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U-Store-It Sells 18 Self-Storage Facilities in Indiana, Ohio for $43.5M

Article-U-Store-It Sells 18 Self-Storage Facilities in Indiana, Ohio for $43.5M

U-Store-It Trust Inc., a publicly traded self-storage real estate investment trust, this week closed the sale of an 18-property self-storage portfolio for $43.5 million. The Indiana and Ohio properties comprise 976,000 net rentable square feet. They had a physical occupancy of 78 percent as of June 30.

This transaction represents U-Store-Its exit from the Canton, Ohio, market, a 30 percent reduction of square footage in its Cleveland, Ohio, portfolio and a significant reduction in the companys asset base in Indianapolis.

"This transaction represents our continued capital-recycling efforts within the portfolio, said Christopher Marr, president and chief investment officer. We continue to implement our strategy of reducing exposure in slower growth, lower barrier-to-entry markets and redeploying that capital into our core markets.

The proceeds generated from this disposition will be used to acquire properties in the companys core markets on a leverage neutral or better basis, Marr said, strengthening U-Store-Its balance-sheet metrics and the quality of the companys portfolio.

Based in Wayne, Pa., U-Store-It owns or manages 437 facilities across the United States and operates the U-Store-It Network, which consists of approximately 810 additional self-storage facilities.

Ohio Self-Storage Owners Sue Village of Waynesville Over $5K Sewer Repair Bill

Article-Ohio Self-Storage Owners Sue Village of Waynesville Over $5K Sewer Repair Bill

Two self-storage owners in Ohio are suing the village of Waynesville after being forced to pay $5,300 for repairs to a sewer line they believe should be the responsibility of the state.

William LeMay and Michael Foley, owners of Uni-Store on U.S 42, paid for the repairs to a malfunctioning storm-water line that runs underneath their property. Foley, whos also an attorney, said the state constructed the system. In late 2009 or early 2010, the system began to back up, causing flooding on U.S. 42.

The repairs were made in March. In May, the village council sent the self-storage owners a letter demanding they pay for the repairs, which they did. However, Foley claims under the rules of eminent domain, Waynesville or the state should have provided the notice to them that it was using the property for storm sewer line.

Foley said there is no recorded easement and LeMay has owned the property for more than two decades. Foley and LeMay have requested to be reimbursed $5,300 plus compensation for the area taken and attorney fees.

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West Coast Self-Storage of Padden Parkway Opens in WA

Article-West Coast Self-Storage of Padden Parkway Opens in WA

West Coast Self-Storage of Padden Parkway opened this month at the intersection of Padden Parkway and Andresen Road in Vancouver, Wash.

Designed by Magellan Architects, the project features three buildings encompassing 61,100 net rentable square feet with 626 units, 550 of which offer heating. The facility also has 24-hour recorded surveillance, commercial delivery acceptance, and a covered drive aisle with an elevator loading area.

This storage center is unlike any in the Vancouver area, featuring a covered drive aisle such that a majority of the customers can access their units while protected from the elements. This is a great amenity given the rainy climate in the Pacific Northwest, said Jim McNamee, president of West Coast Self-Storage Group, which owns the facility along with its capital partner, Catalyst Storage Investors.

The project was constructed by PacDev Inc., a specialist in self-storage design-build. The company is headquartered in Santa Rosa, Calif.

West Coast Self-Storage Group is a management and investment company in the self-storage asset class.  Founded in 2006, the company currently operates 20 self-storage facilities and is expanding its operating and investing activity in all major markets in California, Oregon and Washington.

Maximizing Self-Storage Retail Sales: Presentation, Pricing and Service

Article-Maximizing Self-Storage Retail Sales: Presentation, Pricing and Service

By Nancy Martin Wagner

One of my favorite things to do on a Saturday morning is head to my local farmers market. Theres something about seeing stacks, piles, rows, buckets and baskets of fresh and multi-colored vegetables, fruit, nuts, bread, plants and flowers that motivates me. I want to buy and make something with the tantalizing products.

Self-storage operators can apply a few simple ideas and rules from the time-honored tradition of the farmers market to their retail displays, selling techniques and customer-service skills. Clean, fresh, bright, shiny and new is how a self-storage retail area should always look so customers feel confident in their purchases.

