A1 Heated Storage, a self-storage facility in Sedro-Woolley, Wash., has filed a second lawsuit against the city as owner Thomas Swett seeks approval to allow customers to grow medical marijuana in designated units. The suit asks for the approval of a conditional-use permit as well as reimbursement for legal fees and business losses amassed during Swetts first legal battle over the issue.

Swett estimates he has spent $57,000 on attorney fees during the permit fight, although he said he has not hired an attorney to handle the new lawsuit.

Swett originally applied for a conditional-use permit in December 2011 to convert several self-storage units into spaces appropriate for hydroponic gardening. The city council denied the permit, but a hearing examiner approved it on appeal. The council then overturned the examiners decision.

Swett subsequently sued the city for not giving him due process and failing to follow municipal law. A Skagit County Superior Court judge sent the case back to the city after ruling on Aug. 13 that the council made procedural errors in reversing the examiners approval and denied Swett due process.

The council rejected the permit again Sept. 26, voting 6-1 against the proposal. Council members argued that allowing customers to grow medical marijuana in a residential zone would attract crime and place neighboring homes and a nearby daycare center at risk. During the hearing, the council was allowed to consider only facts tied to whether or not growing medical marijuana at a self-storage facility constituted low-intensity agriculture and if allowing the special-use permit would be an asset to the community.

Swett believes the council rejected the permit because of bias rather than factual considerations. You cant just arbitrarily say you dont like it, he said. So thats why were going back to the judge.

Swett filed the second lawsuit on Oct. 29. On Nov. 6, Washington-state voters approved a ballot proposition aimed at legalizing aspects of recreational marijuana use. It is unclear how the passage of Initiative 502 may affect Swetts lawsuit.

Lending veteran Christopher Haynes, formerly of Bank of America/Merrill Lynch, has opened Broadacre Financial Corp., a boutique commercial real estate advisory firm specializing in debt and equity financing and restructuring. Based in New York City, the firm will provide  mortgage brokerage, advisory services and restructuring assistance to owners of self-storage and other real estate types.

Haynes serves as president for Broadacre. His background includes a 20-year career in real estate lending at Bank of America/Merrill Lynch, where he was an integral part of the Merrill Lynch commercial real estate conduit since its founding in 1994. He was actively involved in originating, underwriting or closing more than $20 billion in loans in more than 60 commercial mortgage-backed securities pools. He was one of only three Merrill Lynch CMBS employees retained by Bank of America after the merger in 2008.

Haynes was a member of the banks credit committee and managed teams of originators, underwriters and closers for a specialized lending platform within the bank. He has experience in first mortgage debt, mezzanine loans, bridge loans, earnouts, construction loans, equity and whole loan sales in all property types including self-storage, retail, hospitality, office, industrial/warehouse, multi-family, manufactured-housing communities, underlying co-op mortgages and owner-occupied properties. His clients range from small owners to private and public real estate investment trusts and Forbes 400 members.

When the market was volatile in 2008 and 2009, a significant number of my banking colleagues changed jobs. I realized that I had this vast network of former co-workers who were now at all the major Wall Street firms, local banks, life companies, private equity firms, servicers, B-piece buyers and hedge funds," Haynes said. "Meanwhile, my clients were calling me for help with problematic loans, and I found I could connect them with former colleagues in just about any area of the industry.

Haynes said his experience and knowledge will help streamline the lending process for bankers and borrowers. I know the banks underwriting standards, the rating agency guidelines, and the pitfalls in the process ... As a former banking insider, I know all the strategies banks use. I know what deal points are negotiable, where you can save basis points, what fees can be waived, and what concessions can be given. I know how to reduce a borrowers costs.

Prior to joining Merrill Lynch, Chris was a loan officer at Home Savings of America, where he managed workouts of problem commercial real estate loans. He began his lending career as an underwriter at White Horse Mortgage Corp.

