SpareFoot, an online marketplace for self-storage consumers, has surpassed $1 billion in revenue generated for storage operators since launching in August 2008. Through nine years of operation, consumers using the SpareFoot platform have rented more than 95 million square feet of storage space, according to company officials.

Based on an average storage-unit height of 8 feet, SpareFoot estimates users have rented more than 765 million cubic square feet of space. “To put it in perspective, our customers have rented enough space to fill the equivalent of more than 20 Empire State Buildings,” CEO Chuck Gordon said in a company blog post.

The SpareFoot online platform allows consumers to compare pricing and services offered by moving, self-storage, valet-storage and vehicle-storage businesses. The company’s listings include more than 4,000 U.S. cities and 12,000 storage facilities.

SpareFoot.com helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 12,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com and Penske Truck Rental.

Update 8/31/17 – Dymon Storage received approval this month to convert the former Target in Oshawa to a mixed-use facility that will include drive-in self-storage and retail space. Although several uses were allowed on the site, including retail and condominiums, a zoning amendment was required for the self-storage development.

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6/21/17 – Canadian self-storage operator Dymon Storage Corp. is seeking a zoning change to convert a former Target store in Oshawa, Ontario, Canada, to a mixed-use property that will include self-storage and retail space. The city’s development-services committee discussed the proposal for the property at 285 Taunton Road E. during a June 19 meeting, according to the source. Dymon has also requested to raise the roof of the building by a meter. Target vacated the site in 2015.

The property is part of the Five Points Shopping Centre and currently zoned for commercial use, including retail and restaurants, but not self-storage. The zoning request will now be forwarded to the city staff for recommendation. If approved, Dymon hopes to open the facility in March, the source reported.

As proposed, the two-story building will comprise 173,000 square feet of space, including 38,000 square feet for retail and restaurants. The storage facility will be open 24 hours a day, seven days a week, and contain about 1,000 climate-controlled units. The site will also offer conference rooms, parcel services and safety-deposit boxes for rent. The loading/unloading area will be on the interior.  

“Everything about Dymon happens in the interior of the building … there are no garage doors facing out to the street,” said Bliss Edwards, senior director of planning, who appeared before the committee.

The Five Points Shopping Centre is also undergoing major renovations. Owner RioCan Real Estate Investment Trust is demolishing a portion of the mall’s interior to make way for a new, open-air retail complex. Several existing tenants will be moved to a new location under construction on the same property, the source reported.

Dymon currently has nine self-storage facilities in Ottawa as well as five sites in the planning phase, the source reported. “We aim to have 80 locations in the [Greater Toronto Area], which means in a community the size of Oshawa, we would likely have three to four locations,” Edwards said.

Founded in 2006, Dymon is a green company and the largest private provider of solar power in Ottawa, according to the source.

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Real Estate” topics page. Following are additional acquisitions and sales that weren’t covered.

3D Storage in Vernon, Ariz., was sold for $770,000. The property at 35451 U.S. Highway 60 contains more than 100 drive-up units. It sits on 30 acres of land, including nearly 10 acres of highway frontage. The seller was represented in the transaction by Jeff Gorden, vice president, and Seth Hodges, associate, of Eagle Commercial Realty Services, who are both Arizona broker affiliates for the Argus Self Storage Sales Network.

Bright Star RV & Mini Storage in Chino Valley, Ariz., was sold for $3.1 million to Paul and Tonya Middleton. The 6.2-acre property at 1165 Bright Star Blvd. includes seven single-story buildings, a manager’s office and residence, and outdoor vehicle-parking spaces. It contains 117,900 net rentable square feet of storage space in 444 units. The buyers were represented in the transaction by Jeff Barlow and Bobby Loeffler, both storage specialists for The Loeffler Self-Storage Group (LSSG).

Castle Self Storage in Branchville, N.J., was sold. The property at 3 Cook Road contains 156 climate-controlled and drive-up units, a parking area and an office. The new owner plans to expand the site by adding vehicle storage to the parking lot, according to Argus, which brokered the deal. The seller was represented in the transaction by Linda Cinelli, the Argus broker affiliate for New Jersey and New York City.

