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Articles from 2006 In August


ISS Blog

Bringing Women and Minorities Into the Construction Fold

Article-Bringing Women and Minorities Into the Construction Fold

It's no revelation, just a simple fact: The health of our industry is intimately tied to that of the construction field. When materials and labor are hard to come by, self-storage also suffers. Right now, construction is experiencing a woeful shortage of skilled workers. If you look at the press releases posted to the RSS feed this week, you'll see what some organizations are doing to attract talent to the fold. And two of the most targeted worker pools are women and minorities.


I received the following editorial this morning from Associated Builders and Contractors, a national organization representing more than 23,000 construction-related firms in 79 chapters nationwide. National Chairman Jack Darnall, also vice president and healthcare-division manager for general contractor Brasfield & Gorrie in Birmingham, Ala., discusses the recent agreements ABC entered with the National Association of Minority Contractors and Women Construction Owners and Executives. I thought I would share it here, as it should interest self-storage developers andespeciallycontractors. Let me know your thoughts.


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Our nation is known as the Land of Opportunity, and the men and women in the U.S. construction industry play a central role in creating and sustaining those opportunities. In construction, individuals are not judged by the color of their skin, their ethnicity or their gender. They are judged by the quality of their work, their integrity and their skill.


This is one of the founding principles of my association, Associated Builders and Contractors (ABC), which believes in open competition and free enterprise. To underscore its guiding philosophy, ABC has signed two national-level agreements with the National Association of Minority Contractors (NAMC) and Women Construction Owners and Executives, USA (WCOE) to promote free enterprise, open competition and opportunities for all construction firms.


The agreements stem from a shared belief between ABC, NAMC and WCOE that in order for the U.S. construction industry to remain competitive in a global economy, it must continue to diversify its workforce by attracting significantly more women and more members of the minority community into the industry. According to the Bureau of Labor Statistics Current Population Survey, in 2004, women represented 12 percent of all construction industry workers, while African-Americans represented 9 percent and workers of Hispanic origin represented 30 percent.


The agreements underscore each associations firm belief that the U.S. construction industry has a tremendous need for skilled and motivated workers and executives from all segments of the population.


The strategic alliances, which were officially entered into during ABCs Legislative Conference in Washington, D.C., earlier this year, will allow construction industry leaders to develop national initiatives designed to improve the business climate for all contractors, and to empower minority- and women-owned firms by providing them with access to services, training, networking and other programs. These national-level agreements are also expected to trigger similar partnerships among each associations local members nationwide.


With the assistance of NAMC and WCOE, ABC will develop and distribute to its chapters materials to assist non-minority construction firms to effortlessly do business with historically under-utilized minority- and women-owned businesses.


To increase their professional expertise within the construction industry, members of NAMC and WCOE will join with ABC members to encourage and help facilitate joint educational and training programs among each organizations respective local chapters, including programs in craft training, management education and safety training.


Additionally, ABC and NAMC will work together to support the use of mentor-protégé programs that allow ABCs larger, more-experienced contractor member firms to share their experience and industry knowledge with smaller, minority-owned contracting firms. This program will provide NAMC members with access to valuable information, networks and resources to help improve their businesses and ultimately strengthen the entire industry.


Finally, to ensure that all contractors have a fair and equal opportunity to bid on federal, state or locally funded construction projects, ABC will work with NAMC and WCOE on legislative initiatives common to both organizations that will prevent such practices as the use of union-only project labor agreements and other procurement mechanisms that subvert free and open competition within the local, state and federal public works sectors of the construction industry.


Opportunities abound for those who are able to complete high-quality projects on time and under budget. Together, ABC, NAMC and WCOE will work to create better opportunities for the entire industry, and will build a strong foundation for the next generation of construction professionals. 

ACE Mentor Program Receives $250K from ABC

Article-ACE Mentor Program Receives $250K from ABC

The ACE Mentor Program of America, which encourages students to consider careers in construction, architecture, engineering and other related fields, received a $250,000 donation from Associated Builders and Contractors. The contribution will be spread over five years.

Based in Stamford, Conn., the not-for-profit ACE organization connects high school students with contractors, designers and engineers from leading firms that volunteer their time and energy. It has existed for 12 years and currently operates via 81 affiliates. More than 50 additional locations have filed to begin ACE chapters.