Chris has a bachelor's degree in economics from Fairfield University and a diploma in real estate with a concentration in investment analysis from New York University. He has been a featured speaker at the Cornell University School of Hotel Administration and the Urban Land Institute. He currently holds the Series 7 and 63 securities licenses and is a licensed real estate broker in the state of New York.

In the last three months, Ive seen the market opening up significantly. With rates at historic lows and higher leverage available at the right price, the trends looks very positive," Haynes said.

By Patricia Fripp

Networking is an important part of building your business and developing good social contacts. However, if you go to business events and no one remembers you afterward, what's the point in attending? Such contacts only work if you make yourself memorable.

Too often, talented and well-educated self-storage operators attend networking events and yet miss their big chance to make an impression. How? By developing a mini presentation for audiences of one to five. All speaking is public speaking. Outside the privacy of your own home, youre speaking in public no matter the size of your audience.

Here are some strategies that let you walk into a room with quiet self-assurance, confident that people will enjoy meeting you and recall you afterward.

1. Arrive looking your best. If you have a hectic day before going to a networking meeting, keep a change of clothes in your office or car so you can arrive unwrinkled and fresh.

2. Wear your name tag. Were all more likely to retain information we see and hear at the same time, so wear your name tag up on your right shoulder. That way, people can read it as they hear you say your name. Some women put their name tags down on their handbags or in the most inappropriate places. Put it where people are not afraid to look!

3. Develop a memorable signature. Men can wear ties on which people will comment. Women can wear a certain hat or jewelry. Just find something interesting to add to your wardrobe that stands out.

4. Develop an unforgettable greeting. When you introduce yourself, dont just say your name and job title. Instead, start by describing the benefits of what you do for clients. A self-storage operator might say, I help people make more space in their homes. Almost invariably, your new friend will ask, How do you do that? This opens the door for you to tell him about your facility. People remember the vivid pictures you create in their minds more than the words you say.

5. Greet everyone. Dont ignore people you recognize if youve forgotten a name. Smile and ask a question like, What is the most exciting thing thats happened to you since we last met? or What is your greatest recent success? Never be afraid to say, The last time we met, we had such a great conversation. Will you remind me what your name is? Best-selling author Susan RoAne tells people, Forgive me for forgetting your name. Since I passed 40, its hard to remember my own.

6. Overcome your shyness. Much of the value of networking events can be lost if you allow yourself to focus on being unassuming or fundamentally shy. For many, mingling with a room full of strangers can be an unpleasant or even scary experience. Focus on the benefits of meeting exciting new contacts and learning information instead of any butterflies in your stomach.

Until youve gained confidence, a good way to do this is to volunteer for a job that requires interacting with other attendees, such as being a greeter. This person stands at the entrance with a label on his name tag identifying his role. He has a specific job and dialog to convey: How do you do? Im Chris Carter. Welcome to the chamber mixer. Is this your first event? Please find your name tag. The food is in the next room, and our program will start in 30 minutes.

Soon youll start feeling like the host of the party. Youve met many new people and will get cheery nods of recognition throughout the event, making it easy to stop and talk later. When you focus on helping others feel comfortable, youre not thinking about being shy!

7. Travel with your own PR agent. This is a powerful technique that maximizes your networking: Form a duo with a professional friend. When you arrive, alternately separate and come together, talking up each others strengths and expertise.

8. Always send a note, e-mail or brochure the next day to the people youve met. Keep business cards, and make notes of what you said so when you meet up at another event, youll immediately have talking points.

These are all positive, pleasant, easy ways to be memorable. Get the most out of your networking time and energy by making yourself worth remembering!

Patricia Fripp is a speaker, executive speech coach and sales-presentation skills expert who works with organizations and individuals to help them gain a competitive edge through powerful, persuasive, presentation skills. Shes also a past president of the National Speakers Association. For more information, call 415.753.6556; e-mail pfripp@ix.netcom.com; visit www.fripp.com .

