By Randy Johnston

However helpful your self-storage security system has been to this point, times are changing and technology has become more advanced. Weve all heard this saying, Evolve or die. In regard to security systems, this would entail a full-blown upgrade involving the latest version of your current system, or a tear it out and start over again replacement.

But as much as it may be critical to evolve your site security, its still cost-effective and in the best interest of your self-storage facility to schedule a thorough wellness check of your system before making any major decisions. Your manufacturer can best help you determine your needs for upgrades, replacements or routine maintenance.

What a Wellness Check Provides

When it comes to obtaining a wellness checkup for your security system, your first call should be to the manufacturer of your security products. Ask the manufacturer to recommend a well-seasoned dealer who has the experience to provide you with a superior evaluation. This should include an inspection of the overall working condition, appearance and other important factors of your security system including:

• Gate and gate operator
• Access-control system
• All keypads or card-access devices
• Individual unit door alarms (hard-wired or wireless)
• Management software
• Telephone and intercom systems
• General facility observations

After the wellness checkup has been performed, the dealer should give you the results and offer recommendations for improvement. A typical result could include the following findings:

• Tighten bolt on keypad at the main entry gate.
• No. 4 key on elevator keypad doesnt work.
• Rollers on main entry gate need replacing soon.
• Unit alarms on the following units are giving false readings: 120, 141 and 167.
• Light above exit gate not working.
• Access-control system overheating during daylight hours.
• Display on climate-control keypad not working.
• Speaker on main gate keypad distorted.

Take Action

The findings from the dealer should be delivered with proposed action items and a timeline for implementation. Using the bulleted list above, these recommendations could include:

• Replace elevator keypad due to non-working number key.
• Before winter, give serious thought to replacing wheels on slide gate.
• Have wires checked on units 120, 141 and 167, and replace switches.
• Fence post is loose next to main gate; tighten to decrease security breach.
• Access-control system needs updating (unit no longer manufactured).

Dustin Reeves, sales manager for Blue Ridge Security Systems in Anderson, S.C., has offered a wellness checklist to his customers for several years.  I love the approach. It gives my customers a low-pressure blueprint for successfully upgrading, maintaining or replacing any component of their security, says Reeves, whos also used wellness checkups to introduce new innovations. For example, with our exclusive intelligent motion sensor, the motion sensor reacts and sends a 10-second video clip to our monitoring center. Our staff then determines the threat and reacts accordingly, he says.

Most installing dealers offer wellness checkups free of charge, regardless of which products you use. They all want whats best for you and your customers because thats whats best for the manufacturers as well.

Work closely with your manufacturer and its factory-trained dealers and installers to unlock your security systems full potential. A thorough checkup can show you where your security system excels, and where you can make improvements. It may be your system is just fine, and with a little TLC youll be in great shape. Or you may learn a new security product is available that will take your system to the next level. By giving your facility a thorough wellness checkup, youre protecting your investment and providing your customers with a safe storage solution.

Randy Johnston, a national self-storage specialist for DKS DoorKing Systems, has enjoyed nearly a decade in the self-storage industry. He serves on industry committees and speaks often during self-storage tradeshows and events. To contact him, call 843.679.5977; visit rjohnston@doorking.com .

By Foy & Co. Investment Real Estate Services

The Canadian self-storage market has remained stable over the past year. A few regions even experienced growth in revenue and occupancy, while other markets saw new development.

Foy & Co. Investment Real Estate Services recently published its National Self Storage Review, which included the following city-by-city update on the Canadian self-storage real estate market, plus the companys predictions for growth.

Halifax continued to be a relatively stable market with some growth in both rates and occupancy.

Montreal had a lot of development over the last couple of years, and it seems as though some of the more aggressively built areas are starting to see stability and even rate growth. As the market continues to stabilizeand if there continues to be less developmentwe should see some reasonable rate growth over the coming years.

Ottawa continued to see significant development, although on all reports, the market continues to lease well. As Ottawa is a government town, things havent slowed at all, and all forms of real estate continue to perform. We expect to see more development over the coming years and expect absorption to continue to tick along while rates hold steady.

Toronto had a good start in 2010 but a disappointing summer. Many in the industry attribute this to the introduction of the harmonized sales tax (HST), implemented in July.  HST created an 8 percent increase in cost to all rentals. Others in the industry suggest that facilities worked hard to ramp up prior to July 1, which meant a slower summer. That said, many sites are well ahead of where they were last year on an economic basis for consistent rates and occupancy growth.

