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ISS Blog

What's Your Sales and Customer-Service Style? Share and Learn on Self-Storage Talk

Article-What's Your Sales and Customer-Service Style? Share and Learn on Self-Storage Talk

Good customer service starts with simply being nice and respectful. But let's face it: Self-storage is a retail sales business, too; and in addition to just providing customers with service, managers are also the front-line representatives for an operation. They usually work at the front desk and are the first people potential customers interact with. Self-Storage Talk, the industry's largest online community (which just eclipsed 5,000 members), is hosting a conversation for managers to talk about their sales and customer-service techniques and styles on the thread "Customer-Service Approaches: What's Your Style?"

There isnt a single correct method. Some managers are fairly aggressive in their approach. They rise to greet their customers with a handshake, stand next to them and lead the conversation, asking many questions and providing as much information as possible. It's a very active approach, and one you'll see endorsed by many industry experts, including Universal Management Co. President Anne Ballard on this podcast.

By contrast, some managers don't like to "bug" their potential customers or be overly pushy. They extend a friendly greeting, pass along any brochures containing information about the different unit sizes and services available, and let people make decisions on their own. They might let these customers take a walk around the office or event the facility grounds to form their own opinions. Calling it "passive" connotes that it's a lazy or timid approach, which isn't fair because it can be effective. But it is certainly more laid-back and sometimes better suits managers' personalities than the aggressive method.

So, what's your or your trained managers' sales style? Are you looking to change your style to something else and need insight on how to do it? The discussion thread is a great place to start. To post, you'll need to register for SST, but it's free, takes only a few minutes and can be done by visiting selfstoragetalk.com and clicking "register."

Extra Space Storage Offers 7,000,000 Shares of Common Stock

Article-Extra Space Storage Offers 7,000,000 Shares of Common Stock

Extra Space Storage Inc., a self-storage real estate investment trust (REIT) will issue and sell 7,000,000 shares of its common stock in a public offering. Citigroup is acting as the sole book-running manager for the offering. The company will grant the underwriter a 30-day option to purchase up to an additional 1,050,000 shares.

Extra Space intends to use the net proceeds of this offering to fund its acquisition of a 94.9 percent interest in ESS PRISA III LLC from Prudential Real Estate Investors (PREI) to repay outstanding indebtedness, fund other future acquisitions, and for other general corporate and working capital purposes. The purchase price of PREIs interest is approximately $298 million, of which approximately $160 million is to be paid in cash at closing. The remaining $138 million relates to PREI's interest in an existing loan of $145.0 million that will be assumed by the Extra Space at closing.

An automatic shelf registration statement relating to these securities was previously filed with the Securities and Exchange Commission on Aug. 12, 2011. A preliminary prospectus supplement relating to this offering was filed with the Securities and Exchange Commission.

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. The offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which, when available, may be obtained from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th St., 8th Floor, Brooklyn, NY 11220, Attention: Prospectus Department.

Headquartered in Salt Lake City, Extra Space Storage is a fully integrated, self-administered and self-managed REIT that owns or operates 882 self-storage properties in 34 states and Washington, D.C. The company's properties comprise approximately 585,000 units and approximately 64 million square feet of rentable space, including boat storage, RV storage and business storage.

Large Investment Groups Change the Self-Storage Real Estate and Finance Landscape

Article-Large Investment Groups Change the Self-Storage Real Estate and Finance Landscape

While I strongly believe the performance of self-storage as an investment will be quite positive in the long run, theres reason to believe the game has changed thanks to large investment groups entering the business.

In reviewing the fourth-quarter 2011 same-store operating numbers for the four major real estate investment trusts (REITs), revenue for each was up between 3.4 percent and 5.8 percent from the fourth quarter of 2010. More important, all four showed substantial gains in net operating income (NOI), ranging from 4.1 percent to 9.3 percent. In the new and improved self-storage real estate market, 90 percent or more of value is still in the NOI. Cash is still king, and the ability to attract and capture tenants in cyberspace is now the industry norm.