"This funding will greatly increase ACE's continuing efforts to expand into new locations across the country," said Pamela Mullender, ACE executive director. "Our expansion will enable us to work closely with ABC's chapters nationwide to attract talented, ambitious people to this industry."

ABC is a national association representing more than 23,000 construction-related firms in 79 chapters nationwide. For more news and information, visit www.abc.org.

New Seminar Topics Added to ISS Vegas Expo

Article-New Seminar Topics Added to ISS Vegas Expo

New educational seminars have been added to the agenda for the Inside Self-Storage Las Vegas Expo, the industrys largest trade event. The show will take place Feb. 20-23 at Mandalay Bay Resort & Casino in Las Vegas. Freshly added topics include:
 
State of the Industry: Do you understand the current state of the self-storage industry? This session addresses key standards such as supply and demand, operating performance, investment parameters and more. Presented by Ray Wilson of Charles R. Wilson & Associates Inc.
 
Inside the Renters Mind: Knowing your target market is essential to self-storage success. Tron Jordheim of PhoneSmart Sales Solutions will discuss the psychology behind renters buying decisions, i.e., what convinces a tenant to sign a lease. Hell talk about the importance of rental rate, location, size and various amenities. Hell also provide suggestions for promoting facility features closing the sale.
 
You Can Out-Negotiate Anyone: Learn tactics to use and pitfalls to avoid while conducting business negotiations, particularly as they pertain to self-storage sales and purchases. Presented by Burt Gay of Marcus & Millichap.
 
The ISS Vegas Expo is sponsored by Inside Self-Storage magazine, a monthly publication dedicated to the needs of industry owners, operators, managers, investors, developers and suppliers. The company has provided self-storage education and information for more than 16 years. For details and to view an online edition, visit www.insideselfstorage.com.
 
For descriptions of additional expo seminars and agenda updates, visit www.insideselfstorage.com/expo.

Fire Damages 60-Plus Units at Lake Forest Facility

Article-Fire Damages 60-Plus Units at Lake Forest Facility

A fire at Trabuco Self-Storage & RV Center in Lake Forest, Calif., destroyed 15 units and caused heat, smoke or water damage to 60 others on Monday. It required more than 70 firefighters and three hours to squelch.

The blaze broke out at approximately 4:20 a.m. on the lower of the buildings two floors, which contain approximately 1,000 units. Though speculated, the exact cause is not known. "I'm getting two different stories about how the fire started," said Roxanne Le Sene, district manager for Pouch Self Storage, which operates the site. "One said it started upstairs, another one said he can't confirm it was electrical."

Structural damage was estimated at $1.5 million and damage to contents at $500,000, according to Capt. Stephen Miller of the Orange County Fire Authority. Fire inspectors and insurance adjusters spent Monday conducting investigations, while firefighters assisted tenants with extrication of their belongings.

ABC Gives to Gulf Construction Training Effort

Article-ABC Gives to Gulf Construction Training Effort

On the one-year anniversary of Hurricane Katrina's landfall, Associated Builders and Contractors (ABC) made a $25,000 campaign contribution to GREATGulf Rebuild: Education, Advancement and Training. The program aims to recruit and train up to 20,000 new construction workers in the Gulf Coast region by 2009, advancing the recovery efforts toward last year's storm. GREAT was launched by the Business Roundtable, as association of CEOs from leading U.S. companies, and assisted by ABC and more than 20 other organizations.

The campaign's participants enroll in a four-week training course that provides entry-level skills necessary to begin a career in construction. Training will be primarily conducted at local community and technical colleges. Instructors are certified by the National Center for Construction Education and Research, a not-for-profit foundation created to help address the construction industry's workforce shortage.

ABC chapters and members in the Gulf Coast region have partnered with local schools to help provide the GREAT courses. As students complete the program, ABC and other organizations will draw from the new pool of trained workers. For more information, visit www.abc.org. For campaign details, visit www.imgreat.org.

ISS Blog

Validation

Article-Validation

On the 17th, I posted an entry regarding the attention our industry has received from Architectural Lighting magazine thanks to Flex Storage Systems of Kansas, which received an AL design award. The gist was self-storage is often (erroneously) accused of being the low-class citizen of the architectural world. In the minds of many potential users, mention of "self-storage" inspires visions of ill-kept, garage-style buildings. While I'll concede this is sometimes the case, I was put off by the magazine's referral to the "slap-it-up world" of storage.


