US Storage Centers, which owns, operates or manages more than 75 self-storage facilities in 10 states, has opened a flagship facility in Alhambra, Calif. The property at 2500 W. Hellman Ave. encompasses 86,996 square feet of storage space and 876 units. Security features include cylinder locks, individually alarmed units and 24-hour video recording. Tenants must enter a unique PIN to enter the storage property and to move between floors via the elevators, according to a company press release.

The building’s exterior is highlighted by panes of glass, sandstone, colored bricks and red accents. It also has a large parking lot. The retail office sells moving and packing supplies such as boxes, packing tape, mattress covers, bubble wrap, disc locks and brass padlocks. The property manager is Cleo J, who has worked in the self-storage industry for more than 16 years, according to the facility website.

“We really designed this facility from our customer’s point of view, everything from the design of the building down to the unit locks,” said Charles Byerly, president and CEO. “We wanted the design to also aesthetically add value to the neighborhood. We’re very pleased with how it turned out, and we’re excited to be part of the community.”

The facility is near Interstate 10 and centrally located to the communities of Alhambra, Monterey Park, Pasadena, Rosemead, San Gabriel, San Marino and South Pasadena. It is also convenient to the East Los Angeles districts of El Sereno and Monterey Hills, according to the release.

The Alhambra facility is participating in efforts to raise money for Kure It Cancer Research. Established in 2007 by US Storage Centers Chairman Barry Hoeven, Kure It was founded with the purpose of raising money for innovative research directed at types of cancer that receive little or no funding for research. As of July, the charity has raised more than $2.7 million.

Founded in 1985, US Storage Centers operates self-storage facilities in Arizona, California, Colorado, Florida, Georgia, Maryland, Massachusetts, Nevada, Tennessee and Texas. The company currently has more than 5 million rental square feet under management and employs more than 200 people.

 

The four publicly traded self-storage real estate investment trusts (REITs), led by Extra Space Storage Inc., topped the second-annual ranking of best alternative investments published by “Bloomberg Markets” magazine. Three of the top five REITs identified in the 141-company Bloomberg REIT Index for the three-year period that ended on March 31 are self-storage operators. The complete list will be published in the publication’s September 2014 issue.

Together, REITs own more than $1 trillion in property in the United States and raised a record $77 billion last year, up from $73 billion in 2012, according to the National Association of Real Estate Investment Trusts. Extra Space was the top-performing REIT between 2011 and 2014, returning 36.7 percent for the three years and 27.9 percent for one year, according to Bloomberg. Its income from operations grew more than 20 percent year over year for the 14 quarters that ended June 30, Bloomberg reported.

“This year we were very surprised to find that self-storage operators topped our list,” Bloomberg investing reporter Devin Banerjee said in an interview with National Public Radio. “These vehicles returned 17.4 percent a year over the past three years. And that topped the stock market; that topped the bond markets; that topped other alternative markets like the private-equity markets, for example.”

Banerjee cited a dip in homeownership and a rise in apartment living as factors that aided self-storage REIT performance. Increased reliance on self-storage by business customers has also contributed to self-storage performance, according to Bloomberg.

“Self-storage has come out of obscurity,” said Spencer Kirk, Extra Space CEO. “It’s no longer the goofy real estate class. It’s the real estate class that during the recession did better than any other.”

Self-Storage REITs returned 101 percent from the beginning of 2008 through 2011, beating all other REIT categories, according to Bloomberg.

Headquartered in Salt Lake City, Extra Space owns or operates 1,071 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 715,000 units and 79 million square feet of rentable space.

Sunnyside Self Storage of Surrey, British Columbia, Canada, is now offering its local customers online ordering services for moving and packing supplies from the company’s catalog and will provide same-day delivery within a specific area. It’s comprehensive home-moving service will help users reduce their costs and add efficiency to their home move, according to a company press release.

