February 2025
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SECURITY SURVEY: DATA AND OBSERVATIONS
As self-storage owner operators report that they’ve seen an explosion of criminal activity over the last 5 years, there’s a growing concern about the negative impact on not only your facility’s revenue but your reputation as well. With anecdotal evidence that break-ins are becoming the No. 1 concern for many in the self-storage industry, we conducted a survey to take a pulse on the issue.
Who’s worried
conclusion
What you can do about it
Nearly all owner-operators report using security cameras (92%) and many use digital access control keypads for entry points (71%). However, as criminals become savvier, these methods aren’t the deterrents they used to be since 79% of facilities report the same high level of break-ins year after year.
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DATA COLLECTED FROM MODERN STORAGE MEDIA SURVEY, 2024.
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Operations
  • A Fresh Perspective On Collections
    By Sascha Zuger
    Page 14
  • Avoiding Litigation From Marketing Misunderstandings
    By Alejandra Zilak
    Page 18
  • A Welcome Economic Rebound
    By Phillip M. Perry
    Page 20
  • How Automation And Dynamic Pricing Are Transforming Self-Storage
    By Josh Lawrence
    Page 24

Cover Story
Exceptional Inductee
Maurice Pogoda Joins SSAM Hall Of Fame
By Alejandra Zilak
Page 52
Features
How It Impacts Your Bottom Line
By Brad Hadfield
Page 58
The Life Of Lisa Jackson
By Alejandra Zilak
Page 64
DATA
Page 38
Australia’s R6 Digital Puts All Hands On Tech
By Brad Hadfield
Page 40
Fourth Quarter 2024 Investor Survey
By R. Christian Sonne
Page 44
Protecting Your Data And Reputation
By Victória Oliveira
Page 46
To submit story ideas, go to www.modernstoragemedia.com or click the button below:
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Development
Investment
  • A Data-Driven Approach To Storage Investments
    By Ian Levin
    Page 80
  • The Sleepless Nights Of Self-Storage
    By Frank DeSalvo and David Perlleshi
    Page 84
  • The Role Of An Effective Website
    By Giselle Aguiar
    Page 88
  • Twelve Reasons To Invest In A Great Website
    By Gabriella Hill
    Page 90
Departments
News

For the latest industry news, visit our new website, ModernStorageMedia.com.

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ACTUALLY,
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Common sense seems to be in short supply these days, especially when it comes to building smart. It’s crucial to plan ahead and lay the groundwork for a truly smart building with SMARTREADY™ from BETCO. Combining the expertise of Access Control Technologies, Janus International, and Nokē™ Smart Entry with BETCO’s world-class, skillfully designed buildings creates a package of smart components and design for your building’s infrastructure that will ensure viability and profitability for years to come. It’s just common sense.

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Chief Executive Opinion
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sually the last to lease up in many (most) markets, they are very attractive to your pro forma to boost your rent per square foot of the project. Don’t go overboard!

Click here to add your two cents
Travis Morrow is the CEO of MSM and Storelocal Corporation.
He’s also the president of National Self Storage.
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Vol. 2 No. 6 • February 2025
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    Poppy Behrens

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Publisher’s Letter
MVPs and MOP
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elcome to the February 2025 edition of Messenger! On the cover of this issue, we feature Maurice Pogoda, president and founder of Pogoda Companies based in Farmington Hills, Mich. Recently inducted into the Self Storage Association of Michigan (SSAM) Hall of Fame, his story is one you will definitely want to read; it starts on page 52.

In addition, our move-out probability (MOP) feature, starting on page 58, discusses the importance of understanding the likelihood that a customer will vacate their storage unit within a given period. With all the data and insight that a platform with move-out probability capabilities can put at your fingertips, why are some operators not embracing it?

Looking to the global market, check out our feature on Lisa Jackson, COO of The Box, a self-storage company based in Dubai. Starting on page 64, you’ll find out how she went from working retail at a bakery in Manchester to running extensive self-storage operations in the United Arab Emirates.

Lastly, we are proud to announce that the 2025 Self-Storage Almanac is now available for order! First published in 1992, the Almanac offers the most up-to-date data, trends, and analysis that self-storage professionals have come to rely on. Whether you are an industry veteran or a newcomer to storage, the Almanac has the information you need, including historical rental rate and occupancy data, facility, site, supply and demand, and customer data. For more information on ordering your Almanac before it hits the streets, please see page 8!

As always, I welcome your comments and suggestions. Please feel free to email me at poppy@modernstoragemedia.com.

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Poppy Behrens
Publisher
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The 2025 Self-Storage Almanac is now available for order! For more information about obtaining a copy of the industry’s most trusted publication, click here!
MVPs and MOP
W

elcome to the February 2025 edition of Messenger! On the cover of this issue, we feature Maurice Pogoda, president and founder of Pogoda Companies based in Farmington Hills, Mich. Recently inducted into the Self Storage Association of Michigan (SSAM) Hall of Fame, his story is one you will definitely want to read; it starts on page 52.

In addition, our move-out probability (MOP) feature, starting on page 58, discusses the importance of understanding the likelihood that a customer will vacate their storage unit within a given period. With all the data and insight that a platform with move-out probability capabilities can put at your fingertips, why are some operators not embracing it?

Looking to the global market, check out our feature on Lisa Jackson, COO of The Box, a self-storage company based in Dubai. Starting on page 64, you’ll find out how she went from working retail at a bakery in Manchester to running extensive self-storage operations in the United Arab Emirates.

Poppy Behrens headshot
The 2025 Self-Storage Almanac is now available for order! For more information about obtaining a copy of the industry’s most trusted publication, look over to page 8!
Lastly, we are proud to announce that the 2025 Self-Storage Almanac is now available for order! First published in 1992, the Almanac offers the most up-to-date data, trends, and analysis that self-storage professionals have come to rely on. Whether you are an industry veteran or a newcomer to storage, the Almanac has the information you need, including historical rental rate and occupancy data, facility, site, supply and demand, and customer data. For more information on ordering your Almanac before it hits the streets, please see page 8!

As always, I welcome your comments and suggestions. Please feel free to email me at poppy@modernstoragemedia.com.

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Poppy Behrens
Publisher
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Self Storage Buyer’s Guide
MSM Self-Storage
Buyer’s Guide
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NEW & IMPROVED
First introduced in 1989, our Self-Storage Buyer’s Guide quickly became known as “The Yellow Pages of the Self-Storage Industry.”

Now, our online edition has received a new look for the new year! The guide has been relocated to the MSM website for better security, easier access, improved features, and greater SEO for everyone.

Looking For A Product Or Service?

You’ll love the dynamic new search function.

Considering A Premium Listing?

You’ll love the new features:

  • A unique link to a dedicated company page
  • Ability to include more content, images, video, and social
  • Access to dynamic layouts and designs
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Meet The Team
Who is MSM?
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Travis M. Morrow
CEO
Poppy Behrens headshot
Poppy Behrens
Publisher
Lauri Longstrom-Henderson headshot
Lauri Longstrom-Henderson
Director Of Sales & Marketing
Jeffrey Pettingill headshot
Jeffry Pettingill
Creative Director
MSM
Erica Shatzer headshot
Erica Shatzer
Editor
Carlos Padilla headshot
Carlos “Los” Padilla
Circulation & Online Sales Coordinator
Jim Nissen headshot
Jim Nissen
Creative Director
Messenger, SSN, SSC
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Brad Hadfield
Web Manager / News Writer
We are a forward-thinking team of knowledgeable professionals with more than 20 years of experience in self-storage. Through modern technology, we reliably deliver high-quality content and cutting-edge advertising opportunities. We strive to provide clarity in a rapidly changing industry by informing others with expert insights, accurate data, and authentic products. We are MSM.
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Operations
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Striking A Deal
A Fresh Perspective On Collections
By Sascha Zuger
E

very owner in the self-storage industry understands delinquencies and collections are part of the game. So how can you keep an open policy of welcoming customers of every walk of life while mitigating the risks and downfalls that accompany those unable or unwilling to stay current on their rents? A host of modern tech options can help, but for some managers and operators, the true key to success and financial balance might mean a change of perspective.

Then And Now
“When I first went to Public Storage, my role was to incorporate a truck rental business. I asked the president at the time, ‘What credit cards do we take?’” says Randy Weissman, COO of Pogoda Companies. “He proceeded to take my head off, pulling out a file, [saying,] ‘You see how much money I make in late fees every month? We will never take credit cards! I want people to pay me late. I want people to pay me 10 days late every month, that’s a lot of extra money.’”

When Weissman pointed out this meant they would be renting trucks for cash, the company head waved away his concerns.

“We started with 10 trucks. I said, ‘They’re going to be gone,’” says Weissman. “It might be a month, it might be three, but they’re going to be gone. To make a long story short, one of the first trucks we rented for a $150 deposit out of Cincinnati ended up in Las Vegas. And that’s how we started taking credit cards at Public Storage. I’m indirectly responsible for credit cards being taken in the self-storage industry.”

Adding flexibility in payment methods was a major step in reducing collections. Today, those options include cash, check, credit card, Apple or Google Pay, Venmo or Paypal, and even payment via QR code/text at the facility gate when a security code triggers a locked unit. However, the biggest development in keeping customers current has been autopay.

“Autopay is definitely what we prefer,” says Natolie Ochi, president of SKS Management LLC, which has a portfolio with 28 facilities in California, Nevada, and Hawaii. “When it’s automatic, the customer won’t face fees or get behind. We try to keep our managers from spending that time on the phone, so we try to make it as easy as possible. If it’s not autopay, it is linking with a text to immediately pay, automated payment via the phone, click and pay in whatever method they want.”

With a larger percentage of units being rented online, capturing credit card information for autopay is common.

“I’m an advocate of ‘You have to sign out of autopay,’” says Weissman. “New customers go onto our website, enter a credit card to rent a unit, and get charged every month unless you ‘click here’ that you want to pay manually. It’s an assumed autopay, with an option to not autopay. Psychologically, most people don’t even notice. They just gloss over it and click, click, click, we’ve got it. A good facility is probably running 78 to 80 percent of their customers on some sort of autopay program, so you’re only dealing with payment collections for the other 20 percent. It’s also much easier alerting about rate increases, because it just gets charged on ACH or credit card every month.”

Pogoda Companies goes as far as including “percentage enrolled in autopay” as one of the five metrics for annual management bonuses.

“When it’s automatic, the customer won’t face fees or get behind. We try to keep our managers from spending that time on the phone, so we try to make it as easy as possible.”

— Natolie Ochi
Communication Is Key
No customer wants to become delinquent—personal belongings matter, regardless of their objective value. Proper communication can reduce delinquencies that have reached a critical point and avoid auctions. While tech reduces the pull of resources spent on collections, nothing replaces an empathetic human conversation.

“We’re relying too much on technology, instead of ‘Hey Joe, this is Randy; I don’t want to have to cut your lock and sell your stuff. Come on, do something here. Let’s figure it out,’” says Weissman. “Have that human touch, and remember this is a service industry where you can talk to the people straight up and find solutions.”

In such busy times, advance warning by text, email, or phone regarding impending late fees are usually well received, but tech can’t do it alone.

“Frontline employees or call center agents need to be well trained and show empathy in their voice,” says Ochi. “You can be firm, but at the same time you can also be kind. I recommend our managers help tenants work out some kind of plan rather than being very strict with the law (full payment or nothing). I want to empower them to make decisions within reason, and if they make a mistake, then ‘Gosh, that was a little too generous; next time don’t do that.’ We learn from it. I really hate it when somebody says, ‘I’m sorry. I have no authority; I just work here.’”

One-off situations can happen to anyone in life, but you don’t want to get taken advantage of or have your managers expending all their time on a handful of challenging tenants.

“You are doing them a favor by reminding them of the process and trying to find a way to get their goods back to them. Keep detailed notes in the management software of calls, including any reason they are telling you why they are not paying,” says Carol Mixon, president of SkilCheck Services, Inc., which manages storage properties; conducts feasibility studies; creates training, operations, and lien manuals; and operates a mystery shopping sales evaluation specifically for storage. “For example, we had a customer who was constantly going in and out of lien status, and the notes said that his mother had died and that was why he was paying late. However, according to our notes in the software, his mom had passed away six times in three years. That is a really good reason to keep copious notes.”

Avoiding Auctions
When facing seriously delinquent tenants whose units are heading to auction, it is easy for frustration to spill over logic when deciding how to handle the debt. True success comes down to the numbers.