Note: Same-store numbers are based on 253 Extra Space stores, 244 Sovran Stores, 331 CubeSmart stores and 1,931 Public Storage stores. (Source: Grubb & Ellis Fourth Quarter 2011 REIT Report)

Note: Same-store numbers are based on 253 Extra Space stores, 244 Sovran Stores, 331 CubeSmart stores and 1,931 Public Storage stores. (Source: Grubb & Ellis Fourth Quarter 2011 REIT Report)***

With the acquisitions market alive and well, it brings to light the continued bifurcation in the market between institutional-type investors and non-institutional ones. Its important to note institutional doesnt just refer the four major REITs; its any group in todays market that has access to relatively inexpensive capital/equity. This has allowed these types of investors to buy properties at an aggressive pace over the last 12 months.

It has also created two different pricing structures, since the aggressive buyers are not willing to buy smaller properties (less than 50,000 square feet), and are just now starting to consider second-tier marketsalbeit at a substantial discount to what theyre paying in major markets. According to the National Association of Real Estate Investment Trusts (NAREIT), self-storage REITs returned 35.2 percent last year, the second consecutive year the sector has led the pack. The recent published success of the storage industry, along with the return of confidence among real estate investors in general, has resulted in mainstream real estate investors racing to it. This new crop of investors, including pension funds, private-equity funds, university endowments, ultra-high net-worth individuals and non-self-storage public companies, has changed the game on several levels. Outlined below are some of the basic reasons.

Access to Capital

All the investment groups mentioned above have tremendous access to capital, whether from banks, life-insurance companies, strategic partnerships, public markets (issuing new common stock) or simply from their own balance sheets. The availability of capital to these types of groups is considerable, and the cost of this capital is substantially lower than an average retail customer.

For example, if youre an ultra-high net-worth individual, family office or pension fund and have significant balances in your money market accountswhich are paying less than 1 percent annually todayit might make sense to not use debt at all. Therefore, the cost of capital is simply the value these groups put on their liquidity.

Its also apparent public companies with the ability to issue common stock in the public markets, such as the REITs, have access to capital at approximately the cost of their dividend yield. As of March, the four major self-storage REITs all had dividend yields between 2.7 percent and 3.5 percent.

Its worth mentioning that most of the groups noted above use traditional financing at some point, but their ability to pick and choose the timing of their financing, accumulate large amounts of assets in investment pools, and negotiate better terms with their lenders gives them a significant advantage when acquiring and operating properties.

Why does this all matter? If youre an independent operator and borrow $1 million from a bank or other financial institution with 5.5 percent interest, a 25-year amortization and a term of five years, your annual debt service would be $73,680. If youre a public company that pays an average dividend yield of 3 percent and issues $1 million of common stock, your annual cost of the $1 million is $30,000.

As you can see, this frees up approximately $48,000 in cash flow to the public company the independent operator would not have. In addition, the common stock doesnt mature after five years, meaning the public company has no refinancing risk.

A Shift in Marketing

Tremendous strides in the technology used in the storage industry have been made over the last five years. Gone are the days of the Yellow Pages and good signage. Were now seeing search-engine optimization, pay-per-click advertising, social media, blogs, YouTube videos, social-media reviews and mobile apps dominate the marketing budgets of most storage companies. Its clear a paradigm shift in marketing has occurred, and its working.

The adoption of these new marketing techniques has been accelerated by the large institutional investors. Because of the depth of their resources, theyre adapting proven Internet-marketing techniques from other real estate product types and applying them to self-storage with great success. All these strategies have proven to attract customers from a greater distance, make facilities more user friendly and, most important, increase the value of the product.

While storage remains a positive long-term investment, the game has clearly changed. Due to the large investment groups and high rates of return, there have been dramatic increases in situations where conflicts of interest occur between a service provider and an owner. With approximately 40,000-plus independent storage owners in the market today, its critical for facility owners to make sure theyre seeking advice from consultants, brokers and third-party management companies that have their best interests in mind. Its important to have them working for you and not themselves!

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.

