached were elated with the possibilities. They suggested the monks market to schools, churches and other nonprofit organizations in addition to businesses, saying, Look, youre monks. You have an image and long tradition of being trustworthy and providing top-quality products. Youre offering a great product at a great price. Once people hear about you, its an easy decision. Why would anyone pay more money, when they can have quality products for less, from monks who use the income to help others?

LaserMonks launched its e-commerce website selling high-quality, guaranteed products. The site went from selling $2,000 worth of goods in its first year of operation to more than $500,000 in 2003. The group completely guarantees all of its products. If for any reason you are not satisfied with your purchase during the first six months, they will replace your item, credit your account or refund your money. LaserMonks does not yet sell cartridges for all printers, but it already has a huge selection. Next time you find yourself ready to buy printer supplies, jump over to www.lasermonks.com and see if they can help. You will be saving money and contributing to a good cause.

SSA Appoints Chief Staff Executive

Congratulations go to Michael T. Scanlon Jr., who was elected as the new chief staff executive for the national Self Storage Association (SSA). In my opinion, Scanlon joins the organization at a critical time in the history of our industry. The skills hes developed in his past positions in association management, lobbying and the private sector can all be applied to his new post, which started July 1.

Scanlon has already initiated a new strategic plan for the SSA, including a partnership with the Self Storage Council of state associations to develop new initiatives in the fields of advocacy, data generation and publishing. The need for a closer working relationship between the national and state associations has never been greater. Our industry continues to be under legislative and regulative microscopes, and it is only through coordinated group efforts we will remain strong.

I am happy to welcome Scanlon to this vital leadership position. The very best thing we can do to help him is make the commitment to get all of our industry colleagues into the associations. I have talked to some people who think membership fees are too high. Yet, if every current member got just one new person to join, we would double the size of our organizations. Remember, if your competitor is not a member, you are, in effect, carrying him. Wouldnt it be better to see his name on the new-member list and know his check is already in the bank?

Coming to a Bookstore Near You

A book titled Self Storage is coming to a bookstore near you. This fictional story has been written by Gayle Brandeis, who won Barbara Kingsolvers prestigious Bellwether Prize in 2002 for The Book of Dead Birds: A Novel. The new publication takes place in Riverside, Calif., and is set in the world of self-storage auctions, according to the books publicity. No exact publication date for the book has been released.

Anyone who believes our industry is still flying under the radar needs to change his thinking. Self-storage has been used as backdrops in several movies and television shows. One of the final episodes of the popular TV series Alias featured several scenes in which one of the principal characters visited anothers selfstorage unit and discovered a small arsenal of weapons. There is consistent newspaper and magazine coverage of our industry, and not all of it is favorable.

While Brandeis upcoming novel may not reach the No. 1 spot on the New York Times Best Seller List, I can only hope there are some positives in the book. We have a great story to tell. As an industry, we help millions of people and small businesses every day, making lives easier and better organized. I hope we can continue to stress these benefits every chance we get.

Jim Chiswell is the owner of Chiswell & Associates LLC. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the selfstorage industry. In addition to being a member of the Inside Self-Storage Editorial Advisory Board, he contributes regularly to the magazine and is a frequent speaker at ISS Expos and various national and state association meetings. He introduced LockCheck, an inventory data-collection system, to the self-storage industry. He can be reached at 434.589.4446; visit www.selfstorageconsulting.com or www.lockcheck.com.

Inside Self-Storage Magazine 09/2004: The Wild West

Article-Inside Self-Storage Magazine 09/2004: The Wild West

The Wild West

By Michael L. McCune

This month, I gathered real estate experts to discuss the state of self-storage in the West. Lets hear what they have to say about their respective cities and regions. Our panel of brokers includes: Clifford Crowe, Lee & Associates, Carlsbad, Calif.; Larry Hayes, Hayes & Associates, Missoula, Mont.; Ron Largent, Coldwell Banker/C&C Properties, Redding, Calif.; Joan Lucas, Joan Lucas Real Estate Services, Denver; and Michael McVay, Lee & Associates, Carlsbad, Calif.

This is a great overview of current market conditions in the Western United States. All over the country, we are seeing a slight ripple beginning, which might be an early indicator interest rates are on the rise. While rates are still low, we encourage owners who have even the slightest thoughts about selling to take a closer, more serious look at the rewards the market can offer.

1. What are the most important things a seller should keep in mind when deciding to sell a property?

Crowe: A seller wants his property to be fully and accurately represented in its packaging, making sure the benefits and potential benefits, as well as all the obstacles, are communicated simply. He wants his property fully exposed to the market in hopes of a buying frenzy. Then he wants a good negotiator on his behalf, with the wisdom to generate a sound transactionone that will close with little complication. The seller also needs to be sure his negotiator is obligated to him and not the purchaser.

