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Personal Profile . . . . . . . . . . . . . . .3
• Focus on…Dick Stolp
FEDESSA News . . . . . . . . . . . .4 & 5
• City Box and Store-IT
• Building efficiency: the solution
• Stor-Age’s “Table View” facility
• EU Trademark System
Company Features . . . . . . . .6 to 19
• The Comeback Kid from Finland
• Self Storage Operator from Norway
• Takhzeen Self Storage Facility
• City Self-Storage, Norway
USA Feature . . . . . . . . . . . . . .7 to 9
• 2011 Facility of the Year
Country Feature . . . . . . . . .11 & 12
• Self Storage in Norway
Business News . . . . . . . . . . . . . . .13
• Self storage on the rise in Asia
To subscribe to the Focus and Self Storage Europemagazine, please contact:
Self Storage Association, Priestley House, The Gullet,Nantwich, Cheshire. CW5 5SZ
Tel: + 44 (0)1270 623 150Fax: + 44 (0)1270 623 471
e-mail: [email protected]
EditorialNews items and articles on all aspects of the self storageindustry are welcomed, and should be sent, together withphotographs if appropriate, to the editor, Stan McKerron:
e-mail: [email protected]
The SSA UK and FEDESSA, or any of itsagents/representatives/staff, cannot accept any legal
liability for the accuracy of the news items and articlescontained in the magazine, which have been obtained
and are reproduced in good faith.
AdvertisingPlease contact Stan McKerron:
48 Talbot Way, Stapeley, Nantwich, CW5 7RQ.Tel: + 44 (0)1270 624 622e-mail: [email protected]
Welcome to 2012, the Year of the Dragon. The Dragon is the fifth sign in theChinese Horoscope and signifies luck. While 2011 affected the self storageindustries in each of your countries differently, with expansion in some andconsiderable extra effort required in others, I am sure we could all do with abit of luck in these difficult financial times. We have done our best in this issueof Focus to brighten up the New Year by taking you on a whirlwind tour,bringing you features and news items from Europe, the USA, the Middle East,Asia and South Africa, as well as important updates on legislation.
The SSA UK is currently involved in a number of projects and reviews. Amongstthem are four, which I suggest are very important for all of us in this industry.First, the SSA UK is taking a root and branch look at the benefits of being amember of an association. We will give you more details as they emerge.One of the main benefits, of course, is attendance at the European Conferenceand Trade Show, which this year will be held in Budapest, Hungary on the 12thand 13th of September. Please put these dates in your diaries.
Secondly, it is preparing advice on data protection, what you can and cannotdo, how you should look after any information you hold on your customers,when you should destroy it and how you should treat your CCTV records. Thisis becoming a high profile subject in the EU; hence you would be wise toinvestigate your duties now.
Thirdly, and this has become the subject of considerable campaigning in theUSA, we are facing increased attention from web-based aggregator sites(comparison sites). These sites purport to offer you new customers, but at asignificant price. The simple message is do not use them yourselves and donot allow them to use you. They are in direct competition with you. We willbe discussing the issues at the next meeting of the FEDESSA General Councilin March.
Fourthly, the SSA UK is reviewing its licence agreements and its advisoryprocedures on late payment/foreclosure. Cash flow management is a vitaldiscipline for companies trying to make the most of their cash and a must whenseeking external finance. With care, the worst effects can be avoided. Asystem, including letters, e-mails, and telephone calls, is required for followingup late payments.
Five top tips
1. Make sure you have a signed contract.
2. Make immediate contact when payment has not arrived.
3. If a customer persistently pays late, consider whether you’re prepared tocontinue supplying on credit terms.
4. Be polite, professional and persistent; and make the consequences of non-payment clear.
5. Try to get customers to pay by electronic transfer or Direct Debit.
Companies can also be unaware of their rights in the case of late payment, orreluctant to set clear payment terms in case it damages sales prospects.Whatever your plans for 2012, make sure that “cash flow management” isincluded.
So here’s wishing you good fortune in the coming months!
Tony RichmanFEDESSA European Representative
A new year brings new challenges!
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Front Cover Photograph
The front cover photograph shows PVSolar Panels. For more informationrefer to Page 40 of the UK section
PERSONAL PROFILEVolume 1, 2012
Dick StolpQuestions answered by Dick Stolp (Store-IT, a leading developer and supplier of businesssoftware solutions and management systems for self storage operators in Europe)
What was your first job?
I was a chemistry researcher.
Educational achievements?
I studied chemistry, but after the second oil crisis in thelate 70s, I studied Information Technology (IT) and workedin the computer industry.
What did you do before getting involved in the selfstorage industry?
Before self storage, I was responsible for IT with a largeretailer (No. 3 in the world) in North America, SouthAmerica and Europe. In that job I travelled all around theworld, about 42 weeks a year for six years.
What was the first car you owned?
A Fiat 850 special with dual carburettors; very fast for theearly 70s!
What about your family life?
I am unmarried and have one 28 year old daughter.
How old are you?
I am a young 60 year old.
When did you get involved with self storage?
In 2000.
What attracted you to the self storage industry?
It’s a small, but rapidly growing industry, with lots ofopportunities and nice people.
On which non-self storage subject would youchoose to answer questions on a quiz show?
Pop music.
Details about your company?
The trading name is Store-IT and it is located nearAmsterdam. Our office is two train stations away fromSchiphol airport.
Is your company a member of any NationalAssociations?