Raid of StorageMart Self-Storage Facility in Alberta Canada Leads to Drug-Related Arrests

Article-Raid of StorageMart Self-Storage Facility in Alberta Canada Leads to Drug-Related Arrests

A StorageMart self-storage facility in Saskatoon, Alberta, Canada, recently cooperated with local law enforcement to bring about the arrest of four people in what was a five-month long investigation targeting drug trafficking.

Members of the Saskatoon Integrated Drug Unit and Emergency Response team presented a warrant last week to search a unit at the facility, and police found illegal substances. Police reported the crime is not connected to a large organized-crime syndicate but rather a small group of local suspects. They also reported there is no reason to fear for public safety.

StorageMart representatives said in a news release that because of the large number of StorageMart stores, drug and other criminal activity will occasionally occur. However, company representatives emphasized they are always cooperative with law-enforcement investigations, often volunteering their facilities for training of K-9 units.

StorageMart is a self-storage company with more than 140 locations across the United States and Canada.

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Elderly Woman Crashes Car Through Oregon Self-Storage Unit

Article-Elderly Woman Crashes Car Through Oregon Self-Storage Unit

An elderly woman drove a car straight through a self-storage unit last Thursday at Umpqua Mini Storage in Roseburg, Ore.

Witnesses told the source the woman had stopped outside of a drive-up unit at the facility on Weyerhaeuser Drive just before noon, and for an unknown reason drove completely through the unit. Her car was recovered in a ditch behind the facility. An ambulance was dispatched to the scene, and EMTs treated and released the woman on site.

The cost of damage to the facility is unknown. The source took several photos of the damaged car and unit, available for viewing at www.kpic.com/news/local/Woman-turns-storage-unit-into-drive-147215355.html?tab=gallery&c=y&img=1.

Umpqua Mini Storage is a standalone facility with unit sizes ranging from 5-by-10 to 10-by-30. It is very near Interstate 5 in south Central Oregon.

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Maine Self Storage Association Announces New Board Members, Plans for June Conference

Article-Maine Self Storage Association Announces New Board Members, Plans for June Conference

The Maine Self-Storage Association (MeSSA) has added three new members to its board of directors and announced detailed plans for its annual conference, June 14-15, at Hollywood Casino in Bangor, Maine.

The new board members are Jeff Boufford of Boyd & Boufford Insurance Agency, Sherri Brown of Arenhall Corp./Storage Solutions, and Robin Beck of Boothbay Self-Storage.

The June conference will include several seminars, a vendor-sponsored cocktail reception, roundtable discussions and vendor displays. Seminar topics include social-media marketing; legal issues, presented by self-storage attorney Jeffrey Greenberger; and terrorism and criminal uses of self-storage, presented by a representative of the Maine Emergency Management Agency.

The event is free to the first person who registers from each MeSSA member facility. Non-members are also welcome to attend. Their registration fees can be applied toward their membership dues if they choose to join the association.

Show details can be found at MaineSSA.com as well as the association's Facebook page.

DSM Releases URelle-Crete Floor Coatings for Self-Storage, Other Applications

Article-DSM Releases URelle-Crete Floor Coatings for Self-Storage, Other Applications

DSM, a global science-based company active in health, nutrition and materials, has expanded its product line with a new industrial floor coating, URelle urethane systems, which can be used in self-storage facilities.

The first of a new product family, URelle-Crete is a three-component urethane cement-system designed to stand up to excessive physical impact, thermal shock and chemical exposure.  Ideal for buildings where durability is of major importance, URelle-Crete protects the concrete against mechanical abuse and heavy traffic, and can also withstand extreme conditions such as the thermal shock associated with hot water discharge. Its highly suitable for exposure to wet processing and high-temperature (steam) cleaning.

The product meets current USDA/FDA standards and provides excellent chemical resistance against a wide range of cleaning and processing chemicals. Its available in multiple colors and supplied in several grades with varying textures and thicknesses.  

Solar Self-Storage Design: Size, Location, Placement and Aesthetics of a Solar-Panel Array

Article-Solar Self-Storage Design: Size, Location, Placement and Aesthetics of a Solar-Panel Array

By Bob Burson

There are many factors to consider when adding solar panels to a self-storage facility. These include cost, potential energy savings, incentives, physical requirements and more. But an important aspect often overlooked in the process is the overall system design.