“Owners spend thousands and thousands of dollars on marketing, but they’re afraid to spend the money on collections,” says Weissman. “You could have a facility with 800 units rented, but if only 600 people are paying you, you have 200 units with people’s stuff in it that are handicapping you as an operator.”

Getting trouble tenants and their belongings out of your facility to make room for paying customers needs to take priority over any personal feelings of right and wrong or what seems “fair.” Negotiation, regardless of outstanding fees or owed rent, is a win if it helps attain that goal.

“The goal of an auction is not to make money,” says Weissman. “In every state, you have to give extra funds back to the customer or the state. The goal is to get your storage unit back and not pay to get the unit cleaned up. If you can cut a deal with a customer to leave that’s going to pay you more than what you’re going to get at auction, why wouldn’t you do that? I don’t think enough people work with a customer in that regard.”

The cost of clearing and cleaning a unit has to be factored into your decision process. Even extreme-sounding measures can make a lot of sense when you run the numbers in the name of maintaining a healthy business.

“Just waive the fees and get them out,” says Ochi. “There are many situations where you’ve already cut the lock and taken photos—you know it’s just junk. If nobody buys it, we have to call 800 Got Junk to take it to the dump; it’s just so expensive. Smarter to say, ‘Your stuff is important to you. Get it out; let’s call it a day.’”

“The goal is to get your storage unit back and not pay to get the unit cleaned up. If you can cut a deal with a customer to leave that’s going to pay you more than what you’re going to get at auction, why wouldn’t you do that?”

— Randy Weissman
In some cases, even this generous move can be more of a problem than customers can handle. Two common qualms include “How can I move my things?” And “I can’t afford a rental truck.”

“In rare occasions, I have even said, this person’s such a problem we’ll just pay for their U-Haul truck,” says Ochi. “Get your stuff out. You just have to take the personal injustice. You think to yourself, I have to pay for them to get out when they owe me. But it makes sense in the long run because it would cost way more than $50 to $100 in labor and fees to haul that stuff out and take it to the dump.”

Accepting these kinds of out-of-the-box solutions might be tough to swallow at the time, but maintaining this fresh perspective will pay off when your storage facility is filled with reliable, stress-free, and paying customers.

Sascha Zuger has nearly two decades of experience as a freelance journalist writing for national magazines, including The Washington Post, LA Times, Christian Science Monitor, National Geographic Traveler, and others.
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operations
Words Have
Weight
Avoiding Litigation From Marketing Misunderstandings
By Alejandra Zilak
Words Have Weight
Avoiding Litigation From Marketing Misunderstandings
By Alejandra Zilak
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N

o matter how long you’ve been in the self-storage industry, you likely rely on some form of marketing. Whether utilizing billboards, brochures, social media, ads, and/or emails, you churn out content in aims of luring in new clients. Marketing is a necessary part of business, but we do live in a litigious society, and filing lawsuits has become almost as American as apple pie.

This is why it’s crucial to be mindful of how to limit your exposure to legal risks. After all, you may have the best of intentions, but someone may misinterpret it. Or maybe they interpreted it correctly, and you just failed to anticipate an unfortunate possibility.

Thankfully, there are plenty of people who have been there, done that, or, in the case of lawyers, represented those who have. So if you’re browsing for something to read today, don’t skip this one. You never know when you may need to have some of this advice in your back pocket.

Be Mindful
“Any business owner and operator needs to be careful and selective about the words they choose to include in their marketing and advertising,” says Scott Zucker, partner at Weissmann Zucker Euster + Katz law firm. “You should be careful not to use absolutes. This includes using words such as ‘guarantee’ when talking about safety or security of the property being stored at the facilities.”

Zucker also warns against offering discounts that aren’t clear as to the time frame they’re valid or whether they’re limited to a specific type of customer, such as first-time tenants only.

Anything that’s exaggerated, vague, or unverifiable can later be used against your facilities if these result in damages to one of your tenants. Plus, it diminishes your credibility in a world where your reputation is valuable currency.

The solution is to always be as detailed as possible. Be sure to include the specific time periods the offers are available, to whom they apply, and whether there are any exclusions. Avoid unverifiable claims that state that you’re the “only” provider to offer the service, or “the best” one to do so. Even if you think that you are, you could suddenly get a new competitor who offers the same thing. Also, being the best at anything is a highly subjective opinion.

In addition, Zucker advises operators to provide all relevant information when highlighting features. For example, instead of announcing that your facilities are “secure,” it would be better to say, “Our units are surrounded by an exterior fence, LED lighting, and/or surveillance cameras that provide alerts in real time.” A detailed description eliminates the risk of misinterpretation or someone claiming you breached an agreement if an unfortunate event were to happen. Even if you’ve never had a security issue in the past, that doesn’t mean it could never happen.

Adequate Employee Training
Speaking of secure properties, using caution in wording about this subject should also extend to what self-storage employees tell prospects and existing tenants. “The most common misleading statement an employee can make is to say that their facility is a secure location,” says Sue Haviland, owner and lead consultant at Haviland Storage Services, a company that specializes in market studies, auditing, training, and operational reviews. “Instead, they should say that the facilities have state-of-the-art security (or words to that effect), without claiming the goods will be secure.” By the same token, she cautions that employees shouldn’t offer an unauthorized commitment to cover an insurance or protection plan claim. “This potentially puts the claims administrator in a position to have a contentious conversation with the customer.”

If it turns out that one of your employees inadvertently makes a misleading statement, you can easily correct it in a private conversation. At the end of the day, we were all rookies once, and we’ve all made mistakes. What’s important is to correct them to ensure they don’t happen again. Haviland recommends providing the team member with different wording they could use when discussing sensitive topics with tenants, and to explain why certain statements could be problematic. Here’s one example: “Remember, because we aren’t authorized to sell insurance, we use the phrase ‘protection plan’ instead.”

Haviland adds, “If the verbal counseling is unsuccessful, follow up in writing.”

The best way to reduce the likelihood of this happening in the first place is to conduct thorough employee training and send them regular reminders about your most important guardrails to protect your business from legal liability. Don’t rely on the information being included in an employee handbook. These are often skimmed at best; and even if a person reads it cover to cover, it’s easy to forget specifics in it as time goes by.

“Units are often built slightly askew from the original dimensions. A disclaimer can protect the company from someone alleging your business made a false claim about the unit size.”

— Sue Haviland
Haviland also agrees with Zucker and advises others to avoid saying that a property is secure, because you never know what might happen in the future, and an upset customer can and will probably use your own words against you. If you’re confident in the security measures in your facilities, she offers a safer wording: “We follow strict security protocols and have many security features in place.” You get to toot that horn while covering your bases.
Lease Language
If you decide to extend an offer from marketing materials to a specific customer, make sure to include said language in your rental agreement. “Operators should add the terms and conditions of any rent specials to their rental agreements in the form of an addendum,” states Zucker.

While on the topic of rental agreements, set aside some time to review them. Zucker suggests avoiding the use of absolute language such as “always,” “only,” or “never.” You must also disclose all possible fees to be incurred in the transaction. Under no circumstances should you surprise tenants with a hidden fee. First, it’s dishonest. Second, you wouldn’t like that to be done to you. Third, you don’t want to hear from anyone’s lawyer.

In addition to your rental agreements, you should also regularly review your website content and marketing materials to ensure that all information is up to date and not misleading in any way. When in doubt, change the wording to be as clear as possible. Also, be mindful that your lease agreement and business website should include a disclaimer regarding the sizes of the units. “Units are often built slightly askew from the original dimensions,” says Haviland. “A disclaimer can protect the company from someone alleging your business made a false claim about the unit size.”

That said, this is only one portion of what should be included in your rental agreements. To diminish the risk of liability as much as possible, always have an attorney in your jurisdiction review it; enlist their help to regularly review it to ensure you remain in compliance even if local statutes change.

Duty To Disclose
If your facilities have previously experienced theft or damage of property, you may be wondering whether failing to disclose such information makes you lack transparency. “There’s a difference between an obligation to disclose certain information and an intentional act to hide information or even provide false information when asked,” says Zucker.

Now, tread carefully here, since the answer may vary depending on your jurisdiction. Some state laws require that self-storage rental agreements disclose whether the facility is located in a flood zone. Meanwhile, other jurisdictions only require disclosing such information if the tenant or prospective tenant specifically asks about it. All things considered, you’ll likely gain a lot more client loyalty if you’re honest from the beginning, so keep that in mind when deciding what to do when the law doesn’t make you do it. This may also be an opportunity to offer ancillary services, such as insurance coverage and tenant protection plans.

If unsure, check your state’s laws requiring disclosure requirements regarding floods, fires, theft, asbestos, or any other type of issue that may ultimately result in injury to your tenants or damage to their property. It may require a lot of leg work, but in the long run, it’ll bring you the peace of mind of knowing that you’ve done everything you can to protect your business. It’s all about CYA.

Alejandra Zilak studied journalism, went to law school, and now writes for a living. She also loves dogs.
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operations
Forecast 2025
A Welcome Economic Rebound
By Phillip M. Perry
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C

learing skies with a chance of showers. Businesses can look forward to a gradually improving operating environment in 2025, thanks to lower interest rates, moderating inflation, and steady if unspectacular growth in the nation’s overall economic activity.

“We look for real GDP growth of 2.5 percent in 2025,” said Bernard Yaros Jr., lead U.S. economist at Oxford Economics. Gross Domestic Product, the total value of the nation’s goods and services, is the most commonly utilized measure of economic growth. “Real” GDP subtracts the effects of inflation.

The good news is that the 2.5 percent boost is not far off what economists peg as the nation’s “natural growth rate”—one that supports business activity and maintains full employment. And reduced volatility in the GDP growth pattern in recent years suggests the nation is on a glide path to a so-called “soft landing,” avoiding a recession after a lengthy inflationary binge (see the sidebar).

Despite its positive nature, the GDP figure for 2025 is slightly lower than the 2.7 percent anticipated when 2024 numbers are finally tallied. That’s because the nation is in a so-called “late-stage expansion,” characterized by a tendency to slow down while maintaining sufficient force to invigorate commercial operations.

Fair Winds
In 2025, business owners can look forward to a decline in both interest rates and inflation—two bugbears that have drained profits in recent times. “We anticipate a federal funds interest rate of 2.75 percent by the end of 2025, down from a recent 4.75 percent,” said Yaros. “And we look for inflation to average 2.2 percent in the final quarter of 2025, which will be within spitting distance of the Fed’s 2 percent target.” That’s an improvement from the 2.5 percent inflation level toward the end of 2024. These figures represent the Federal Reserve’s preferred measure of inflation: the “core personal consumption expenditure deflator (PCED)” which strips out volatile food and energy prices.

Relief from the costs of interest and inflation will help fatten the bottom lines of businesses everywhere. “We anticipate corporate profits will increase 9.6 percent in 2024 and 9.0 percent in 2025, up from their 6.9 percent gain in 2023,” said Yaros.

Reports from the field confirm the economists’ optimistic view. “Our members are looking forward to a growth year in 2025, largely from expectations that interest rates will decline,” said Tom Palisin, executive director of The Manufacturers’ Association, a York, Pa.,-based consortium with nearly 500 member companies. The change in fortunes can’t come soon enough, he added. “High interest rates have been putting constraints on many of our members who have been trying to maintain their financial margins, so relief in this area will be helpful.”

“Mainly because of slower job growth, we have the increase in wage and salary income slowing to 4.7 percent in 2025, compared to our expectation of 6.6 percent for 2024, and 5.4 percent for 2023.”

—Scott Hoyt
Healthy Employment
The economy does better when people are optimistic, since consumer spending accounts for a large portion of the nation’s business activity. While consumers remain troubled by the residual effects of inflation in the form of high prices for gas and groceries, they remain in a fairly good mood. “We look for consumer confidence to move slightly higher in 2025,” said Scott Hoyt, senior director of consumer economics for Moody’s Analytics.

Why the optimism? Healthy employment levels. “We look for the unemployment rate to end 2025 at 4.2 percent and 2026 at 4.2 percent,” said Yaros. This is roughly in line with the 4.1 percent reported toward the end of 2024. Many economists peg an unemployment rate of 3.5 percent to 4.5 percent as the “sweet spot” that balances the dual risks of inflationary wage escalation and economic recession.