Extra Attic Self Storage in Wando, S.C., was sold for more than $100 per rentable square foot. The 6-acre property at 1074 Clements Ferry Road includes 11 buildings comprising 84,200 rentable square feet of storage space, a rental office and kiosk. The property is near Cainhoy Plantation, a 9,000-acre master-planned community. The seller was represented in the transaction by Dale C. Eisenman, president of Midcoast Properties Inc.

EZ Storage in Wayne, Mich., was sold to a limited-liability company (LLC). The 5.3-acre property at 34333 E. Michigan Ave. comprises 68,840 square feet of storage space in 588 units, 251 of which are climate-controlled. The buyer and the seller, also an LLC, were represented in the transaction by Brett R. Hatcher and Gabriel Coe, investment specialists in the Marcus & Millichap (M&M) Columbus, Ohio, office. Fellow M&M broker Steven Chaben assisted.

Folly Road Self Storage in Charleston, S.C., was sold to a Pennsylvania-based private-equity firm for $4.7 million. The property at 1573 Folly Road comprises 34,700 square feet of storage space in 303 units and has 15 vehicle-parking spaces. It’ll be managed by a third-party management company, according to Rein & Grossoehme Commercial Real Estate, the firm that brokered the transaction. Broker Bill Alter represented the seller, an entity controlled by a San Diego-based individual.

Gimme Shelter Self Storage in Newnan, Ga., was sold for $72 per rentable square foot. The 6-acre property at 340 Farmer Industrial Blvd. comprises more than 65,000 rentable square feet of storage space in 470 climate-controlled and drive-up units. The seller was represented in the transaction by Eisenman.

Profile Self Storage in Hooksett, N.H., was sold. The property at 180 Londonderry Road comprises 53,950 rentable square feet of storage space in 507 units. It also contains a separate lot with 80 vehicle-parking spaces and a large office that houses others businesses. The seller was represented in the transaction by Joseph Mendola, senior advisor for NAI Norwood Group, who’s the Argus broker affiliate for New England.

Safe Storage in Carson City, Nev., was sold for $2.8 million to A-American Self Storage Management Co. Inc. The 2.8-acre property at 1501 E. Fifth St. includes six single-story buildings, a manager’s office and residence. It comprises 62,470 net rentable square feet of storage space in 309 units. It also contains a two-story, 8,400-square-foot retail building at the front of the property. The tenants include a liquor store and hair salon. The buyer was represented in the transaction by Loeffler.

Storage Sense in Townsend, Del., was sold for $3.6 million to a private investor. Opened in 2001, the 11.5-acre property at 893 Noxontown Road consists of six single-story buildings comprising more than 65,000 square feet of storage space. The seller was represented in the transaction by Kevin Bledsoe, vice president of brokerage for Investment Real Estate LLC (IRE).

Storage at Lone Tree LLC by Century Communities purchased a 2.8-acre parcel in Lone Tree, Colo., for $1.5 million on which it plans to build a self-storage facility. The property at 9368 Teddy Lane was sold in an all-cash deal. The plans include developing a two-story facility comprising 80,200 square feet of storage space in 605 units. The seller was Lone Tree Storage LLC by real estate firm Hier & Co., which is managed by Nicholas Hier.

U-Haul International Inc. purchased a 160,000-square-foot warehouse in Bellwood, Ill., which it plans to convert to self-storage. The building at 950 S. 25th Ave. features 11,500 square feet of office space, 5,000 square feet of cooler space, and 16 loading docks, 14 of which are exterior. U-Haul, which chose the 8.3-acre site due to its proximity to Interstate 290 and the large parking lot, will take occupancy of the building in October. The seller, 950 S. 25th Ave. LLC, was represented in the transaction by George Cibula, broker, and Jeffrey Provenza, vice president, of Darwin Realty, a Chicago-based real estate brokerage, asset management, investment and development firm.

A private investment group purchased a 5.4-acre site in Arlington, Texas, on which it plans to build a self-storage facility. The property is on Sublett Road, south of Interstate 20, between U.S. Route 287 and Texas State Highway 360. The multi-story facility will comprise 122,000 gross square feet of storage space. The buyer was represented in the transaction by Jared Jones, director of Tulsa, Okla.-based Porthaven Partners, who’s also the Argus broker affiliate for Oklahoma. The seller was an out-of-state private investor.