Design can mean different things. To the facility owner, design can be as simple as the placement or location of the solar array. To the contractor, it will not only be the location but the type of modules and mounting structure, the tilt angle of the modules, the direction of the modules, the number of modules in a string, the size and number of inverters, and other factors. This article defines system design as the decision-making process that addresses the general size, location, placement and aesthetics of a solar array, as well as the building requirements needed to host a system.

Uncover Your Facilitys Needs

Your contractor will be able to recommend a system size based on a number of factors. The first and foremost is the facility's energy usage. Does the building have a live-in manager? Does it offer 24-hour access? Are some or all of the units climate-controlled? What kind of lighting does the site have? How old are the buildings? What climate does the property experience throughout the year?

All of these elements together will play a role in driving the energy use of a property, which will, in turn, determine your needs and directly affect the systems size. The more solar panels in your array, the more power the system will produce. The more power you need, the larger your solar installation will need to be.

Once your contractor has recommended the ideal system size to meet your energy needs, you can work with him to determine the best location for the installation. The ideal placement of the solar panels will be one that receives unobstructed access to the most amount of sunlight as possible throughout the day. Most of time, this will mean the facility's roof, but it could be elsewhere on the property. Its important to avoid nearby trees and buildings that may cast shadows because theyll limit the system's energy production.

The DL Energy headquarters in Valencia, Calif., uses a ballasted racking system. The racking is held in place using weight (or ballast) from cinder blocks instead of being physically attached to the roof, allowing it to be installed on a building without affecting the integrity of the roof.

If your building has a parapet wall, youll want to provide enough offset from the perimeter of the building to avoid shading the array in the early morning and late evening. If possible, you also want your solar modules to be mounted at an angle facing the equatorsouth if youre in the northern hemisphere and north if youre in southern hemisphere.

This is where your contractors expertise is important. Its up to him to provide you with a design that maximizes the system production based on the unique features of your property. It's important to remember that its not necessary to have a perfect building or installation to still achieve a strong return on investment.

Every facility has its own unique characteristics that will play a factor in determining the ideal installation location. Most often, these factors directly relate to the type of building and property. For example, does your facility have a flat or pitched roof? If its pitched, which direction does it face? What material(s) comprise the roof, metal, rolled composition or a PVC membrane? Whats the age of the roof? Does your property have unused land that could be used for an installation?

Your solar contractor will work with you on different design options based on your facilitys features. For almost every type of building, roofing and property, theres a specific product designed for mounting solar panels.

Fortunately, there are three basic types of mounting categories for solar panels: direct attach, ballasted and ground mount. Within each one of these categories, there are many system-specific products.

A large residential installation in Santa Barbara, Calif., features a top-of-pole mounting system. Solar panels do not always need to be mounted onto roofs to be effective.

Direct-attach racking systems are designed to mechanically fasten directly to your buildings roof structure. Most racking companies will offer a variety of different mounting brackets, each designed for a different type of roofing system. Theyre all designed to provide proper support to the racking while minimizing the impact on the roof.

Ballasted systems use weight or ballast to keep the panels in place. This is so you limit or eliminate any roof penetrations to maintain the integrity of the roof.

Ground-mount systems come in many different styles but are basically all doing the same thing: mounting your panels on the ground.

Make It Work

So youve figured out what size system you need, and you have a good idea of where you want to put it and how youll mount it, but do you even know if your building can handle the installation? This, again, will be based on your individual self-storage facility. For the most part, solar will not place a great strain on your building, so the addition of a solar array should not be difficult for it to handle.

There are, however, two issues that can be a challenge: the weight of the system and the wind load. Unless there's something unique about a facility (i.e., extreme age, unusual construction, etc.), it can usually handle the weight of a solar array because it weighs only a few pounds per square foot. More times than not, the biggest concern will be the wind load. This will require more engineering if youre in a location with high instances of heavy wind. However, most solar panels and racking systems are designed for extreme weather conditions. Your contractor should include all the necessary engineering costs in his total price for the installation.

