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The Best of the Best

Article-The Best of the Best

The Best of the Best
Building luxury storage

By Bruce Jordan

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

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

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

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

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

Upon Entry

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

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

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

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

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

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

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

Exterior Details

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

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

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

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

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

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

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

Self-Storage Roof Systems

Article-Self-Storage Roof Systems

Self-Storage Roof Systems
Top it off right

By Wayne Woolsey

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

Roof Type

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

Roof Pitch

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

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

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

Roof Penetrations

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

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

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

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

Insulation Systems

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

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

Drainage

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

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

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

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

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

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

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

Unit-Mix Menagerie

Article-Unit-Mix Menagerie

Many changes in construction and unit mix have taken place in self-storage over the last 35 years, and a lot can be learned from past experience. Take, for example, three older projects: one in New Jersey with 600 units, all 5-by-10s; another in South Florida with 600 units, all 10-by-20s; and a third in Texas with 500 units, all 10-by-20s. These projects are still around, but their unit mixes have been modified, either by expansion or the demands of the self-storage market.

The New Jersey project was expanded and the unit mix enlarged, with some of the 5-by- 10s converted to 10-by-10s. The South Florida project now has more than 3,000 units of various sizes, including climate-controlled units. The Texas project has maintained its original mix, charging $50 per month for each unit. The property is full, but if it had a better unit mix, its value would be more than 50 percent higher.

Storage owners should avoid having all one unit size or a mix not designed to fit their particular markets. At the same time, all properties should include some climate-controlled units. One of the best approaches is to phase a project, which allows the owner to create a unit mix that matches rental demand.

Using Demographics

The first step in determining a proper unit mix is to analyze an areas demographics. If you feel uncomfortable doing your own research, purchase a market study from a professional. This can be used as a tool for obtaining financial commitments as well as raising your own confidence before building. The cost of a market study is quickly offset by the information it provides and may serve to prevent costly mistakes.

Demographic information can be obtained in a variety of ways. Utility companies have huge amounts of data. Real estate companies and chambers of commerce also have information on who is moving into and out of an area. These organizations are generally willing to share.

If you gather your own data, first determine the areas population. In urban areas with high-density population, the market area should be relatively small, with a 2-mile radius; in a rural area, the radius should be taken to 5 or even 7 miles. If the project is in an area that attracts customers from farther away, take customers locations into consideration.

When gathering data, visit and survey all the competitors in the area (of course being friendly, honest and courteous). Leave no project overlooked. A newer project may not yet be in the Yellow Pages or in a particularly visible area, so it is important to use as many avenues of research as possible. An area map will be useful in locating all local storage properties. Once all demographic information is collected, many of the answers for your proper unit mix will be apparent.

Looking at the Data

Once you have your data, here are some things to consider:

  • Income: As a starting point, household income should be slightly above the national average of $39,000 per year. Higher income levels indicate prospective customers may already have enough storage space in their homes. On the other hand, lower incomes indicate there is not enough disposable income to afford self-storage. High-income tenants tend to rent larger units for longer periods.
  • Education: As a general rule, an average minimum of a high school education is necessary to indicate a good storage market. Better education levels indicate upward mobility and the chance for career moves that will enhance storage opportunities. This is one of the best self-storage indicators.
  • Family Size: Smaller families indicate a larger amount of disposable income, which can indicate a need for self-storage. Larger families spend most of their income on basic living requirements and have less disposable income.
  • Climate: Areas of large climate variation and humidity tend to be excellent for self-storage. Humidity greatly increases possibilities for climate-controlled storage. Areas of extremely cold or hot climates are very harsh for stored goods. Even in areas of moderate climate, owners report climate-controlled units rent best once clients see the advantages.
  • Housing: Single-family homes offer the best potential for self-storage, particularly those with single-car garages and no basements. Multifamily homes offer good potential if income level is high and garages are not provided. University housing provides an excellent market but tends to be seasonal. Most college towns are good sources of tenants, but the unit mix tends to be made up of many smaller units. Military bases are always a good source of tenants, as customers are usually mobile and use large units; but make sure the installation is permanent and not subject to closing.