Winnipeg has seen a massive amount of new development relative to its size. So far there hasnt been any negative impact on rates or occupancy, as both continue to perform well. We suspect development will tail off while absorption continues at an excellent pace.

Saskatoon continues to be the envy of the storage industry. Rates have continued to increase while facilities remained at full capacity. With development being very hard to get approved, rates should continue to grow.

Regina had a softer summer in 2010, which is mostly being blamed on weather. While most seem disappointed, Regina only trails Saskatoon and Winnipeg in overall performance. We expect Regina to continue to perform well as there seems to be little opportunity to develop.

Calgary experienced an off year in 2009, but fortunately, 2010 proved to be much better. Excess inventory has continued to get absorbed but not quite enough for rates to moveyet. With whats going on in other sectors in the city, Calgarys prospects should be fairly good for late 2011. There are currently several development projects in the planning stages and, depending on when they happen, we might even see some growth in rates.

Edmonton continues to be an interesting market. While the market held relatively stable, and even eked out some rate increase in 2008 and 2009, 2010 was a soft year. Edmonton had one of the weaker summers but is slowly absorbing recently developed space. As the economy picks up, Edmonton should have a relatively strong rebound.

Vancouver seems to be the most stable of the larger cities in Canada. It historically has had high occupancy and solid rent increases yearly. The last few years have seen a reasonable amount of good development, which has put a bit of a dent in occupancy and rate increases. However, Vancouver still holds as one of the countries most predictable markets.  

Foy & Co. Investment Real Estate Services specializes in equity raising and brokerage services for the Canadian self-storage market. The National Self Storage Review, volume 10, can be downloaded for free at www.foyco.ca .

Sovran Self Storage, the real estate investment trust (REIT) that operates facilities under the brand Uncle Bob's Self Storage, increased its revenue by 4.8 percent in the first quarter of 2011 compared with the first quarter of 2010, according to the financial statement released May 5.

As a result, net income to common shareholders was $8.3 million for the quarter ended March 31, or $.30 per fully diluted share. This figure is up from $7.4 million in the same period in 2010.

The statement also expresses an average occupancy rate of 79.2 percent and rental rate of $10.42 per square foot. In the 22 states in which Uncle Bob's operates, all but two experienced greater sales than in the first quarter of 2010. The strongest revenue growth came in New England states as well as New York and Tennessee.

The statement also shows Sovran's intent to acquire $200 million in a property, allocating $160 million for joint ventures and $40 million for adding wholly owned property. More details on the report are available at http://www.unclebobs.com/downloads/11-05-04.pdf

Sovran Self Storage Inc. is a self-administered and self-managed equity REIT that acquires and manages 371 Uncle Bobs Self Storage facilities.

A large amount of cocaine was recently discovered in a Washington, D.C.-area self-storage unit during an undercover operation.

Federal agents and Washington, D.C., police had been working undercover for 15 months to bust up a drug organization with connections to Mexico.

Investigators discovered drugs were going to be dropped off at a self-storage unit at 3005 Kenilworth Ave. in Hyattsville, and obtained a federal warrant to watch the storage facility via closed-circuit television.

After observing two men wheel a black suitcase into the unit, the FBI agents searched it. They discovered 30 kilograms of cocaine, a semiautomatic pistol and an assault rifle. The men were later arrested. The investigations also led to authorities seizing $550,000 in cash, luxury cars and two more weapons.

A self-storage owner in Rural Hall, N.C., admitted to a local television station the security cameras perched atop his facility are fake.

David Spainhour, the owner of Five Star Self-Storage, said the camera at the front gate is legitimate, but the other eight devices that look like cameras are nothing more than empty-box decoys. The source reported this practice is not illegal but is also not common among area facilities, contrary to Spainhour's perception that other places do the same thing. He told the source he read about using fake cameras in an industry magazine.

Spainhour also revealed he tells customers about the fake cameras only if they ask. A tenant recently had $50,000 worth of jewelry and perfume stolen, which prompted her to ask if the cameras caught footage of the thieves. After she learned the cameras were fake, Spainhour offered the tenant a month of free storage, valued at $90, to compensate. The tenant bristled at the offer.

Rural Hall is 12 miles north of Winston-Salem.

Siletz Mini Storage in Siletz, Ore., was sold on April 29 for $707,500 to a buyer with two other self-storage facilities in Lincoln County. It is the only self-storage property within a five-mile radius and was 91 percent occupied at the time of sale, according to a listing on LoopNet.