When it comes to displaying your retail store, there are several important factors to consider including layout, quantities, signage and specials. Here are some tips that will attract customers attention.  

Presentation

Displaying large quantities of your best-sellers is a great way to encourage customers to purchase them. Multiple facings is a grocers term for putting many of an item on display to make it hard to miss, like stacking apple juice at the end of an aisle. In the self-storage world, this could be stacks of boxes, bubble-wrap rolls, tape, packing peanuts, moving blankets or clean newsprint.

Small and medium boxes are always needed and popular, so make sure you have bundles of each size on display. However, some customers will think what you have on display is your total inventory and wont ask for more. If you dont have enough display space, tell every customer who walks in, We have plenty of stock in the back. This is also a great way to start communication, instead the obvious May I help you?

Use big, bright, simple signs. The most effective sign has very few words and is impossible to miss. Make sure everyone who drives by or calls your facility, or visits your website, gets the message every time that you sell boxes and moving supplies. When customers are ready to buy, theyll remember you. That proven We Sell Boxes approach works!

Pricing

Pricing should be visible and easy to understand so customers dont have to ask. Be creative. Use a menu board, or print signs and clip them to a basket or to the top item. Price signs and labels should also be consistent throughout the store to ensure shopping is a breeze for customers.

Offer special quantity discounts, for example, price small boxes at $2 each or $1.50 when a customer buys a bundle of 25. Or offer the fourth mattress bag free when the customer buys three. You can even create fun daily specials. Try this one: Buy any 10 boxes and get a free box knife or marker.

Customer Service

Treat your customers as youd like to be treated when you spend your hard-earned money. Be helpful, kind and honest. If you dont have the item a customer needs, know where he can find it. Or offer to special order the item and call him when its available.

Its also important to have a fair return policy. If your customers know they can return unused boxes, theyll buy more now. Let them know about your policy early so theyll trust you and relax about over buying.

Likewise, show them you care by suggesting the best and most secure lock for their storage unit. Explain how the lock is designed for self-storage and how difficult it is to remove.

There are a number of helpful suggestions you can make to customers, most of which can lead to a sale. For example, ask if theyre moving beds, and then explain how a mattress bag will keep out moisture and dirt. Or try this one: I cant believe how handy it is to have a big, boxed roll of bubble wrap when packing up a china cabinet. One box will go a long way, and its really protective.

Subliminal suggestions can be made simply by displaying one best-selling item next to a product that can be used with it. For example, display moving blankets with stretch-wrap rolls to suggest solutions for wrapping odd-shaped items.

When it comes to selling storage and moving supplies, self-storage operators have a great advantage. When customers shop with you, they have the convenience of pulling right up to the door and loading their vehicle without having to walk through a big store or wait in a checkout line. We must be prompt and eager when our customers are ready to pay. They want to be focused on, respected and appreciated for giving us their business.

We can encourage and promote customer loyalty by being there when theyre ready and help them load their vehicle or just simply hold the door open for them. Were here to serve them, and well be rewarded in return with bigger retail revenue.

Nancy Martin Wagner is vice president of marketing for Chateau Products Inc., a lock-and-latch manufacturer specializing in the self-storage industry. The company offers disc locks and padlocks for resale, cylinder BEZEL latching systems, retail-store fixtures and packing supplies. For more information, call 800.833.9296; visit www.chateauproducts.com.

North Carolina Self Storage Association to Host Webinar on Lien Law and Auction Process

Article-North Carolina Self Storage Association to Host Webinar on Lien Law and Auction Process

The North Carolina Self Storage Association (NCSSA), in conjunction with SMD Software Inc. (SiteLink), will present a webinar for the states self-storage owners and operators titled "Understanding the North Carolina Lien Law and Auction Process," on Aug. 31, 2 p.m. ET. This webinar, presented by Craig Robertson, director of storage operations for Morningstar Properties LLC, will explain all the provisions within the North Carolina lien law and review the steps for processing a lien sale. The webinar will cover:

