April 2017: Mini-Storage Messenger

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April  2017: Mini Storage Messenger

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Issue Summary

The April issue of Mini-Storage Messenger features a cover story on accelerated construction in the industry and the threat of overbuilding as well as feature articles on revenue management for small operators and makeovers for older facilities.

Cover Story

Accelerated Construction

Is There A Threat Of Overbuilding?

By David Lucas

Construction & Development

Self-storage development has been trending upward for at least the past three years, with the peak expected this year before stabilizing in 2018. It’s a trend that may make numerous self-storage veterans cringe because of the prospects for overbuilding and all its ramifications: unhealthy competition, falling occupancies and rents, and that “four-letter” word called concessions.

 

Features

Profit Principles

The ABCs Of Revenue Management For Small Operators

By M. Anne Ballard

Operations

There are a number of reasons to improve revenue and profits. A few that should be meaningful to all owners and managers, regardless of property size, include paying increasing taxes, healthcare, utilities, payroll, and other expenses; reserving on-hand money for repairs, replacements, and improvements; and upgrading systems to stay competitive.

 

Modern Makeovers

Rehabbing Older Facilities

By Kerri Fivecoat-Campbell

Construction & Development

Someone one said, “old places have soul.” They might have soul, but if you are the owner of an older self-storage facility and you haven’t updated it in a while, chances are the sparkling new facility down the street might be bringing in more souls, and that translates into new business. Makeover challenges may include costs, new signage rules, and ADA compliance. However, if you navigate it properly, the rewards of renovating your facility can be great.

 

Columns

Look Who’s Talking

Joe Margolis – CEO Of Extra Space Storage, Inc.

By Erica Shatzer

Look Who’s Talking

Over the past several years, due in part to increase competition, third-party management has become more of a necessity than an option – especially within the highly populous MSAs (metropolitan statistical areas) where numerous REITs and larger storage operators have set up shop. According to Joe Margolis, CEO of the Salt Lake City, Utah-based REIT Extra Space Storage, Inc., third-party management has raised the bar for the industry and will continue to do so through scale, resources, data, and experience.

 

Deeper Into The Capital Stack

The Advantages Of Non-Recourse Bridge Financing At Certificate Of Occupancy

By Shawn Hill

Financial Facts

Construction lenders are not a dime a dozen, and good ones are extremely valuable. The challenge, however, is most simply do not have the capacity or risk tolerance needed to finance multiple deals for the same sponsor simultaneously. To resolve this issue, developers should be more strategic about their financing strategy including non-recourse bridge financing that is available at certificate of occupancy.

 

The Sky’s The Limit

Architectural Trends In Self-Storage

By Erica Shatzer

Construction & Development

The days when storage facilities consisted of rows of single-story metal buildings sprawled out over large parcels within industrial locations seem to be nothing more than a distant memory in 2017. While the industry’s iconic roll-up doors are still a prominent part of any storage facility’s design, a shift has taken place toward more sophisticated architectural elements over the past several years.

 

Test Your Integrity

Are You A Great Leader?

By Dave Martin

Management & Training

Unquestionable integrity is essential for every leader. It is the ultimate measure of a leader. Although many people struggle to completely define integrity, most everyone can recognize it. The question we all ask ourselves is: Are we that someone other people think of when asked to name a person of integrity? This self-test may help you answer that question.

 

An Expected Amenity

Considering Climate Control

By Kerri Fivecoat-Campbell

Operational Tips

The self-storage industry has come a long way from its roots of plain metal buildings with roll-up garage doors. Today’s self-storage customer expects self-storage to be cool, literally. Self-storage facilities don’t have to be built with climate control in every situation, but it certainly does give a competitive edge in almost any market. Determining whether to add this amenity to your facility and deciding on the system to install requires a lot of planning.

 

What Is It Worth?

A Frequently Asked Question

By Michelle Gigowski And Timothy Moffit

Sales & Acquisitions

Self-storage facilities typically provide measurable value creation potential for an investor through income and risk dimensions that positively impact value. While it is necessary to understand both the income and risk dimensions to arrive at an accurate value conclusion for a given self-storage facility, this article focuses on the income factors of self-storage facilities in an effort to better understand the value creation potential for facilities and what a facility is worth.

 

Exponential Growth In Self-Storage

Is The Party Over?

By Kerri Fivecoat-Campbell

Operational Tips

Everyone in the business is familiar with the miracle comeback from the Great Recession. A large growth of self-storage facilities prior to the Great Recession led to a slow down and, in some cities, a complete halt to growth within the industry. While the numbers didn’t help owners, for many the downturn wasn’t dire and didn’t last forever. Now that more facilities are coming on line, is the party over for the industry?

 

The Last Word

Site Selection Insights

John Good – President & COO Of Jernigan Capital, Inc.

The Last Word

Weight .5 lbs
Dimensions 11 × 9 in