If favorable unemployment figures will encourage consumer spending, employers should also enjoy relief from the deleterious effects of the past year’s tight labor conditions. Indeed, a slowdown in the rate of hiring has already helped loosen the employment market. “Labor shortages are a thing of the past in most regions,” said Bill Conerly, principal of his own consulting firm in Lake Oswego, Ore. “When companies want to hire, they’re able to find the people they want, unless they’re looking for something really unusual or if they’re not willing to pay the required salary.”

Speaking of salary, softening employment growth has given workers less bargaining power, so employers are experiencing some much-needed relief from the rising trendline of worker wages. Entry-level hourly wage increases came to 3.7 percent in 2024 at Palisin’s member companies, markedly lower than the vigorous 8 percent to 10 percent levels clocked for each of the previous two years. Historically, such increases have tended to settle in the 2.5 percent to 3.0 percent range.

National figures concur. “The Employment Cost Index (ECI) is slowing,” said Hoyt, referring to a common measure of average worker wages. “We are forecasting 2.8 percent growth in 2025, compared to 3.9 percent in 2024 and 4.5 percent in 2023.”

Despite the ongoing de-escalation in the ECI, Hoyt said it remains healthy enough to support consumer spending, as does the expected increase in the nation’s total personal income level, an important driver of business activity. Like the ECI, it is expected to follow a familiar 2025 trendline: a healthy increase despite de-escalation. “Mainly because of slower job growth, we have the increase in wage and salary income slowing to 4.7 percent in 2025, compared to our expectation of 6.6 percent for 2024, and 5.4 percent for 2023,” said Hoyt.

Maybe it’s a looser labor market, but employers are in no hurry to trim their employee rosters. “Employers want to maintain their ability to jump on the growth side once the economy rebounds a little,” said Hoyt, “so employment levels have held fairly steady.”

Housing Rebounds
Economists expect healthy growth in housing activity, a mighty driver for the economy. “We forecast housing starts to increase by 6.2 percent in 2025, after falling by 4.7 percent in 2024 and declining 8.4 percent in 2023,” said Yaros.

Why the rebound? A decline in the cost of money and a concomitant loosening of credit standards. “Lower mortgage rates should help the single-family home market,” said Conerly. “It will be a little less painful for people with 3 percent or 4 percent mortgages to give them up, sell their current houses and move up.”

Lower interest rates should also reinvigorate commercial construction activity—a sector that has been underperforming. “The non-residential side has a kind of bad reputation right now, especially when people think of downtown office or downtown retail,” said Conerly. “But office and retail are doing OK in many suburban areas. And a lot of the retail sector has been under-built. People thought we were totally abandoning going to the store, and it turns out we’re not.”

However, many areas of the country may continue to experience lackluster activity when it comes to multifamily residential, hotel, and office construction. A change in fortune will not happen overnight. “With lower interest rates, there’ll be an easier time lining up project financing at acceptable cost,” said Anirban Basu, chairman and CEO of Sage Policy Group. “But these things take time. We might see some softness in a meaningful fraction of contractors in 2025. And then perhaps things get a bit better in 2026 as these lower interest rates prompt more activity.”

Prepare For A Soft Landing

Modest growth in the nation’s economy will support business profits in 2025.

U.S. GROSS DOMESTIC PRODUCT (GDP)
(Annual % Change)
2014: 2.5%
2015: 2.9%
2016: 1.8%
2017: 2.5%
2018: 3.0%
2019: 2.5%
2020: -2.2%
2021: 5.8%
2022: 1.9%
2023: 2.5%
*2024: 2.7%
*2025: 2.5%
*2026: 2.1%
Source: World Bank
*projections by Oxford Economics

One sector that will do well out of the gate: large-scale infrastructure projects, computer chip and battery manufacturing plants, and data centers. “This is the era of the megaproject,” said Basu. “Future prospects are quite positive for contractors who are able to participate in major public works.” Much of this is driven by the re-emergence of industrial policymaking in America, an economic transformation that has led to programs such as the Inflation Reduction Act, the Chips and Science Act, and the Infrastructure Investment and Jobs Act.

All told, while economists expect lower interest rates to fuel a positive turn in business sentiment, they are hedging their bets for 2025. “We look for business investment to rise 4.1 percent in 2024 and 4.1 percent in 2025, compared to 6.0 percent in 2023,” said Yaros.

Supply Chains
Businesses in all sectors will benefit a national commitment to reposition supply chains in the United States. “Logistical issues are persuading many CEOs to place production closer to final consumers,” said Basu. “There is also a trend toward favoring nations that provide significant protection for intellectual property.”

Relief from delivery disruptions can’t come soon enough for many operations. “Supply chain issues are still present,” said Palisin. “We are seeing shortages around semiconductor chips and some other technological products, as well as chemicals, equipment assemblies, and metal parts. That’s causing production delays and late deliveries.”

Palisin cites a number of causes for supply chain issues. Over the past year, the nation has lacked sufficient skilled workers to meet production demands. And in an environment of high interest rates and slowing growth, companies did not invest as much as required in new facilities. “As for the semiconductor situation specifically, there’s this huge demand coming up against a shortfall in global supply,” said Palisin.

While the U.S. is committed to the reshoring of production, the task of increasing domestic manufacturing and delivery systems will take time. “We are not going to turn things around right away,” said Palisin.

The Road Ahead
Despite optimism on the part of businesses and consumers, economists eye some dark clouds on the horizon. In the opening months of 2025, they advise keeping a close watch on the following areas for any deleterious changes:

  • Interest rates – “Going forward, the major concern for businesses will be the pace of interest rate cuts and where they will end up,” said Yaros.
  • Inflation – “If the consumer price index returns to positive territory, that could throw a monkey wrench into many business plans,” said Conerly.
  • Tariffs – “Tariffs amount to price increases for our members who have to buy materials from abroad,” said Palisin.
  • Geopolitics – “An increasing level of turmoil around the world can disrupt supply chains, throwing a monkey wrench into the economy,” said Conerly.

Concerning as these risks are, economists anticipate a fairly benign operating environment in 2025. “The U.S. economy has been remarkably resilient despite all the hits it’s taken over the past few years,” said Yaros. “We don’t anticipate a recession, as the Federal Reserve will be dialing back the restrictiveness of monetary policy, and there are no glaring imbalances in the economy.”

New York-based freelancer Phillip M. Perry negotiates win-win deals with his clients everywhere.
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operations
The Rent
Revolution
How Automation And Dynamic Pricing Are Transforming Self-Storage
By Josh lawrence
The Rent Revolution
How Automation And Dynamic Pricing Are Transforming Self-Storage
By Josh lawrence
view of man's back while sitting at computer displaying data
F

orget spreadsheets and sticky notes. Today’s leading self-storage operators are embracing automation and dynamic pricing to boost efficiency, maximize profits, and elevate the tenant experience.

The self-storage industry is changing. Drive down any highway and you’re bound to see those familiar rows of brightly colored doors promising secure spaces for life’s clutter. But behind those doors, a quiet revolution is taking place. Savvy operators are ditching outdated manual processes and embracing technology to gain a competitive edge.

No longer content with simply providing a place to store boxes, today’s leading self-storage facilities are transforming into sophisticated businesses that leverage data, automation, and smart pricing strategies to thrive in a competitive market. This shift is driven by several factors, including increased competition, evolving tenant expectations, and the availability of powerful, easy-to-implement technology solutions.

Automation: Your Secret Weapon For Efficiency
Imagine this: It’s Monday morning, and instead of being bogged down by invoices and payment reminders, your team is free to focus on what truly matters—providing exceptional service to tenants and optimizing your facility. This is the power of automation. By streamlining tedious, time-consuming administrative tasks like billing, online payments, recurring charges, and even personalized tenant communication, automation acts as a tireless assistant, working 24/7 to free your team to focus on what they do best.

Let’s dive deeper into how automation can revolutionize your self-storage operation.

RECLAIM VALUABLE TIME
Time is your most precious resource. How many hours each week do you and your staff spend on rent-related tasks? Manually generating invoices, processing payments, sending reminders, and tracking down late fees can eat up a significant amount of time—time that could be better spent elsewhere.

Implementing automation in your self-storage facility can free your team from tedious manual tasks, allowing them to focus on higher-value activities that drive business growth and tenant satisfaction. Picture this:

  • Your property manager is no longer chained to their desk, chasing down late payments. Instead, they’re building relationships with tenants, addressing their needs proactively, and creating a loyal customer base. They’re out on the property, ensuring the facility is clean, secure, and welcoming. They’re interacting with tenants face to face, resolving issues quickly and building a sense of community.
  • Your maintenance staff isn’t interrupted by constant phone calls about billing issues. They’re focused on keeping your facility in top-notch condition, ensuring a safe and secure environment for tenants. They’re proactively addressing maintenance needs, performing preventative upkeep, and ensuring the facility is always operating at its best.
  • You, the owner, have more time to focus on the big picture: strategic planning, marketing initiatives, and expanding your business. You can analyze market trends, research new technologies, and explore opportunities for growth and development. You can also dedicate more time to building relationships with key stakeholders and investors.

By automating routine tasks, you’re not just saving time; you’re investing in your team’s productivity and overall job satisfaction. When your staff feels empowered to focus on meaningful work, they’re more likely to be engaged, motivated, and efficient. This translates to a more positive work environment, reduced employee turnover, and ultimately, a more successful business.

REDUCE ERRORS AND ENHANCE ACCURACY
We all make mistakes. It’s human nature. But when it comes to handling financial transactions, even small errors can have significant consequences. Incorrect invoices, missed payments, and misapplied late fees can lead to disputes, frustration, and damage to your reputation.

Automation can eliminate the risk of manual errors. It can ensure accurate billing, on-time payments, and consistent application of late fees, reducing the potential for disputes and improving your overall financial management.

In today’s competitive market, providing an exceptional tenant experience is crucial for attracting and retaining customers. Tenants expect convenience, flexibility, and a seamless experience throughout their rental journey.
Think of it this way: An automated system is like a meticulous accountant who never misses a detail, ensuring that every transaction is processed with precision and accuracy. This not only saves you time and money but also enhances your reputation for reliability and professionalism. When your tenants know they can count on you for accurate billing and transparent transactions, they’re more likely to trust you and remain loyal to your facility.

IMPROVE CASH FLOW AND REDUCE DELINQUENCIES
Consistent cash flow is the lifeblood of any business, and self-storage is no exception. Late payments can disrupt your financial planning, create administrative headaches, and even strain relationships with tenants.

Automation offers a variety of tools to encourage timely payments and minimize delinquencies.

  • Automated Payment Reminders – Send email or text reminders to tenants before their payments are due, reducing the likelihood of late payments. These reminders can be customized to include specific details about the upcoming payment, such as the amount due and the due date.
  • Online Payment Options – Offer convenient online payment options, making it easy for tenants to pay their rent from anywhere, anytime. This eliminates the need for tenants to visit your facility in person or mail in checks, providing a more flexible and convenient experience.
  • Recurring Billing – Allow tenants to set up automatic payments, ensuring consistent and on-time rent collection. This eliminates the need for tenants to remember to make their payments each month, reducing the risk of late payments and simplifying their lives.
  • Late Fee Automation – Automatically assess late fees according to your predefined policies, ensuring consistent enforcement and reducing manual effort. This ensures that late fees are applied fairly and consistently, minimizing disputes and improving your cash flow.

By implementing these strategies, you can improve your cash flow, reduce delinquencies, and maintain a healthy financial foundation for your self-storage business. This allows you to reinvest in your facility, expand your operations, and achieve your long-term business goals.

ELEVATE THE TENANT EXPERIENCE
In today’s competitive market, providing an exceptional tenant experience is crucial for attracting and retaining customers. Tenants expect convenience, flexibility, and a seamless experience throughout their rental journey.

Automated systems can help you deliver on these expectations by:

  • Providing Online Account Management – Empower tenants to access their account information, update their details, and make payments online at their convenience. This gives tenants greater control over their accounts and eliminates the need to interact with your staff for basic tasks.
  • Offering 24/7 Access To Information – Enable tenants to access important documents, FAQs, and facility information through online portals or mobile apps. This ensures that tenants can find the information they need anytime, anywhere, without having to wait for business hours.
  • Streamlining Communication – Automate communication with tenants, sending personalized messages, reminders, and updates. This keeps tenants informed about their accounts, upcoming payments, and any important facility announcements.
  • Offering Flexible Payment Options – Support various payment methods, including credit cards, debit cards, and online payment platforms. This caters to different tenant preferences and provides a more convenient payment experience.