An Average Mix

The average unit size ranges between 90 and 130 square feet. Unit-mix percentages for the standard project are: 15 percent 5-by- 10s; 40 percent 10-by-10s; 25 percent 10- by-15s; 10 percent 10-by-20s; and 5 percent 10-by-25s. This leaves 5 percent available to be divided into larger or smaller units. Some 5-by-5s should be used as low-cost price leaders. Larger units are necessary for commercial customers and tenants storing an entire house worth of possessions.

This mix is a guide and will work for conventional or climate-controlled units. Variations can be used to fit lot sizes and local design requirements. The important thing is to be flexible. Phasing allows the opportunity to adjust the mix to the percentages of units that rent best. As a project fills, requests for larger units will push the average unit mix higher.

For example, commercial tenants generally require large units. If their goods are in any way perishable, they will also require climate control. In fact, the government now requires climate-controlled storage for pharmaceuticals and similar products. Storage of these items in a residence, garage or basement is no longer acceptable as quality control cannot be guaranteed.

All facilities, new builds or conversions, should include some climate-controlled units. Climate control currently makes up about 40 percent of the total self-storage market. Rent premiums for this type of storage range from 25 percent to 60 percent over the cost of conventional rentals, while operating costs average 10 cents or less per square foot per month. The temperature in these units ranges between 40 degrees in winter and 90 degrees in summer, with humidity at 60 percent to 65 percent.

Rising land costs, declining land availability, and government-imposed building restrictions all make multistory projects a good building option. For similar reasons, conversion projects have gained popularity. In some cases, column spacing and other obstructions may dictate the unit mix, though it generally only affects a small portion of the units.

To get the right unit mix, an owner must first study the demographics of a selected area, noting traffic patterns and local competitors. It is always preferable to build an upscale property with a variety of unit sizes. Higher land costs may require multistory development of an already climate-controlled building. Higher rents will offset the higher cost of developing this type of property. In all cases, the unit mix will remain about the same.

Dan Curtis is president of Atlanta-based Storage Consulting & Marketing, which provides feasibility and marketing studies to potential self-storage owners. Mr. Curtis is a frequent contributor to

Inside Self-Storage as well as a speaker at numerous industry conferences. For more information, call 404.427.9559.

Toughing It Out

Article-Toughing It Out

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

By Kimberly Hundley

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

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

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

Cherishing the Plateau

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

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

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

Darkest Hour

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

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

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

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

The Road to Storage

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

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

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

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

Inspiration

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

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

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

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

The Fairest Facility of All

Article-The Fairest Facility of All

The Fairest Facility of All
The new face of self-storage

By Louis Gilmore

For decades, the basic formula for successful self-storage development was, If you build it, they will come. Facilities built in the '70s and '80s lacked architectural flavor and used cookie-cutter-style buildings. They remained rented without challenge or objection. Today, however, we operate in markets with an average of seven competitors in a 5-mile radius. There is almost always a new face on the block, and you better bet the new face looks better than the old ones. As competition heats up, facility aesthetics become a greater factor in renters decision-making process. Modern facility designs include materials like brick, stucco and glass. Structures are accented with dormers and mansards, giving the renter a sense of class.

They Made Me Do It!

With a little help from your friends, i.e., the elected officials in your town, you may find your office looking more like the Louvre, your landscaping like Augusta National, and your signage like a mile marker. Gone are the days when you could just throw up a building you won at a tradeshow. Todays planners require submittal packages that include material samples, color selections and architectural elevations.

It is not uncommon to face written restrictions such as, No doors shall be visible or Buildings shall not have a flat roof. Often, you will see a contradicting requirement, like a full landscape buffer in front of buildings accented with split-faced block piers. Youll spend money to make the buildings look great, then youll have to hide them with shrubs and berms. The beautiful storage facility across town may not have been funded by the shade-tree committee, but the owners sure feel the costly effects of the boards ideas.

