Ever used travel websites such as Travelocity, Orbitz, maybe Hotels.com? Most of you are probably nodding your head. You've most likely used an aggregation website to book a hotel room, rental car, plane ticket, dinner reservation, tee time and more. Online directories help us compare several options through the convenience of a single website. These days, online shopping for self-storage units works no differently. The same directory business model has been used in the industry for nearly a decade.

Directories are a valuable addition to the marketing strategy for thousands of self-storage facilities. Go to your favorite search engine (Google, Yahoo, Bing, etc.), type in storage unit, and youll see what I mean. Between the natural search results and paid ads, each of the major search engines will return several industry directories, which are designed to help consumers compare multiple facilities through a single Web portal. A good directory simplifies the purchasing process, which is important to an online shopper.

How Do Directories Compete?

Are directories competing in the online marketplace so they rank atop the search engines? Absolutely. These well-established sites generally have very aggressive search-engine optimization and marketing strategies that enable them to be found in search results. Due to their size, they have economies of scale individual facilities cannot possibly have, with entire teams devoted to getting them as close to the top of search results as possible.

This can be a benefit for you, the individual storage operator, too. You may not realize how many keyword combinations you would have to target to compete for the top position of every storage-related search within your market. If you were to target just 10 keywords (for example, storage, self storage, mini storage, storage unit, etc.), times five geographic identifiers (ZIP code, city, neighborhood, etc.), times two wording variations (keyword followed by geographic indicator and geographic indicator followed by keyword), thats 100 keywords you would have to support through your SEO efforts.

If you were to think about it, you could easily come up with 30 to 40 keywords and a dozen geographic indicators for which you would like your facility to compete. But most self-storage operators dont have the time or money to invest in these efforts. For that reason, consider using an online industry directory (or several), which is already targeting thousands of keyword possibilities. This will allow you to focus on just the two or three keywords most germane to your business, reduce your internal online marketing costs, and reach more potential tenants.

Is it possible for your website to consume every place on the first results page of a major search engine? No. But it is possible for your facility to be found multiple times on a page by joining a directory. There are only so many listings on the first page of Google, adding yourself to another seat at the table only makes sense.

Why Should You List Your Facility on a Directory?

First, its an instant placement on the first page of the major search engines. Most self-storage directories have been around for many years now. Consequently, the major directories are recognized by the search engines as the most relevant results when users type in search terms relating to the industry. Depending on your particular market and the competition within it, it could take months or years for your individual facility's website to be found on page one naturally (without the use of paid search-engine advertising).

Second, a directory is set up to convert as many online visitors as possible. Whether its a flat-fee directory, a pay-per-conversion directory or some combination of the two, if it doesn't convert users to paying tenants, it will not retain facility operators as customers.

Directory websites invest thousands of dollars every year into watching the online behavior of Web visitors, testing new variations and implementing hundreds of tiny changes to reach optimum conversion rates. Do you have time to do this with your website? If not, this is an intangible benefit you receive by being listed in directories.

Which leads to reason No. 3: Operators of industry directories keep up with online trends and know what consumers want. Outside of conversion, they look at overall consumer behavior, how to capture and retain visitors, and how to keep them returning to the website.

You may have concerns about being listed among your competitors in these directories, but the reality is you cant afford not to be. A directory is a consumer-friendly website that allows storage seekers to shop facilities and reserve/rent units. If your facility isn't listed, it will never be in the mix for the traffic these sites are getting from potential customers.

As stated earlier, a directory's success is tied to customer conversions. Membership in these websites is generally short-term, so immediate results are a must if the directory wants to keep your business. Some directories only charge a fee when a customer calls a facility, visits the facility website or reserves/rents a unit. Whatever the fee structure is, one rental will generally cover the cost of directory membership for quite some time.

The bottom line is self-storage directories are additional websites on which your facility can be found and through which you can capture what every storage operator wants: more rentals.

Nick Bilava is the director of sales and marketing for USstoragesearch.com , an Internet hub that connects online consumers with self-storage facilities nationwide. Bilava works with storage operators to help them capture more tenants online through USstoragesearch.com and a partner network of sites including StorageUnit.com and   Storage.com . Over the past five years, he has worked with thousands of facilities to help them get more rentals online. He can be reached at 866.880.0742 or nbilava@usstoragesearch.com .

California self-storage provider A-1 Self Storage is participating in the U.S. Marine Corps Reserve Toys for Tots Annual Holiday Toy Drive. The company's 39 locations are now drop-off sites for the collections of new and unused toys, which will be distributed to children during the holiday season.