By creating a user-friendly and convenient experience, you can foster tenant satisfaction, build loyalty, and enhance your reputation as a customer-centric business. In a world where online interactions are becoming increasingly prevalent, providing a seamless digital experience is essential for attracting and retaining tenants.

Dynamic Pricing: The Revenue Booster
Now, let’s delve into the exciting world of dynamic pricing. This strategy, widely used in industries like airlines and hotels, is gaining traction in the self-storage sector as a powerful tool for revenue optimization.

Dynamic pricing allows you to adjust your rental rates in real-time based on a variety of factors, ensuring you’re always charging the optimal price for each unit. It’s like having a pricing expert constantly analyzing market conditions and adjusting your rates to maximize your revenue potential.

Here’s how it works:

  • Demand-Based Pricing – When demand for storage units is high, such as during peak moving seasons or in areas with limited availability, you can increase your prices to capture the full value of your units. Conversely, during slower periods, you can lower prices to attract tenants and fill vacant units. This allows you to capitalize on market fluctuations and optimize your revenue throughout the year.
  • Competitive Pricing – Keep a close eye on your competitors’ rates and adjust your pricing accordingly to stay competitive. This ensures you’re not losing tenants to facilities offering lower prices while still maximizing your revenue potential. By staying informed about your local market, you can make informed pricing decisions that attract tenants and maintain a healthy occupancy rate.
When you combine automated rent management with dynamic pricing, you create a powerful synergy that can significantly enhance the efficiency and profitability of your self-storage facility.
  • Value-Based Pricing – Not all storage units are created equal. Units with desirable features like climate control, convenient access, or enhanced security command a higher price. Dynamic pricing allows you to adjust your rates based on the value and desirability of each unit. This ensures that you’re capturing the full value of your premium units while still offering competitive rates for standard units.
  • Tenant Segmentation – Offer customized pricing based on tenant characteristics and rental duration. For example, you might offer discounts for long-term tenants, military personnel, or students. You can also implement promotions to attract new tenants or incentivize early bookings. This allows you to tailor your pricing to different tenant segments, attracting a wider range of customers and maximizing your revenue potential.

By implementing dynamic pricing, you can:

  • Maximize Revenue – Ensure you’re capturing the full value of each unit based on its features, demand, and market conditions.
  • Improve Occupancy Rates – Attract tenants with competitive pricing during slower periods, filling vacant units faster and optimizing your overall occupancy.
  • Gain A Competitive Edge – Respond quickly to market changes and stay ahead of the competition by adjusting your pricing in real time.
  • Cater To Different Tenant Needs – Offer flexible pricing options to attract a wider range of tenants and meet their specific needs.

Two approaches to dynamic pricing:

  1. Facility Level – Adjust rates across your entire facility based on overall demand and occupancy levels. This approach is useful for responding to seasonal fluctuations and market trends. For example, you might increase prices across all units during the summer months when demand is typically higher. This allows you to capitalize on peak seasons and maintain a healthy occupancy rate throughout the year.
  2. Unit Level – Set unique prices for individual units based on their specific features, size, location, and desirability. This allows you to maximize revenue by pricing each unit according to its value and demand. For instance, a climate- controlled unit on the ground floor with easy access might command a higher price than a standard unit on an upper level. This approach allows you to cater to different tenant preferences and maximize the revenue potential of each unit.
Implementing Dynamic Pricing Effectively
While dynamic pricing offers significant benefits, it’s important to implement it strategically and thoughtfully. Here are some key considerations:

  • Data Analysis – Gather data on market trends, competitor pricing, and tenant behavior to inform your pricing strategy. Analyze historical occupancy data, track local market conditions, and monitor your competitors’ pricing to identify patterns and trends. This data-driven approach will help you make informed decisions about your pricing strategy.
  • Software Solutions – Utilize property management software with dynamic pricing capabilities to automate rate adjustments and track performance. These tools can help you analyze data, set pricing rules, and adjust rates automatically based on predefined criteria. This not only saves you time but also ensures that your pricing is always optimized based on real-time data.
  • Clear Communication – Transparently communicate your pricing strategy to tenants to build trust and avoid confusion. Explain how your pricing works and why rates may fluctuate. Provide clear information about unit features and pricing tiers to help tenants make informed decisions. Transparent communication fosters trust and helps tenants understand the value they’re receiving.
  • Monitor And Adjust – Regularly monitor the impact of your dynamic pricing strategy on occupancy rates, revenue, and tenant satisfaction. Be prepared to adjust your strategy as needed to optimize your results. Continuously analyze your data and make adjustments to your pricing strategy to ensure you’re achieving your desired outcomes.
The Winning Combination
When you combine automated rent management with dynamic pricing, you create a powerful synergy that can significantly enhance the efficiency and profitability of your self-storage facility. It’s like having a well-oiled machine working tirelessly to optimize your operations and maximize your revenue.

Imagine this scenario: A potential tenant visits your website and finds a unit that perfectly suits their needs. They can easily reserve the unit online, complete the rental agreement digitally, and set up automatic payments. The system automatically sends them reminders before their payment is due, ensuring timely rent collection. Meanwhile, behind the scenes, the dynamic pricing engine is constantly analyzing market conditions and adjusting rental rates to optimize occupancy and revenue.

This integrated approach not only streamlines your operations but also creates a seamless and convenient experience for your tenants. They appreciate the ease of online rentals, the flexibility of payment options, and the transparency of your pricing. This leads to increased tenant satisfaction, loyalty, and ultimately, a more successful business.

Here’s a breakdown of the key benefits of combining automation and dynamic pricing:

  • Streamlined Operations – Say goodbye to manual processes and paperwork. Automate everything from invoicing and payments to move-in and move-out procedures. This frees up your staff to focus on higher-value tasks like tenant relations and facility management.
  • Reduced Costs – Automation eliminates the need for manual data entry, reduces errors, and minimizes the time spent on administrative tasks. This translates to lower operational costs and increased profitability.
  • Improved Accuracy – Automated systems ensure accurate billing, on-time payments, and consistent application of late fees, reducing the potential for disputes and improving your financial management.
  • Enhanced Security – Protect sensitive tenant information and prevent fraud with advanced security measures built into automated systems.
  • Optimized Pricing – Dynamic pricing ensures you’re always charging the optimal price for each unit based on demand, competition, and unit features. This maximizes your revenue potential and keeps you ahead of the competition.
  • Increased Occupancy – Attract tenants with competitive pricing during slower periods, fill vacant units faster, and optimize your overall occupancy rate.
  • Elevated Tenant Experience – Provide a seamless and convenient online experience, offer flexible payment options, and communicate effectively with tenants through automated messages and reminders.
Embrace The Tech Revolution
In today’s self-storage industry, leveraging technology is no longer a luxury—it’s a necessity to remain competitive. By embracing automation and dynamic pricing, you can transform your business, optimize your operations, and achieve lasting success.

Think of it this way: Technology is not just a tool; it’s a strategic partner that can help you navigate the complexities of the modern self-storage landscape. By leveraging the power of automation and dynamic pricing, you can:

  • Gain A Competitive Edge – Stay ahead of the curve by adopting innovative technologies that streamline your operations and enhance the tenant experience.
  • Attract And Convert More Tenants – Offer a modern and convenient experience that meets the expectations of today’s tech-savvy tenants.
  • Maximize Revenue – Optimize your pricing strategy, reduce operational costs, and increase revenue.
  • Future-Proof Your Business – Adapt to changing market conditions and position your self-storage facility for long-term success.

Don’t get left behind. Embrace the power of technology to transform your self-storage business and achieve lasting success.

Josh Lawrence is a senior account executive at Tenant Inc.
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Black text in a typewriter-style font reading "The Evolution of Self-Storage Management."
Vintage-style black-and-white illustration depicting the evolution of humans from an ape to a modern man holding a smartphone, symbolizing technological advancement.
A timeline of fictional storage operators through history, with names like "Operator Hoardus" in 18 million B.C. and "Operator Hummingbird Technologicus" in 2025 A.D., marking technological progress in storage management.
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Black text in a typewriter-style font reading, "Your Competitors are Evolving. Are You?"
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women in self-storage
Martha Hargrove Leeder headshot
Martha Hargrove Leeder
Managing Director at DXD Capital
By Alejandra Zilak
A

sk anyone who works in the industry how they got started in self-storage. More often than not, it ended up being a stroke of luck. And every single person who never foresaw themselves working in this space is happy that things turned out the way they did.

Martha Hargrove Leeder is no exception. Her role as managing director at DXD Capital is fulfilling for her, and it follows an accomplished music career as a band manager. It was an industry that enabled her to see under the hood of a big machine and taught her how to negotiate and raise funds for big projects.

We know you perked up when you read that part about the music bands, so get your reading glasses to find out more about why she is featured in this month’s “Women In Self-Storage.”

Her Early life
Leeder was born and raised in Dallas, Texas, with a younger sister who works today as a cattle rancher. Her mom is a commercial real estate attorney. Her dad also worked in real estate. “That exposure from an early age meant I was always learning about the industry and it always stuck with me,” she says.

After high school, she left home to attend the University of Texas at Austin. After graduating, she stayed there and began working in the music industry. “For the first part of my career, I managed and promoted bands. It’s an unusual background and a really great training ground for raising capital,” she says. “No. 1, it’s very competitive, and you work really long hours. You also deal with a variety of personalities and are exposed to a lot of different business verticals.”

She became familiar with all aspects of working with the artists: negotiating with record labels, large marketing teams, the logistics of setting up tours, and the distribution of music albums. On top of all of it, she also had to strike good deals and get people to buy the records or invest in the artists.

At some point, her job required her to move to New York City. While there, she obtained her master’s degree at NYU. “That was a really great experience. I really loved the classes at Stern Business School and found a lot of value in the network and advanced degree.”

“I really loved the classes at Stern Business School and found a lot of value in the network and advanced degree.”

—Martha Hargrove Leeder
outdoor view of the DXD Capital in Bristol, R.I.
DXD Capital in Bristol, R.I., MSM’s 2024 Overall Facility of the Year winner
Shift To Storage
As luck would have it, she was recruited to raise capital for Albuquerque Academy as the associate director for advancement for major gifts. “I thought that job would eventually lead me back to Texas, but I’ve been here in New Mexico for over 11 years,” she explains. “We raised $30 million for the school’s capital campaign. I was responsible for their major gifts program, and that’s where I met DXD Principal Drew Dolan. Back then, he was the president of Titan Development.” It was a chance meeting that led her to become vice president of investor relations at Titan for the following two and a half years.

This was the key role that allowed Leeder to expand her skills in real estate private equity. There she helped to raise the $112 million Titan Development Real Estate Fund I and its $98 million follow-up fund. In addition to raising capital, she formalized their investor reporting program and implemented an online investor portal to improve investor relations.

In 2016, they read about Radius+, a data analytics platform that specializes in self-storage data. They became clients of the service because it was the No. 1 data source for the industry.

Leeder and Dolan traveled to the Radius+ offices in midtown Manhattan, where they met some of the platforms’ employees, including Cory Sylvester, the other co-founder and principal at DXD. Titan had just entered the self-storage industry by investing in seven facilities; after meeting Sylvester, they had a better understanding of how data can help make investment decisions in self-storage and learned more about the nuances of the industry.

“I would advise any woman entering this space to connect to other women. I’m hoping to start a women in self-storage group to make it easier. We are always ready to help each other, and I know we can do a lot more of that.”

—Martha Hargrove Leeder
outdoor view of the DXD Capital in Bristol, R.I. during sunset
DXD Capital in Bristol, R.I.
Soon after, Dolan and Leeder wanted to focus on self-storage. The reasons were varied. “It’s a business that behaves more like a commodity,” she explains. “So many asset classes rely on their operators, like senior living facilities or hotels. You’ve got to have the right operators, and it’s more about the operating business than the underlying real estate. But the more data you have for self-storage, the better your investment decisions. It becomes about timing and the site itself.”

Leeder and Sylvester decided to go into business together and start DXD Capital, knowing that their investment into data and technology gave them a significant competitive advantage. When they did, they asked Leeder to become their first employee. In less than a decade, they’ve raised $163 million from investors for self-storage funds and direct investments. This has positioned them as one of the best, and possibly the best, self-storage investment outfit in the industry.

“We are miles ahead of our competition,” she says, “and that’s because we are creating efficiencies at scale to make the best investments in the self-storage space. Our No. 1 goal is to get our investors the very best return.”