Store-IT is a member of the SSA UK, AESS in Spain andNSSA in The Netherlands.
What have you enjoyed most with your company?
I mostly enjoy the contact with people during the salesprocess and telling them how the industry operates,based on my experience; the do’s and don’ts and howStore-IT can support them in “keeping on track”.
If you had the opportunity to start again, wouldyou do the same thing?
Yes, I would do it all again.
Apart from family and work, what are your maininterests?
Travelling and discovering new cultures and amazingplaces.
What type of music do you like?
All types of pop music.
What’s your favourite book?
The Millennium-trilogy by Stieg Larsson.
What’s your favourite film?
The first “Mission Impossible” movie is very good.
What’s your happiest memory?
My daughter’s birth.
What are the three things you dislike most?
Racism, intolerant behaviour and dishonesty.
And, three things you really admire?
Loyalty, honesty and passion.
How do you see the self storage industry in tenyears’ time?
Growth depends upon a shortage of space and awillingness to pay for it. In each country the situation maybe different, but I foresee a steady growth in the EUcountries and the whole of Scandinavia, and moderategrowth in east and south east Europe.
What tips would you offer anyone contemplatingentry/investment into the industry?
Although we are facing a crisis today, I think it is a goodtime to enter self storage. I would recommend starting abusiness in phases, in order to expand with risingdemand.
Do you have a personal message for yourcolleagues and the people you have met duringyour career in the self storage industry?
I hope that they will all prosper and that they make theright decisions in dealing with the crisis that will last foranother few years.
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FEDESSA NEWSVolume 1, 2012
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FEDESSA NEWS Self Storage Europe
City Box and Store-IT
Last August, City Box, the Dutch self storage company,celebrated its 10th anniversary with Store-IT. The relationshipbegan in 2000, when the tailor-made management softwarepackage “Store-IT” was especially developed for City Box, andin August 2001 its store in Rotterdam-North was the first to usethis new software.
Since then, City Box has grown to become the Dutch marketleader with 23 stores. In order to support this growth, Store-IT has grown from the tailor-made City Box version into a fullstandard package for the European Self Storage Industry. Atpresent, there are many self storage companies in more than16 different countries using the Store-IT package successfully.
The drive to expand with more stores has led to a renewedapproach in renting out units to customers. With the latestversion of Store-IT, it is possible to rent out units in just threesteps on a tablet, or in real time on a company’s own website.The latest partnership between Store-IT and a leading ITNetwork supplier shows how City Box’s central businessprocess can be optimised. Both parties are confident that thenext ten years will be just as successful.
Building efficiency: the “two stage” solution
Renovating Europe’s buildings for deep efficiency in two stageswould result in 71% energy savings across Europe by 2050and create 800,000 clean energy jobs; at less than two thirdsthe price of one-off deep renovations, a new report says.
“With the “two stage” scenario we see the highest level ofenergy savings, one of the lowest investment costs and thehighest CO2 emission reductions,” said Adrian Joyce, theSecretary General of EuroAce, an alliance of energy efficientbuilding companies (http://www.euroace.org/).
The plan’s moderate ambitions would match market conditionsand manufacturers’ requirements better with secondrenovations only coming on stream between 2030 and 2035,when new technologies and a learning curve allowed.
Renovate Europe (http://tinyurl.com/btpdtz3), an energyefficiency pressure group, is now considering the two-stageidea as having “stand out” potential to assuage EU memberstate reluctance to invest in “promising” energy savings duringa fiscal crisis.
Europe’s buildings account for 40% of primary energy
consumption and 36% of the continent’s carbon emissions(http://tinyurl.com/4olz6yz), so a massive programme ofbuilding renovations will be necessary if Europe is to meet its2050 objectives of an 80 to 95% cut in CO2 pollution.
European buildings take up 24 billion m2 of space, an areathe size of Belgium, according to the new study “Europe’sBuildings under the microscope” (http://tinyurl.com/d2bspyg),which was written by the Buildings Performance Institute Europeto coincide with Renovate Europe Day (11th October).
They could be renovated in one of five scenarios, according tothe report: Baseline, Slow and Shallow, Fast and Shallow,Medium, Deep, or Two-stage.
Only the Deep or Two-stage renovations would allow Europeto meet its 2050 goal. The deep renovation option would alsocreate 1.1 million new jobs and offer 68% savings on today’senergy levels.
But EuroAce says neither option is currently being welcomed byBrussels. “Our feeling is that across Europe “slow andshallow” renovations have taken place and that is the “businessas usual” case, which is just not up to the mark,” arepresentative said.
Financial winds
The EU’s energy efficiency directive recently proposed a 3%buildings renovation target for heat loss, but only for publicbuildings (12% of Europe’s stock) just for minimum energyperformance requirements, and with opt-outs for socialhousing and small properties (for more information visit:http://tinyurl.com/5stmg6n).
EuroAce supports a deeper 3% target per annum for allEuropean buildings, without exceptions.
Other energy efficiency sectors are more accommodating tocurrent financial winds. The more expensive the renovation(as in a “deep” scenario) the less likely it is. The key is to,perhaps, convince building owners of the long-term value ofrenovation by legislation, and also to introduce calculationtools, information campaigns and, for a limited time, subsidies.
Boring is the new sexy
The EuroAce representative professed himself “mystified” as towhy wealthy EU countries, such as the UK, with a great capacityto make building efficiency savings were currently lagging, andholding back the rest of Europe. He suggested that suchproblems might “evaporate overnight” if energy efficiencymeasures could somehow be made more visible and desirable.