I Did It Myself

It is refreshing to see the new generation of self-storage developers working to smash the boring box concept. Owner/developers are voluntarily creating a brand image by putting money and effort into the curb appeal of their stores. Major operators or franchises in our industry, such as Storage USA, Shurgard and Uncle Bobs, have created an image for themselves with icons such as lighthouses or unique color schemes. Single-store developers have copied these concepts, creating attractive appearances that give a franchise feel without the fees. While many will argue there is no brand loyalty in the storage business, the investment in image is, without question, consumer-oriented.

The Office Is the Showcase

A storage prospects decision to rent a unit is ultimately made in the office. This is where he formulates his perception of your business and decides whether to trust you with his valuables. It is where he may abandon you, if his expectationsbased on information in your Yellow Pages ad or websiteare not met. Prospects will be frightened away by a lack of security, old technology, neglected maintenance, foul odors, even poor lighting. At the same time, his perception of your facility can easily be improved right from the start.

Modifications and upgrades to the office can include replacing the shag rug with tile flooring, clearing out the clutter, adding windows, replace ceiling tiles, switching to a flat-screen monitor, or incorporating some plants. The office environment should assist the manager in overcoming any objections renters have without involving explanations or comparisons to other facilities. At all times during the design and decoration of your office, consider whether you, as a tenant, would be comfortable.

What Can I Do About It?

Antiquated facilities are not easily revitalized or reshaped. Often, a comprehensive refurbishment of the entire property is required. A facility that has been around for 20 years is a prime candidate for repaving, office renovation, repainting, new doors, landscaping, modernized signage, and upgrades to gates, keypads, cameras and monitors. The hottest trend in renovations is adding climate-controlled units to the mix. Reconfiguration of existing buildings with the addition hallway systems, insulation and HVAC equipment can recharge old bins into first-class storage.

Whether you are planning a new project or budgeting money to restore an existing one, there is always a way to improve your facilitys image. Take a good look at what tenants see when they approach your business. Is it a face anyone could love?

Louis Gilmore is sales manager for Pennsylvania- based Miller Building Systems Inc., which has designed, supplied and installed selfstorage buildings since 1976. The company specializes in climate-controlled and multistory buildings. It recently introduced a division that renovates existing buildings and provides solutions to aging structures. Services include re-roofing, door repairs, climate-control conversions, and roof and wall coatings. For more information, call 800.323.6464, ext. 104; visit www.millerbldgs.com.

HCI Steel Building Systems Inc.

Article-HCI Steel Building Systems Inc.

HCI Steel Building Systems Inc.
One-stop supplier beats deadlines and exceeds expectations

By Michael Trunko

More and more often, self-storage owners are purchasing their buildings directly from a manufacturers authorized builder, eliminating the middlemen. Until recently, this approach was primarily used by experienced operators who wanted to expand their facility or build a new one.

Today, however, even first-timers are opting to go this route. HCI Steel Building Systems Inc., with its in-house engineering and manufacturing abilities, can listen to an owners concept and turn his idea into a reality. The company is capable of handling all the details of the construction process, from drawings through erection. Having all materialsstructures, roofing systems, wall panels, etc.designed, fabricated and delivered by one company offers many benefits. It not only saves money, but can also ensure a quicker and smoother project.

Worth Its Salt

Most brokers and suppliers farm everything out to a number of different vendors, says Gary Lundgren, owner of Alaska Mini-Storage. When too many suppliers are involved, and levels of communication go from person to person and supplier to supplier, mistakes and delays can occur during the process. Lundgrens company, based in St. Croix, Virgin Islands, has been developing property and operating real estate in Alaska since 1963. He has been in the self-storage industry since 1978 and currently owns six facilities.