Founded in 1973 by owner Edmund C. Olson, A-American operates 19 properties in California, Hawaii, Missouri and Nevada.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

LSSG specializes in self-storage real estate in California and Nevada, having closed more than 80 transactions in those states.

Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.

Midcoast Properties offers brokerage services to self-storage owners and investors in the Carolinas and Georgia.

Bedford, N.H.-based NAI Norwood is an affiliate of NAI Global, a managed network of independently owned commercial real estate brokerage firms.

Founded in 1993, Rein & Grossoehme specializes in the sale of investment properties and retail as well as office and industrial leasing.

Established in 1945, U-Haul owns more than 44 million square feet of storage space.

Tenant Property Protection (TPP), a Peoria, Ariz.-based company that partners with self-storage operators nationwide to provide protection of tenant goods, has expanded its board of directors with the appointments of Troy Bix, a 30-plus year veteran of the storage industry and founder of the Inside Self-Storage (ISS) brand, and Richard Marshall, a captive-insurance expert, according to company press releases.

Bix recently joined Janus International Group LLC, a manufacturer of self-storage roll-up doors and building components, as president of its R3 (renovate, remodel or retrofit) Division, where he’s responsible for positioning the company for growth in that market. He started his self-storage industry career in 1986 and launched ISS magazine and expo in 1991 and 1992, respectively. As the publisher and vice president of ISS, he oversaw all ISS media assets as well as the annual conference and tradeshow.

“With his vast experience in the self-storage industry, Troy’s expertise and guidance will help TPP strengthen its market position,” said Harry Sleighel, principal owner and board chair of TPP. “This is a real coup for us.”

“Harry and I go way back,” Bix said. “When he started TPP nine years ago, I knew he had a sound business concept. I predict in 15 years TPP will surpass the tenant-insurance industry and have a commanding market share. Protection plans are the wave of the future.”

Marshall has 30 years of experience in the captive-insurance industry. He currently works as a consultant to businesses and professionals, helping them form captive-insurance companies and risk-retention groups. Captive insurance is an alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself, the release stated.

Marshall previously helped launch R&Q Captive Management LLC, a provider of captive- and insurance-management services, and served as chairman until 2014. He was also the first captive-insurance administrator for the Arizona Department of Insurance, responsible for creating the state’s Captive Insurance Division, according to the release.

“Dick’s expertise in captive insurance, risk management and regulatory processes will be invaluable to have on our board,” Sleighel said.

 “Harry has a rock-solid, proven business that offers self-storage owners and operators a much-needed service,” Marshall said. “I’m happy to provide whatever support I can to make TPP successful and help it grow into the market leader as protection plans continue to replace tenant insurance.”

TPP’s property-protection plans are designed to allow self-storage operators to provide tenant goods with coverage against losses from crime, pests and natural disasters, while enabling additional facility revenue.

Storage Express, which operates 93 self-storage locations in five states, has completed renovations on the former Maxx Self Storage, which it recently acquired in Centerville, Ind. The facility at 1183 Airport Road comprises 25,000 rentable square feet and also serves the community of Richmond, Ind., according to a press release.

Facility improvements include a new controlled-access gate, fencing, LED lighting, paving, paint and high-definition video cameras. The company has also installed an automated kiosk.

“With two other facilities within a five-mile radius, this Centerville facility was a good fit for us and for area residents,” said Jefferson Shreve, president of Storage Express. “We look forward to continued growth in Northern Indiana, but also to our east and west along I-70, toward Ohio and Illinois where we also have facilities.”

Max Worland, a broker with Richmond-based Lingle Real Estate, represented the buyer and seller in the transaction.

Storage Express also recently acquired and renovated a storage facility in Fort Wayne, Ind. It’s opened three other locations in Indiana in the last year and has four expansion projects underway at existing properties in the state, the release stated.

Founded in 1992, the company owns and operates self-storage properties in Illinois, Indiana, Kentucky, Ohio and Tennessee. It has offices in Bloomington, Indianapolis and Jeffersonville, Ind.