“One of the objectives of our campaign is to make “boring”the new “sexy”,” he said.
Stor-Age’s “Table View” facility
After the demolition of the landmark Killarney Hotel in CapeTown, South Africa in August, on the 8th of November 2011Stor-Age Self Storage revealed its plans to develop a modern,attractive, four storey self storage facility, which is set to be oneof the leading properties in its sector, internationally.
Stor-Age CEO, Gavin Lucas, commented: “It was a challengeto remove the former tenants and we are pleased that we havecompleted that phase of the project. Although we are anational operation, with stores throughout the country, thisstore has special meaning for us. Our directors all grew up inthe neighbouring suburbs, so the significance of the site is notlost on us.
We have committed more than R62 million to developing aworld class property that will add significant value to thebroader West Coast region. Although we will be replacing thehotel with an alternative use building, its replacement willremove an undesirable element at one of the key entrancepoints to Table View.”
The position of the site, said Gavin, at the intersection ofBlaauwberg and Koeberg Roads was a logical choice. The siteenjoys excellent exposure to one of only two main entrancepoints into the West Coast suburbs from the south. The site issurrounded by a broad base of residential and commercialusers, including the residential areas of Milnerton, Table View,Parklands, Sunningdale, Blaauwberg, West Beach and Big Bay,as well as the commercial areas of Montague and KillarneyGardens and the mixed use Century City.
Stor-Age Property Director, Steven Horton, said: “The 9,000m² site will see more than 10,000 m² of gross lettable spacebeing developed over four floors. On completion, it will offerupwards of 800 self storage units, ranging in size from 3 m² to30 m². The new store has been designed by MLB Architects inconjunction with Stor-Age and is being built by FaircapeConstruction, with the internal fit out to be completed by localself storage specialists, Steel Self Storage Systems.”
From an environmental sustainability perspective, great carehas been taken to preserve the existing palm trees on site.Along with this, over 5,000 m² of permeable paving has beenincorporated in the internal roadways to facilitate the overallstorm water management on site. This is qualitatively differentfrom traditional paving methods. Steven noted that where thisproperty and Stor-Age have set themselves apart relative to the
rest of the self storage market, is that their stores are alwaysconveniently located and designed with the customer in mind.
Customers will be greeted on site with a modern retail store,which for convenience will provide all consumables linked tomoving, packing and storing. All parking will be catered for insecure undercover loading bays, where everyone and theirgoods will be safe from the prevailing weather.
The advantage of this is that customers will always be in aclean, well lit and totally secure environment. Customers willbe able to access their goods 24/7, 365 days a year. Thebuilding will be fitted with the latest security systems andtechnology, including electric fencing, CCTV, validated entryand access, and 24/7 on-site security personnel will be presentas well as a dedicated off-site CCTV surveillance system.
Gavin commented: “Self storage is a by-product of the age inwhich we live. A need has been created for the service as aresult of societal trends. This new store will add value to thelives of residents and SME’s living and operating within theWest Coast region, by providing them with much needed spacein a safe, convenient location.”
EU Trademark System
Since 1996 the European Union has operated a TrademarkSystem, allowing individuals, manufacturers and serviceproviders to make a single application for a trademark to beregistered in all Member States within the Union.
A trademark fulfils three essential functions: it identifies theorigin of goods and services; it guarantees consistent qualitythrough evidence of a company’s commitment to its customers;and it’s a form of communication and a basis for publicity andadvertising.
Trademarks also play an important role in promoting businessinnovation and quality. During January 2012 the EuropeanPeople’s Party (EPP Group), one of the political groups withinthe European Parliament, held a hearing to examine the futureof the EU Trademark System ahead of anticipated EUCommission proposals to revise it.
FEDESSA will be monitoring developments and will be keepingmembers advised when the proposals are published.
Tony Richman is FEDESSA’sEuropean Representative
Tony Richman
Do you have a story to tell us?
Have you recently opened a new self storagefacility? Have any of your facilities undergone major
restoration work or face lifts recently?If you/they have, please let us know by sending
the relevant information, plus suitable photographs to: [email protected]
An artist’s impression of the new facility
6 7
COMPANY FEATURE Self Storage Europe USA FEATUREVolume 1, 2012
Perceptive owners, professional management and a talented,on-site team have combined to produce the success of a newconcept in self storage, the award winning iStore Self Storage,in Birmingham, Alabama. Against the odds of an economicdownturn, a reticent bank lending environment and an upscalecommunity’s concerns about a self storage facility on itsdoorstep, the facility has seen occupancy climb to over 50%since opening in January 2011. A 2011 Facility of the YearAward winner in the overall category, iStore boasts a number ofattributes: its conversion design, green features, corporateamenities, customer service and community outreach. The SpecsiStore is a 74,680 sq. ft. conversion facility, originally on threeacres, with 588 climate-controlled and 16 unique sizes ofstorage units. A former Bruno’s grocery store, the brick buildingwas modified to include a mezzanine floor, expansions ofexisting loading docks and the addition of a ramped loadingdock for regular cars and SUVs, as well as RV and boat parkingfacilities. The four access points facilitate traffic flow for a diverseconsumer base of both residential and commercial clients,including retail, service based small business, and contractors,lawyers and hospitals.