Alaska has only about a six-month window for outside construction, roughly May through October, so you dont have a lot of room to deal with delays, Lundgren comments. We didnt start our Fairbanks project until July 2003, which meant we had about three months to get as much of the project completed as possible. We hoped to complete 90,000 of the 170,000 square foot facility before the severe cold weather hit.

We knew that the total amount of square footage we could complete in such a short period of time relied heavily on the suppliers capabilities, Lundgren admits. We couldnt afford delays because of materials or missed deadlines. Therefore, we took great care in choosing a supplier for this project. Many factors were taken into account when we compared suppliers and proposals.

Lundgren not only considered costs, but also the quality of the companys workmanship, reliability and willingness to meet strict deadlines. In the end, it came down to two companies, but only one of them proposed to design and fabricate everything internally in its own manufacturing plant.

HCIs team offered us a better production and delivery schedule at a better price than any of the competition, states Lundgren. We were already into the building season and, in their proposal, they committed to design the facility, fabricate the material and deliver everything on a fast-track basis. None of the other companies could compete in terms of time or price.

Founded in Alaska in 1981 as a manufacturer of pre-engineered steel buildings and metal panels, HCI designs, engineers and fabricates the material for all of its customers buildings in house. In 1986, the company moved to Arlington, Wash., and, in 1996, built a new, 90,000-square-foot facility. Today, HCI is one of only 26 manufacturers in the United States to have the AISC-MB certification for quality of workmanship.

One-Stop Suppliers

Most self-storage owners have a vision of what they want when building a new facility or expanding an existing one, says Lee McDaniel, vice president and general manager of HCI. They usually know they want a certain unit mix of 5-by-5s, 10-by-10s, 10-by-20s, etc. Based on this, we prepare drawings, do the engineering and detail work, provide sealed drawings for building permits, fabricate the steel, and ship the material to their sites. We often assist owners in finding a qualified erector to put up the facility.

The companys buildings are typically based on 5-foot modules in width and length. They are available with single- or double-sloped roofs, may have inside corridor access, and can have single- or multiple stories and climate control.

We buy steel directly from the mills. We do all of the manufacturing and engineering ourselves, and we ship the ready-to-assemble material to the job site, says HCI President Joe Holden. You dont have extra layers of people and suppliers, which is where mistakes can be made. You also eliminate extra layers of markup. By doing everything in house, we are as competitive on the East Coast with a multistory, climate-controlled building as we are in our own state.

Timing Is Everything

HCI not only designed and fabricated all our material in house, it provided assistance in finding a qualified erector for the project, Lundgren says. Since we were getting the material on a fast-track basis, we needed an erector who could put up the buildings in-kind. It wouldnt do us any good to have the material arrive on time, then have delays in putting it up.

Lundgren hired Farrell Contractors, an authorized HCI builder based in Boise, Idaho. I wasnt too concerned about the short time frame for construction, says company owner Hayden Farrell, who specializes in self-storage. I knew my guys could complete the 90,000 square feetas long as there were no delays in getting material and the weather held out. How much you can complete depends a lot on your supplier. With the Fairbanks project, HCI had everything bang on for us, and there were absolutely no holdups because of material.

Farrell, originally from New Zealand, was impressed by the quality of HCIs material and workmanship. He also appreciated the fact that practically no material was left over at the end of a job.

Toward the end of the project, Lundgren learned another benefit to working with a one-stop supplier: Last-minute changes did not pose any problems. He gave HCI preliminary design criteria, and the companys engineers were able to turn them into drawings within a few days. The company then instantly began fabrication of the material. Less than one week later, the material was on its way to Alaska, and there was no delay in construction.

Ease of Erection

While Farrell and his crew were initially going to build only 90,000 square feet, the smoothness and punctuality of the project enabled them to build 136,000 square feet. In addition to timeliness, he says, The material went together well, and it all lined up perfectly. These buildings are extremely easy to erect.

