Posts filed under 'Crisis Communications'
Marcus & Millichap’s Mele Storage Group is warning investors that the commercial mortgage-backed securities, or CMBS market is experiencing a minor setback. Problems in the sub-prime residential mortgage market are adversely impacting the commercial mortgage market. CMBS lenders are even seeing some of their aggressively underwritten loans being kicked out of loan pools as the spread requirements of the bond investors are increasing, according to a recent report from BridgePointe Advisors, a real estate investment banking boutique based in Alphretta, Ga.CMBS are securitizations of mortgage loans backed by commercial real estate. That makes CMBS similar to Mortgage Backed Securities (MBS), which are mortgage loans backed by residential loans. CMBS are not exactly a new financing phenomenon – it was created in the late 1980s – but this method has gained notable momentum in the self-storage industry. Essentially, CMBS are a means for investors to participate in the ownership of commercial mortgages. Apartment buildings, shopping or strip malls, office buildings, hotels, industrial buildings and self-storage, among other commercial property types, secure loans that serve as CMBS collateral.
“Some are calling the subprime problem the ‘elephant in the room’ and many investors are getting nervous about aggressive underwriting practices,” said Michael A. Mele, Senior Investment Associate at Marcus & Millichap’s Mele Storage Group. “This could be a blow to self-storage investors because the spreads had narrowed and CMBS was becoming an attractive long-term financing alternative.”
Click here to read the rest of this release on FastPitch.
June 12th, 2007
After several years of strong performances, the tiny niche of real-estate investment trusts in the self-storage sector is showing some softness. But no one is quite sure why, the Wall Street Journal reports.
What’s your take? What’s going on here?
May 23rd, 2007
“The cold weather is to blame for dozens of soaked self-storage units in Haverhill and many of the folks who rented those units are upset and frustrated that their possessions have been ruined.”
So reads a CBS4 report out of Boston. It seems a frozen sprinkler pipe burst on the seventh floor of A-Plus Storage and water poured down into the units below. The buildings owner says it’s an unfortunate accident, but he’s not responsible for the damaged goods, CBS reports. According to CBS, the tenants were advised to get renters insurance for their stuff but many never did.
I hate to see this for several reasons. First, it’s just bad publicity. Second, CBS didn’t offer a direct quote from the owner. It may be better in the end since it doesn’t appear the owner did anything to throw water onto the fire. (No pun intended.)
There’s a way to handle crisises like this — and it’s usually not with a blanket statement that says to the customer, “We told you so.”
Sure, the owner probably did tell the tenants to get insurance. But how hard did he try to convince them of the benefits? How easy did he make it for them to sign up? Did he partner with an insurance company to streamline the process? Or did he just have a little sign up on the desk or a clause in the contract? We may never know.
What I can tell you is there’s a better way to handle the situation. Instead of saying, “I’m not responsible. I told the tenants to get insurance.” Why not say something less offensive and more comforting, such as, “While we did advise our tenants to get insurance and won’t assume liability, we are working with our tenants to help them recover and rebuild. We are also forming a strategic alliance with a self-storage insurance carrier to provide a quick and easy way for new tenants to obtain insurance in the future.”
That pill goes down a little easier, doesn’t it? The point is we need to be there for our customers — and let them know we’re there — even when it’s not our fault. Having a hands-off, I-told-you-so attitude doesn’t pay dividends, especially when your stance is communicated over the World Wide Web.
Click here to read the original story on CBS4Boston.com.
January 22nd, 2007
“I have never had a problem in my five years in business, and now I have to start from scratch. At this point I have no idea what I will do for security until I rebuild.”‘
Lawrence Hartpence, owner of Allstore Inc. self-storage along Route 690 in Madison Township told this to his local paper after a Nov. 19 fire destroyed the 34-unit building.
Never say anything like that to the media! It’s great that he talked to the media instead of trying to hide behind a bushel on one hand, but if you are going to tell the local community that you have no idea how you will secure the facility until the property is rebuilt, then it it’s better not to say anything at all.
The self-storage industry, as many other industries, needs to get savvy to crisis communications: what to say and what not to say in the midst of a crisis. I feel for this poor self-storage owner whose property was devastated and his customers who lost their goods and had no insurance. And I also feel for the industry because stories like this have the potential to damage the every day Joe’s perception.
It’s so important what we say to the media — and how we say it.
Click here to read the rest of the story about this unfortunate incident, and consider how you would have handled it. If you need some advice on how to handle these types of situations in the press, give me a call.
In the meantime, here’s a general rule of thumb: never say anything to a reporter that you wouldn’t want to whole world to hear. With the Internet Age, your story isn’t just local. It’s probably international. Never shed a negative light on a situation. Always find a positive. And always give the reporter the impression that you have it under control and are taking measured steps to repair any problem quickly.
December 20th, 2006
Despite a promise from officials to put off building a controversial public storage facility, a group of about 60 residents protested Saturday against potential projects in the Southern California Edison industrial corridor in East Pasadena, according to the Pasadena star.
Protesters were carrying signs that read “Preserve Open Space, No New Public Storage.”
This is a public relations nightmare.
Of course, sometimes such protests can’t be avoided. But then again sometimes they can. The best thing to do is to talk with the stakeholders in the community long before they rally in protest and gain supporters for their cause that might otherwise not have cared. You need to communicate the benefits of self-storage, but you need to do it through multiple channels to multiple audiences in a language that speaks directly to them.
Public relations, community relations, government relations and media relations can do wonders to garner support for proposed facilities. It can save you many thousands of dollars as you work to get your approvals because you’ll see less resistence if you educate the interested parties with a convincing argument.
Once you get the protesters against you, you have to shift to crisis communications mode in attempts to stem the tide of negative feelings.
The moral of the story…whatever action you can take to build relationships with the community stakeholders at the onset of a project, do it…but consider all the audiences and their potential concerns — and then address them point by point.
Click here to read more about this public relations nightmare.
November 20th, 2006
“They thought their stuff would be safe at the Store Safe self-storage in Miramar, but a huge water main break at Miramar Road and Camino Santa Fe has changed all that. It sent water rushing into some units.”
This was the lead in to a KFMB TV report in San Diego, and the beginning of a small crisis for Store Safe. Sure, it’s been said that there is no such thing as bad publicity, but who wants that message blasted over the airwaves.
Whether it’s a meth lab found stowed away in a unit or a flood that causes major disruption, your crisis communications plan should offer strategies for dealing with the media and the public in times like these. You need to counteract the negative perceptions with solid information — and fast — or it could hurt your good brand name.
Click here to read more about how the media reports on these types of incidents. How would you respond?
November 17th, 2006
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