Archive for May, 2007
Digitech International instigated a strategic alliance partnership with a group of Self-Storage Management Software Partners, including the most popular brand names in the industry. The companies are guaranteeing a reliable interface for each installation with two-way behind-the-scenes communication between the management software company and Digitech.
New members have applied and been accepted into the partnership including eMove, publisher of WebSelfStorage facility management software used by eMove Storage Affiliates, the world’s largest network of independent self-storage operators. Another, an international member, is Storman Self Storage Software. Originated in New Zealand, StorMan has risen to become the premier software supplier for New Zealand and Australia and has recently added an office in the US.
I love to see these types of strategic alliances come about in the self-storage industry for many reasons - it helps customers, it helps the businesses and it helps the industry. This is the sign of a maturing industry that is preparing itself for a new level of growth through services. In the future, I believe services will become an ever larger competitive differentiator in the self-storage industry. Although there are major differences between generational property types today, as more Class A facilities rise, it may be the behind-the-scenes infrastructure that pushes some facilities over the edge.
Click here to read more about the Digitech alliance.
May 21st, 2007
Marcus & Millichap’s Mele Storage Group continues its 2007 sales streak with the closing of Armor Storage. The Mele Storage Group’s Michael Mele brokered the $4 million deal for his client, Tampa Bay-based Watermark Development Group.
“Much of the Florida’s population growth is heading to southwest and central Florida, and the Watermark Development Group is benefiting from its ability to pick the right market at the right time and build a Class A facility with attractive amenities,” said Michael A. Mele, Senior Investment Associate at Marcus & Millichap’s Mele Storage Group.
A newly constructed Class-A facility located in Spring Hill, Armor Storage leverages its strategic Central Florida position by offering climate-controlled traditional storage, RV and boat storage. Spring Hill is a growing city in fast-growth Pasco County. Indeed, Pasco County is the 38th fastest growing county in the nation with a population growth of 5.2 percent a year. Spring Hill’s population exceeds 70,000 with a median resident age of 48 and income of $42,000. There are 32,782 households within a five-mile radius and a projected population growth of 15 percent by 2010.
“Watermark has a reputation for building best of breed properties with suitable amenities and Armor Storage certainly fits that description,” said Mele, who is also president of the Florida Self Storage Association. “The buyer was a savvy investor who understood the quality of the facility, as well as its strategic location. These are among the chief ingredients of a profitable self-storage venture.”
May 18th, 2007
Buchanan Storage Capital, a provider of financial resources to self-storage owners nationwide, surpassed the $250 million mark for year-to-date loan volume. The firm says it is on track to close more than $500 million in self-storage loans this year. Congratulations Buchanan. This is a wonderful sign for the continued growth of the industry.
May 17th, 2007
The self-storage industry has been the fastest-growing sector of the U.S. commercial real estate industry over the past 30 years. The boom has benefited suppliers like American Steel Buildings as well, as they set first-quarter records in 2007 for moving self-storage steel.For the almost 60,000 self-storage facilities in the United States, revenues for 2006 were approximately $22.6 billion, or an average of $441,208 per facility, according to the Self-Storage Association.
American Steel is making a push to become the preeminent provider of steel for the self-storage industry in a press release that positions it as a friend to self-storage developers. This is a smart tactic.
In the same way that American Steel has positioned itself as s friend to self-storage, self-storage needs to position itself as a friend to other businesses. Operators can learn a lot from American Steel’s stance here, but beware: if you go overboard it will be perceived as marketing hype. American Steel comes right up to that line. Do they cross it? You decide.
Click here to read the press release for yourself.
May 16th, 2007
BullsEye Storage is developing its sixth Houston facility. The climate-controlled building and surrounding fenced and paved areas will feature the latest security and door lock systems on the market today. Construction is underway on the new structure, which will contain 660 rental spaces.The new site, previously occupied by Houston Antiques, is situated at 3200 West Dallas just west of Waugh Drive at the Rosine Street intersection - bordering primarily residential neighborhoods. This new BullsEye facility will be the first new River Oaks-Montrose area self-storage development in more than a decade.
BullsEye has a good opportunity to hit the bullseye with this project by focusing on community relations. Any business located in the inner city has a responsibility to address the needs of its citizens, which are typically lower on the economic sliding scale. Since a self-storage facility won’t produce a lot of jobs, BullsEye needs to engage in a campaign that shows the community it cares.
How would you do that? It takes a combination of sincerity and creativity to support the needs of the inner city. But it’s vital as entrepreneurs are rising up from economically depressed inner cities to open franchises and other businesses. BullsEye is charged with being a good neighbor — and letting people know about it.