  • The North Carolina Self Storage Facilities Act, codified under Article 4, Chapter 44A Statutory Liens and Charges
  • Changes made to North Carolina lien law in 2009
  • How to document a self storage auction
  • Preliminary and lien sale notices
  • The importance of timing notices and events
  • How to take proper inventory of a unit
  • How to best handle illegal items found in a lien space and items that should not be sold at auction
  • Searches of liens on stored items through the Secretary of State website
  • How to advertise a storage auction, what must be included and when it must be published
  • How to determine auction fees
  • How and when to accept partial payment from customers in lien status
  • The decision to hire an auctioneer or conduct a sale yourself
  • How to handle a tenant in lien status who files for bankruptcy
  • How to get rid of a problem customer who is constantly in and out of lien status
  • What to do when a customer opts for a hearing
  • Alternatives to having a lien sale
  • The most common lien-sale mistakes made by storage operators

The cost for the webinar is $10 per portal. Registration can be completed online at NCSSAonline.org. Users should choose Webinars from the Attend menu at the top of the Web page.

The NCSSA is also offering a recording of its most recent webinar, "Making Social Media Work for You, through its website. The association plans to host future webinars and welcomes topic suggestions at [email protected].

ISS Blog

Stop Whining Not as Wrong as You Think

Article-Stop Whining Not as Wrong as You Think

By Randy A. Smith

Im glad to see opposing viewpoints on marketing self-storage, no matter whether its from someone in the industry or someone selling to our industry. A robust and healthy debate brings creativity and outside-the-box thinking to the table. Let me throw another figurative log on the fire of this modest debate comparing the effectiveness of broadcast media and the Internet in generating self-storage rentals.

A recent blog by Christina Qiu, marketing assistant for SpareFoot.com, may leave one with the impression that broadcast media is not necessarily a good choice for modern audiences and online branding techniques are cheaper. Well, again, let me disagree. Im not saying you should not be using the Internet. What I am saying is we should not be throwing the sums of money at it that our Web-marketing friends say we should be throwing at it. Let me share my concerns about our industrys rush to the World Wide Web.

Buying listings on aggregator websites or paying for reservations/rentals is not branding in the proper sense of the word. Entrepreneur.com (See, I use the Internet, too!) defines branding as the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products. Emphasis on the word differentiates. Theres no practical differentiation of facilities on aggregator websites. The only noticeable differentiation is pricenot a good thingwhich leads to the following.

Widespread use of the website-aggregator, customer-capture model will lead to a decline in industry revenue due to this price-only differentiation. In other words, since theres no noticeable differentiation on these sitesa first-generation facility can look like a third-generation facility. Tthe sole competitive basis is predicated on who will offer the biggest discount in your ZIP code. Those hurting the most will discount the most. This keeps rates soft and conditions consumers to think selection of a self-storage facility is strictly a price-based one.

As an industry, is this what we want? Ms. Qiu also said in her blog we need to reach potential tenants on their turf, on their terms. I couldnt disagree more! I want to manage the customer relationship. Smart marketing is making the customer want to meet you on your turf and your termsnot theirs! I believe in capturing rentals online, but from your own company website. Hint: Use local broadcast media to drive people directly to your website, bypassing all the competitors.

And if you want an effective tool to objectively gauge the effectivenessreach, bounce rate and page visit before and after statsof any self-storage aggregators website, visit www.alexa.com and choose the clickstream tab. Then type in your favorite storage website aggregators name. If you study the data closely, you may be surprised at what you see, or dont see. Look closely at the bounce rates and next site visited once people leave an aggregators website. You can even compare one against another. Keep these stats in mind when youre quoted traffic data by those offering these services.

Broadcast media is by far the most cost-effective way to truly brand yourself in a local market and generate rentals, especially when compared to the cost of website aggregators. Dont let people who sell against broadcast media tell you how pricey it is. Do your own research and get the facts. In fact, using local broadcast media is two to four times more cost-effective and will build brand equity, not destroy it like the practice of indiscriminate usage of aggregator websites. Let me share some statistics with you.