She’s also proud of the culture they’ve built. They’ve grown significantly since those early days just a handful of years ago. “Right now, we have a team of about 30 people, and together they have more than 200 years of experience in self-storage. They’re top performers in the industry.” She’s also proud that they have created a culture of empathy and opportunity. “Our group has a ton of energy and that’s underpinned by our commitment to creativity, innovation, and constant improvement. I really love that about the company.”

Of course, they’ve also faced challenges. The main ones relate to municipalities. “We’re in the business of mitigating risks,” she says. “We do this in a variety of ways. For example, once we start construction on a project, there may be issues with inspectors or staff changes at the municipal level. These are things we can’t control that can affect the timeline of the project.” But just as how she has gracefully transitioned from one industry to the next, she’s also good at pivoting to make things work. Even when they face obstacles at the municipal level, they find ways around it. “We typically find ways to cut timelines in other areas, such as getting temporary certificates of occupancy to speed up our delivery to the market.”

Despite the challenges, they’re proud that they have delivered 19 facilities across 17 states, from Nantucket to Maui, and that they’ve consistently raised capital for projects, including during the pandemic, which was a very difficult time to raise capital. To date, they have 250 investors, seven facilities under construction, and a pipeline of 29 more coming.

“We are just getting started and I look forward to being part of our team’s continued success,” she says. “My dream is to have DXD Capital become a household name as we grow.”

Womanly Advice
Leeder is a firm believer in connecting with other women within the self-storage industry. “We possess a magic network because it’s smaller,” she says. “I would advise any woman entering this space to connect to other women. I’m hoping to start a women in self-storage group to make it easier. We are always ready to help each other, and I know we can do a lot more of that.”

She’s grateful to be part of the industry. “This is a space that has been overperforming for around for about 40 years, but we’re only beginning to really innovate. It’s an exciting time to be at the forefront of something that’s becoming institutionalized.” She also believes that her exposure to real estate from an early age is what eventually led her to find her way back to it.

In her free time, Leeder likes to spend time with her cat and to travel with her husband, Tug. They also really enjoy their time in Santa Fe, a city they thoroughly love.

Finally, this one’s for all of you foodies out there: “The most common question around New Mexico is red or green? That refers to green or red chile. If I had to pick, it’d be red. It’s a little more subtle and more smoky.”

And there you have it. What’s better than some good food advice?

Alejandra Zilak studied journalism, went to law school, and now writes for a living. She also loves dogs.
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who’s who in self-storage
Michael Starkman headshot
Michael Starkman
Co-Founder and COO of Keep It Simple Storage
By Victória Oliveira
A

t 19 years old, Michael Starkman joined the workforce as a store manager at an American Storage South facility in North Carolina. Around three years ago, he joined forces with Robert Kapp, owner of the same company, to create Keep It Simple Storage (KISS). “We are a vendor in the self-storage space that builds technology to help companies run more efficiently in their day-to-day operations.”

The company was founded by the pair in Kapp’s quest to make the entire technology aspect of self-storage more efficient. “Robert Kapp had a vision for improving the technology and the efficiency of the space he operates in,” says Starkman. “He had a vision for a lot of tools to enhance the day to day. He felt there were a lot of very outdated and archaic processes that existed due to the lack of technology, so we set out to change that.”

Starkman believed in Kapp’s vision. “The industry seems to be about 20 years behind, considering the options [self-storage] have when compared to other industries like hotels or any other sector of real estate that have a lot more advanced and up-to-date technology that operators have access to,” he states. “I think there’s a large opportunity to provide a better service for the tenants too. From my experience as a store manager and back when we used to shop the competition, seeing how the day to day was run at these stores. I saw a lot of inefficiency and things that could have been run better. And I wanted to be part of that change.”

While working at American Storage South, Starkman pursued a bachelor’s in finance and economics at Ohio State University. Once he graduated, he decided to open BrightKing, a commercial cleaning company; it was his first experience in the business world as an owner. However, he had to sell it to focus full time on his role as co-founder and COO at Keep It Simple Storage.

“The industry seems to be about 20 years behind … compared to other industries like hotels or any other sector of real estate that have a lot more advanced and up-to-date technology that operators have access to.”

—Michael Starkman
outdoor view of an American Storage South building
KISS Connect and KISS Mason video platform
KISS Connect and KISS Mason
Products With Purpose
Their first product, KISS Connect, a two-way video platform that enables managers to work remotely and assist tenants across multiple sites simultaneously, was their answer to the big manned versus unmanned facility debate, which was a popular topic at the time. “After observing tenants’ behavior, we felt like both models felt a little short,” he states. “The manned model had a manager who, due to the lack of foot traffic in the average facility, was running around doing maintenance or something else instead of being at the entrance to greet tenants, which was inefficient. On the other side, there was the unmanned model, which lacked the quality of the experience the customer was receiving, leaving tenants to figure it out by themselves or go through the hassle of finding a number to get in touch with someone to get assistance.”

Starkman goes on to say, “We believe strongly in having a person there ready to engage with anyone who walks through the door, which is why our system is built specifically to start in the parking lot, not at the lobby. We built it to warn the manager working remotely when someone pulls up, so when the tenant walks through the door, the person is on the screen ready to have a back and forth with them. We build technology to try and emulate an in-person experience as best as possible.”

He adds, “If the manager is talking to someone else or if the customer comes in after hours, we have a video that greets them to help set the table for the experience they are about to have and helps them give our clients 30 to 60 seconds for the manager to pop on the screen if they are tied up. We learned from watching people and their interactions in our facilities that people are very impatient. They don’t tend to read signage and avoid scanning the QR code. They usually give you to to three seconds, and if you don’t grab their attention, they will turn around and walk away.”

Starkman and the KISS team has watched security footage to better understand customer behavior. This has provided them with invaluable insights. “… We learned that if you have an unmanned office, it’s important to be intentional with how the space is laid out. There should be a space to prepare the individual for the experience they are about to receive,” he states. “In our case, we use technology that is triggered by a motion sensor; when it’s tripped, an automated video starts playing while we wait for the customer to come in to have a live video conversation with a manager. Companies are paying a lot of money on SEO and ads to get that customer there, so having solutions for all of those key instants is important if you are going to run an unmanned facility.”

Keep It Simple Storage’s differential is that they focus all of their time on creating products for the self-storage industry, with employees who come from a self-storage background coming together to create products that solve the issues and concerns they had previously run through in their own facilities. An example is the KISS One Lock, an NFC-powered smart lock, created by an engineer who owns self-storage facilities.

“We like NFC (near-field communication) because it allows us to harvest energy from the phone, avoiding the need for a power source. So, we don’t have to use any batteries or wire any doors, which is really expensive,” he says. “A lot of people adopt smart locks because they want to run more efficient facilities, but in our experience, if you are using battery-powered smart locks, you are just trading a problem for a new one, because you have to make sure the batteries are at full power. We chose NFC because it permits both information and energy transfer.”

ONE Lock smart lock by KISS
ONE Lock, the smart lock by KISS
Good Guidance
Despite being the founder of a tech brand himself, Starkman says companies should refrain from jumping on new technologies and trends without doing their homework beforehand. “Automation is definitely a hot word, and so is AI. But regardless of what changes they implement, it is important to be thorough and look into the actual effect these technology trends have on their bottom line,” he states. “At the end of the day, it’s important to tie everything back to the ‘piano’ of the business and understand if that will decrease their expenses or increase their revenue. If there is no direct correlation, I think it’s a distraction and poor use of funds. So, just be careful that the technology you are investing in is actually driving very tangible effects that can be traced back.”

As a first step, Starkman recommends investing in a small pilot program to get your own data and experience with new technologies instead of investing big out of the gate. “Those who tend to invest big off the jump also tend to get burned big,” he says. “So, run a bit of a controlled pilot program, either in a single store or in a few of them, to collect data points and build the case that will allow you to have a much higher success rate in your investments in technology.”

“So, I think before folks try to go high level and invest in these big, crazy things, they need to go back to the basics and assure they have a solid fundamental team.”

— Michael Starkman
He also highlights that technology and gadgets must be a bonus to an already stable set of basic practices in the facilities. “The vast majority of groups we work with often overlook the basics,” he states. “They are often looking into utilizing AI, drones, and all of these high-level initiatives. But often, when you call or walk into their facilities, their manager isn’t wearing a uniform, or isn’t greeting the walk-ins like they should be; they are not following up on reservations or following policies. So, I think before folks try to go high level and invest in these big, crazy things, they need to go back to the basics and assure they have a solid fundamental team.”
Victória Oliveira is a senior writer with over a decade of content experience under her belt. Her work has been featured on Darling Magazine, Elite Daily, The Culture-ist, Matador Network, and more.
The CAPCO Steel, Inc. logo displayed on a metallic, three-dimensional steel beam design with blue accents. The text "CAPCO" is in bold blue, while "Steel, Inc." is in a sleek, smaller blue font below. The design casts a shadow for a dynamic effect.
A covered parking area with a large, open steel structure featuring multiple parking spaces. The space has a concrete floor and views of greenery and trees in the background.
A single-story self-storage facility with roll-up metal doors and a gray exterior accented by red trim. The facility has a clean, wide concrete driveway under a bright blue sky.
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Data
Storage Stats
chart showing REIT Portfolio Composition
chart showing the size of new single-family homes over time
graph showing vacancy amidst stubburn supply pressure
graph showing the effect of rising interest rates on the median homebuyer age
chart showing investment sales trends
Sources: 1 – BMO, Self Storage Porfolio Composition 2 – National Association of Home Builders 3 – Marcus & Millichap 4 – Josh Burns Consulting, National Association of Realtors 5 – Marcus & Millichap
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Industry Innovators
Australia’s R6 Digital Puts All Hands On Tech
By Brad Hadfield
hand holding a phone with the E.G. Storage app opened
R6 Automate’s StorApp
I

n April 1984, the first non-stop commercial flight between the U.S. and Australia took off, making the countries more accessible to one another than ever before. With that, American pop culture exploded with Australian influence. We ate at Outback Steakhouse, drank Foster’s Beer, and teased our locks with Aussie Hairspray. Mad Max and Crocodile Dundee became household names, Rick Springfield and Elle MacPherson adorned bedroom walls, and the sounds of Olivia Newton-John, INXS, and Men At Work’s “Land Down Under” hit the airwaves.

Around that time, while Americans were embracing Australian culture, Dallas Dogger was instead taking a cue from the U.S., which had begun embracing self-storage as a viable business. He may have even been one of those passengers on that first non-stop Qantas flight. “I had already been involved in advertising, marketing, and media,” he says, “but it was around that time that I zeroed in on the self-storage industry.”

Making Connections
Dallas, who, as a founding member, was recently awarded life membership in the Self Storage Association of Australasia, visited the first ISS show in the U.S. in 1992, and there he started making important industry connections that are still solid today. He returned to Australia with newfound confidence in the industry. “I had already been working in Canberra, our nation’s capital, helping develop Capital Self Storage with Ian Oliver and the late Frank Timmer,” he says. Ultimately, the trio sold to National Storage in 2014, the group leading with their website and online move-ins.

In 1994, Dallas moved to Brisbane to start Storage Technology Pty Ltd, serving the growing self-storage industry from the technical side. While there, he worked to develop the Mini Storage Plus, RentPlus, and PTI brands in Australia, helping to internationalize them and turning them into brand leaders.

The millennium ushered in new endeavors. In 2000, Dallas founded Infrasmart Solutions Asia Pacific, taking on Storman from New Zealand with less than 20 customers. He developed the business into StorMan International, a self-storage management platform. “I took this fledgling software brand to market dominance locally in five years, and also my own branded access security product called AccessEzy,” he says. Of course, times were changing, with new tech on the horizon and the internet developing fast. So in 2007, the Centreforce Technology Group was created, which included R6 Digital, a full-service marketing agency specializing in the self-storage industry. The company built some of the first self-storage websites; today it’s Australia’s most awarded supplier of tech solutions for the self-storage industry.

“I took this fledgling software brand to market dominance locally in five years, and also my own branded access security product called AccessEzy.”