May 15th, 2007
USstoragesearch.com, a firm specializing in online marketing for the self-storage industry, has teamed up with Inside Self-Storage (ISS) to offer a complimentary, three-part webinar series to help facility owner/operators increase their bottom line using the power of the Web. The first session in the series, “Online Marketing Myths Exposed and How to Capitalize on the Internet,” will take place June 6, 2007, 11:30 a.m.-12:30 p.m. ET.
Presented by Megan Eckert, executive vice president for USstoragesearch.com, the webinar will bust common misconceptions about online marketing and teach attendees how to generate new self-storage rentals using the Internet.
“There are so many misconceptions about Internet marketing in this industry. It’s unfortunate that many owner/operators have had negative experiences or let unfamiliarity stop them from gaining these Internet customers as paying tenants,” Eckert said. By offering this free webinar series, we look forward to teaching people how to properly use online marketing to increase profits without wasting time or money.”
Click here to register for this free seminar.
May 11th, 2007
1031 Replacement Properties Inc. will sponsor the Buyers & Sellers Meeting at the Inside Self-Storage Summer Expo, July 24-27, 2007, at the Reno-Sparks Convention Center in Reno-Tahoe, Nev. The Buyers & Sellers Meeting gives participants the opportunity to investigate potential acquisitions or market their own for-sale properties. This event will take place on July 27th at 8 a.m.
If you are looking to buy or sell, this is a must-attend meeting. The market is changing and this is a good opportunity to get up to speed on where we are, where we’re headed and meeting some new business alliances. Visit ISS’s Expo page for more information.
May 10th, 2007
Noah’s Ark Self Storage opened a new self-storage unit in Orlando, Fla. The new Noah’s Ark offers 85,700 square feet of space and has a total of 651 units, including 299 units that are climate controlled. Storage units range in size from 25 to 300 square feet.
With the drought in Florida, we won’t literally need an ark any time soon, but we can always use a strategically located, Class-A self-storage facility and this is one of them.
I would point you, though, to the recent rebranding of the Parham Group. See, not everyone who knows Parham knew that he owned five distinct companies that offer end-to-end products and services for the self-storage industry.
Parham covers Maverick Investments, Noah’s Ark Development, NDS Construction, Cross Metal Buildings and Joshua Management. But they had different logos, different booths at trade shows, and different perceptions in the marketplace. Parham knew he could better serve the industry – and grow all five of his companies – if there was a consistent way to communicate the synergy his companies offer. That way was branding, including a new brand name.
Of course, deciding on a new brand name was just the beginning. The next step was creating consistency across the five companies. Parham took the individual logos and transposing them inside translucent cubes. The black, white and beige cubes communicated the ideas of storage units, building blocks and moving boxes. The scheme offers a feeling of unity that preserves the individualism of each company under the umbrella of The Parham Group.
The next challenge was the tradeshow presence, consolidating five disparate booths into one mega booth that offered each company its own space and identity as part of the parent brand. Parham developed a circular booth with a banner running its length that communicated the name of the parent company above the individual brand logos and the tagline “The 1 Resource.” The strategy paid dividends when attendees who started out talking with Cross Metal Buildings were introduced to Joshua Management staff and NDS Construction would-be customers took interest in other Parham Group divisions. CDs that offered attendees collective information about how to do proformas and choose sites served to prove the companies’ expertise across the self-storage board.
Nice job!
May 9th, 2007
InStorage is at it again. The Canadian REIT, along with InScotia Developments, gobbled up 11 units in the Apple Self Storage portfolio. This company is clearly taking dominion in the Canadian market.
But read the release and you’ll see some interesting financing. Will the changing lanscape bring about new financing arrangements, like assumable mortgages, mezzanine financing and even an abundance of venture capital and angel investors?
I’d love to hear what the industry’s financial gurus have to say about this…
May 8th, 2007
“A box full of childhood memories, furniture from a college dorm room, the china set grandma owned, the belongings of a departed loved one. All put in a self-storage unit for safekeeping. All lost forever because the rental payments weren’t made.”
That’s the beginning of a Times Expres article on self-storage auctions. It’s an interesting foray into the world of self-storage auctions and I believe it sheds some light on the process for curious gainsayer who might choose to bid, but more importantly for deadbeats who may choose not to pay. It’s always good to shed light on a matter.
I was glad to see that the self-storage owners interviewed in the article had the right spirit about it all and that the reporter captured that spirit. Self-storage didn’t look like the bad guy, but quite the contrary, looked reasonable and even lenient. This is a win for press relations for the industry. Would that all articles were so well done. Of course, it largely depends on the interviewees projecting the right image.
May 7th, 2007
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