Consider Aesthetics

When it comes to the aesthetics of a solar installation, youll find a full range of opinions. It can be a very subjective topic. Some people feel the look of solar panels is quite appealing and progressive, while others think they can severely take away from the attractiveness of a building. It really comes down to how you feel about the look of a solar array.

In many cases, however, you do have some options to improve the overall look of the system or implement some design tools that can effectively hide the installation so most people will never see it. For example, you can tell your contractor you want all black panels to give the system a uniform look, or you can choose to flat mount the system on the roof so no one can see it at all.

Overall, the most successful designs are the ones that are a collaboration between the installing contractor and the facility owner. The contractor will be your partner, expert and advocate through the whole process, but its up to you to make the final decision on whats best for your business.

Bob Burson is the director of business development for DL Energy, an energy-efficiency and solar-integration company that provides custom energy solutions for the commercial industry. For more information, call 661.310.7245; visit www.dlenergy.net.

Solar Design in Progress: Oakley Executive RV/Boat Storage

Oakley Executive RV/Boat Storage in Oakley, Calif., which is expected to open in the fall.

Oakley Executive RV/Boat Storage, being built on 11 acres in Oakley, Calif., is designed to be a full-service, class-A facility serving the recreation-storage needs of the Delta region and greater San Francisco Bay area. Opening this fall, the project features the Solar Support System designed and engineered by Baja Construction Inc. The installation covers 170,000 square feet, delivering 331 shaded parking spaces and supporting a 1.67 megawatt solar park. Solar panels attach directly to the support system, creating shade for parked vehicles. The facility will reap greater revenue from shaded-parking income and the solar energy produced.

Based in Martinez, Calif., Baja designs and engineers solar-support structures and light-gauge steel structures that perform under any snow, wind or soil condition or load. The company can provide a fully installed solar-support system to any jobsite nationwide.

U.K. Self-Storage Company Lok'nStore to Announce Interim Results for Period Ended Jan. 31, 2012

Article-U.K. Self-Storage Company Lok'nStore to Announce Interim Results for Period Ended Jan. 31, 2012

U.K. self-storage company Lok'nStore PLC will announce its interim results for the six-month period ended Jan. 31 on April 23 at 9:30 a.m. BST. Chief Executive Andrew Jacobs and Finance Director Ray Davies will host the presentation for analysts at the offices of FTI Consulting, formerly Financial Dynamics, in London.

Jacobs established Lok'nStore in February 1995 after eight years as a stockbroker at Nomura International in London. He is Andrew is responsible for the company strategy, corporate finance and property.

Davies, a chartered accountant, has held a number of senior finance positions in the construction and health and fitness sectors. He is responsible for finance, administration and risk management.

Lok'nStore opened its first self-storage facility in Horsham in 1995. Since then it has grown to operate 22 sites in South England, including one managed store in Woking.

LoknStore builds, buys or leases large warehouses or industrial buildings and rents storage units to customers on a weekly basis. Around 60 percent of the company's 7,000 customers are residential and 40 percent commercial. LoknStore has more than 920,000 square feet of net rentable space, which is evenly split between freehold and leasehold.

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Man Stabbed at Self-Storage Facility in Chico, Calif.

Article-Man Stabbed at Self-Storage Facility in Chico, Calif.

According to police, an unidentified man in his 30s was stabbed about 4 p.m. local at Chico U-Lock-It Self Storage in Chico, Calif., near Community Park and north of the intersection of Martin Luther King Jr. Parkway and E. 20th St.

Lt. Linda Dye told the source police got a call about 4:40 p.m. from customers at the business, who found a man bleeding on the ground outside a small storage unit. He told police he'd been attacked about 45 minutes earlier by a man wearing a camouflage hat. Dye said the victim is not a tenant, and it's unclear why he was there

The locker appeared empty except for a few articles of clothing, and there was blood on the floor. The victim was transported by ambulance to Enloe Medical Center.

Officers detained at least three people in the area who roughly matched descriptions of possible suspects, but all were released after questioning.

Dye said the business has video surveillance, which may have captured the incident or the suspect.

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