Real estate developer Kellenbeck Holdings LLC intends to build a self-storage facility on 4.65 acres in Phoenix, Ore. Exit 24 Storage would feature a 47,000-square-foot, two-story building and potentially four single-story structures comprising 73,000 square feet. Kellenbeck Holdings has previously developed apartment complexes in several Oregon counties, but this would be its first self-storage project, according to the source.

The two-story building would be constructed as part of phase one and offer 215 climate-controlled units. The single-story buildings would be built in subsequent phases and offer a combined 233 units. The town’s planning commission will hold a public hearing on Dec. 14 to discuss the project.

The target site, in an area known as the Rogue Valley, is east of Interstate 5 and bordered by Fern Valley, Furry and South Phoenix Roads. The property is owned by Henry Willis Pyle Credit Shelter Trust but would be sold to Kellenbeck Holdings if the project is approved, the source reported.

The property is near the Phoenix Hills subdivision and the Petro Shopping Center truck stop. The state is also rebuilding Exit 24 off of the interstate, which developer Mark Kellenbeck believes will spur development. “The interchange is a huge incentive to the entire east side, for sure,” Kellenbeck told the source. “Without question, it is going to be followed by development. It will be good for Phoenix.”

Property owners within 200 feet of the project site were mailed notices last week. A staff report on the proposal is expected to be available on Dec. 7. The planning commission is accepting written public comments.

Phoenix-based U-Haul International Inc. intends to “preserve and convert” a dilapidated former manufacturing plant and warehouse in Memphis, Tenn., into a self-storage and truck-rental facility. The 103-year-old Rawleigh Building at 137-139 W. Illinois Ave. comprises 126,000 square feet on 2 acres. The city’s board of adjustment recently granted a special-use variance to rehabilitate the structure, and U-Haul has submitted its final site plans for approval, according to the source.

Approximately 54,000 motorists pass by the property every day along a section of Interstate 55, and the area surrounding the property south of downtown is undergoing a resurgence in real estate investment and development, the source reported. In its application, U-Haul indicated it would maintain “architectural compatibility” with the neighborhood and add attractive landscaping.

“I’m very happy to hear their interest is to reuse the building,” June West, executive director of preservation organization Memphis Heritage, told the source. “There have been a lot of people who have contacted us over the years about the building.”

The city council rezoned the property in 2006 to enable a mixed-use development featuring office, residential and retail space, but the project never got off the ground, according to the source.

City and county staff recommended approval for the variance. “The applicant’s commitment to repurpose this building and their experience in successfully rehabilitating similar types of buildings around the country weighs heavily in the staff’s recommendation,” according to a staff analysis report.

The warehouse, which is comprised of several attached buildings, was built in 1912 by the W.T. Rawleigh Co. to manufacture products including cosmetics, insecticides, patent medicines and spices, the source reported. Rawleigh ceased manufacturing on the property in 1958 but continued to use the structure as a warehouse until the late 1970s.

The U-Haul application was submitted by the AMERCO Real Estate Co., a sister company owned by parent organization AMERCO. Established in 1945, U-Haul has more than 44 million square feet of self-storage space at more than 1,200 owned facilities throughout North America.

While some property expenses are out of a self-storage manager’s control, there are many items you can address to make your facility more profitable. This article covers some simple steps for cutting costs. Let’s take a look at a few money-saving strategies you can use to improve the business you operate.

Vendor Expenses

A self-storage facility has a number of ongoing service expenses. Reviewing these can sometimes become rote, which creates missed opportunities to find savings. Never let your expense sheet become routine!

When was the last time you reviewed statements for your Internet service, phone and utilities? Are there any charges that shouldn’t be there? Can you negotiate better rates? Phone and Internet companies often provide bundle packages that might save your property a few hundred dollars annually. Can you consolidate costs by partnering with another facility in your company or even a friendly competitor for volume discounts on often-purchased items?

If you’ve always purchased items or services from the same vendor, it may be time to look around for a better deal. Re-bid your lawn care, security monitoring and pest control to compare pricing. Look for new sources of consumables such as paper, pencils, pens, ink and toner. A cost savings of $2 to $5 per ink cartridge adds up quickly.