By Rachel Adams

You could call it beginners luck, but the boom experienced by the Asian self-storage industry after its debut in the early 2000s was more likely the result of operators putting their best foot forward to offer solutions for small spaces in high-density populations, all the while battling a lack of public awareness, high real estate costs and stiff competition.

Self-storage operators in countries like China, Malaysia, Singapore and Thailand introduced the as a solution to the limited space caused by dense populations. In conjunction with thriving economies and soaring the cost of real estate, consumers and businesses have turned to self-storage to fulfill their needs, while operators strive to meet the demands of this growing industry.

The Chinese Market

Operating under the brand name SC Storage, SC Logistics Co. Ltd. opened its first self-storage facility in 2001 in Hong Kong. The company now has 38 stores throughout Hong Kong and Macau. Like many operators in the region, SC Storage began expanding quickly as the demand for self-storage grew. Right from the beginning, we saw the demand far outstrip supply, so we started to expand as soon as our first facility was full in early 2002, says Kevin She, CEO and co-founder.

Unlike U.S. self-storage developers, most operators in Asia build from pre-existing industrial buildings due to the lack of space for new structures. Recent rises in the cost of real estate, however, have taken a toll on industry growth.

There are no new industrial buildings being built, and due to the high value of real estate, many are being converted to office space or even hotels, says Marilyn Leslie, president of MiniCo Asia Ltd., which operates three locations in Hong Kong under MiniCo Self Storage. This drives the cost of old industrial buildings very high and makes expansion difficult.

When MiniCo entered the Hong Kong market in 2002, there were 11 self-storage facilities. Today there are more than 150. As competition increases and public awareness grows, the industry adapts. Peoples expectation of self-storage has changed, Leslie says. Service has become more important. They want more than a flimsy room with questionable security and no service.

Service is a priority at You You Space Security Self Storage, which opened its doors in 2010 in Shanghai. It's important to educate the market before focusing on expansion, according to CEO Steven Chen. We believe self-storage is a service-oriented business," he says. "To establish a great service model is more valuable to us than to build many sites and then bear risks of paying too many fixed costs.

Facility location is also becoming more important as the industry matures. Due to the increase of facilities, people no longer have to travel long distances to access their goods, Leslie says. Initially, there were very few self-storage stores and so our customers came from all over Hong Kong. Now, a convenient location is more important to the success of a facility.

Other Asian Markets

Like the Chinese market, Singapore struggles with high-density population and limited space. Store Friendly and StorHub have facilities in Singapore as we as Lock and Store Self Storage, which has two locations. Extra Space Self Storage has opened five facilities in the area since its first in 2007.

Self-storage has also been introduced in Malaysia and Thailand. Extra Space opened its first self-storage facility in Kuala Lumpur, Malaysia in January 2012. CEO Michael Hagbeck said the company plans to open two to three more facilities within the next few years.

StoreGuard Co. Ltd. opened MY STORAGE in Phuket, Thailand, in 2010. The Thailand self-storage market is still extremely young. To the majority of Thai residents, self-storage is still a completely new concept, said facility manager Robert Akerblom. By being a green-field market, there is still much to be done in regard to education and marketing of the many advantages and services self-storage can provide.

To avoid the types of expansion obstacles being faced in Hong Kong, the Association of Southeast Asian Nations aims to facilitate business expansions in Thailand by integrating the southeast region. Once the integration is complete in 2015, Thailand and neighboring countries will share the free movement of goods, services, investments, skilled labor and capital, Akerblom said.

To aid logistics, many rail, road, sea and air infrastructure projects have been completed or are in progress. Akerblom said this will generate potential for growth. In the meantime, MY STORAGE plans to expand its current location, adding approximately 400 units.

We have closely been following the expansions in Hong Kong and Singapore and are aware of other Asian facilities coming up, Akerblom says. The self-storage industry there has been through an exciting expansion over the past several years. As for Thailand, there is not much of a trend since the market pretty much is undeveloped.