The site is accessible from three local thoroughfares, and is in aretail corridor that serves parts of the Birmingham, Irondale andMountain Brook communities. In addition to the grocery store,the original site contained a large parking lot. The owners/developers sold the front lots to two different national restaurantchains, Taco Bell and Bojangles, providing convenient andattractive restaurant choices to customers on site and defrayinga portion of debt obligations in the process.
OwnersThe Birmingham, Alabama-based facility turned a “down in themouth” site into a bustling centre, using not only an existingstructure, but an extensive parking lot, and community outreachto achieve a vibrant presence. But years before iStore wasrealised, the eventual owners of iStore and partners in a regionalreal estate management company, Hugo Isom, Gary Pharo, WillAkin and Greg Hess, debated prospects for retail centres ingeneral. Given emerging consolidations and the increasingtrend toward on-line purchases, Pharo anticipated changes inthe retail end of real estate that have played out in recent years,leading him to identify the merits of diversifying into self storage.Isom cites the rule of thumb that a property’s profitability is in thelast 20% of units leased. “Compare a self storage facility withits hundreds of discrete units to a retail centre with tens of units,and the benefits of spreading risk over a larger base are clear,particularly in an economic downturn. Still, finding the rightproperty, location, market, structure, financing and zoningrequired an alignment of all the planets,” said Isom. Stumbling on the big box structure, the developers recognisedthe solid structure was a prime opportunity to build climatecontrolled, environmentally conscious self storage: “Repurposingan old building makes economic sense,” said Isom. Theconstruction costs and time element were lower thanconventional development requirements. The location, adjacentto two of the highest income neighbourhoods in Alabama, wasprime. Still, it took a year before all the stars truly aligned.Isom recalled: “We could not assume a field of dreams model:that if we built it, they will come.” “Discovery” required securingfinancing from banks, zoning approval from the City ofBirmingham, and, perhaps most fortuitously, advice from selfstorage experts, Anne Ballard and David Dixon of UniversalManagement Company. While the bank was not “excited” about extending financing, itwas willing because the owners had a reputable credit trackrecord, and had a plan to diversify their holdings with a state ofthe art facility, the best in the southeast! Also accommodating,the Birmingham zoning board approved the conversion of theretail building to a storage facility, despite the loss in future salestax revenues, because it would rather have a viable businessthan an empty building. The owners’ next step proved the mostfortunate for the venture, seeking out advice from UMC’s AnneBallard and David Dixon for their professional self storage,industry specific recommendations and their “wish list” of musthaves.
...continued on Page 8
Joanne Donnelly
Joanne Donnelly is a freelancewriter and editor based in
Scottsdale, Arizona
The Comeback Kid from Finland
Tuomas Kurittu, a true veteran of the European Self StorageIndustry, is at it again!
Tuomas founded Minivarasto Oy in Finland in 1993 andquickly grew it into a chain of eight sites in Helsinki, Tampereand Turku, including two sites in Stockholm (Solna andBromma) under the name of Minilager i Stockholm AB, makingMinivarasto the first self storage operator in these four towns atthe time of their opening.
Pelican Self Storage bought Minivarasto Oy in 2009 andTuomas left the company in 2010 to start afresh in Tallinn,Estonia. Minilaod Oy (Ministorages in Estonia) follows thetrend and was the first self storage operator in Tallinn!
The 50-plus units facility, in the heart of Tallinn at TondiÄrikeskus (Tondi Business Center) at Pärnu Maantie 142, thebusiest artery in Tallinn, has been trading since March 2011and is now fully rented.
The first phase included a spacious office (90 m2) with plentyof room for merchandise and four show units with goodvisibility from the busy Pärnu Maantie Street. The site also hastop security in the form of state-of-the-art CCTV, access controland alarm systems, all supplied by local contractors.
The second phase (another 50 units) was ready to accept newcustomers in January 2012. The storage units, manufacturedby Steel Storage, were supplied by Tuomas’ old friend Philip
Pouncey of Kuboid Ltd. Tuomas did business with Philip whenhe worked as a contractor for Steel Storage in Twickenhamfrom 2001 to 2003, building facilities for Steel Storage’scustomers all over Europe.
For more information, visit: http://www.minilaod.ee/
iStore Self Storage - 2011 Facility of the YearVision, experience and service: a blueprint for success
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USA FEATUREVolume 1, 2012
ManagementAnne Ballard instilled the concept of quality from the start, inthe building’s design, decor and service. She determined to“pack a big punch” by giving “customers a little bit more thanthey were used to.” The owners accepted UMC’s requisite “tocut no corners.” The end result is visible in the quality designand decor, the range of amenities and the level of service. Ballard describes iStore as a “category killer”. No other selfstorage company in the competitive area comes close tooffering the same range and quality of amenities and service.Indeed, Ballard contended: “Better amenities make for betterlease-up.” At iStore, rapid lease-up rates this year occurreddespite the on-going economic downturn. Currently, iStore’smanagement team, Cindy and Franz June, cite a 48%occupancy of units and 55% occupancy in terms of squarefootage. Beyond the building’s structural modifications, the interiorlayout designed by bDot Architecture, Inc., and conceived byBallard, aimed to provide more than a standard self storagefacility, but less than a club house model. In addition toproviding the standard fare of self storage facilities, a full rangeof boxes, U-Haul truck and equipment rentals, and move-insupplies, they developed a business centre within the building’scommon spaces, where local chambers of commerce and selfstorage clients can meet socially or professionally, conductconferences, or perform Internet-based work. As Ballard sawit, the design and decor features would help grow the business;hence, no corners were cut in creating an upscale, corporateambiance.Hi-Tech and GreenIn keeping with the business motif, the iStore name and logowere the product of a marketing company that associated thefacility with a technologically savvy identity, suited to theprofessionals who are an increasing tenant base. Ample roomin the office/reception area allows the facility and clients tohost gatherings; a secluded conference room provides seatingfor up to 12 people and high-tech amenities, including a flatscreen television, can be rented after hours for events bycommunity members, as well as iStore clients. An iStoreNeighbourhood Friends Centre fosters connections as a placewhere business cards and information are available, as wellas on-site laptop stations with free Wi-Fi for business clients.The reception area has five flat screen television monitorsshowing real time security surveillance and exterior points ofentry are accessible via computerised keypads. Customersmay access the amenities 24 hours a day.The building conversion took four months to complete, savingmany resources, time and money compared to a ground-upfacility. Not only is the iStore building a “recycled” building,but the store is branded “green” and it promotes eco-friendlychoices for customers and its operations. These includecardboard and plastic recycling programmes, eco-consideratepromotional materials (recycled paper, recyclable andbiodegradable plastics, and soy-based inks whenever possible)and energy saving light bulbs, appliances, and HVAC systems.