The available products include furniture pads for moving large couches and chairs, mattress bags and covers to protect bedding, boxes, tape, and other items. Sunnyside will deliver products to any address in White Rock or Surrey, south of 64th Avenue. Delivery is free for orders of more than $200 before taxes. A $20 delivery fee will be added to smaller orders.

Orders placed before noon will be delivered the same day, subject to availability. Orders placed after noon will be delivered the next business day. The company will not deliver products on Sundays or holidays. Orders placed after noon on Saturday or Sunday will be delivered on Monday.

Founded in 1987, Sunnyside Self Storage is family-owned and -operated and offers U-Haul truck rentals.

Personal Mini Storage, a Florida self-storage operator with 36 locations, recently acquired A-1 Mini Storage in Gainesville, Fla., its fifth storage property in the city. The facility at 4432 S.W. 34th St. is near a U.S. Post Office. It will be rebranded as Personal Mini Storage and undergo capital improvements such as the addition of new doors and video cameras, according to a press release.

"As the Personal Mini Storage brand expands with each additional location, we work hard to provide the consistent, top-notch service our customers expect," said Marc Smith, president. "Our growth beyond the Central Florida market signifies our commitment and rapport within the communities we serve. We owe our success in past years to our team members, customers and communities. 2014 is no different as we continue our steady expansion across the state of Florida.”

Founded in 1982 by brothers Stan and Ron Shader, Personal Mini Storage has remained a family-owned and -operated business for more than 30 years.

Cubiq, an app-based startup business specializing in valet self-storage services, has launched in Boston after beta testing. The company was founded by technology and marketing entrepreneurs Michael Cappelletti and Scott Nelson and is backed by private equity. It offers a smartphone app customers can use to schedule pickup or delivery of their storage items.

Cubiq digitally catalogs client belongings and uses storage bins tagged with radio-frequency identification. The company offers three packages starting at $29 per month, which includes four boxes and one free return. Customers receive more bins and free returns with more expensive packages. Delivery of desired bins from storage are fulfilled within 24 hours, according to a company press release.

“As more people flock to urban centers in living spaces with limited storage options, storage has emerged as one of the top concerns for Boston apartment and condo dwellers,” said Cappelletti, CEO. “We are providing urban residents with the ability to easily and conveniently extend their closets, enabling them to live in their living spaces and free up valuable time.”

As part of its launch, the company has partnered with luxury high rises The Kensington and Radian Apartments as their preferred storage provider, according to the release. Cubiq also has a partnership with Hill House, an organization that provides programs, outreach and events to Boston’s downtown neighborhoods. Approximately 2,000 children enroll in Hill House programs each year, according to its website.

Cubiq enters the Boston market where valet-storage business Fetch has operated since 2010. The company’s business model is similar to other recent startups across the nation including Boxbee Simple Urban Storage in San Francisco, MakeSpace Labs Inc. in New York City, Remote Garage in San Antonio, and Storrage Inc. in Seattle.

By Amy Fuhlman

Unfortunately, there’s no one-size-fits-all approach when it comes to determining the best unit mix for your self-storage facility. However, examining customer demographics can help you define the ideal number of small, medium and large units to offer. Here are some clues to creating the perfect unit inventory:

Age. Areas populated with college-age students tend to require smaller spaces. Their income is usually tighter and their storage requirements are minimal, even seasonal. Elderly renters who may have downsized tend to use smaller spaces as well, but median-age families often want to hold on to their possessions and will require more storage space.

Population density. Typically, the higher the density, the smaller the unit. Crowded metro-area customers are accustomed to living with less. Plus, rental pricing tends to be higher in urban areas, so lockers and small units are more rentable. Suburban-area renters may have needs such as lawn equipment or furniture storage, which demand more space.

Local business prospects. While larger commercial businesses will have their own storage, small-business owners and independent reps need overflow space. For instance, one New York City self-storage facility has clothing-store owners and art dealers as clients because local storefronts don’t include space for merchandise storage. In both urban and suburban environments, pharmaceutical reps, wine distributors and people with similar occupations often use storage. Understanding the local business needs will allow you to plan your space accordingly.