Speaking of consumables, when was the last time you checked pricing for restroom paper products? If you’re picking up supplies at a place like Target or the grocery store, you’re spending way too much. Check out bulk discounts through warehouse stores such as Costco and Sam’s Club. There’s a reason hospitals use cases of Georgia-Pacific toilet paper—it’s decent quality and cost-effective.

Site Maintenance

For most operators, facility maintenance is a high-ticket line item on their budget. However, there are places where you can save money. Here are simple ways to slash a few bucks here and there:

• Bollards and curbs: Can you wield a paintbrush? Rather than hire someone to repaint your curbs and bollards, do it yourself. A fresh coat of paint adds appeal, and you’ll save a few dollars by doing this in-house.
• Gate sensors: You know those sensor loops in your asphalt for your gate controllers? There’s a quick-seal product you can buy at your local hardware store to cover them when the filler starts to wear down. It takes less than 30 minutes per loop to clean (we use a blower) and refill the crevice.
• Unit doors: Ask your door supplier for extra rubber strips for your roll-up doors instead of calling a repair service. While you’re at it, ask about proper procedures for making your doors last. Replacing a single roll-up door can run upward of $600, including shipping and installation charges.
• Tools and supplies: Taking proper care of your tools and supplies can save money in the long run, as they won’t need to be replaced as often. When you’re finished using a tool or machine, clean it and put it away properly. Always keep these items under lock and key to avoid theft.
• Cleaning supplies: Purchase a commercial mop bucket with a squeeze mechanism and good quality mop. This can help you save money in the long term. Ours is still being used 18 years later! This product is a great value compared to the cheap models from the local hardware store that will need to be replaced often.

Energy Costs

Another big expense for self-storage facilities is energy consumption. There are several ways you can reduce your utility bills. First, keep your heating and cooling equipment in good shape with preventive maintenance. If it isn’t working properly, address it quickly. Also, make sure your thermostats are locked so tenants can’t adjust the temperature.

Keeping your facility well-lit is vital for tenant safety but can also be costly; however, there are savings opportunities here as well. We lowered our electric bill more than 40 percent by installing new exterior lighting. It came with rebates and incentives from various sources, including our utility company. The breakeven point was one year on the cost of the installation. At the same time, we replaced all our incandescent bulbs in the storage units with compact fluorescent lamps. In our case, the monthly decrease in expenses averaged $800 to $1,000, depending on the season. That’s an annual savings of more than $10,000.

While reviewing your energy costs, don’t overlook the potential savings you can gain by installing dimmers as well as movement and occupancy sensors for lighting when not in use. Spending a small amount on timers or motion detectors for light switches in restrooms and common areas can save big over time.

Credit Card Fees

Credit card processing can be pricey, so it’s critical to regularly visit this expense. When was the last time you renegotiated your charges for processing payments?

Researching options led us to a new vendor. Our merchant charges were off the charts. We’d been with the same bank, which changed hands several times, and the charges kept creeping up little by little. To find a better deal, I began researching choices and found a new merchant with better rates. We were able to save more than $1,000 per month on merchant-processing charges. It wasn’t an easy task to make the switch, but it was well worth the cost savings. An added bonus in this endeavor was a happy boss. Who doesn’t want one of those?

Also, have you asked about a lower rate on your company’s credit card? A half percent here or there can add up to hundreds if not thousands of dollars over the course of a single year, depending on your charging habits.

Are you taking advantage of any available member savings? Many card issuers offer travel bonuses or gift cards for points earned. You could use your credit card for regular facility purchases, and then trade in the points for office-supply gift cards and save even more on the items you purchase anyway.

I’d also advise you to set up alerts on payments and charges so you can track what’s happening at any given moment. Having online access to your charge accounts is only good if you remember to check them. An alert reminds you to watch where your money is going on a timely schedule.

Other Ways to Save

Take advantage of rebates and look for tax incentives for any planned improvements on your property. There are many options available; it just takes some time and research to find them. For example, we found a huge grant for solar installation through the U.S. Department of Agriculture that our potential solar provider didn’t even know about. Learn to use Google—it’s your friend in the research department.

Need some temporary help for a project? Why not hire an intern? Yes, there are folks out there who are interested in how self-storage operates. You might find a college student interested in business who would be perfect for running some statistical reports. Or if it’s a physical project, such as painting or lawn care, look for a group of students seeking school credit.