 We feel it is important to bring hope and the joy of Christmas to needy children. Our annual events have always been a huge success and we hope to continue to be able to collect as many toys as possible for deserving children this holiday season," said Brian Caster, president and CEO of Caster Cos.

A-1 Self Storage has 16 locations in the San Diego County area and 39 locations statewide. It is the self-storage division of the Caster Cos., a third-generation, family-owned company headquartered in South California since 1959. Caster Cos. develops and manages A-1 Self Storage, A-1 Car Storage and other commercial properties in California. Its portfolio includes more than 4 million square feet of real estate.

CubeSmart, a self-storage real estate investment trust, closed its public offering of 23,000,000 common shares. The initial price was $9.20 per share, which reflects the full exercise by the underwriters of their option to purchase 3 million common shares to cover over-allotments.

The company received $202.4 million in net proceeds from the offering after deducting the underwriting discount and other estimated offering expenses. CubeSmart intends to use the money to fund a portion of the purchase price for its acquisition of 22 self-storage facilities from Storage Deluxe.

Wells Fargo Securities and BofA Merrill Lynch acted as the joint book-running managers for the offering. Morgan Keegan, Piper Jaffray, PNC Capital Markets LLC, Raymond James, RBS Securities Inc., SunTrust Robinson Humphrey and Macquarie Capital acted as co-managers for the offering.

CubeSmart is a self-administered and self-managed real estate investment trust that owns or manages 456 facilities across the United States and operates the CubeSmart Network, which consists of approximately 838 additional self-storage facilities.

In recent conversations with self-storage owners, Ive noticed the majority are enjoying stabilized revenue and, in some cases, increased revenue over the last six to 12 months. Most dont realize that theyve made or lost money, not because theyre in the self-storage business, but because theyre in the real estate business.

While an increase in revenue is creating more cash flow for owners, the real opportunity today lies in the arbitrage between capitalization (cap) rates and interest rates on which a real estate investor can capitalize. Arbitrage is usually thought of as a high finance concept, but there are some viable opportunities that might be available in the world of self-storage. It means an investor can take advantage of some pricing or other discrepancies in the marketplace.

In its simplest form, a cap rate is the return a buyer demands on an investment without taking leverage into consideration. For example, if a buyer is willing to pay an 8 percent cap rate for a property, every dollar of net operating income (NOI) would be worth $12.50 in value ($1 / .08 = $12.50). If the cap rate is 9 percent, every dollar of NOI would be worth $11.11 ($1 / .09 = $11.11).

As you can see, lower cap rates equate to higher values and higher cap rates equal lower values. Thus, the cap rate has more to do with the property value than the actual day-to-day operation. In reality, the buyer is purchasing the income stream rather than the property. Although Ive used a generic illustration here, its important to note cap rates are property- and market-specific, and theres no standardized cap rate that fits every property.

The Impact of Arbitrage

I took a closer look at some recent cap rates on self-storage closings and how the properties are being financed. Cap rates are ranging from 7.75 percent to 9.25 percent for stabilized properties, with the average falling somewhere around 8.25 percent.

I also looked at the financing terms most buyers are able to achieve today and observed the following: For one to 10 years, the interest rates are between 4.5 percent and 7 percent, and amortization schedules are between 20 and 30 years. This puts the spread between interest rates and cap rates somewhere between 100 to 475 basis points, with the majority being greater than 250 basis points.

The accompanying chart shows the impact arbitrage can have on a self-storage investment when the cap rate is significantly higher than the interest rate. The net result of the arbitrage between cap and interest rates is the greater the spread between them, the greater the return an investor will receive on his equity.

Clearly theres value in understanding the benefit of some of the lowest interest rates in the last 40 years. The rewards make the game worth playing, and the trick is to make sure the spread between the cap and interest rates provides you with a return you can live with. The question to ask is how long will these opportunities last? Your guess is as good as mine, but in the game of arbitrage, its all about carpe diem!

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self storage buyers and sellers and operates SelfStorage.com, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE; e-mail bvestal@argus-realestate.com .  

I 78 Self Storage in Myerstown, Pa., sold for $485,000 to an individual real estate investor. Built in 2004, the property has 126 units totaling 22,800 square feet. The total lot size is 2.53 acres and is approved for one additional building of 3,000 square feet. 