HCI recently completed a 37,500-square-foot, three-story project in Sacramento, Calif. The crane time totaled only 26 hours, approximately one-third the usual time required for this type of project. The erector, who was very experienced, had budgeted 75 hours for the job. Needless to say, he was pleased.

Our buildings go together quicker and smoother because we are accustomed to manufacturing buildings to very high tolerances, says Holden. Our first customers back in the early 1980s were the Army Corps of Engineers and oil companies in Alaska. They demanded a high level of quality and conformance to exact specifications. All the details and connections are designed for ease of going together in the field.

Its important erectors not have to fight the parts as they go up. We can fabricate buildings up to 600 feet clear-span with 80-foot side walls. You dont want to be fighting steel when you are up there. You want the connections to go together very easily.

Surpassing the Goal

Lundgren has an additional 34,000 square feet of buildings to erect at the Fairbanks project next year, with construction beginning in May 2005. I look forward to it, because this was a great experience, he says. Everything went together perfectly. There were no hitches, no problems and no surprises. Everybody makes promises in business, but not everybody can deliver, Lundgren says. This is a supplier and erector that delivers what it promises and in the time it promises. HCI not only met all the deadlines on the fast-track schedule, it actually exceeded them! For more information, call 800.255.6768; visit www.hcisteel.com. 

Michael Trunko is an Ohio-based writer specializing in construction and related topics. He can be reached at [email protected].

The Next Level

Article-The Next Level

The Next Level
Multistory gives self-storage development a lift

By Tyson Hermes and Erik Hermes

The self-storage market has begun to saturate in many areas of the country. As a result, developers have found it necessary to put facilities on premium property. New developments on highly visible, easily accessible sites are able to contend with the competition by providing something many first- and second-generation facilities cannot: convenient, modern amenities. These do come with a catch, however: cost. Developers may ask themselves, How do you justify a traditional self-storage development on a high-priced, 5-acre site? The answer is simple: Dont use 5 acres. Build up, and use less land.

The premium for multistory construction is only slightly more than that of traditional single-story facilities ($1 to $2 more per square foot, depending on the market and topography). The money spent on elevators, stairwells and sprinkler systems can be offset by less roofing, insulation, asphalt paving, storm-water systems, fencing and land. Amenities that appeal to tenantssuch as automatic sliding-glass doors at entrances, motion-sensor light switches, rounded hallway corners, and digital video recordingcan be added at relatively little cost. Finally, the high-profile look of a multistory facility is more appealing to many planning commissions. It has enabled developers to petition municipalities that have previously said they would never allow self-storage.

The success of a multistory facility doesnt come easily. It starts with a good plan on a great site. There are code considerations, design necessities and increased responsibilities that come with multistory construction. There are also key criteria that should be met. Not all of them are critical, but the ideal site would meet as many as possible.

Site Selection

Easy access, dense local population and a lack of competition help make a facility a success. Some things to look for in a site are:

  • The site should see a traffic count of 15,000 cars or more per day.
  • The nearest competitor should be at least 3 miles away.
  • There should be higher than average household income within a 5-mile radius of the site.
  • There should be popular retail outlets such as Wal-Mart or McDonalds within 1 mile of the site on the same street.

Code Requirements

Many important code-related questions can be answered quickly with the help of a construction manager familiar with the self-storage industry. Some things to ask are:

  • How high will the local municipality allow you to build? It is preferable to have at least 35 to 40 feet for three floors. Keep in mind, an elevator penthouse usually projects at least 4 feet above the roof.
  • How many floors are allowed? How many square feet are allowed per floor? This depends on state and local codes.
  • What about emergency travel distance? In the event of an emergency, an exit or stairwell must be available to all tenants and employees within 250 feet. Review the footprint of the building to see how many egress stairwells will be required.
  • What is the allowable square footage without a fire separation? State and local codes will only allow a certain amount of open area before requiring fire-separation walls.