By Ellen Storch

Imagine the following scenario: The manager of one of your self-storage properties, Joe, tells you he’s been diagnosed with cancer. The good news is that it’s likely treatable with chemotherapy and surgery. The bad news is he needs time off for treatment, and his doctors don’t know exactly how long he’ll be unable to work. They estimate he’ll need approximately two months.

You’re sympathetic. However, he’s only been employed with your company for five months and has already used all his paid time off (PTO). Do you have to grant his request for leave, even though he can’t tell you precisely how long he’ll be out? If you allow him to take leave, do you have to pay him? If so, how much?

Let’s add a layer and say Joe isn’t an effective property manager. You were thinking about replacing him before you learned about his illness. Can you still fire him?

The answer to these commonly asked questions is, “It depends.” Several laws come into play when employees seek medical leave. The following is a summary of what employers must consider when evaluating these requests.

Leave Entitlement

First, you must consider whether Joe is entitled to leave under the Family and Medical Leave Act (FMLA). The FMLA requires certain employers to grant up to 12 weeks of job-protected leave to employees with a “serious health condition.” If you employ 50 or more people within a 75-mile radius, your business is covered by the FMLA.

Joe’s cancer is considered a serious health condition, but is he eligible for FMLA leave? Employees don’t become entitled until they’ve worked for you for 12 months. They also must have worked at least 1,250 hours during that year. Since Joe has worked for only five months, he’s not eligible.

Notably, if Joe had been employed for a year and worked the requisite hours, he would be entitled to up to 12 weeks of job-protected FMLA leave. However, since he’s already used all his PTO, you wouldn’t be obligated to pay him during that time. If he had PTO remaining, depending on how your FMLA policy is written, you could require him to use the residual during his leave.

Next, you must evaluate your obligations under the Americans With Disabilities Act (ADA), which covers employees even before their first day of work, during the hiring process. The ADA applies to your business if you employ more than 15 people. In many jurisdictions, businesses with fewer than 15 employees are governed by similar state or local laws.

If an employee is considered “disabled” under the ADA, employers must provide “reasonable accommodations” if doing so will allow the staff member to perform his essential job functions. The definition of disability under the ADA is broad. Joe’s cancer renders him disabled under the law since, among other factors, he’s substantially limited in the major life activity of normal cell growth.

An accommodation is considered reasonable and must be provided unless it would cause the employer “undue hardship.” This analysis must be done on a case-by-case basis. An accommodation is likely an undue hardship if it would significantly disrupt operation, fundamentally alter the employee’s job, substantially impact the employer’s ability to serve customers or require the employer to incur significant overtime expenses. The employer’s size and resources must be considered. If an accommodation would be costly to implement, especially in light of the employer’s financial resources, it’s more likely to be considered an undue hardship.

Medical leave is a frequently requested accommodation. It may be considered reasonable even if, like Joe, the employee isn’t entitled to FMLA leave. Indeed, even if employees are entitled, the ADA may require employers to allow additional leave beyond the 12 weeks. Notably, an employer may be obligated to provide leave for a disability even if it doesn’t offer leave to other employees and even if, like Joe, the employee has already used all available PTO.

Determining Undue Hardship

How do you determine if Joe’s request for a two-month leave would create an undue hardship, allowing you to deny it? You must consider the amount of leave requested and how Joe’s absence impacts your operation. For example, let’s say you employ 100 people and have multiple storage facilities in proximity. At Joe’s site, you employ two assistant property managers, and they can absorb his functions without incurring significant overtime. Under these circumstances, his leave wouldn’t create an undue hardship.

By contrast, let’s say you own two facilities that are 50 miles apart. Joe lives on site, is the only full-time employee, and you don’t have staff who could cover his duties. Assume you couldn’t easily find a temporary employee who’d be willing to take over his job for two months without the onsite housing. In this scenario, granting the requested leave would probably be considered an undue burden. As such, you could deny the request, even if that means Joe must resign. Notably, if instead of requesting a two-month leave, Joe requested indefinite leave, it would automatically be considered an undue hardship, according to the Equal Employment Opportunity Commission.