Now comprising 18,215 rentable square feet and 108 units, the facility was opened in 2002 on its 2.2-acre plot with one small building. It was expanded in 2003, 2006 and 2008 and still has room to grow. Thirty-one of the units have radiant floor heat, and there are 8 covered RV-storage units and 32 outdoor vehicle-storage spaces.

The business operates without an onsite manager using an INSOMNIAC self-storage kiosk. It is fully fenced with a keypad entry system and seven surveillance cameras. The facility uses Sitelink Web Edition management software integrated with Digigate gate-access software. The owner visits the property once per week to pick up mail, complete office tasks and inspect the site. A temp-agency employee is on call for emergencies.

Siletz Mini Storage was 91 percent occupied at the time of sale and sold at a 9.8 percent cap rate, according to the Argus Self Storage Sales Network. Steve Boldish, an Argus affiliate and a broker of Coldwell Banker Commercial NW, represented the seller in the transaction.

Siletz sits on the Siletz River in the coastal mountains of Lincoln County. The city is approximately 8 miles inland from the Pacific Ocean. The city is home to the Administration Center and reservation of the Confederated Tribes of Siletz Indians of Oregon.

Based in Denver, Argus was formed in 1994 to assist self-storage owners and investors. It now has 36 broker affiliates covering nearly 40 markets nationwide.

American Buildings Co. (ABC), a Eufaula, Ala.-based manufacturer of metal building systems for self-storage and other industries, is helping local businesses affected by recent tornadoes with an informational hotline. The hotline will serve as a resource for those seeking contractors to repair or rebuild their buildings or roofs.

Interested parties are encouraged to call 334.688.2355 from 7:30 a.m. to 4:30 p.m. CDT. An ABC representative will work to connect each caller with a local builder or roofer who can quickly make the building repairs, getting businesses up and running as soon as possible.

Architectural Metal Systems (AMS), a business unit of ABC, will also be available to answer roofing questions. AMS manufactures and supplies of metal standing-seam roofing systems for new construction and roof retrofits.

We have employees and customers throughout the state who were affected by these devastating high winds and tornados.  We want to do our part to help, in any way we can, said Ron Kuenkler, ABC president. Many local buildings have been completely destroyed or need significant repairs, and ABC has the network of builders and roofers to quickly connect business owners with the resources they need to get back on their feet.

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 900 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.

A stored vehicle at a self-storage facility in Indio, Calif., caught fire on May 4, but firefighters contained the blaze and spared the facility from an estimated $1 million in damage. Total damage, which was confined to one unit, was $10,000.

After 15 minutes, firefighters were able to put out the fire at the StorQuest Self Storage location on Dr. Carreon Blvd. Officials are still investigating the cause of the fire.

StorQuest has 32 locations in Arizona, California, Colorado and Hawaii, with 20 locations in California.

Andrew Donaldson, a partner in U.K. self-storage operator BiG Storage and the founder of self-storage fit-out company Active Supply & Design (CDM) Ltd., is among the final list of candidates being considered for the Ernst & Young Entrepreneur of the Year award for the North and Midlands region of England. If Donaldson wins the award for his region, hell go on to compete for the United Kingdom title.

Ernst & Young Entrepreneur of the Year is a prestigious business award for entrepreneurs. It celebrates those who are building and leading successful, growing and dynamic businesses, recognizing them through regional, national and global award programs in more than 140 cities and 50 countries. Programs begin at the regional level (there are 26), and culminate in the ultimate selection of a global award winner. This year, more than 50 of the worlds best entrepreneurs will compete for this title in Monte Carlo, June 2-5.

The awards dinner for the North and Midlands region, in which Donaldson is competing, will take place June 28 in Manchester England. The U.K. winner will be announced at the Oct. 3 awards dinner in London.

Im really excited about making the North and Midlands final, Donaldson told the Chester Chronicle. Its a massive vote of confidence for me just to make the cut, and the final awards dinner is the week before I celebrate my 20th anniversary of setting up in business. Im well chuffed!

BiG Storage has won six awards in its five-year history and, together with Active Supply & Design, the award count for Donaldsons businesses stands at 19.

Ernst & Young Entrepreneur of the Year is celebrating its 25th anniversary this year.

Ernst & Young is a global provider of assurance, tax, transaction and advisory services.