Design Necessities

Once local authorities accept the site plan, its time to work out the design of the building. Put yourself in your customers shoes. Make the facility inviting and easy to use. The following items should be considered:

  • Unit MixThis works the same as in any self-storage development; however, you want the larger units to be closer to the entrances (and dock, if applicable).
  • Exterior Access UnitsBe sure to include these, as they are still a selling point for many customers.
  • Elevator PlacementOn the first floor, the elevator will require a 10- by-10-foot shaft and a 10-by-10-foot equipment room.
  • HallwaysThe layout should have no more than 150 feet maximum travel distance for customers from an entry point to their units, keeping in mind the distance to elevators for upper floors. Traditional facilities are able to attain 75 percent to 85 percent rentable space. In a multistory site, 65 percent to 70 percent is more common once you account for the rental office, hallways, elevators, stairwells and mechanical rooms.
  • Climate ControlThe amount of heating and cooled space depends on the local climate. Generally, multistory sites require a higher percentage of climate-controlled space than traditional self-storage. However, a 100 percent climate-controlled facility will turn away some customers who dont want to pay for it.
  • HVAC SystemSplit-system vs. rooftop-units, ducts vs. circulation fans, fresh air requirements and humidity control are considerations that can affect the floor-to-floor height.
  • Sprinkler SystemThe choices are wet or dry sprinkler systems. Both suppress fires with water. The wet system keeps water in the pipes at all times. The response in the event of a fire is almost immediate. The dry system maintains pressurized air in the pipes. In the event of a fire, water is released into pipes to the activated sprinkler heads. The initial response is delayed by about 15 to 30 seconds. The system selected depends on climate and percentage of heated storage space. Wet sprinklers are acceptable throughout the facility if it is in a climate that doesnt freeze or is all heated. More than likely, a dry system will be necessary in the unheated areas to avoid frozen water in the pipes.
  • Office Size and PlacementThis depends on personal preferences and the retail sales an office generates. The recent trend is to make the offices spacious, well-lit and inviting with nice finishes.
  • Gate PlacementCustomers should be able to access the office without going through the gate. However, the gate should be situated so all who access exterior units must pass through it.
  • WindowsLarge storefront-type windows facing the street are an excellent way of showing the public what is inside the building, plus they act as free advertising. Windows are a necessity inside the facility, especially at the end of hallways or near elevators, to alleviate the feeling of being in a maze.
  • Color-Coded FloorsSince the upper floors will likely have the same layout, consider using different colors on the unit doors for each floor. Customers tend to remember their door color more than their floor number.
  • Loading AreasDock access is convenient for some customers, but not a requirement for most. Providing carts for tenants will make elevator use more acceptable. Allow a staging area and wider hallways near the elevators for tenants moving items to the upper floors. Review the size of the entrance door and elevator door or any other pinch points to ensure whatever can fit through the entrance can also fit on the elevator and down the hallways.

Potential Drawbacks

Phasing. With traditional self-storage, the facility can be constructed one building at a time. This is called phasing. The ability to construct the facility in phases allows you to limit your investment and risk. The unit mix can also be adjusted to match the market as new buildings are completed. With multistory facilities, phasing is not possible, as the entire shell of the building must be completed on the first day of operation. Thus, more cash is required in the beginning for the additional working capital. In addition, the unit mix and layout should be planned very carefully because adjusting the units later can be costly.

Schedule. Drawing preparation, permit processing and construction time are longer with multistory building. Allow four to six months for drawing preparation and permits and eight to 10 months for construction. The schedule varies greatly depending on the municipalitys familiarity with multistory selfstorage and the building system selected.

Managers Responsibilities. Multistory buildings are more complex than traditional self-storage and, therefore, add greater responsibility to the managers role. This includes checking wet and dry sprinkler systems, maintaining elevators, inspecting and maintaining smoke detectors in elevator shafts and ducts, maintaining hallways and stairwells, and securing the facility at the end of each day.