When it comes to saving money, it’s critical to review each expense. Is there a better, cheaper or more efficient way to operate your facility? If you break down all of your regular expenses, you’ll see where the majority of the money goes. This will give you a better picture of your overall outlay and aid in your quest to save.

Gina Six Kudo is general manager of Cochrane Road Self Storage in Morgan Hill, Calif. She has more than 16 years of self-storage experience, and a strong customer-service and sales background. She’s also a moderator on Self-Storage Talk, the industry's largest online community. For more information, visit www.cochranestorage.com.

By Erich Noack

LinkedIn is an often overlooked piece of the social media marketing puzzle. The platform is used by millions of professionals to connect with key players in the business world. By employing this medium as an everyday part of your self-storage marketing strategy, you can boost your business exposure, attract customers to your services and enhance your overall success. Online marketing really boils down to one thing: exposure to your target audience. Below are three ways that LinkedIn can assist your efforts.

1. Local Exposure

LinkedIn will boost your local exposure by connecting you with key people in media fields. Users range from young professionals to CEOs of major companies, making it a natural resource for users who are networking for jobs or building a basis for further communication. This means people of every imaginable career and profession are connected using LinkedIn. Most important, media members from your area, including news networks and newspapers, are more than likely on the platform.

Teams consisting of journalists and editors are using LinkedIn as an integral part of their story-creation process. By connecting with members from the surrounding community, including business owners just like you, they’re reaching out to their audiences to learn what stories are important to them. Many topics and ideas for today’s feature articles and news stories come from connections the media has built using LinkedIn.

Connect with your local newspapers and reporters. Request connections between your business and the local news station. If your facility is involved in a community event or organization, make it known. Media outlets in your area already have a larger audience than you do; if they feel compelled to produce a feature about your facility, then you’ll automatically increase your exposure to the local community.

2. Business Networking

LinkedIn can help create meaningful and mutually lucrative relationships between your company and others in your area. Think of your company’s LinkedIn connections like a giant web, with users branching off of the central hub that is your business. These connections link to other users and businesses, continuing to branch out and creating a massive map of links and connections. While not unique from other social media platforms in this regard, LinkedIn does allow you to promote your business by directly connecting you to other companies with which you share a clientele.

You can cultivate meaningful partnerships with other companies in and around your community under the presumption that you’ll both reap rewards. Other companies are seeking to increase their market exposure as well, so connecting with them will increase exposure for both parties to clientele in related fields. In other words, LinkedIn will connect you with people looking for services related to self-storage.

For example, use LinkedIn to network with moving companies in your area and nearby cities. Send them a connect request explaining your position and motives for a mutually beneficial partnership. Those customers looking for moving services may also be looking for self-storage and vice versa, expanding both companies’ customer base.

3. Lead Generation

LinkedIn also can be a source for lead generation through connections, groups and content posted on discussion boards. Since it’s purely a business-oriented channel, it holds more value than other platforms for creating lasting connections. LinkedIn groups collect businesses and professionals from similar fields in one place, allowing users to collaborate on topics pertinent to their area of expertise. It’s a good idea for your company to join groups set aside for local, state and national self-storage organizations. Contribute to the conversations by posting content.

Last year, LinkedIn CEO Jeff Weiner described a three-part plan for the future of his company. It included expanding the platform’s scope and making it the definitive online professional publishing platform. LinkedIn is already a great resource for gaining customers, and these future additions to the platform should enable you to use your groups to further spread your expertise directly to your target audience, increasing your credibility and desirability.

By definition, LinkedIn links you with clients, potential employees and other businesses. Building links with these unique visitors will lead to more connections, allowing you to build a web of people who are currently in need of self-storage or looking for work in your field, or may be in the future. Use the platform to attract potential customers and employees, redirecting them back to your company website where they can learn more about your operation.

Connect with every person and organization that views your profile. LinkedIn maintains analytics of these numbers, making it simple to know who is following you, viewing your profile, etc. Send them a message with your connection request, informing them why you’re a great company to consider for storage or employment. Cite your industry knowledge and the services you provide. Expanding your connections and continuing to be part of the online conversation will generate both customer and employee leads.