Even though Another Closet Self Storage operates in one of the lowest per-capita income locations in Texas, our corporate location (McAllen) is certainly not in a small, impoverished town as its been called. Another Closet has been featured on the Inside Self-Storage Top-Operator List for the past four years, and now has close to three-quarters of a million net rentable square feet. Our market area encompasses about 4,300 square miles, an area more than 1.5 times the size of the state of Delaware, and includes a population of just more than 1.2 million people.

Ive identified roughly 165 competing facilities in this area. Of the 210 DMA (designated market areas by the Nielsen Ratings agency), this TV media market is ranked 64th, just ahead of Charleston, S.C., and Tucson, Ariz. This is the 10th largest Hispanic market in the United States, 11th being Sacramento, Calif. Lest you think this is a rural, sparsely populated area, McAllen, Texas, has a population density of 2,689 inhabitants per square mile, beating even Austin, Texas, which has a population density of 2,653 inhabitants per square mile. Area wide, the population density is 294 inhabitants per square mile, which compares to the state of Pennsylvania at 284, Hawaii at 211, and New Hampshire at 147.

My marketing budget is an industry average of $0.25 per year, per total net rentable square foot of space. This works out to 3.5 percent of projected gross revenue this year. With this budget (90 percent of it spent on radio and TV), Im able to produce a lease for roughly $32 marketing dollars spent, expecting well over 4,000 rentals this year. Even figuring in an average total concession of about $11 per lease over the lifetime of the average lease, which is two-plus years, Ive generated a rental for about $43. My goal next year is to be at $30.

How does that compare to the website aggregators fee? Its a little more than half the going average rate, even for the performance-based models. But wait, it gets worseor better depending on your perspective. Since all the digitized Yellow Pages-like online listings are deeply discounted to generate that click on a facility, the average concession on those sites looks strangely like a free month. When you add the average $75 fee for the referral/rental and give away a free month, that cost per lease looks more like $150 to me. Ill stick with my $43 per lease, thanks!

By using local broadcast media you can build tremendous brand-equity, which is added value brought to your companys products and services that allows you to charge more for your brand than what identical, unbranded products and services command. With a catchy jingle, your name and phone number, you can bypass the Internet search totally. And if not totally, they already know your name when they sit down at the computer and type it into Google, bypassing your competitors.

Conversely, indiscriminate use of storage referral/rental website aggregators will destroy what brand equity you do have. Although I could take an hour to explain this, let me sum it up with these few sentences: If you have the best product, best service and offer the best value, you should get full price for it. Be the market leader. By positioning yourself amongst others who are willing to give away their product, you negatively impact your perceived value.

Consider this example. Coca Cola brought down Crystal Pepsi years ago by purposely positioning Tab Clear on the shelf next to it and launching a multi-million dollar suicide campaign. Tab already had a poor public reputation as a second-tier drink and was a dying brand. By positioning this greatly inferior product as a direct competitor of the new Crystal Pepsi, they destroyed Crystal Pepsis brand equity. The Crystal Pepsi product went down in multi-million dollar flames. I hope you can see the analogy.

Just for fun, heres a story of a Web company that discovered the power of broadcast media. Prior to 2005, this domain name registrar knew it had the best pricing, product line and services its competitors could not offer, but still had only 16 percent market share. The company hired a savvy consultant to research the issue, and the basic answer was, the reason everyone isnt your customer is because they dont know you exist. What you need to think about is moving into the mainstream media. They said, lets do it, and by the way the Super Bowl is coming up. After Super Bowl XXXIX, the Patriots beat the Eagles and the only domain-name registration company anyone could recall was Go Daddy, thanks to the first Go Daddy Girl. Now, Go Daddy has more than 50 percent market share, is the biggest player in the industry and the fasting growing one, too.

My final bit of advice to you: Realize people dont know you exist. Your job is to make sure they do. I still believe the best way to do this in your local market is by using a lot of broadcast media, and a smidgen of the Internet. But dont let me or anyone else tell you how effective or ineffective broadcast media can be. Make some calls, get some proposals and referrals of local merchants whove tried it. Just dont be a lemming and follow everyone else off the cliff.

Randy A. Smith is director of operations for Another Closet Self-Storage in McAllen, Texas. The company operates seven facilities in Texas. To reach him, e-mail [email protected]. 