Operating Costs. Multistory buildings may experience higher operating costs, including utility costs (gas and electric). This depends on the amount of heating, cooling and lighting in the facility. Elevator maintenance, sprinkler maintenance and yearly inspections may also be higher.

Multistory self-storage is beginning to fill a niche that has not previously existed. With proper planning, a good manager and cooperation from local municipalities, multistory facilities can be built in communities and cities previously unwilling to allow self-storage. This is done by literally taking self-storage to the next level.

Tyson and Erik Hermes are brothers and owners of Hermes Construction Co. Since 1980, theyve specialized in the design, development and construction of self-storage facilities. For more information, call 859.781.7198; e-mail [email protected]; visit www.hermesconstructionco.com.

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

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

The Wild West

By Michael L. McCune

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Building Modernizations

Article-Building Modernizations

Building Modernizations
Options to upgrade any storage facility

By Doug Carner

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

Self-Service Kiosks

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

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

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

Curb Appeal

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

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

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

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

Additional Security

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

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

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

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

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

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

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

Miscellany

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

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

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

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

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

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

The Florida Self Storage Association

Article-The Florida Self Storage Association

The Florida Self Storage Association
The best start under the sun

By Kimberly Hundley

Though some might like to believe it, creating a strong state self-storage association is not as simple as mixing up a delicious pitcher of Florida orange juice. Self-storage advocates who have been there and done that know it is more like cultivating an entire orange grove.

Since its energetic inception in 1998, the Florida Self Storage Association (FSSA) has grown from a regional networking group to a vibrant statewide organization. Thanks to some inventive, members-only offerings, it has increased membership 25 percent in the last year to a total of 400. Determination and creativity on the part of board trustees has steered the association through a period of dormancy to a new era. In November, the FSSA will host its first regional conference and tradeshow, in conjunction with Inside Self-Storage (ISS).

An Auspicious Beginning

David Blum, past president and current board trustee, recalls the ups and downs of the associations first years. We started as the South Florida Self-Storage Association, which was basically designed to be a group for networking among owners and operators in the tri-county area of south Florida, Blum says. We received a tremendous amount of support and interest initially. In August 2000, we had our first mixer. It was like a tradeshow, and we invited everybody managers, employees and operators. We had about 20 vendors with table-top displays, and it was a rousing success, with almost 300 attendees.

Around the same time, Michael Kidd, executive director of the national Self Storage Association, approached the groups board members and encouraged them to build on their momentum and launch a statewide organization. The board gladly took up the challenge. Before long, however, an ongoing battle surfaced: how to remain relevant to members.

I think all the state associations are running into this issue, Blum says. There is a lot of enthusiasm in the early days; but in time, everybody starts to look for what the association provides its membership. Without a continuing source of income from either fundraisers or dues, its difficult to provide services to the members. After about two years, you run into a struggle to justify their continued support.

Goals and Challenges

A recognized role of state associations is to provide a united front in lobbying for the industry. All the major national self-storage companies account for less than 10 percent of total facilities, Blum says. Thats why its important for individual operators to have a group that represents their interests throughout the state. When issues do arise, most legislators want a single voice representing the industry. And they want a local, not national, organization representing them.

In Florida, however, no rallying point such as late-fee legislation has emerged to drive statewide membership. The FSSA positions itself as a proactive organization working to educate lawmakers on industry needs, yet such results arent concrete. Members and potential subscribers want to see cold, hard, tangible benefits for their $250 in annual dues.

What to do? The FSSA board committed to producing more discounts and other members- only amenities. A self-storage lease, developed in August 2003, perhaps ranks as the most valuable. Approved for use in the state of Florida, the lease is available for purchase on CD. Not many state associations have a specific state-sponsored lease, well-written by a highly regarded self-storage attorney, says Linnea Appleby, board president. Thats a huge benefit, available only to members.