— Dallas Dogger
During this time, Centreforce developed a strong relationship with SiteLink, bringing their subscription-based software to market, a first locally, and helping to internationalize the software, something essential for local tax compliance. “Even now, there are international brands sold and used locally that are still not compliant and just asking for trouble,” he says. Today, the SiteLink software is used by more than 17,000 sites in 14 countries, and Centreforce Technology Group represents its Web Edition in the Asia Pacific Region, while also representing Storage Income Pros (District Manager).
SSAA award winners
SSAA award winners
two people sitting on a leather couch with laptops
R6 team members at work
man using a StoreLocal kiosk
StoreLocal kiosk
R6 team standing together
R6 team
Like Father, Like Son
In those earlier years, the Dogger family would sit around the family dinner table and assemble software manuals; this is when the business turned into a family business. “I was ready to dive in,” says Michael Dogger, Dallas’ son, who joined the R6 Digital team in 2009 and now runs the show as the company’s CEO. Making the matter even more of a family affair, both Curt Dogger and Brad Dogger, Michael’s brothers, soon came aboard to work on self-storage projects.

“I’m very proud of what my father accomplished,” Michael says. “He’d always been a tech guy, but the self-storage market was so nascent there wasn’t any tech to use. To fly to America, attend the first ISS Tradeshow, hook up with U.S. software companies and experts … it doesn’t get more entrepreneurial than that.”

Michael expounds on the many relationships his father built over the years. “Because the self-storage market was small in Australia, he took U.S.-based products and internationalized them,” he says, citing PTI Security Systems, MSP, and RentPlus.

Perhaps his father’s biggest challenge was convincing U.S. manufacturers that investing in the Southern Hemisphere market was worthwhile. “Our entire market isn’t even the size of Florida,” says Michael. “But Dad always believed that self-storage would develop into a global market, and the early efforts done in Australia helped the brands he worked with forge a path into the U.K. and Europe.”

“We tried it out on Dad and Ian’s Capital Self Storage, and the first online move-in happened only an hour after it went live on their website. It has grown enormously since that first move-in.”

— Michael Dogger
Like his father, Michael is also a tech guy, having studied electrical engineering (and finance, for good measure). So, when he joined R6, he was heavily involved in the technical aspects. “I coded booking systems and built websites. This led to the creation of RapidStor, our digital platform for self-storage customers to find and book storage.”

The platform was built in 2009, before anyone else had jumped on the bandwagon—and when many still felt no one would book self-storage units through a website. “We tried it out on Dad and Ian’s Capital Self Storage, and the first online move-in happened only an hour after it went live on their website,” says Michael. “It has grown enormously since that first move-in.”

What was the lightbulb moment that inspired RapidStor? “Hotels and airlines already did it, so why not give it a try?” Michael asks with a smile. “I created it to mirror sites like Expedia, which people were already familiar with. A competitor tried to create a similar platform, but it didn’t look like other booking sites at all, and people didn’t get it. So today, RapidStor still resembles other reservation sites. People like what’s familiar to them.”

woman viewing the R6 Automate website on her laptop
R6 Automate
Unveiling R6 Automate
The company’s most recent and biggest undertaking is the development of R6 Automate. It was unveiled at the Self Storage Association of Australasia’s annual GC24 convention in November of last year. Speaking to an audience of over 450 industry professionals, Michael highlighted the growing role of automation in transforming self-storage operations. “Every self-storage owner is looking to do more with less,” he said to the audience. “Remote management and automation are no longer future goals; they are essential for success today.”

R6 Automate applies to the entire tenant journey. Customers can still use RapidStor to find and book storage spaces 24/7. StorApp further enhances the experience, providing operators with tools to refine offers, onboard new customers, and easily manage existing ones. R6 Automate also integrates with SiteLink Web Edition to streamline notices, billing, and CRM processes and offer advanced reporting dashboards for operators, investor portals for performance tracking, and marketing tools to measure and drive ROI.

“StorApp is one app that works with all self-storage solution providers,” says Michael. “The app integrates with OpenTech and Nokē, for example, replicating the functions of their own app. And it works for providers that don’t have an app, like Sentinel and PTI.”

Michael says that a new guy coming to market with an app like this wouldn’t have had much luck garnering support from the big names they work with. “On the surface, it might look like we are competing with some of the platforms we integrate with,” he says, “but we’ve been around for almost 25 years, so they trust us.”

Continues Michael, “There’s also the fact that an operator with multiple sites may be using different smart products across different facilities, and they don’t want multiple apps, but they won’t pay to retrofit thousands of units, so that one app will work for all of them. So that’s when R6 Automate’s StorApp can really make a difference, because it will integrate with all the providers.”

Self-Storage DNA
With R6 Digital, not only can operators access premier self-storage technology, but they can also get traditional marketing support (website design, branding, social media marketing, SEO, and so on) with a self-storage focus. “Self-storage is in the company’s DNA, so knowing how the industry works makes us more effective than a typical agency,” says Stephen Hughes, CMO of R6 Digital. “We were talking to clients about advertising as it relates to cost per move-in when other agencies didn’t even know what that meant.”

“Yeah, others would focus on ‘fluffy stuff,’” says Michael. “We were diving into the numbers in self-storage terms.” He adds that today the agency does offer that so-called fluffy stuff, especially since the agency has expanded to serving clients outside the self-storage industry who demand it. “We picked up a number of them during COVID, when other agencies went out of business.”

Michael goes on to say that serving too many industries eventually became confusing, resulting in splitting off the tech products into R6 Automate and leaving R6 Digital with a pure marketing and creative focus. “There were too many things under one umbrella, but until we had a clear value proposition, it didn’t make sense to split. With the development of R6 Automate, it was time.”

Of course, many operators take advantage of both R6 branches. “StoreLocal, for example, uses StorApp as well as our website, branding, and marketing services,” says Michael. “As Stephen said, self-storage is in our DNA, and those in the industry know that’s where our heart is at.”

Brad Hadfield is the MSM web manager and a news writer.
The 2025 Aussie Outlook

With a finger in just about every self-storage pie, R6 has some thoughts on what to expect in the year ahead, and having just attended the annual Australasia conference, the team gained even more insights from other industry leaders.

“Our interest rates are very high right now, staffing is difficult because there’s a skills shortage, and inflation in the Oceania countries is the worst it’s been in a long time,” says Stephen Hughes, CMO of R6 Digital. “That means discretionary spending is down, and as a result, there’s been a lull in self-storage rentals.”

Hughes doesn’t want to paint a doom-and-gloom scenario, however. “That’s not to say things aren’t looking up,” he adds. “Interest rates are expected to decrease and inflation is forecasted to go down throughout 2025. So I think we’ll see a rebound in rentals.”

What types of rentals will these be? Hughes says that will be of interest, too. “Customers want a self-service storage experience, not a people experience, so moving to more remotely managed facilities might benefit owners and operators.”

While more facilities in the U.S. are going remote, many American tenants still want to know there’s a manager on site; what makes things different down under? “Self-storage has been around longer in the U.S., so ‘how it’s always been done’ is more entrenched in people’s minds,” says Michael Dogger, CEO of R6 Digital, adding that in Australia, the industry is newer and has always jumped on the latest tech. “There’s not as staunch of a mindset here that needs to be changed. Frankly, we have led the innovation here, developing and adopting industry tech earlier than our U.S. counterparts.”

Michael says the predilection to technology is even more apparent in Asian cities, where self-storage is a lot more novel. He recounts a conversation he had with a Hong Kong storage owner at a recent conference. “I mentioned something about a facility manager, and he looked at me curiously. Then he said, ‘You mean a person on property? What does he do?’ I responded that he oversaw the facility. Again, he just looked at me again like I was crazy and asked, ‘Why?’ I just had to laugh, but it’s something to think about.”

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Sector Confidence Continues
Fourth Quarter 2024 Investor Survey
By R. Christian Sonne
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he Fourth Quarter 2024 Investor Survey indicates continued confidence in self-storage with expectations of continued decreases by the Fed. For example, the survey results show another 4 basis points (bps) cap rate decline over last quarter of 5.66 percent and a 6-bps decline in the unleveraged discount rate. The self-storage team at Newmark Valuation & Advisory surveyed over 50 market participants about a wide variety of data points, including the usual cap rate, terminal cap rate, and yield rates. Key performance indicators are shown in the Segmentation by Investment Quality – 4Q 2024 Table.

table showing segmentation by investment quality in Q4 of 2024
Anecdotal reports suggest optimism in terms of investment rate declines will continue, although remain a slow pace. It clearly will not match Fed policy change basis point by basis point, in part because market sentiment did not react to the 11 Fed rate increases basis point by basis point. These metrics suggest more transaction volume heading into 2025. However, with an uncertain political climate, investors expect more clarity in the second quarter of this year.
R. Christian Sonne is the executive vice president of the Newmark Valuation & Advisory Group.
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Data
Cybersecurity
Best Practices
Protecting Your Data And Reputation
By Victória Oliveira
hands on tablet with cybersecurity holographics floating above
Cybersecurity Best Practices
Protecting Your Data And Reputation
By Victória Oliveira
E

specially after 2020, self-storage has become as reliant on the internet as any other industry. Now, the entire process from marketing to signing up and even entering most facilities is done with the help of technology. As a responsible business, it is your job to properly allocate capital to protect your customers data in order to avoid data breaches that could ruin your company’s reputation and drive existing tenants and prospective customers away, as word of mouth still plays a big role in the industry.

Why Cybersecurity Matters
As a self-storage business, you are responsible for sensitive information from customers, like payment, identification, and even their credentials to access their things inside their unit. A breach of this kind of data could easily lead to legal issues, especially if hackers are able to use the information to steal from your customers. However, even in less extreme cases, this kind of situation tends to ruin the reputation of a business, which is something no business can afford.
Types of Threats
When it comes to cybersecurity in the self-storage industry, three main threats are most common to target your business:

1
Phishing Attacks – These attacks usually target employees with false emails and messages to steal login information, passwords, credentials, and financial information.
2
Ransomware – Ransomware is a type of malware (malicious software) that is capable of blocking the owner’s access to their own data or system, asking ransom to return it.
3
Botnets – Botnets happen when a hacker takes over a device. In the self-storage industry, it’s common in IoT devices and can go unnoticed for a long time, becoming an access point to spread malware and to steal everything from credentials to data.
Common Industry Threats
According to Zach Fuller, co-founder and COO of Silent Sector, a cybersecurity company, “Cybersecurity risks for self-storage are generally around the third-party solutions they use, like softwares and platforms used to run their facilities. It’s important to not take it for granted and assume those companies are keeping your data safe. It’s a good idea to ask the companies behind the softwares and platforms what they are doing from a cybersecurity perspective, how the data is backed up, and how the company is backed up in case they are compromised.”

Another big issue he mentions he has seen in the industry is the practice of storing sensitive information on the cloud. “Most self-storage companies use cloud services for their general business operations, like emails, drive storage for calendars, scheduling, Microsoft 365, and Google Workspace. All of these platforms are only as secure as their setup configurations,” he says. “In other words, they aren’t inherently secure. Each company has to properly configure their own security control, either with their own resources or by hiring a third-party specialist.”