Designing Your Unit Mix

First, choose a reputable building provider that can help you maximize your layout. While you, the owner, will specify the unit sizes you desire, your vendor partner can find hidden areas—around stairs, above other units, etc.—that will yield your greatest amount of rentable square footage.

Design your unit mix with flexibility in mind. Even the best laid plans may require adjustment. Perhaps you have 20 larger units that haven’t rented, yet your demand for smaller units is increasing. Your building supplier can add or remove partitions and doors to change unit sizing quickly and efficiently.

Furthermore, you may even realize greater revenue for such redesigns. For instance, four large units may generate $175 each per month for a total of $700—but only if they rent. If they’re empty, then creating eight smaller units in the same space that rent for $100 or more each would generate more in monthly rent and provide a better response to market demand.

Visit the competition, know your demographics and partner with a strong building provider. Taking the right steps in advance will better ensure a higher occupancy and market share.

Amy Fuhlman is the director of marketing for Janus International Group, a manufacturer of self-storage doors, hallway systems and building components. For more information, call 770.562.2850; visit www.janusintl.com.

Shurgard Self-Storage, the international brand operated by real estate investment trust Public Storage Inc., is set to expand its storage portfolio in the United Kingdom after the completion of a privately placed debt offering of €300 million in senior guaranteed notes. The notes are being issued in three €100 million “bullets” of seven-, 10- and 12-year maturities with an average coupon of 3.01 percent, according to a press release.

The Shurgard Group intends to use the proceeds from the private placement, alongside €125 million in funding from Wells Fargo Securities to refinance existing debt and for general corporate purposes including development. The company wants to open 16 new U.K. self-storage locations by 2018, company officials said.

“We are seeing an increasing demand from individuals and businesses that need more space,” said Jean Kreusch, Shurgard’s chief financial officer. “This refinancing provides Shurgard with an opportunity to grow our business and meet the demand.”

Shurgard operates 189 facilities in seven European countries, with approximately 10 million net rentable square feet. Its U.K. portfolio comprises 22 locations. Based in Glendale, Calif., Public Storage has interests in 2,202 self-storage facilities in 38 states, with approximately 141 million net rentable square feet.

A Massachusetts bill that would update the state’s self-storage lien-law procedures has stalled in the legislature. Lawmakers ended their formal session last week without a floor vote on Senate Bill 2297, which would allow tenant e-mail notifications, advertising of auctions in a “commercially reasonable manner” other than the local newspaper, liability limitations and other provisions.

The lack of a vote was a blow to lobbying efforts by the Massachusetts Self Storage Association (MASSA) and national Self Storage Association (SSA). “News last week that the Massachusetts formal legislative session ended without a floor vote on SB 2297, which included improvements to the state's lien requirements, was a discouraging development to an initiative that the SSA and MASSA have been pursuing for several years,” SSA officials said in the association’s weekly e-mail newsletter.

The measure, formerly Senate Bill 183, was referred favorably last November by the Committee on Economic Development and Emerging Technologies and had recently “received buy-in from the attorney general’s office,” SSA officials said. Issues such as gun control, environmental bonds and housing authorities took precedence at the end of the legislative session, but “there still is a slight chance that informal sessions in Boston could provide the self-storage sector with this long-awaited victory,” according to the newsletter.

The bill would allow operators to place limitations in rental agreements on the value of stored goods. The limit specified on the lease would be considered the maximum value of the tenant’s stored property. Operators would also be able to impose monthly late fees equal to the greater of $20 or 20 percent of monthly rent.

The bill also addresses motor vehicles and would enable operators to have vehicles belonging to delinquent tenants towed after 60 days.

Formed in 1998, MASSA is a nonprofit organization of facility owners and operators designed to strengthen the self-storage industry in Massachusetts. It aims to promote professional standards and quality, and present a unified voice on issues affecting the industry in the commonwealth and its communities.