Hayes: A seller should consider timing, for maximum price, and planning, to keep after-tax potential high.

Largent: I think this is influenced by the area, the market, etc. However, it seems to me that sellers are looking at two big factors: retirement and his personal situation.

Lucas: A seller should look at his property through a buyers eyes. What would he look for if he were going to purchase a property? First impressions really do count. Spend the money to paint the buildings and fix the asphalt, and make sure the property is clean and neat. Go through the books and bring all the late pays current. Tell your manager you are going to sell, but offer an incentive to work hard during the transition period to get more business in the door.

McVay: The most important thing a seller should keep in mind when deciding to sell would be to make sure he gets his property professionally packaged and marketed by a broker who will present the facility to as many qualified buyers as he can.

2. Describe your overall market. How do you think the market conditions are benefiting buyers and/or sellers?

Crowe: In Southern California, the market is robust. There is a huge demand, but very little product. The cap rates have declined as much as two points in the last two years, yielding the highest prices ever. This is due to a lot of 1031 money in the marketplace as well as low interest rates.

Hayes: The high prices, because of low interest rates, being paid to sellers provide an excellent opportunity to exit the business at the peak valuation. It is assumed that prices will deteriorate when interest rates rise.

Largent: In three cases currently on the market, all the sellers are retiring. Why now? Because there seems to be a trend for apartment and other multifamily property owners to get out of the management of these investments, and self-storage looks very good. Financing is also good right now, and self-storage is pretty popular with lenders at this time.

Lucas: The market in Colorado has softened somewhat due to the economy and the fact that, in the last several years, many new facilities have come on stream. Most owners are offering incentives to get new tenants in the doorfree boxes at move in, free use of moving truck and free rent. The well-run, newer properties continue to outshine those older ones in marginal locations. While one would expect buyers are more cautious in their underwriting of self-storage deals, investors still have strong expectations that the Denver market will rebound; and they continue to pay top dollar for well-located, newer facilities.

McVay: The market is great. There is a huge demand and very little supply. Thus, market conditions are benefiting sellers due to the low interest rates and the lack of product. Since there is a lack, a seller is able to get the maximum amount of money possible for his facility.

3. With interest rates still relatively low, is there more investment interest from newcomers to the industry? Who is actively buying in your market?

Crowe: The self-storage industry is attracting investors who previously have been in other product types. They recognize the industry has many advantages over other investments as well as a return that may be slightly higher. Those actively buying range from the single investor coming into the market for the first time to those who have been heavily invested in other types and are changing horses. Those who have multiple storage facilities are also actively trying to increase their portfolios as rapidly as they can.

Largent: Its a good market, but not overwhelming. Quality properties with reasonable listing prices are getting a lot of action. There are many more buyers than sellers, as is typical in a good market. It is definitely a sellers market in Northern and Central California.

Lucas: Unlike so many other sectors of commercial real estate, self-storage brokerage continues to be strong. Office, apartment and office/warehouse vacancies continue to be on the rise, while, as a whole, self-storage plugs along. We see and hear from newcomers almost on a daily basis. The deals being done in the Colorado market are by experienced, savvy buyers who are well-positioned to move quickly when they see a great opportunity, complete their due diligence, and close on the deal. Newcomers have a hard time comprehending that they have to move fast when they see a self-storage property for sale and there arent any fire sale properties available out here.

McVay: There are a lot of newcomers trying to break into the industry. Its tough finding much product in the Southern California market for first-time buyers due to high prices and a lack of owners wanting to sell.

4. Which REITs, if any, are actively buying or selling in your market? Have you noticed a change in REIT activity in your area?

Crowe: I know the REITs would like to be active in this market, and they would be if there was more product. They are active behind the scenes, dealing mostly with portfolios.

Hayes: Currently, and in the recent past, I have not seen any activity from the REITs in Montana or Idaho.

Largent: Question No. 3 above applies here as well. Newcomers call almost daily, and the reasons are as weve all stated above. They are finding self-storage owners in their area do very well. Mainly, they see that two plus two makes an easy four.

Lucas: While all of the REITs have a strong presence along the Front Range of Colorado, only Shurgard has continued to build new facilities. Several years go, all of the REITs were very active, trying to build or buy; but again, due to the overall economy and surplus of units, that activity has slowed dramatically.

5. In other parts of the country, we are seeing buyers becoming more selective and price-conscious. Is this true in your market?