Cybersecurity Best Practices
When it comes to strengthening your cybersecurity efforts, some simple practices can make a world of difference for your business.
Conduct a threat assessment.
The first thing you must do when planning to create a more effective cybersecurity strategy is to evaluate possible threats in your operations. This will help you find out how to increase security as well as weak links that could affect the smooth running of your business. “A cyber risk assessment consists of a series of three main reviews: people, processing, and technology,” Fuller states, as he explains hackers will usually look for the weakest target out of those to get access to your system. “Another way to look at risks common between cybersecurity specialists is through penetration testing, which is essentially when they hack into the systems, like a criminal would, to find existing vulnerabilities from a technical standpoint.”
Evaluate the level of risk and work on it.
Once you have found the vulnerabilities, it’s important to organize them by level of threat, giving priority to finding a solution for the higher risk issues. “Follow the best practices as you are able to do so,” Fuller says. “Nobody is going to be perfect, and there’s always more work to do, but work your way from the most important from the list of mitigation first, and from there, implement as much as possible.”
Educate employees.
As previously mentioned, untrained employees can be an easy target for hackers, so it should be a priority for facilities to train their staff to follow security protocols such as making sure to choose strong passwords and recognizing phishing emails. This might take some time and money, but it could save you from a future headache. “Having a staff awareness training program is very important,” says Fuller, “as most cyber breaches occur because of social engineering tricking people into giving them information or access to information that should be kept off-limits from the outside.”
Invest in secure systems.
Make sure the systems, platforms, and IoT devices you use prioritize cybersecurity. Jump on a call, ask for a meeting, question them on their practices, learn how they are backing up your data, and ask all the other pertinent questions you may have regarding it. Be informed, and if you feel they are taking cybersecurity for granted, find a company that doesn’t.“The individual vendors in the self-storage industry should each have their cyber risk assessment and penetration tests done,” Fuller says. “You should be looking into those organizations and making sure they have appropriate third-party testing done on their platforms so you have some way to verify someone else is checking the security of those platforms you are paying for.”
Implement multifactor authentication.
This is a staple every person and business in any sector should have, as it is your first line of defense against hackers. Its importance increases when you are a business with access to customers’ data. Fuller suggests implementing it on everything you can, as it is a good first defense against criminals.
Backup your data.
In the event of a ransomware attack, it is imperative to have your data backed up in a secure location—bonus points if it is somewhere outside your company. “If your data is compromised, it will allow you to restore your operations,” says Fuller.
Have proper policies and procedures.
Make sure to properly protect your business by having policies and procedures in place. “For instance, if an employee disappears with a laptop with all the customers’ information on it, if they never signed anything saying ‘the company owns data’ or ‘the company owns the information,’ it will be hard to prosecute it,” Fuller says.
Conduct security audits regularly.
Make sure to schedule a security audit to identify vulnerabilities in your system. It is better to invest in catching a possible weak link yourself than waiting for a hacker to exploit it.
Encrypt sensitive data.
The best tip to keep your data safe is to prevent hackers from getting any entry point to access it. However, if that fails, it is a good thing to have your sensitive data encrypted, as it adds another layer of security to it.
Create a separate administrative account.
“The account you use for day-to-day business operations should not be an administrative account. Because if the one you use every day gets hacked, the hacker will get the keys to everything,” Fuller says. “You should have a separate administrative account with strong passwords and multifactor authentication that is only used when you need to make changes to the environment you use.”
Victória Oliveira is a senior writer with over a decade of content experience under her belt. Her work has been featured on Darling Magazine, Elite Daily, The Culture-ist, Matador Network, and more.
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Stats with Starr
A Key Metric
Does Lower Market Saturation (SF/C) Lead To Higher Storage Rates?
By Noah Starr
S

elf-storage demand can feel like an unsolvable puzzle. But what if the key lies in one metric (square foot per capita [SF/C]) and its connection to street rates? Spoiler alert: It’s fascinating. I dove into 225 of the top MSAs in the U.S. to see how SF/C correlates with 10-by-10 non-climate-controlled (NCC) street rates (PSF) from November 2024. The results may surprise you.

At first glance, there seems to be only a modest trend, that as SF/C increases, street rates drop. But it’s nothing particularly noteworthy, as the data looks fairly noisy.
See Chart 1.

But, if we zoom in on the MSAs with SF/C below 8, we see a clearly decreasing rate PSF as SF/C increases.
See Chart 2.

Now, that leaves us with the markets where SF/C is above 8. Here, there is no discernable relationship between SF/C and rate, as rates are relatively low across the board compared to the prior set.
See Chart 3.

Chart 1
Average 10x10 NCC $ PSF vs. Street Rate of MSA
Chart 2
Average 10x10 NCC $ PSF vs. Street Rate of MSA
Chart 3
Average 10x10 NCC $ PSF vs. Street Rate of MSA
But this is only interesting if you can use it to inform how you think about deals. So, let’s dive into how to apply it.
The Basics: SF/C Vs. Street Rates
It’s no surprise that as market saturation increases, street rates fall. More supply means more competition, which shifts pricing power to customers.

Take Miami, Fla., for example:

  • SF/C: 6.38
  • 10-by-10 NCC Rate: $1.83 PSF

Now compare that to Denver, Colo.:

  • SF/C: 7.17
  • 10-by-10 NCC Rate: $1.43 PSF

Miami’s 11 percent lower saturation allows operators to charge approximately 28 percent higher rates than Denver. It’s all about the balance of supply and demand. There is a caveat here that although there was a clear relationship, SF/C can’t be used in isolation to predict what pricing will be (i.e., the correlation was meaningful, but it was not 100 percent).

So far, so good. But what happens when SF/C climbs above 8?

MSA Name, SF/C, and Price PSF chart
Above 8 SF/C: The Flatline Effect
Here’s where things get interesting. When we look at markets with SF/C above 8, the relationship between saturation and rates just stops. Rates stabilize, and other factors start calling the shots.

For example:

  • Riverside-San Bernardino, Calif.: SF/C of 14.71, $1.61 PSF
  • San Antonio, Texas: SF/C of 10.39, $1.01 PSF

Riverside’s saturation is 41 percent higher, but rates are 60 percent higher than in San Antonio. What gives? Once saturation crosses 8, factors like median income, housing starts, and economic growth become the real drivers. SF/C isn’t the whole story.

8 Is The New 10
For years, the industry treated 10 SF/C as the line in the sand for oversaturation. But the data says otherwise. The tipping point is actually 8 SF/C.

Below 8, the trend is clear: lower SF/C equal higher rates. But above 8, SF/C loses its grip on pricing power. That shift fundamentally changes how we should evaluate opportunities, especially in higher saturation markets.

Context Is Everything: Beyond SF/C
SF/C is a great starting point, but it’s not the finish line. In oversupplied markets, the real story often lies in the context. Here’s what to watch:

  1. Population Growth – Markets with strong population growth can handle higher saturation. Phoenix, Ariz., (SF/C: 7.28) is consistently one of the top 10 fastest growing cities, so despite a somewhat elevated SF/C today, the incoming demand may make this opportunity attractive over the next several years. One way to figure out where population will grow is the census and the various lists, but if you want to understand at the root level, look at residential development in the area (e.g. multifamily housing starts) to get a true picture of what migration the city can even support. Of course, if you’re banking on future demand, don’t forget to check out if new storage projects are in development in the area.
  2. Economic Drivers – A diverse, stable economy can offset high SF/C. Seattle, Wash., (SF/C: 6.23) hits $1.70 PSF thanks to strong incomes and consistent job growth. Even in the more saturated outskirts of Seattle, like Bellingham, Wash., (SF/C: 8.51) rates are still $1.86 PSF thanks to proximity to Seattle’s strong economy. The classic way to look at this is by median household income. This can be a great indicator (and perhaps will be the subject of next month’s issue).
  3. Commercial Development – Large infrastructure and commercial investments can also be a leading indicator that a market may be poised for growth (and perhaps increasing rates). Look for investments in name brands, and especially those that draw business renters (e.g. Home Depot, Lowes), as they can show the area may soon experience a rising income level.
What This Means For Investors
If you’re making bets in self-storage, here’s your new playbook:

  • Don’t Overreact To High Saturation – A market with 15 SF/C isn’t automatically doomed. If population growth and housing starts look solid, it could still outperform. Do your research on all the secondary factors above.
  • Use SF/C As A Compass, Not A Map – SF/C is a great directional tool, but it’s just one piece of the puzzle. Pair it with other data points for the full picture.
  • Drill Down Locally – Not all submarkets are created equal. Houston, Texas, (SF/C: 10.8) has pockets of low saturation where street rates skyrocket. Always go deeper than the MSA-level data.
Wrapping It Up
So, does lower market saturation lead to higher storage rates? The answer is it depends. Below 8 SF/C, the relationship is solid. But above that, it’s a different game entirely.

Self-storage isn’t just about the numbers. It’s about the story the data tells. A high-saturation market with strong fundamentals can still crush a low-saturation market with weak drivers. As the saying goes, “Data doesn’t lie, but it doesn’t tell the whole truth either.”

Do you want to see how your market stacks up? The top 50 MSAs (by population) from November 2024 are above; reach out to support@tractiq.com to get the full list of 225.

Noah Starr is the CEO of TractIQ.
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Cover Story
Exceptional
Inductee
Maurice Pogoda Joins SSAM Hall Of Fame
By Alejandra Zilak
R

aise your hand if you’ve ever made plans, only for life to throw you a curveball. Raise it again if you’ve allowed it to stop you in your tracks and feel dejected. Then think about how you got out of that situation. More often than not, the challenging times eventually pass, and it’s those who handle them with an open mind who find themselves on the other side, flourishing despite the odds.

Such is the case with Maurice Pogoda. For those who’ve been in the self-storage industry long enough, the name definitely rings a bell. After all, Pogoda Companies has been around for almost four decades. When he tells you the story of how it came to exist in the first place, you’ll likely find yourself nodding and thinking about all the challenges you have faced along the way. It may also remind you of how, despite hardships, which are always guaranteed, no matter who you are, being grateful for what is going well will always have a major impact on your quality of life—perhaps the biggest one.

Maurice Pogoda
R

aise your hand if you’ve ever made plans, only for life to throw you a curveball. Raise it again if you’ve allowed it to stop you in your tracks and feel dejected. Then think about how you got out of that situation. More often than not, the challenging times eventually pass, and it’s those who handle them with an open mind who find themselves on the other side, flourishing despite the odds.

Such is the case with Maurice Pogoda. For those who’ve been in the self-storage industry long enough, the name definitely rings a bell. After all, Pogoda Companies has been around for almost four decades. When he tells you the story of how it came to exist in the first place, you’ll likely find yourself nodding and thinking about all the challenges you have faced along the way. It may also remind you of how, despite hardships, which are always guaranteed, no matter who you are, being grateful for what is going well will always have a major impact on your quality of life—perhaps the biggest one.

Ingrained Independence
Pogoda was born and raised in Brooklyn, N.Y. When he speaks about his childhood, he’s very aware that he grew up in very different times. “In the 1960s, kids had a lot of freedom. Even from a very early age, we played outside all day, coming home only when the streetlights came on. Helicopter parenting wasn’t a thing. Being independent was part of who I am; and it has served me very well. As the common saying goes, you can take the boy out of Brooklyn, but you can’t take Brooklyn out of the boy.”

His upbringing shaped him in many ways. “My father was a successful criminal lawyer, representing all sorts of colorful characters in Brooklyn,” says Pogoda.

He was brought up financially comfortable and received a regular allowance, so he could’ve just enjoyed the ride, but Pogoda was always striving for more. He had a paper route. He shoveled neighbors’ driveways after snowstorms. He worked as an usher at an off-Broadway theater.

When Pogoda was 17, he went to college at the University of Pennsylvania, where he studied English and history. In college, he always had a part-time job, even though he didn’t need one. He simply had a knack for business and making money.

“Back then, school was for learning, not just to get a job,” he says. “It was also a counterculture time, and I was very idealistic and thought we could save the world.”

Between studying, listening to music, reading books, and his part-time jobs, Pogoda kept busy. Not knowing what he wanted to do, he decided to take a few years off from “real life” after graduating and see where destiny would lead him.

He waited tables to make ends meet, and even managed a restaurant in Philadelphia. To this day, he says it was one of his favorite jobs, Pogoda Co. included. It was a great time with no responsibilities except to pay rent, add to his record collection, and upgrade his stereo system.

The Pogoda family
The Pogoda family
During one of his breaks, he drove to Florida with a friend for vacation. On a whim, they detoured on I-26 and ended up in Charleston, S.C. “It was a bit run down, but just so beautiful that I knew I had to live there,” he says—the kind of response that makes you question what you’re doing with your life if your life consists of sitting at a desk in a cubicle.

Pogoda lived in Charleston for a couple of years, focusing exclusively on having fun and getting by. At some point, however, he realized that what was meant to be a short break from “doing something with my life” could just as easily turn into something permanent.

“I told myself that even though I was enjoying myself, being aimless wasn’t how I really envisioned my life,” he says. At the end of the day, Pogoda had always been a go-getter. It’s why he graduated high school a year early. It’s why he went to an Ivy League school. So, after much introspection, he decided to go to grad school. “My parents thought I’d be a good attorney, and that I should go to law school, but that wasn’t something I wanted to do,” he says. “My sister did, and now she’s a judge in New York City. I was business oriented and decided to get my MBA.”

Pogoda applied to several schools in the northeast and to the University of Michigan (U of M). Although he was admitted to a few different schools, he decided to go to U of M, not only because it was one of the top schools in the U.S., but also because he had never been to the Midwest and thought it would be fun. “It seemed like another adventure,” he says, “and I thought, ‘Why not?’”

He studied finance and marketing, skills that are fundamental in any industry. “Finance made sense because I was always great at math—at least until I got to calculus,” he says. “And marketing was intuitive to me as my mind seemed to naturally work that way.”