OpenTech Alliance Inc., a Phoenix-based provider of self-serve kiosks, call-center services and other technology for self-storage businesses, has entered into an international distribution agreement with PTI Australasia, a wholly owned subsidiary of Steel Storage Holdings Pty. Ltd. Together, the companies will offers the latest in automation to the Australasian, Southeast Asia and Middle East storage markets, according to an OpenTech press release.

PTI Australasia will sell and service a line of INSOMNIAC self-service kiosks designed specifically for the respective markets. Kiosks allow customers to rent storage space, make rental payments with cash or credit card, purchase locks, check balances and purchase tenant insurance when the onsite management is unavailable or the office is closed. The INSOMNIAC software integrates with some property-management software programs such as SMD Software Inc.’s SiteLink.

"We have been watching OpenTech for several years. They have continuously improved their products by listening to their customer base, but what they were missing in our part of the world was local expertise, which is where PTI Australasia comes in,” said Steel Storage Executive Chairman Jon Perrins. “We are excited to be partnering with them on this side of the globe and feel our customers will be too."

Mike Connolly, executive vice president of business development for OpenTech, says investing in these international markets is a part of the company’s long-term global strategy. "Prior to the recession in 2009, we installed a few kiosks in Australia, Hong Kong and New Zealand, but we were not able to consistently provide the same high level of customer service we offer in North America, so we retreated,” he said. “As a result of the success we are having again domestically and the confidence we have in the PTI Australasia organization, we are ready to take another run at expanding our footprint globally."

OpenTech provides several models of INSOMNIAC self-serve kiosks as well as a range of self-storage rental solutions including the INSOMNIAC Live! Call Center, INSOMNIAC Online Web and mobile applications, LiveAgent! software products, and the INSOMNIAC ILock Security System, all available through the company's Self-Storage Cloud.

Based in Hendra, Queensland, Australia, PTI Australasia is a distributor of access-control and security systems for self-storage and general-access solutions.

Steel Storage provides a full range of construction and development services to self-storage operators in Asia, Australia and Europe. It has offices in Brisbane, Australia; London; Paris and Singapore.

 

Extra Space Self Storage of Asia, a privately owned business, has acquired a majority stake in Storeasy Self Storage, an operator based in Taipei, Taiwan. Extra Space currently operates facilities in Korea, Malaysia and Singapore. The properties will be rebranded as Storeasy by Extra Space.

Storeasy operates 10 facilities featuring more than 2,000 units in key locations around Taipei and New Taipei City, according to an Extra Space press release. The facilities offer a mix of unit sizes for commercial and residential customers.

Storeasy Founder Jimmy Tao will continue as a company shareholder. “We are very pleased to partner with Extra Space in this exciting opportunity,” he said. “This merger will allow Storeasy to rapidly expand its business and offer innovative storage solutions to customers across Taiwan. With the combined resources and capabilities of Extra Space and Storeasy, we will become a more robust company, able to cater to Taiwan’s increasing demand for self-storage space.”

With the investment in Storeasy, Extra Space will operate a portfolio of 19 facilities in four countries, encompassing more than 1 million square feet of storage space and serving more than 8,500 customers.

“This merger is a validation of both companies’ strategic vision for the future,” said Extra Space CEO Kenneth Worsdale. “Extra Space and Storeasy have been rapidly expanding in the past few years. This strategic alliance will deliver greater geographical coverage and allow us to quickly become a truly regional player in the self-storage industry.”

Extra Space opened its first self-storage facility in Singapore in 2007 and now operates five properties in the region. It opened its first property in Seoul, Korea, in 2010, and its first in Kuala Lumpur, Malaysia, in 2012. The company opened two new properties in Kuala Lumpur, Extra Space Segambut and Extra Space Section 51A, in July. A second Korean facility will open in September in Bundang.