The decor of the interior public spaces incorporates naturalelements, like granite, glass block tile and bamboo flooring, aswell as high end finishes like aluminium, steel and nickel, in asubtle and calm colour palette.From front desk to conference room to rest rooms, the facilityis consistently upscale in appearance and detail. But, Ballard’sattention to detail goes beyond the public areas. “One oftenomitted amenity”, she said, “is the break room or back officefor managers.” Providing managers with a private space, withits own exit door, is a consideration most self storage facilitiesfail to make. With the wide spectrum of activities that takeplace, the back room is a hub of activity as well as a haven forthe on-site managers.
On-site Managers“People people”, Cindy and Franz June, are the face of thefacility. As Ballard said: “In the lease-up phase it takes adifferent kind of management than it does when a facility isestablished.” Her secret weapon is installing experiencedprofessionals who project a courteous and caring image tocustomers, as well as the community at large. Cindy June said: “Our business is to make it as good as wecan and to provide over the top customer service.” Fromstanding up to greet each person who enters, to sitting withthem and “finding common ground”, while serving coffee, teaor water and warm cookies, to preparing invoices, planningdog weddings, or organising a community-wide yard sale toraise funds for a children's hospital, the Junes have covered alot of ground in less than a year of marketing the facility.iStore Self Storage is a new concept in the industry, providingcommercial clients with a place to do business, in peace andquiet. Averaging about 40 move-ins a month, first floordiscounts have ended but upper floor discounts of 25% amonth are in effect as units are phased in. The facility drawsits clientele from two affluent communities. According toCindy, about one quarter of tenants are business orcommercial entities, drug representatives, attorneys and retailand marketing clients. Modestly, Cindy attributes iStore’simpressive growth to a real estate truism, “location”. “This wasa grocery store. I’m sure these people did their demographicsbefore they built and then fell on hard times.” Then, sheadded: “There’s not a lot of competition.”
Marketing
iStore’s community outreach has been instrumental in expandingawareness of the facility in the surrounding communities.Moreover, the management team has provided meaningfulopportunities for other retailers. A visit to the facility’s website isa lesson in creative marketing and the benefits of communityoutreach: (www.istore-selfstorage.com/testimonials.html).
• A “Southern Living” editor exclaimed: “It’s the dream atticI’ve always wanted!”
• Shindig Catering commended iStore’s “sincere servicementality”.
• Dreamcakes Bakery said: “Our experience with iStore SelfStorage has been fantastic. Several months ago theyreached out to us via Facebook and kindly offered theirparking lot as a place to serve our cupcakes. iStore is nowour regular Wednesday stop and it is a quick sell out everytime we come! They also included us in their recent yardsale, which was a huge success for them and us. Not onlydo they provide top flight customer service, but they are alsoreaching out to other retailers in the Birmingham area andhelping them with their businesses.”
• A hospital special events co-ordinator was no lessappreciative: “On behalf of Children’s Hospital of Alabama,I want to thank iStore for allowing us to hold our first annualcharity garage sale “uBuy at iStore” at their fabulous newfacility on Saturday, August 20th. The event raised $5,000for Children’s Hospital and we could not be happier with theresults! The managers, Cindy and Franz June, and their staff,went “above and beyond” to make the event successful, notonly for us as the benefitting charity, but also for the 49vendors who participated in the event. Birmingham isextremely lucky to have this exceedingly civic-mindedbusiness located here. Their commitment to the communityis admirable and much appreciated by Children’s!”
A Replicable Model
Anne Ballard, who also owns and manages self storage facilities,considers the business model represented by iStore to bereplicable by older facilities that have lost some steam in recentyears. Based on her own portfolio, she sees newer facilities withmore amenities and doing all the marketing events having “netgains”, while pre-2006 and older facilities are not pulling in theoccupancies they once did. Ballard believes smallimprovements in maintenance, cleanliness and marketing cango a long way in improving tenancy in facilities that are willingto abandon outdated models. For those considering venturinginto self storage, particularly into big box conversions, Ballardsaid: “Success is more likely in the major and second tiermarkets, not rural markets.”