No Charges Filed for Stabbing at All-American Self Storage in CA

Article-No Charges Filed for Stabbing at All-American Self Storage in CA

The district attorney in San Mateo has no plans to file criminal charges against a man involved in the stabbing of another man at a self-storage facility in San Mateo, Calif.

Justin Lockwood, 33, of Pacifica, was stabbed to death June 7 outside All-American Self Storage on East Third Avenue and Detroit Drive.

According to police, Lockwood had a confrontation with another man. Police have not released his name. The only witness told police the man was defending himself against Lockwood. Prosecutors have no evidence that contradicts this account. The weapon found at the scene belongs to Lockwood. Police will continue to investigate the stabbing.

The three people were at All-American Self Storage because at least one of them rented a storage unit, police said.

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A-1 Self Storage Supports Two Programs: Ignation Volunteer Corps and Plant With Purpose

Article-A-1 Self Storage Supports Two Programs: Ignation Volunteer Corps and Plant With Purpose

California self-storage operator A-1 Self Storage is donating money to two separate organizations: Ignation Volunteer Corps (IVC) San Diego Region and Plant with Purpose Oaxaca, Mexico Program.

IVC has chapters in several major U.S. cities, including Detroit, Los Angeles and Washington, D.C. The organization matches the talents of volunteers with community non-profit organizations. Ignatian Volunteers are men and women, aged 50 and over. They commit to serve two days a week for 10 months a year, and can renew their commitment at the end of the year.

Plant With Purposes integrated Oaxacan program uses a variety of environmentally sustainable, income-generating activities to train farmers to work with the land. 

A-1 Self Storage has 16 locations in the San Diego County area and more than 40 locations statewide. It is the self-storage division of the Caster Cos., a third-generation, family-owned company headquartered in South California since 1959. Caster Cos. develops and manages A-1 Self Storage, A-1 Car Storage and other commercial properties in California. Its portfolio includes more than 4 million square feet of real estate.

SpareFoot Launches Free Self-Storage Auction Directory

Article-SpareFoot Launches Free Self-Storage Auction Directory

SpareFoot, an online self-storage marketplace, has launched a new Web directory for self-storage auctions. According to the company, Sparefoot.com/auctions lists more self-storage lien sales nationwide than any other free service of its kind. SpareFoots plan is to make organizing and promoting auctions as easy as possible for self-storage operators.

SpareFoots searchable auction database allows users to sort search results by distance or days away. According to a company press release, the database includes 35 percent to 50 percent of the approximately 10,000 storage units auctioned off nationally each month.

Expansion plans for the website include the addition of a notes section to provide unit descriptions and number of units for sale. SpareFoot will also integrate back-end functionality so facility owners and managers can easily add and promote their auctions on the site.

Were going to keep building this and making it more functional, said Tony Emerson, SpareFoots search-engine optimization analyst. We eventually want to serve as a resource to help facility operators improve the auctions process to the point that they look forward to having one.

While SpareFoot is not the first website to provide an auctions directory, competing sites require facilities to pay a listing fee, or offer only limited functionality and inventory for free.

The companys new project was inspired by auction popularity inspired by hit TV shows Storage Wars and Auction Hunters. Customers frequently call and e-mail the SpareFoot support team with questions about auctions, Emerson said.

Founded in 2008, SpareFoot.com lists more than 5,000 self-storage facilities in its nationwide directory, which allows consumers to find, compare and reserve self-storage units online. Through multiple websites including SpareFoot.com, SelfStorage.com, Apartments.com and many others, SpareFoot helps self-storage operators find new tenants through a pay-for-performance model. The company is backed by Silverton Partners, FLOODGATE and Capital Factory.

4 Units Destroyed in Fire at Desert Self Storage in CA

Article-4 Units Destroyed in Fire at Desert Self Storage in CA

A fire at a self-storage facility Friday in Desert Hot Springs, Calif., destroyed four units. The fire at Desert Self Storage, 66251 Dillon Road, began just before noon.

Nearly 30 Firefighter from Riverside County Fire Department had the blaze under control within a half hour. They remained on the scene for another two hours to clean up and prevent the fire from reigniting.

No one was injured. The cause of the fire is under investigation.

 

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