Building Awareness

Overall, operators agree public awareness is critical to the growth of the self-storage industry throughout Asia, since many consumers are still unaware of the benefits of the service. After two years of MY STORAGE operation, Akerblom said Thai locals and other potential consumers only have a vague idea of the concept.

Chinese consumers are still wary of self-storage because of cultural traditions by which people do not store things outside the home, according to Chen. After two years of continuously working on market education and many kinds of media exposure, we gradually found that people start to trust our brand and see what difference it makes if they accept self-storage in their life, he says.

Marketing and television advertisements have helped consumers in Hong Kong gain awareness of self-storage, Leslie notes. Once they realize the benefit of the additional space to store their stuff and the ability to free up their living space, they embrace the idea of self-storage, she says. I used to talk to a lot of people that did not even know the word self-storage. Now most people know about it and many people use it.

Chen is hopeful the Asian self-storage market will continue to grow steadily as it has in other countries. Self-storage will be an everyday part of the lifestyle in the end, just like what has happened in the U.S. self-storage industry over 40 years ago.

American Mini Storage in Palm Desert, Calif., recently sold for $3.9 million. The 57,500-square-foot, 411-unit self-storage facility sits on 3.2 acres of improved land at 39700 Garand Lane. Built in 2000, it is approximately 35 percent climate-controlled and has a large climate- and humidity-controlled wine-storage area. Other features include favorable street visibility, block and metal construction, steel roll-up doors, an onsite manager residence, keypad gate entry, video surveillance and RV parking.

Both the buyer and seller, both San Diego-based companies, were represented in the transaction by Stephen Grossman, a broker with the Orange County, Calif., office of NAI Capital Commercial Real Estate Services.

This rare self-storage opportunity in Palm Desert was a desirable acquisition for the buyer due to its modern construction and management upside potential," Grossman said. "The property is located in a business-park setting near commercial and retail businesses. The location near the intersection of Washington Street and Country Club Drive further enhanced the desirability of the asset."

NAI Capital is a Southern California firm with 14 offices throughout Los Angeles, Orange, Riverside, San Bernardino and Ventura Counties. It is the Southern California affiliate of NAI Global, a real estate service network with 350 offices spanning the globe. The companies services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence, and related consulting and advisory services.

World Class Capital Group LLC (WCCG), an Austin, Texas-based private investment and asset management firm, has acquired a $12.5 million, eight-property self-storage portfolio in Ohio from CubeSmart, a publicly traded self-storage real estate investment trust (REIT). The portfolio includes more than 3,400 units comprising approximately 442,000 square feet.

The facilities will be rebranded as Great Value Storage and are primarily in the Dayton and Cincinnati, Ohio, markets. The purchase is the second large transaction the company has completed this year. In August, WCCG acquired 12 properties comprising nearly 1 million square feet from Sovran Self Storage, a publicly traded REIT that operates under the Uncle Bobs Self Storage brand.

We are excited about our expansion into these key Ohio markets, said Nate Paul, WCCG president. This acquisition fits our investment strategy of acquiring value-add self-storage assets to operate under our Great Value Storage brand. We look forward to continuing to grow our national presence in the asset class.

An investment sales team from HFF (Holliday Fenoglio Fowler LP) represented WCCG in the transaction. The team was led by director Christopher Vittetoe and real estate analyst Benjamin Gallant. HFF arranged a 10-year, fixed-rate loan through Deutsche Bank Securities Inc.

WCCG pursues investments in all U.S. markets, primarily focusing on real estate and private equity. In addition to self-storage, the firms portfolio includes office, retail, industrial, multi-family and land. Great Value Storage currently operates 31 self-storage facilities comprising more than 14,000 units and 2 million square feet.

HFF is a provider of commercial real estate and capital-markets services, operating out of 21 offices nationwide. The company and its affiliate, HFF Securities LP, are owned by HFF Inc. Together they offer debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing.