Self storage conversions in high density areas may well be therising star in real estate in the wake of the economic slump. Astill nascent industry, the self storage asset class continues tohave room to grow in a number of ways. iStore has created anattractive, clean and amenity rich model that is very muchgrounded in today’s economic realities. Acting as both awarehouse and business centre, the facility serves evolving needsin today’s remotely managed and often service-relatedbusinesses, where actual store fronts are not needed and suchoverhead is undesirable. As Ballard said: “iStore is the epitomeof what can be achieved when design, use of marketing andmanagement all come together.”
A nod to Ballard, owner Isom credits their success to taking along view on this project; doing it right the first time. “Qualityis not much more expensive than whatever is the opposite.”From ensuring the brick of the newly added enclosed RV parkingstructures blended in with the existing building, to providing aclean, upscale and secure facility, he contends a trust factor wasestablished. But, “management is king” in leasing up a propertyand retaining customers. He hopes iStore will double thenational average of a self storage stay of three to four months.So far, he says, they are exceeding on tenant retention rates.
While the stars that aligned on this project, location,demographics, financing, may not be precisely replicable, theelements of the model are certainly transferable. In a businessenvironment that precludes development, iStore Self Storage isa bright light. It has achieved a measure of success and it hashelped surrounding businesses as well.
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USA FEATURE Self Storage Europe
“iStore is the epitome of what can be achieved when design,
use of marketing and management all come
together”
10 11
Volume 1, 2012 COUNTRY FEATURE
The Kingdom of Norway, which is Europe’s northernmostcountry, is famed for its mountains, spectacular fjord coastlineand its seafaring history. It also enjoys one of the higheststandards of living in the world, mainly due to the discovery ofoffshore oil and gas in the late 1960s.
Norway declared its independence in 1905, when its unionwith Sweden was dissolved. Norway’s people highly value theirindependence and prosperity. The Norwegians rejectedmembership of the European Economic Community in 1972and of the European Union in 1994, despite being urged bytheir government to vote “yes”.
In recent decades, Norway has forged a stronger role for itselfin international politics. It has mediated between Israel andthe Palestine Liberation Organisation, and from 2000 to 2009was the chief mediator in the conflict between the Sri Lankangovernment and Tamil separatists.
Norway has a rich, seafaring tradition and its lengthy, ruggedcoastline has been central to its development. More than athousand years ago, Viking raids on the coasts of Britain andFrance were commonplace. The Vikings also mountedexpeditions to the coast of North America.
Later, the Norwegians began to trade. Originally, the coastalwaters provided fish for export; today, Norway is among theworld’s largest exporters of fuels and fuel products.
Norway registered objections to the 1986 InternationalWhaling Commission (IWC) ban on whaling and resumed thepractice on a commercial basis in 1993. It argues that whalingis no more cruel than fishing and that stocks are sufficient toallow it to continue. Conservationists disagree.
…continued on Page 12
Self Storage in Norway
So what do the stats look like?
Norway has a population of 4.9 million (United Nations statistic,2010). Its annual oil revenue is around $40bn (£25bn) andmore than half of its exports come from this sector. In additionto fuel and fuel products, other exports include machinery andmetal products. To counter inflation, the spending of oil revenuewas restricted. The considerable surplus is invested in asovereign wealth fund, estimated in 2009 at $400bn.
What to do with the money is one of the country’s mostcontentious political issues. The centre-right wants it to be usedto fund infrastructure improvements, while the centre-left wantsto keep it invested for future generations. GNI per capita is: US$86,440 (according to the World Bank, 2009).
Prime Minister Jens Stoltenberg’s government has used statespending as a tool to stimulate growth.
Labour Party leader, Jens Stoltenberg, took office as PM in acentre-left “red-green” alliance with the Socialist and Centreparties in October 2005, replacing a centre-right government.His coalition narrowly retained its majority in the 2009 election,becoming the first Norwegian government to win a secondconsecutive term in 16 years. The government’s position washelped by the fact that oil-rich Norway was largely unscathed bythe 2008 financial crisis. At the time of the 2009 election, theunemployment rate was among the lowest in Europe at 3%.
Mr. Stoltenberg won power on promises to increase spendingon education, health and welfare, and to reverse the tax cutsproposed by the previous administration. He vowed that thebudget policy would abide by Norway’s strict rules on spendingoil revenues. He also gave his backing to limited oil explorationin the Arctic. His government withdrew Norway’s smallcontingent of troops from Iraq, but promised to increase thecountry’s profile in UN peacekeeping operations elsewhere. Mr.Stoltenberg, an economist, was 46 when he took office; he wasPrime Minister for the first time from 2000 to 2001.
In Norway, private broadcasters have substantial audiences,competing with NRK (The Norwegian Broadcasting Corporation)for listeners and viewers. Digital television, via cable andsatellite, offers a wide range of specialist channels. Norway hasalready completed the switch from analogue to digital terrestrialTV.
The Schibsted Group, publisher of Aftenposten and the mass-circulation VG, is one of Scandinavia’s largest media concerns.