Employees who seek leave as an accommodation often seek further adjustments, which must be evaluated on an individual basis. For example, let’s say you granted Joe’s request for two months off. However, he e-mails you after his fifth chemo treatment and tells you it’s not working as the doctors had hoped and he’ll need another month. Even though you determined the original request was reasonable, you should separately evaluate this new appeal.

Consider the impact of the two months of leave Joe has already taken and the impact on your operation of granting another month. You may have been able to lean on the assistant managers to absorb his duties for two months, but perhaps doing so required you to change their work priorities. Maybe auctions have been delayed, impacting cash flow. If the business can’t reasonably sustain the reallocation of duties for another month, you can likely deny the request for additional leave.

Interactive Process

The ADA requires you to engage in an “interactive process” with Joe. This means you must have a dialogue with him to determine how much time he needs and why, and whether you can provide the requested leave without suffering an undue hardship.

The information needed can vary from one employee to another. Sometimes the disability may be obvious. In other situations, you may need more details to confirm the condition is a disability under the ADA. However, most of the focus will be on the specific reason for the leave, whether for a block of time (two months) or intermittent (such as one day per week for four weeks). You should also know when the need for leave will end.

Employers are often reluctant to ask employees for details. However, they’re permitted to ask about the need for leave, the amount and type required, and whether reasonable accommodations other than, or in addition to, leave may be effective. This can, perhaps, result in the need for less time away from the job. With the employee’s permission, you can ask his doctor to confirm or elaborate on the employee’s statements.

Further, you can request additional information if the need arises. For example, if Joe asks you for another month off because his treatment isn’t working, you can ask request details from him or his doctor. You can also ask whether further extensions may be requested and how likely it is that Joe will be able to return to work if you grant the request. You could discuss with Joe whether an alternative accommodation would meet his needs. Perhaps he could return to work sooner if he was permitted to work part time for a couple of weeks.

It’s crucial to document the interactive process so you can prove that you’re engaged in it. Send letters or e-mails confirming what was discussed and when, and keep track of each conversation.

Working With Restrictions

What if Joe is able to return to work at the end of two months but isn’t fully recovered? You can’t simply require him to be entirely fit for duty at his old job. Instead, you must have a dialogue with him to determine what accommodations he needs and whether they’re reasonable. You have the right to find out why the restrictions are required and how long they may be needed.

If you can’t grant his specific requests, you must work with him to determine whether alternate accommodations could allow him to perform the essential functions of his job. If you can demonstrate that his requests would cause an undue burden, but you have another position available for which he’s qualified, you could propose that he take that job instead.

Compensation

Neither the FMLA nor the ADA oblige employers to pay staff while on leave, however, some jurisdictions require it. If you’re in an area that requires employers to carry short-term disability insurance—or if you elect to carry it—you must provide Joe with the information necessary to apply for the benefit.

Termination

Assuming Joe is an at-will employee, you could terminate him instead of considering his request for leave. However, the termination could give rise to liability under the ADA or similar state or local laws. Joe could allege you fired him because of his disability, you failed to accommodate his request for leave, or the termination was retaliation for his seeking an accommodation. Your chances of defeating such claims are tied directly to the quality of proof you offer to establish that you were planning to terminate him before he told you he was disabled and needed leave.

For example, you could likely successfully defend such claims if, the day before Joe told you about his cancer and his need for time off, you sent an e-mail to your human resources manager, instructing her to terminate him at the end of the week for poor performance. However, if you didn’t document Joe’s ineffective performance or your plans to fire him before he told you about his diagnosis, liability would be far more likely.

Crucial Takeaways

If an employee tells you he needs time off for a medical issue, consider whether he’s entitled to FMLA leave. If you’re not covered by the FMLA or the employee isn’t eligible, you must still have a dialogue with him about the request. Document all communication.

Consult with your employment lawyer before denying the requested leave to ensure the reasons for the denial amount to an undue burden under the law. Finally, refrain from terminating the employee unless your attorney says you have the legal right to do so.