Crowe: I think everyone is price-conscious, but their consciousness is also tied toand often limited tothe local market. Getting a good buy is always in the eye of the beholder. Is his investment going to give him the best yield and fit in with how he wants to operate? Many investors are savvy enough to recognize an investment is not just the cap rate but includes many other things, such as appreciation, lifestyle, etc.

Largent: It is very true in the California market, for a trend to buy whatever hits seems to be passing.

Lucas: The last four facilities that have sold in the Front Range did so at record high prices. Those properties were well-positioned, had great construction, and had good operating histories. Historically, investors and brokers assumed the rental income would increase 2.5 percent to 3 percent per year. These are very safe numbers to work with. Now, lenders and investors are hoping the property will hold its own and experience very moderate growth over the next several years.

McVay: Buyers are becoming more selective due to the amount of overbuilding in certain pockets of Southern California. Most areas of the market are not being overbuilt due to city zoning regulations. A buyer needs to talk to a qualified broker in the area to find out the best possible locations.

Michael L. McCune has been actively involved in commercial real estate throughout the United States for more than 20 years. Since 1984, he has been owner and president of Argus Real Estate Inc., a real estate consulting, brokerage and development company based in Denver. In 1994, he created the Argus Self Storage Real Estate Network, now the nations largest network of independent commercial real estate brokers dedicated to buying and selling self-storage facilities. For more information, call 800.55.STORE or visit www.selfstorage.com.

Build This

Article-Build This

Build This

Under normal circumstances, there wouldnt be too much to say in a letter introducing our Annual Construction Issue besides the usual: Buildings are going up. People are renting spaces. Here is information on selecting a site, choosing a contractor, multistory construction, climate control, etc.

But these are hardly normal circumstances, are they? Self-storage among other industries has been tossed by the throes of what many have referred to as the crisis in steel. Over the past year, our industry publications and conferences have been rife with editorials and meetings about how to weather this storm. And builders and owners alike keep looking for that eye in the storm.

In an update released by the United Steelworkers of America (USWA) in March, steel companies lost $11 billion between 2000 and 2003, and continue to report net and operating losses. Fourteen steel companies have filed bankruptcy since 200244 since the beginning of the crisis in 1997. Eighteen U.S. steel-making facilities, or nearly 15 million tons of steel-making capacity, have been shut down or idled in the past four years, causing 55,000 steel workers to lose their jobs since January 2000.

In the self-storage industry, the concern has been over the increasing cost of building materials. According to the USWA, the rise in steel prices has been driven by increases in input costs (scrap metal, natural gas, coke and iron ore), reduced steel inventories, decreased domestic steel capacity and the weakened U.S. dollar. The spot price for hot-rolled steel rose 38 percent from a low of $260 per ton in July 2003 to $360 per net ton in February 2004.

Regardless of the swell in materials cost, as long as investment opportunities are ripe, self-storage construction is not likely to cease. However, the professional environment must change. Communication, not cost, is the cornerstone of new business relationships. Owners must be flexible and prepared for the punches that will come with new building: changes in costs and fluctuating budgets. On the other end, it becomes the responsibility of suppliers to keep customers apprised of any alterations to materials and bids, always providing options when possible, and being compassionate to owners frustration.

In short, focus on building relationships over structures, and trust over profits. The rest will come in time. If you can maintain flexibility and a positive attitude, you stand a greater chance of culminating your business transaction with a handshake rather than a more colorful gesture that says, Build this, buddy!

Best wishes for all your builds,

Teri L. Lanza
Editorial Director
[email protected]

Inside Self-Storage Magazine 09/2004: Construction Corner

Article-Inside Self-Storage Magazine 09/2004: Construction Corner

Construction Corner is a Q&A column committed to answering reader-submitted questions regarding construction and development. Inquiries may be sent to [email protected].

Q: I have heard about cameras that use existing 120VAC power lines for their video signal and power. What are the limitations to these cameras? How many can you have at a single site?

Jerry in El Paso, Texas

A: These cameras are great for locations that are impossible to reach without trenching. However, the technology is not yet perfected. From a technical standpoint, you can use one camera per electrical phase. So, on an average site, you could use two cameras; but realistically, one camera per site is all that is recommended.

I have only seen these cameras in a black-and-white version. Their recording quality is on par with an old analog system. Again, they are great for being able to see that back door or dumpster that isnt accessible by other means, but they are not an alternative to getting a regular coax video system.

Q: We are adding cameras and a security siren outside our of. ce, running all the components across the roof. My nephew is installing the equipment, and I am concerned about him making holes in the top of my building. What is the proper way to run wiring across the roof and penetrate into the structure?