Norway-based Telenor is a leading Nordic broadband, telecomsand satellite TV provider. Norwegians are among the world’s keenest newspaper readers.The number of titles is impressive, given the small population.Most of the press is privately owned and openly partisan. Pressfreedom is guaranteed by the constitution and public radio andTV broadcast without official interference. By June 2010, 4.4 million Norwegians were on line; nearly 95%of the population (according to InternetWorldStats). So, how is Norway’s self storage industry?The self storage industry has developed fast, especially in andaround Oslo. During the last three years much developmenthas taken place in the sector, with increasing numbers ofoperators in Oslo and other cities. Several of the movingcompanies, that self storage operators used to co-operate with,now also provide self storage services.Despite the world economic situation, self storage in Norway isstill growing. However, it is mainly in smaller cities due to thedemand and because good rental prices can be achieved inprime central locations. For example, the economic trend alongthe west coast is very strong, due to the oil business. So, facilitiesin areas such as Stavanger are very well placed. There are no unusual legislative requirements, other than normalreal estate/business regulations. However, customer’s rentalcontracts are regarded in the same way as when renting anapartment. The downside is that it is harder to terminate a “non-paying” customer’s contract and have the customer’s goodsremoved. Legal procedures, which are time consuming andcostly, have to be followed.As Norway is outside the EU and is financially strong, it has notbeen affected much by the present economic situation.Members of the Norwegian Self Storage Association still see ademand in both housing and business premises in the cities. While self storage is still relatively little-known, it is growing at anacceptable rate. Our Norwegian colleagues believe that therewill be continued growth in the next ten years, with two or threelarger operators in the bigger cities and several minor operatorsin smaller cities. Our thanks go to City Self-Storage Norge AS and JaerenLagerhotell, the Norwegian companies featured in this edition ofFocus, for the very welcome glimmer of good news when manyof us are surrounded by doom and gloom.
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Self Storage Europe BUSINESS NEWSVolume 1, 2012COUNTRY FEATURE
As a reader of Focus magazine, you are probably aware thatself storage is one of the fastest growing sectors in the realestate industry. But, did you know that self storage in Asia isonly just getting started?
Although there is historical evidence of publicly availablestorage in ancient China, modern self storage facilities onlystarted in Asia about ten years ago. When compared to theself storage industries in the USA, Australia and Europe, theindustry in Asia is at the very bottom of the maturity curve, witha market penetration reaching an estimated 0.8% (excludingChina).
As in other parts of the world, self storage in Asia is on the rise.The effect of large middle class populations with consumerpurchasing power (see Table 1) coupled with increasinglysmaller homes and offices, points towards an almost certainfuture demand for self storage space. In addition, real estateprices in Asia’s city centres are increasing and warehousingspace is being moved out of those city centres. It is, therefore,expected that the need for secure and easily accessible storagespace for individuals and small enterprises will only increasefurther.
“Steel Storage Asia set up its office and factory in Singapore in2003, so we have seen the growth of self storage in Asia first-
hand”, said Jon Perrins, CEO at Steel Storage Holdings. “Thegrowth rate in Asia seems to mimic that of the USA, Australiaand the UK, and there is a lot of opportunity for growth in theregion,” he added.
Self storage facilities in Asia can be found in: China (5), HongKong (over 150), Japan (over 1,000), Malaysia (1 openingJanuary 2012), Singapore (22), South Korea (1), Taiwan (11)and Thailand (1).
Self storage on the rise in Asia
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Large middle class population nourishes self-storage successHong Kong, Singapore and Tokyo now flourishing – where next?
Table 1 – Middle Class Populations in Asia
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Self Storage Europe COMPANY FEATURE
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COMPANY FEATUREVolume 1, 2012
The Middle East is proving to be no exception to the globalgrowth in self storage. The Al Khaleej Development Company“Tameer” has just completed a $15m self storage developmentbased in Manama in the Kingdom of Bahrain, that tradesunder the name Takhzeen.
The facility provides over 257,000 sq. ft. of secure self storagespace, supporting Takhzeen’s mandate to develop, manageand operate self storage facilities for domestic and businessuse, starting in the Kingdom of Bahrain and expanding theconcept in the Gulf Co-operation Council (GCC) countriesand the Middle East.
Takhzeen’s new purpose designed and built facility is the firstself storage facility of its kind in Bahrain, and it specialises inproviding personal and business storage solutions with an eyeto becoming the leading self storage company in the region.
With around 1,470 climate controlled self storage units, whichprovide a lettable space of 15,860 m² (171,290 ft²), thisfacility has enough storage space to easily serve the localpopulation.
Various tenancy terms, from a minimum of one month, areavailable with the facility boasting state-of-the-art security,administration, and support facilities in addition to 24 houraccess, seven days a week. The facility also containsadditional external boat storage units, plus external directaccess units, which enable customers access to their storedproperty, without having to enter the main building.
The main building contractor for the project was “Hi SteelIndustries Middle East” and tendering for contracts began in2009, with construction starting at the end of 2010 andrunning through 2011. Door and partitioning systemcomponents for the Takhzeen facility were supplied by UK-based Gliderol Self Storage Solutions.
The Takhzeen corporate colours are on show throughout thefacility with Gliderol employing glossy white corrugated steelwall panels and flush headers to give a smooth contemporarylook to the hallways, with centre checker plate panelsincorporated to provide protection against knocks and bumpsfrom customer traffic. Unit access is provided with a mixture of
Gliderol’s corrugated swing and roll-up doors in sunflowergold and marine blue. Centre soffits in all corridors give aclean finish to the ceilings and maximise lighting for customers.
This new development signals that the future of self storage inthe region looks bright. This was confirmed at the recent Big5 International Building and Construction Show in Dubai,which identified a growing interest in self storage amongbusiness people and entrepreneurs looking for an investmentopportunity leading to a good financial return.
Takhzeen Self Storage Facility opens in the Kingdom of Bahrain
We are delighted to be given the opportunity to feature asmaller, single facility operator, who is new to the NorwegianSelf Storage Industry.