The association recently revamped its website, www.floridassa.org, and is creating an area exclusively for members where jobs may be posted. Well also have a bulletin board for exchanging questions and answers on issues that come up in the state, Blum says. With the help of the national association, we have an advocacy network people can call when issues arise, and we limit that to members. Quarterly networking luncheons at which discounts are offered are offered for members as well.

Blum is pleased with the boards progress thus far. Weve worked very diligently over the last year and a half to create benefits to promote and drive membership, he says. But the FSSA still has ample room to grow. The state of Florida has 2,300 self-storage facilities, according to Blum. The potential to expand is enormous, and growth is a key goal for the board.

We want to be able to reach out, Blum says. Right now we are very strong in the south and west. We want to expand into the central, northeast and southeast parts of the state. One of our strongest goals is to find people to help us support that growth. To encourage expansion, Blum and other key board members continually seek like-minded candidates who sincerely care about the industrys well-being.

What were looking for are people who have a genuine interest in the concept of an association supporting the industry in the state, says Blum. And were starting to get more people who have an interest in the betterment of the industry and the importance of having a single voice that offers real benefits for the members.

Board of trustee members serve three-year terms. Blum and Appleby are excited by the boards direction and recent retooling. Specific committees are being formed to tackle topics such as education and special events, with each committee headed by a board member.

Expo Tops the List

In reviewing the FSSAs accomplishments for 2004, Blum points to the joint-venture expo in Miami, Nov. 17-19, as a milestone. By teaming with ISS in a regional event, the FSSA will help alleviate the drain on vendors who cant afford to attend the burgeoning number of tradeshows. I think in the future youll see more and more of this type of thing start to come on, says Blum.

The conference kicks off with a one-day developers seminar sponsored solely by the FSSA on Nov. 16. Weve done it each year, and each year it gets progressively more popular, Blum says. The seminar is ideal for anyone interested in storage development. A separate fee is required.

In addition, the FSSA planned one of the expos educational tracks, devoted entirely to state-specific issues. The track features experts on building codes, insurance, human resources and Internet marketing. Next year, Blum predicts, the content will be regionalized to attract attendees from Georgia and other nearby states. Also featured this year is a track geared toward industry newcomers and another for seasoned professionals in the business.

The ISS expo is designed to assist those involved in self-storage as well as those investigating opportunities to excel in the industry, says Michael Reed, ISS tradeshow manager. Our joint effort with the FSSA is a continuation of our efforts to promote the self-storage industry. We continually increase awareness and provide networking opportunities for developers, owners, operators and suppliers from many parts of the globe.

Reed, Blum and Appleby say the choice of Miami as host city will definitely add to the shows appeal. This is the first time an event has been held in Miami, and its going to be extremely exciting, Blum says. Its also the first time a state association has joined up with a professional like ISS to put together a joint venture. Its going to be informative, fun and one of the best shows around.

For more information, visit www.insideselfstorage.com/expo/miami.


FLORIDA SELF STORAGE ASSOCIATION
Board of Trustees

Linnea Appleby, President
Storage Spot
Bradenton, Fla.
www.storagespot.com

Jeanne Braker, Executive Director
Florida Self Storage Association
Boca Raton, Fla.

David Blum
Blum Management Services
Coral Springs, Fla.
www.blumms.com

Brian Blankenship
Metro Storage
Lake Bluff, Ill.
www.metrostorage.com

Chip Cordes
U.S. Door & Building Components
Orlando, Fla.
www.usdoor.com

Kerry K. Harvey
Florida Secure Self Storage
Penbrook Pines, Fla.
www.floridasecurestorage.com

L. Bruce McCardle
Mako Steel Inc.
Jacksonville, Fla.
www.makosteel.com

Lew Pollack
Stars & Stripes
Boca Raton, Fla.

Norman Schulman
Sentry Self Storage
Coral Springs, Fla.
www.sentry-selfstorage.com

Heather Toler
Capital Management & Realty
Boynton Beach, Fla.