Today I read a more enlightened piece written by Robyn Friedman of the South Florida Sun-Sentinel, who notes self-storage is going "upscale and high-tech." Friedman says, "Self-storage has lost its stigma and come into the mainstream. Today, storage facilities are designed to look like apartments, condominiums and office buildings."


And she's correct. Whether it be due to the demands of municipalities or the tendency of Industry to eventually "grow up," self-storage has largely shed its unsightly industrial look for a more appealing architectural approach.


Storage operators: Send us your pics! Do you have a facility of which you are proud? Would you like to share remodeling ideas or building projects with the storage community? I'll be happy to post them here. Please send your digital images to [email protected].

Sovran Receives 'Outperform' Ratings from Analysts

Article-Sovran Receives 'Outperform' Ratings from Analysts

According to an article posted on Newratings.com, Sovran Self Storage continues to receive an outperform rating from analysts, and prospects for the company grow brighter. In June, analysts from A.G. Edwards & Sons upgraded the companys stock from hold to buy, setting a target price at $51 per share. The financial firm reiterated its rating in July, increasing the objective price to $54. This month, analyst Mike Salinsky of RBC Capital Markets gives Sovran an outperform rating and again raises estimates for Sovran. The target price has jumped to $55.

In his research notes, Salinsky said Sovrans acquisition volumes have more than doubled year-to-date, and the company is on point to complete additional purchases worth $30-$45 million by years end. These acquisitions, along with the projections associated with the recently acquired Cornerstone portfolio, are expected to further boost the companys growth.

SIA Offers Free Self-Storage Property Valuations

Article-SIA Offers Free Self-Storage Property Valuations

Storage Investment Advisors LLP (SIA), a Houston-based investment real estate services firm focusing solely on self-storage, now offers no-cost property valuations to facility owners. The service includes counsel from an SIA team member and an analytical evaluation using the firms Storage Investment Real Estate Underwriting System (SIRUS), a proprietary evaluation model created by the company for the valuation of self-storage assets.

The SIRUS model replaces the typical approach of estimating value based on the sales price of nearby comparable facilities. It instead analyzes a multitude of property characteristics including real estate tax adjustments, future rent growth, seasonal occupancy trends, occupancy absorption, and other industry-specific forces.

SIRUS more accurately captures the intricacies of a property and the self-storage market. This level of detail enables self-storage owners and investors to make more effective decisions about their properties, says Minh Tran, SIA senior partner.

Founded in 2006, SIA manages property dispositions, acquisitions and capital market executions/financing on behalf of institutional and private capital clients. Its team members have played the lead role on sales and financing transactions totaling more than $1 billion of self-storage real estate. For more information, contact Tran at 713.376.3107 or [email protected].

B of A Downgrades U-Store-It Stock

Article-B of A Downgrades U-Store-It Stock

Stock for Cleveland-Ohio-based U-Store-It Trust declined this week after being downgraded from buy to neutral by Bank of America. Christy McElroy, the banks analyst, claims the companys turnaround planswhich include management and other personnel changes as well as the implementation of new softwareare unlikely to take affect until early 2007.
 
On Tuesday, U-Store-It shares fell 3.8 percent to $19.54 on the New York Stock Exchange. Its stocks have traded in a 52-week range of $15.90 to $22.39. Theyre down 3.5 percent since the beginning of the year, but up about 27 percent since May 31.
 
McElroy reduced her 2006 funds from operations (FFO) estimate to 94 cents per share from $1.02, compared with the consensus estimate of 95 cents, according to a poll by Thomson Financial. She also lowered her 2007 FFO forecast to $1.24 per share from $1.30, compared with the Street's $1.17 consensus. FFO are a commonly used gauge of a real estate investment trust's operating performance.

Extra Space CEO Buys Up Shares

Article-Extra Space CEO Buys Up Shares

An article published in Barrons notes that Extra Space Storage CEO Kenneth Woolley has been buying up shares of the companys stock over the past three weeks$5.6 million worth. Between Aug. 7 and 11, he spent $4.1 million on 250,900 shares. He bought another 89,700 shares for $1.5 million on the 17th and 18th. He now lays claim to a total of 1.8 million shares, approximately 3.4 percent of the companys outstanding ownership interest.

Established in 1977, Extra Space is the second largest self-storage operator in the United States. Along with Prudential Real Estate Investors, the company recently acquired Storage USA. It now owns or operates 638 self-storage properties in 32 states and Washington, D.C. For details, visit www.extraspace.com.