U.K. self-storage operator Safestore Holdings PLC has released its financial statement for the fourth quarter of its fiscal year, which ended Oct. 31. The report indicates Safestore experienced growth in revenue and rented square footage at its self-storage facilities in the United Kingdom and France, while occupancy rates declined in both regions.

Revenue during the quarter was up 0.8 percent year over year to £25.5 million ($40.5 million), although revenue for the full fiscal year increased 4 percent from 2011 to £98.8 million ($156.9 million). Revenue from the companys U.K. facilities increased 2.7 percent during the quarter compared to the same period last year. Quarterly revenue from properties in France increased 4.3 percent using constant exchange rate, but was down 4.7 percent in British sterling. The discrepancy is attributable to the year-over-year decline in Euro exchange rates, company officials said.

U.K. revenue was likely impacted by the imposition of a national 20 percent valued-added tax (VAT) on self-storage that went into effect Oct. 1. We have sought to pass on the full additional costs of VAT wherever possible, with targeted discounts provided to a relatively small number of key or high-value customers, company officials said. This has resulted in a higher vacate rate and moderation in the rate of new let growth. While it will take more than one month's data to fully assess the impact on our business, early indications suggest that it remains in line with previous guidance.

Despite vacancies blamed in part on the VAT, rented space at the companys U.K. facilities was up 1.6 percent during the quarter, comprising 2.54 million square feet. Occupancy rate in the region was broadly flat at 61.9 percent for the quarter, although the rate was largely affected by the addition of two new locations during the year which added several hundred thousand square feet of new rentable space, company officials said.

Rented space at the companys Paris-area facilities increased 5 percent to 750,000 square feet compared to the same period last year, although the occupancy rate in the region fell to 71.6 percent from 75.2 percent year over year. The decline was attributable to the addition of three new Paris locations that opened late in the year, company officials said.

The average rate per square foot during the quarter was £23.71 ($37.65) in the U.K., down 1.2 percent year over year, and 36.65 ($46.67) in France, 0.8 percent lower than the same period last year.

The French economy remains challenging, but we continue to deliver growth in this market, company officials said. Our strong competitive position, together with the absence of new supply, create solid conditions for self-storage performance.

In total, rented space increased 2.4 percent company-wide to 3.29 million square feet, improving on last years record total.

Safestore operates 135 self-storage facilities, including 98 wholly owned U.K. locations and 25 wholly owned facilities in France. The company also has 12 locations under management in the U.K. It serves approximately 43,700 total customers and employs about 550 people.

In this issue:

• The importance and benefits of educating customers about the need for insurance coverage
• How a tenant-insurance program can generate facility revenue, including a sample revenue model
• The two primary tenant-insurance models and tips for choosing between them
• Insight to choosing an insurance partner
• Ways to incent staff to maximize program participation
• The case-study results of one facility operator's tenant-insurance efforts

Self-storage real estate investment trust CubeSmart is constructing a new office complex in East Whiteland Township, Pa., that will serve as the companys new corporate headquarters. The building will house 160 employees and feature a section dedicated for actual self-storage use. CubeSmart is currently based in Wayne, Pa.

Some residents in the nearby neighborhood of General Warren Village have voiced concerns about the project, citing increases in traffic, water runoff and light pollution. They also have complained they were not properly notified about the project. During a public hearing in May, some residents also expressed concerns about allowing self-storage on the property, citing the possibility of unsightly signage and visible boats and vehicles.

However, the project will not include outdoor storage or prominent signage, according to township manager Terry Woodman. The structure will look like an office building and not a self-storage facility, according to developer Eli Kahn.

The construction will require a couple of traffic changes in the immediate vicinity of the office building, including a right-hand turn lane for eastbound traffic on Route 30 approaching Old Lincoln Highway. A new traffic light is also planned for the intersection of Old Lancaster Road and Old Lincoln Highway.

CubeSmart owns or manages 518 self-storage facilities across the United States and operates the CubeSmart Network, which consists of approximately 825 additional self-storage facilities.