Stay Committed

If you don’t already have a business profile on LinkedIn, get one. Much like on Facebook, you’ll need a private account before you can create your business page. Once you have it set up, don’t abandon it! Use it every week (more than once if you have to) in conjunction with your other social media accounts. If you need some help getting started, check out Linkfluencer, an online tool that provides free webinars and training materials for getting the most out of your LinkedIn business page.

Your self-storage business should be using LinkedIn, not only as a way to attract young professionals to your company as employees, but as a means of gaining exposure and strengthening your business. If you can effectively use the platform to increase exposure, create meaningful partnerships with similar companies, and become part of a larger, business-oriented group discussion, you’ll reap the rewards of long-term success.

Erich Noack is a content writer at storEDGE, a platform of integrated self-storage products designed to help operators boost rentals, track leads, manage their operation and maximize return on investment. He enjoys helping to develop unique strategies for Web marketing and the opportunity to advance small businesses through the use of language. For more information, visit www.storedge.com.

Storagebuck has launched an online peer-to-peer marketplace in Sydney that enables people in need of storage to find available space in their local area from businesses and homeowners. Spacelli and Spacer.com.au Pty. Ltd. started similar services in the country earlier this year. Spacii, a startup based in Chicago, also recently opened.

"Individuals, businesses and self-storage/removals companies find they can earn passive income by listing unused space on Storagebuck and renting out this space to others in need,” said Joel Cacciotti, Storagebuck spokesperson. “With the help of Storagebuck, finding individuals and businesses in need of this space has never been easier.”

Those looking for storage can use the website’s map or search bar. Once they find a suitable space, they can contact the host and make a reservation. The platform also enables users to use different fields and filters such as access, security measures and space size.

Hosts are vetted by Storagebuck and can negotiate their own terms with renters, according to the company website. Both parties must complete a storage-rental agreement.

There’s no charge to be listed as a host. Renters pay a 10 percent commission to Storagebuck when they book space. Payments are made directly to the host through PayPal, according to the website. PayPal also charges a 2 percent to 3 percent processing fee.

"Consumers love value when it comes to their money. It's frustrating to have to purchase more storage space than is needed because it's the closest the person can find to what they are searching for,” Cacciotti says. “With Storagebuck, numerous new options become available to individuals in need of storage space. It's a great resource everyone should check out.”

Currently available in Sydney, Storagebuck plans to expand throughout the country.

Chicago startup Spacii has launched an online platform to connect homeowners who have extra room with renters seeking non-traditional self-storage options. The peer-to-peer storage concept can also link people with businesses that have available space.

Founder and CEO Danny Weiss came up with the idea for the company after helping his grandparents create a website for their Detroit-area self-storage facility. “I became very fascinated with the emerging sharing economy in which technology was helping individuals utilize underused but valuable assets,” said Weiss, who launched the website last spring. “The combination of these two occurrences caused me to connect the dots and create a platform for peer-to-peer self-storage.”

Spacii renters typically save 30 percent to 40 percent compared to conventional storage options, Weiss said. “This is because the opportunity cost for hosts is little-to-none as their listed space was previously vacant. Therefore, many hosts are willing to list their space at a low-rate since it was previously not making any money at all.”

Potential renters can search the website for storage space in their area. They must provide Spacii with their name, phone number, e-mail, ZIP code and storage needs. “Spacii replies to most storage inquires within a few hours, in which we pass along storage options that may fit their needs,” Weiss said. The renter and host then agree on terms and schedule a drop-off.

To determine the trustworthiness of the host, Spacii requires applicants to complete an online form. A company representative then contacts the host to explain the process and determine if the applicant is a good fit.

Spacii charges renters a 15 percent service fee, which is included in the price to which the renter agrees upon renting the space. The host will receive the total cost of booking, minus Spacii’s fee as well as applicable fees and taxes that may apply, according to the company website.

In its terms of use, Spacii states the company isn’t a party to any agreements between the renters or hosts. It also isn’t a broker or agent, or an insurer of any kind. The host has the right to check the renter’s criminal and credit background, and Spacii can’t control the conduct of hosts or renters.

If the renter defaults on the payment or leaves behind items at the host’s property, Spacii will attempt to contact the renter. After 30 days, the items are considered abandoned and will be removed by one of Spacii’s partners, according to the website.

“Like many other sharing platforms, we experience an exceptionally low incident rate,” Weiss said.