Jaeren Lagerhotell, which is based just 35 km from Stavangerin Bryne, started business in January 2010 by renovating anexisting building.
Perhaps it was not the best time to start a new business, youmay think, during an economic downturn with a relativelyunknown service in a small town on the west coast of Norway.Yet the owner, Ronny Kennedy, already proudly reports a 79%occupancy level.
The business is run from a 650 m2 building, which provides465 m2 of rental space on one floor, accommodating 94 unitsranging from 5 m3 to 24 m3; a very good choice and range ofunits for a town with a relatively low population.
Access is available from 6 am to 11 pm and the building isprotected by an alarm system, which is transmitted to a localsecurity company.
Not surprisingly, given its location, 90% of its customers areprivate users and the rest are typically lawyers, accountingcompanies and the like, who use the storage space mainly forarchiving purposes.
Advertising is at present limited to Google and the YellowPages, but many new customers come from recommendations.Being available on the telephone 24/7 provides the ownerswith a lot of positive “feedback”.
As Ronny said: “We are new to this business and we arebasically only focusing on the local market. What I know isthat the market has developed quite fast, especially in andaround the Oslo area.”
Stavanger is the “oil capital” of Norway and the economictrend along this part of the west coast is very strong, which hasalready given Jaeren Lagerhotell a very good foothold in anexcellent location. Based on the company’s brief history andexperience, it is likely that growth will increase at a veryreasonable pace, albeit that other new operators will want toget into the self storage business.
Our best wishes and thanks go to Ronny Kennedy and theJaeren Lagerhotell team for the information they provided forthis article.
Self Storage Operator on the west coast of Norway
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Volume 1, 2012COMPANY FEATURE
City Self-Storage, Norway With nine facilities in Oslo and one in Drammen, 50 km south west of Oslo,City Self-Storage is easily the biggest operator out of the eight membercompanies making up the Norwegian Self Storage Association. In addition, CitySelf-Storage also operates in Sweden, Denmark, Spain, Poland and the CzechRepublic and has a total of 38 sites.
At the moment, City Self-Storage Norge AS (CSSN) is undertaking a minor fit-out in Drammen with approximately 50 rooms; it is also looking at expandingwith more sites. Oslo, as well as other larger cities in Norway, are the maintargets for future growth plans, which will be organic and structural.
All of CSSN’s facilities are rebuilt from existing buildings. Its first site in Helsfyr,which was opened in 1993, confirms CSSN’s early entry into the European selfstorage market. Drammen is the latest, where development took place in 2008.
After 2008 and the economic downturn, CSSN has focussed on optimising itscurrent portfolio of sites, both on operational and financial levels.
With an average of 87% occupancy in its Oslo facilities, CSSN’s growth is onceagain high on the agenda. As previously mentioned, additional fit-out work istaking place in Drammen, which follows the fitting out of an additional 110rooms in 2011.
With a total of about 26,000 m2 of lettable space, the average site is around2,600 m2. The largest is in Billingstad with 3,500 m2 and the smallest, anunmanned site, is located centrally in Majorstua with 675 m2.
Again, with around 4,600 units in total, there is an average of 460 units per site;more than 700 in the largest and around 200 in the smallest. The individualunits vary from 0.5 m2 up to 50 m2, giving its customers plenty of choice.
Most of the sites have two floors, although one of the newer sites in Torshov,which was reconstructed from an office building, has an impressive seven floors!
COMPANY FEATURESelf Storage Europe
This far north, all facilities need to be heated in the winter in order to keep thetemperature at an acceptable level. In addition, all sites are fully alarmed withCCTV monitoring in place. The alarm system is connected to a security companyfor alarm transfer and service out of office hours. Also, all sites are visited andchecked each night by a mobile security patrol between 11 pm and 6 am. Mostof the facilities have individual door alarms and all sites have code panels onentrance, with individual codes for access.
The standard units have doors or roller shutters, but CSSN also offers securitylockers, post boxes and special storage services for motorbikes and tyres.
Approximately 20% of rentals are business customers. The remaining 80% isdivided into 60% private movers, or other customers with short-term storageneeds, and 20% private customers who lack space at home.
A couple of years ago, artisans were the largest group of customers, but now itis larger sales companies, often multi-nationals, many of whom use the storagespace on a daily basis.
CSSN’s advertising and marketing is mainly focussed on the Internet (searchengine optimisation, search engine marketing, affiliates and social media).However, it also uses printed advertisements, targeted offers to businesscustomers and movers, signage/banners on facades, leaflets and hand-outs inspring/summer, ice scrapers for cars in winter and various other PR tools.
Community spirit is fostered by attending market days in the localneighbourhoods, co-operating with the charity “Fretex” by gathering books,clothes and items of furniture.
CSSN is proud to be a co-founder of the Norwegian Self Storage Association(NSSA), which was founded in 2008.
In general, Norway, which is financially strong through oil/fuel incomes but is notin the EU, has not been affected by the present economic crisis, as are otherEuropean countries. While self storage is still not well-known in Norway, thereis a belief that the industry will grow in the next ten years, with the expansion oftwo or three of the larger operators in the bigger cities and several single facilityor minor groups in the smaller cities.
Our thanks go to Isak Larsson, City Self-Storage’s Country Manager for hisinvaluable input.
The City Self-Storage
facility in Helsfyr
Inside a City Self-Storage
facility
City Self-Storage’s seven storey facility in Torshov
