Introduction...Monday & Tuesday, May 22 & 23 Julie and I attended the C-Suite Network national conference in Dallas. C-Suite Network is the world’s most trusted network of C-Suite Leaders. Here is my summary of the most important items shared.
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Storage Investing Issue No. 61
Introduction… Let’s first look at the benefits for customers using our storage properties before we discuss the benefits of investing. Without a strong and growing customer base, it would not make sense to get involved as investors.
7 Customer Benefits of Using Storage Units…
- Self-storage units are safe as well as a cost-effective solution to having extra stuff
- Self-storage units are a cheaper solution than building onto the garage
- Self-storage units are great for those who don’t have a permanent address like full-time RVers or full-time cruise ship travelers
- Self-storage units are a great place to store items that the kids at college no longer need, but might later when they start a household
- Self-storage units are beneficial to those who started working from home and need extra space
- Self-storage units are used by those who have inherited personal property and need time and a place to sort through the items
- Self-storage units provide a place for small businesses to store extra inventory, equipment, or files
The last item I know from personal experience. When I first started working for a downtown Fort Worth Certified Public Accounting firm, somehow I got the job of periodically going the the storage unit to purge old files. So, storing old but not yet past the statute of limitations are prime candidates for self-storage.
Conclusion… We will discuss “7 Top Benefits of Storage Property Investing” next issue now that we have detailed the customers 7 Top Benefits of Using Storage Units
Kiosk Online Leasing Success
Introduction…10 Federal set automated leasing record of leasing 77 units in a month at its new fully automated self-storage facility at 3802 Angier Avenue, Durham, N.C. The firms 2542 South Alston Avenue facility held the previous record of 48 leases in May 2016.
The new property has 205 climate controlled and ambient units.
How did they do it?...3802 Angier Avenue facility features temperature-controlled units, secure technology, drive-up 24-hour access and an online bill pay. “The Angier facility has minimal drive-by traffic, so to achieve this level of success with those limitations is a testament to the quality of the online advertising program that our operations team has implemented as well as the ongoing improvements to the online and kiosk leasing workflow,” said 10 Federal Co-Founder Brad Minsley in prepared remarks.
10 Federal’s unmanned properties use a combination of various technologies including electronic locks from Janus International Group, automated kiosks from Advanced Kiosks, access control from PTI Security System, management software from StorEdge FMS and other proprietary systems.
In conclusion…Self-storage, like other industries, is being driven by technology that provides better customer service and experience. This property includes drive-up 24-hour access and an online bill pay for example not normally available.
Source: Laura Calugar, “Record Leasing Numbers at N.C. Self-Storage Facility,” Commercial Property Executive, 4 May 2017
Introduction…Unless you are from the upper Midwest you’ve probably never heard of Menomonee (pop. 35,974) or Waukesha (pop. 71,489.)
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But, some well-funded self-storage buyer did. He paid $17,100,000 for The Vault of Menomonee Falls and The Vault of Waukesha. This is the highest amount ever paid for a self-storage portfolio in the Greater Milwaukee area as announced by Marcus & Millichap.
This sale…This sale works out to be gigantic $16,553 per unit or $164 per square foot for the existing rentable space. The Menomonee property has another 317 units to be completed in mid-2018 which was factored in the purchase price and is yet to be leased.
In contrast, DFW has a population of 7,300,000 and is expected to add another 125,000 people in the next year.
So, DFW’s one year population growth is expected to exceed the total population of Menomonee and Waukesha.
The high price to purchase existing self-storage properties in Menomonee and Waukesha gives contrast to what we’ve been able to secure in the DFW area. We’re buying 98% leased self-storage in Dallas for $36 per square foot.
Conclusion…Does our property seem like a bargain purchase to you?