Two similar companies, Spacelli and Spacer.com.au Pty. Ltd., opened earlier this year in Australia.

Although Spacii currently only services the Chicago area, it has plans to expand to other markets, according to the source.

Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT) and third-party management firm, announced 12 of its Maryland facilities have earned LEED (Leadership in Energy & Environmental Design) Gold Certification. Established by the U.S. Green Building Council, LEED recognizes building strategies based on the effective use of materials and resources, energy and water efficiency, sustainability, innovation, and other criteria. Extra Space is the first self-storage company to certify properties at the Gold level, according to a company press release.

“We are honored to be recognized by the U.S. Green Building Council with these 12 certifications. This marks another accomplishment from our ongoing dedication to sustainability and operational excellence," said CEO Spencer Kirk. "We continue to focus on corporate responsibility and remain committed to reducing our overall impact on the environment. These efforts reflect our philosophy to leverage innovation to improve environmental and financial results."

Extra Space retrofitted its properties with energy-efficient lighting and motion sensors, installed solar panels, and replaced light fixtures with advanced models that use significantly less electricity, the release stated. The company also added charging stations for electrical vehicles at some of its California facilities. Extra Space hopes to see four more of its storage facilities earn the certification by the end of this year.

Headquartered in Salt Lake City, Extra Space owns or operates 1,335 self-storage properties in 36 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 885,000 units and 99.8 million square feet of rentable space.

Vintage Wine Cellar has converted a former video store next to its specialty wine outlet in Honolulu into a wine-storage facility. Vintage Wine Vault is a self-storage concept comprising 1,600 square feet in more than 70 lockers, with capacities ranging from 27 to 350 cases, according to the source.

The storage business is in the basement of the building, with customers given access to their own storage space. “There have been other such concepts, but nobody has done it like us,” Jay Kam, president, told the source. “At other places, you had to call to pick up and drop off wines. They would put it in storage for you.”

The facility is temperature- and humidity-controlled, and has redundant compressors. It’s also equipped with technology features and security, according to the source.

The specialty wine retailer decided to expand into storage to serve its customer base of casual and serious connoisseurs, who have expressed the need for storage space outside their homes. “A lot of customers say they can’t buy anymore wine because of the lack of space,” Kam said. “People who have wine cellars at their homes—it’s not a question of if they’ll break, but when they’ll break.” Most wine cellars in Hawaii last about seven years, he said.

Vintage Wine Cellar, established in 1968, is in the basement of a commercial building on Wilder Avenue.

Sirius Real Estate Plc, which owns and operates self-storage facilities, business parks, industrial complexes and offices across Germany, is rolling out a capital-expenditure (capex) program to increase the amount of leasable storage space across its real estate portfolio. The company’s Smartspace offering includes self-storage and office space targeted primarily at small businesses, according to the source. Company officials announced the plan during a discussion of Sirius’ most recent financial earnings report.

"The most significant element of our capex investment initiatives is the transformation of difficult space into our Smartspace products," CEO Andrew Coombs told analysts during the conference call. Rentable space under the Smartspace service begins at 4 square meters.

As of Sept. 30, the company had converted 74,235 square meters, or 6.7 percent of leasable space, across the company’s holdings into rentable Smartspace, according to the source. "We would expect this to increase to closer to 8 percent after the completion of the capex investment initiatives," Coombs said.

Demand for office space by small businesses and self-storage from commercial and residential tenants is rising across Germany, according to the source. Coombs indicated facilities converted to Smartspace office and storage has exceeded €9 per square meter in its core markets. "The demand for both these offerings is very pleasing, and generally, 12 months after the space becomes ready to let, we are consistently seeing these become more than 90 percent occupied in our core locations," he said.

The company’s net asset value per share increased 5.5 percent to €50.13 as of Sept. 30, compared to €47.51 at the end of March. Sept. 30 marks the first six months of its 2016 fiscal year.

Sirius Real Estate operates a diversified property portfolio across Germany with more than 1 million square meters of leasable space. The company specializes in business parks but also offers portable-storage containers, flex office and warehouse-storage space as well as more traditional office and self-storage services through Sirius Facilities GmbH. Sirius Facilities operates 38 commercial locations, with its primary self-storage offering branded as Smartspace.