Ellen Storch is a partner with Kaufman Dolowich & Voluck LLP, where she defends international, national and local employers as well as public employers and not-for-profit organizations in various types of employment litigation. Her practice includes discrimination and harassment cases, restrictive-covenant disputes, and wage and hour claims. She also counsels employers regarding the panoply of laws that govern and affect the employment relationship, with special emphasis on litigation-avoidance strategies. She’s often quoted as an employment-law expert in national and local publications. For more information, call 516.681.1100; e-mail [email protected]; visit www.kdvlaw.com.

Frome Self Storage of Frome, Somerset, England, is sponsoring a Lego-themed charity event next month to benefit Time is Precious, an organization that raises funds for local children’s hospitals. “Time for Bricks” will be held Sept. 17, 11 a.m. to 4.30 p.m., at the Best Western Centurion Hotel in Midsomer Norton, in Northeast Somerset. The goal is to increase awareness and funding for the nonprofit’s upcoming projects, according to the source.

The event will include more than 45 tables of Lego displays and activities, including a self-build Lego station, remote-control vehicles and a building competition. Refreshments will be provided, and there will be a raffle with more than £300 in prizes. Tickets are £3 for adults and £1.50 for children, and can be purchased from the charity’s website.

“We have held many events over the years for Time is Precious and wanted to try something different,” said Neil Halford, who launched the organization with his wife, Nicky, in memory of their son, Ben, who passed away from a brain tumor in 2010.

To date, Time is Precious has donated more than £250,000 in equipment and resources to area hospitals. The funds have been used to create sensory rooms for ill children, a parents’ room and a maternity suite.

Frome Self Storage is a part of Acorn Group, a family-run business founded in 1989 that also includes Mendip Pallets. In addition to traditional and container storage, the company provides document storage and moving services.

A building that housed the original Herman’s Inc. custom-apparel business has been converted and re-opened as a StorageHub self-storage facility in Rock Island, Ill. Owned by the Segal Family, the property at 2820 Blackhawk Road is the first climate-controlled storage operation in the city, according to the source. It comprises 40,000 square feet of rentable space in 230 units. It includes a loading/unloading bay, electronic access, video cameras, a retail office that sells moving and packing supplies, and an energy-efficient heating/cooling system.

Launched in 1946 by Herman Segal, Herman’s had operated out of the structure since was built in 1953, but the building was closed last year. "This is an excellent location and an outstanding opportunity for the Herman's Inc. family to develop a new business that continues to serve the local community,” said Scott Stroud, Segal’s grandson and planning and operations director for StorageHub. “Instead of leaving the building, we decided to make it an asset.”

The family plans to expand the StorageHub brand throughout the Quad Cities, which includes Bettendorf and Davenport, Iowa; and East Moline, Moline and Rock Island, Ill., the source reported.

Herman's began in 1946 as a provider of hosiery and underwear. It eventually distributed and produced embellishments and other promotional items, and later became a global distributor and manufacturer of corporate apparel and collegiate-licensed goods, according to Stroud.

 

Real estate developer Creekmore Group LLC has withdrawn a rezoning application in Goochland, Va., effectively shelving plans for a mixed-use project that would have included a self-storage facility and a pair of 5,000-square-foot office buildings on Patterson Ave., near Virginia State Route 288. The move came after the planning commission voted 4-0 on Aug. 3 to recommend against the rezoning request, according to the source.

Planners objected to the size of the project and didn’t believe it was the right fit for the property, which is in Goochland County’s Designated Growth Area and Tuckahoe Creek Service District. The parcel adjoins three of 36 residential sites within the Creekmore Park subdivision, which Creekmore Group developed in 2002, the source reported.

More than a dozen residents spoke against the project during the Aug. 3 meeting, citing concerns about its impact on noise and property values. The commission was also presented with a petition against the rezoning that was signed by 121 county residents.

Commissioner John Shelhorse recused himself from the discussion and vote because he’s managing partner for Creekmore Group.

The developer maintained its plan was “consistent with the county’s Comprehensive Plan and in accordance with the requirements of the Entrance Corridor Overlay District,” according to a statement submitted to the source. Creekmore Group also argued the project was “less intrusive” than its original plan to build five office buildings on the Patterson Avenue property. Though the initial plan received county approval, it was never constructed.

Creekmore Group is based in Richmond, Va.