Occupancy at the time of the sale was 72 percent. The new buyer is constructing a rental office at the property immediately after the closing. This was an all-cash transaction with no financing. 

John H. Gilliland of Investment Real Estate represented the buyer and seller in the transaction. Investment Real Estate provides self-storage brokerage, construction, feasibility and consulting services in the Northeastern and Mid-Atlantic states. 

On Oct. 29, LifeStorage of Elgin, Ill., will participate in Trunk-or-Treat, a fun community event that provides a safe, controlled alternative to Halloween-eve trick-or-treating. Dozens of decorated vehicles will fill the parking lot of Church in the Word, with their trunks full of candy and seasonal games. Children go from car to car, enjoying the festive surroundings. Inflatable decorations, face painting, fall food and live music will also be provided. The event starts at 2 p.m.

LifeStorage Elgin facility managers Susan Powers and Paul Menzel will provide candy and bubbles to children. Theyll also decorate the facilitys moving truck with a family-friendly autumn theme.

I do not know if I will be dressing up yet, but definitely will try to. I love Halloween, Powers exclaimed. Anytime you can reach out to the community, kids, or the elderly, it's a wonderful opportunity to connect with others and help out The more we are able to be a part of events like this, it just reminds everyone that we do care about our community, that we're a business that takes an active roll in participating and giving back, and we can have some fun while doing it.

LifeStorage was founded in 2002 by owners Jean Jodoin and Christopher Barry. The company has 18 self-storage facilities in the ChicagoLand area.

American Buildings Co. (ABC), a Eufaula, Ala.-based manufacturer of metal building systems for self-storage and other industries, recently put its design expertise and resources to work to create a helicopter pad that can be used by the local community in emergencies. The company has also stepped up its emergency-response measures.

After devastating tornadoes that took place in April, the company examined its emergency plans and implemented new measures to ensure the safety of employees and local residents. The company started by enrolling in the Occupational Safety and Health Administrations Voluntary Protection Program (VPP), which recognizes employers that have implemented health- and safety-management systems and maintain illness and injury rates below the national Bureau of Labor Statistics averages for the industry.

ABC decided to go beyond the requirements of the VPP, working with 25 of its employees to design and create a 250-square-foot helicopter pad that can be used to lift out residents during an evacuation. Approved by the Federal Aviation Administration and the Alabama State Department of Aeronautics, the landing pad is now open and ready for use as a backup to the local hospital.

At ABC, safety is a top priority, said Ron Kuenkler, president. Weve implemented safety measures in all aspects of our business, and now with the helicopter pad, we have the opportunity to positively impact the surrounding community.

ABCs safety efforts continue to grow. The company recently joined with other businesses to form the Industrial Park Emergency Response Team, which has grown to more than 50 members including the local emergency medical services, Barbour County Emergency Management Agency, Eufaula Police Department, Eufaula Fire and Rescue Department and volunteer nurses. The team holds regular training meetings to assign tasks and prepare for a quick response in the event of an emergency.

ABC has designed, manufactured and delivered metal buildings and roofing systems for more than 50 years. The company has engineering and manufacturing centers nationwide and a network of more than 800 authorized builders. ABC, a NUCOR company, produces industrial and commercial structures as well as tailored projects for a variety of industries including self-storage, automotive, retail and transportation.

StorageUnit.com, a self-storage finder and reservation website, has been redesigned and re-launched, now allowing consumers to shop for, compare and reserve self-storage units nationwide. The sites easy-to-use interface searches available units at almost 4,000 self-storage facilities in more than 2,000 U.S. cities. Users can search by city, state or ZIP code or by using an intersection or address.

Each facility provides real-time information about unit availability, monthly rental rates and amenities. In addition, StorageUnit.com has worked to secure special offers, discounts and coupons that can only be found on the website.

Simplicity and transparency were two very important factors for us in the design of the website, said Randy Yoder, director of operations. We wanted to ensure that consumers know exactly what they are getting and provide them with an assurance that the unit they need will be available when they show up to the storage facility.

Yoder and his associates envisioned the current design of StorageUnit.com in 2007, but it took time to build the processes and relationships necessary to provide consumers with real-time facility information. The site was launched in 2008 as an information portal. Last year it underwent a redesign that continued to provide self-storage information but also displayed facility listings. This year StorageUnit.com made strategic partnerships that allowed the site to be launched in its current form.

In addition to self-storage units, StorageUnit.com also offers mobile-storage solutions. The directory includes more than 3,000 mobile-storage locations, each with an average service area of 45 miles.