Becky in Carlsbad, Calif.

A: The answer to this question is related to the type of roof you have, but I can give you a few guidelines. First, I recommend all wiring go through conduit along the roof to protect it from the elements, animals or the occasional HVAC repairman. When running conduit across the roof, dont use nails or screws to secure it to the roofing material. Instead, secure 12-inch pieces of 2-by-4 block to the roof with mastic or tar at intervals of about 10 feet, then secure your conduit directly to the blocks. This will prevent leaks from screw or nail holes.

When making your penetration into the building for the wire, use a sleeve with a metal flashing that fits snugly over the conduit. Use a lot of mastic or tar around the flashing. Finally, secure a waterproof box to the top of the sleeve, as this is where all of your roof conduit will terminate.

Tony Gardner is a licensed contractor and installation manager for QuikStor, a provider of self-storage security and software since 1987. For more information, visit www.quikstor.com.

Inside Self-Storage 09/2004: Small-Business Packages

Article-Inside Self-Storage 09/2004: Small-Business Packages

Small-Business Packages

By Cary F. McGovern

Small records-storage accounts have two unique attributes. First, they are the easiest to handle; and second, they are by far the most profitable. The question has always been how to attract these small accounts without high sales costs. This article discusses high-yield/low-volume accounts.

Business records are defined as proof of completion of a business transaction. Every business and nonprofit organization has them. In the universe of your potential prospects, the number of small-business clients exceeds the number of large clients by 100 times. Traditional commercial- records businesses have not even scratched the surface of the small-business base in any market due to the cost of marketing.

Small records-storage clients can be defined as those with up to 200 boxes. These clients abound and are more likely to come into your self storage center than to any commercial records center in your market. These clients also have the lowest rate of retrieval, generally are the least trouble and require very little care and handling.

So whats the secret? How can you get these without traditional sales calls and salesmen? This is the conundrum that has faced the industry from its inception. Today we have several factors that make this an ideal opportunity for self-storage operators. In last months column, I wrote about records storage lite, a concept that allows the operator to simplify his records-storage operation and maximize square-foot yield. (To read this article, access the online article archive at www.insideselfstorage.com.)

Small-Business Packages Defined

A small-business package is a bundle of records-management services that costs less than a typical 10-by-10 storage unit and has value to a business client beyond simple storage. I recommend developing at least three alternative packages:

  • The Economy Package may include storage of up to 50 boxes, one box retrieval per month and will-call service.
  • The Business Package may include storage of up to 100 boxes, five box retrievals per month, box-level indexing and will-call service.
  • The Professional Package may include storage of up to 200 boxes, 10 box retrievals per month, box-level indexing, file retrieval and a courier-delivery option (for an additional fee).

These three options are simply examples, and the pricing for these packages can be different in a variety of markets throughout Canada, Europe and the United States. Regardless of your specific pricing structure, there are some key components that make small-business packages attractive to clients.

Value-Added Benefits

Small businesses have very little time to properly manage their records. They have little storage space, no expertise, and no real desire to deal with the growing mess. Boxes are stored hither and yon with very little organization. These businesses are looking for you and your services, but they dont even know it!

Off-site records storage adds significant value to the integrity of business records because clients cannot access records unless they have the authority to do so. This avoids the ever-present danger of document tampering, damage or loss. This ethical and physical barrier has been used to prove the authenticity of business records in court and to regulators.

Another issue all businesses face is storage space. With a small-business package, companies can now have an incremental perunit cost for additional boxes. They never need additional rooms or floor space in their offices. As a matter of fact, if you provide appropriate levels of service, they may be able to send more records off site rather than adding additional filing equipment to their own facilities.

The Value to Self-Storage

Small-business packages combined with records management lite allow self-storage owners to provide a simplified service. This adds product diversification to your business, lengthens your contract terms, and provides three to five times the per-square-foot of traditional records storage.

The quest in self-storage records management has been de- fined: develop a low-cost service package that is simple to execute, is highly valuable to business clients, and has elevated profit margins. This is not an easy task, but the method I prescribe has been proven by hundreds of facilities. In some cases, yield exceeds that of traditional records management by three or four times. The best part is, its simple.

Self-storage facilities have significant walk-in traffic, with some percentage represented by small businesses in any market. You have the opportunity to sell these prospects records-management services. You just need something to offer and know how to present it.

Regular columnist Cary McGovern, CRM, is the principal of FileMan Records Management, which offers full-service records-management assistance for commercial records storage startups, marketing assistance, and sales training in commercial records-management operations. For assistance in feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; www.fileman.com.

Load More