“I started exploring self-storage in Michigan. Storage didn’t dot every corner like it does now. At that time, there were very few brokers who were selling self-storage. A key marketing principle is that to be successful, you really need to find a niche.”

— Maurice Pogoda
Serendipitously, that’s also where he met his wife, Lori. “She was an undergrad, studying to become a speech pathologist. We were great together from the very beginning.” He graduated in 1982; she graduated in 1983. They married soon thereafter.

After getting his MBA, he landed a job at Lever Brothers in New York, working in the landmark Lever House. “I rapidly rose up the ranks,” he says. “I did that for three years, and although it was a great experience, I realized pretty quickly that I’m not a corporate guy. I didn’t like playing the corporate game, such as staying late just for face time. Once I finished my work, I wanted to go home but couldn’t.”

Around that time, Lori’s dad asked him if he’d consider moving back to Michigan and joining him in his successful real estate business. “He said that we could build industrial buildings together. I thought that was pretty cool and that I’d be a millionaire in no time flat,” Pogoda says, laughing.

But after working with him for about a month, he realized that he didn’t know anything about real estate or have anything in his background that would be helpful. So, he decided to leave and to get another job in the industry where he could learn the ropes.

“I started working at a commercial real estate brokerage company, selling apartments, strip centers, and office buildings,” says Pogoda. He worked there for several years, learning to analyze and value properties. While it was another great experience, after a couple of years, he started thinking that he didn’t want to work for someone else. “I wanted to do my own thing.”

Finding His Niche
Around the same time that Pogoda was feeling the urge to start his own business, he went to a family gathering where one of Lori’s cousins mentioned that she and her husband had built a self-storage facility. He didn’t know much about self-storage at the time, but he was certainly intrigued. A few months later, at the cousin’s suggestion, he attended his first SSA convention in Las Vegas. It was an eye-opening experience for him that turned on a light bulb in his head. This was in 1986.

Returning from the expo, Pogoda found himself at a crossroad. He wanted to work in self-storage but wondered in what capacity. “I started exploring self-storage in Michigan. Storage didn’t dot every corner like it does now. At that time, there were very few brokers who were selling self-storage. A key marketing principle is that to be successful, you really need to find a niche. And when I couldn’t find anyone focused on brokering self-storage facilities in Michigan, I thought, ‘Well here’s my opportunity.’”

In 1987, he left his job so he and Lori could open their own company. “It was a very different time to do business,” he recalls. “You didn’t have the internet. Everything had to be done the old-fashioned way. Yellow Pages was king, and if we wanted to develop a database of storage facilities, we had to look up properties in multiple phone books, drive around the state to find them, take photos, count buildings and doors to figure out how big they were, go to the assessor’s office to find out who owned them, then make phone calls to see if anyone would be interested in having me sell it for them.”

He borrowed $20,000 to get the business off the ground. “Most of that money went to purchase a computer with hardware that had less computing capacity than any app you have on the smartphone in your pocket,” he says. Between their rotary phones and Rolodexes, the Pogodas did everything: drafting press releases, printing out letters, stuffing envelopes, affixing postage, and mailing letters themselves. Every quarter, they would send out communications to people in their database. It didn’t matter what it was, as long as it was related to the industry. “We became known as the self-storage experts in the state of Michigan,” he says. “I tell everyone in our company that without this regular PR, we wouldn’t be here today.”

Pogoda goes on to say, “Things started to pick up, and we started making good money in ‘88 and ‘89. That’s when we bought the first house I ever lived in. Though it wasn’t an expensive house, the mortgage payment seemed so high. We had a one-year-old, and it was very scary.”

Making Lemonade
Things went really well until 1990, when the savings and loan crisis hit. Banks stopped lending, tenants stopped renting, people stopped buying real estate, and the Pogodas stopped making money. But something unexpected happened. “I started getting phone calls from banks that were foreclosing on storage facilities.”
“I think I was a pretty good broker, but I didn’t enjoy it. I didn’t like cold calling or being at the whim of a capricious buyer. But I enjoyed management. I hired someone else to do the storage brokering and went full steam into management.”

— Maurice Pogoda
One day he received a call from a banker who said that he knew the Pogodas worked in storage and asked if they also managed facilities. “I said, ‘Of course we do!’” The truth was that he had never run a storage facility in his life. But money wasn’t coming in and they needed the cash flow, so he seized the opportunity. By the end of 1991, he was managing a half-dozen storage facilities.

“I think I was a pretty good broker,” Pogoda says, “but I didn’t enjoy it. I didn’t like cold calling or being at the whim of a capricious buyer. But I enjoyed management. I hired someone else to do the storage brokering and went full steam into management.”

Managing storage properties for banks led to buying opportunities. When the economy eventually picked back up, he cobbled money from friends and family to buy a few of them. That was the start of it all. “I bought some from the banks in the early ‘90s and then started building them myself. The first ground up was in the Ann Arbor market in 1995. After that, I bought one facility after another, developed a few, and had a pretty good portfolio.” As they grew, they opportunistically sold some and then built back up again, as warranted by market conditions.

Fast forward to today: a few things have changed, but much is the same. The biggest change is that Pogoda Companies has welcomed the second generation. The Pogodas’ three adult sons (Adam, Daniel, and Michael) all decided, one by one, to join the business. Each had successful careers but found the opportunity to join a successful family business to be too enticing. Maurice now has the enviable role of guiding strategy for the business while his “boys” aggressively grow it and take it to the next level.

“We discuss everything. Whatever we do is a group decision,” he says. “I may express strong opinions, but I never veto anything out of hand. They are continuing our growth in the Midwest with the goal of further expansion into markets that fit our risk profile. We’re a top 30 owner-operator now, but I can easily imagine the boys growing the business and our becoming a top 15 owner-operator in the next five years.”

Maurice Pogoda standing with arms crossed in storage hallway with blue and white plaid button up
What Matters Most
In November 2024, during the Self-Storage Association of Michigan (SSAM) annual conference, Maurice was inducted into the association’s Hall of Fame. This honor crowns four extraordinary decades in the industry. The accolade is most certainly well deserved, and he is extremely grateful and honored to have received it. While his work ethic is laudable and his success is impressive, he has learned to balance being a dedicated business owner with being a good husband and dad. “Throughout my entire career, I’ve made sure to be home for breakfasts and dinners with my wife and kids, unless I was attending a storage convention,” he says. “I never missed any of my kids’ school or sports events and was always present at all family gatherings.”

Pogoda adds, “I’m so lucky that I have such a great marriage, and that I have three wonderful children.” Boys who, just like their father, grew up with everything they could ever need, yet are still down-to-earth, have outstanding work ethics, and have always been driven to accomplish great things within their careers. Equally important, he’s taught them to roll with the punches.

“We’ve had some of our properties for 20-plus years now, so of course we’ve had ups and downs,” he says. “And every time you’re in the middle of a downturn, you always think it’s never going to end, that things are going to keep getting worse. But inevitably, the tide turns. The key is being patient and continuing to work hard.” It’s a lesson that sounds good on paper but can only be truly learned through experience.

“You just have to keep rolling,” he says. “My father-in-law used to tell me that whatever period you’re in, you can’t think about what will happen next week or what happened last week. You have to deal with conditions as they are right now. All you have is now.”

Alejandra Zilak studied journalism, went to law school, and now writes for a living. She also loves dogs.
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Feature
Move-Out
Probability
How It Impacts Your Bottom Line
By Brad Hadfield
Move-Out
Probability
How It Impacts Your Bottom Line
By Brad Hadfield
T

hey say when one door closes, another one opens. This describes the self-storage tenant journey in a nutshell, although that door is probably more akin to a revolving one. Every month, tenants come and go, with the facility owner’s goal being to keep as many as long as possible. What are the factors that determine how long a tenant will stay? To get into the psychology behind their behavior, it helps to understand the concept of move-out probability.

The move-out probability (MOP) in self-storage refers to the likelihood that a customer will vacate their storage unit within a given period. To come to any sort of conclusions, you’d first need to collect historical data in order to identify move-out trends based on rent increases, unit size, length of stay, time of year, and so on. Next, you’d need to conduct research, gaining an understanding of local market dynamics that could impact move-outs, such as housing turnover and economic conditions. Last, you’d want to revisit your customer retention strategies to be sure you’re implementing proactive measures to reduce move-out probability, like offering clear customer communication, flexible payment plans, and loyalty programs.

“It would be very difficult and time-consuming to do this manually, as each tenant has unique needs and behaviors,” says Dr. Ahmet Kuyumcu, CEO of Prorize, a revenue management technology company that launched in 2006, winning the coveted Franz Edelman Award for advanced analytics. “Your best bet is to use a revenue management platform with predictive technology.”

Kuyumcu adds that if operators aren’t crunching the numbers or employing a technology that does it for them, that they may rely on limited data to guide decision-making, which can be risky. “If one or two customers complain about rent increases and move out as a result, an operator may be biased not to increase rents because they assume that all move-outs are happening because of rent increases,” he says. “But was the rent increase the catalyst for higher move-outs? Perhaps it was natural churn, or a competitor lowered rates. Or, it could have simply been a seasonal thing. There are a variety of reasons that move-outs could have occurred that had nothing to do with the rent increase. However, by not considering these possibilities, the operator might avoid raising rents to the detriment of the bottom line.”

Informing Rent Increases
Not long ago, raising rates was just a guessing game. “Operators would have to make a hypothesis, trying to determine how much they could raise rates while keeping churn to a minimum, and then they’d test it,” says Jackson Stevens, CEO of SpareBox Technologies. The company was formed just one year ago by several data analysis and technology experts who’d worked internally for SpareBox Storage, and they already have over 1,000 facilities using at least one of their products. “Sometimes those operators would get lucky, and other times they’d be licking their wounds.”

Thankfully, technology has turned educated guesses into informed decisions. Today’s predictive platforms are able to drill down into customer dynamics to identify segments of customers who are most sensitive to rent increases, and thus more likely to move out in the wake of one, and those who are less sensitive and more prone to staying put. This has proven to be invaluable for many operators.

“Our platform provides valuable insights into MOP by analyzing various factors. It measures the expected churn without rate increases and compares it to the actual churn one and two months after a rate hike, using baseline customer data for reference,” says Kuyumcu. “This works hand in hand with our demand forecasting module as well. Because think about it. If you’re 100 percent occupied and going into a season where you expect demand to be high, raising rates is low risk. But if it’s a slow season, and you’re only 75 percent occupied, with customers already paying above street rates, well, you probably want to leave those customers alone. Our data-driven algorithms decide which customer should get which increase.”

Dr. Warren Lieberman, CEO of Veritec Solutions, which has been helping self-storage owners and others since 2001 with decision support tools such as revenue management and pricing analytics, says that when it comes to existing customer rate increases, or ECRIs, many operators follow the “7-11 rule. They typically institute the first rent increase after seven months, followed by an additional increase every 11 months thereafter.”

However, he is well aware of the “pricing game” that has been happening lately, so much so that it’s become a topic of discussion at every industry workshop, on every self-storage podcast, and in many MSM stories.

“They bring people in with low rates, and then raise them aggressively in three months,” says Lieberman, who acknowledges that this can be a successful strategy. “Our analysis shows that any action that stimulates demand is going to have a positive impact on revenue. So, if low introductory rates bring in customers, that strategy is working.”

To illustrate his point, he offers the following example: At your normal rate, you’re able to move in five tenants in one month. Eventually, one moves out naturally. Now you have four tenants from that period. At a greatly reduced rate, you’re able to move in nine tenants. After a few months, you raise the rates aggressively. One moves out naturally and two move out due to the increase. Now you have six tenants from that period at a close-to-market price.

“As you can see, this strategy can work. There is nothing wrong with aggressive rate hikes, but it’s important that the communication is clear,” says Lieberman, emphasizing the word clear. “Storage facilities used to advertise 50 percent off the first three months, so everyone knew the rate would double in 90 days. Now, some just list a price without highlighting that it’s a discount and then shock people with an aggressive rate hike down the road.”

This is a problem because most people don’t have a concept of what self-storage should cost in their head. “When they see a unit for $39 per month, they may think it’s reasonable,” Lieberman says, “so three months later, when they get a notice that it’s $99, they’re caught off guard. Take something like milk, for example. If a consumer sees a gallon for 99 cents, they know it’s cheap. If they see it for $9.99, they know it’s expensive. This just isn’t the case with self-storage, so use those tactics if they’re working, but be transparent about it.”

Kuyumcu is not keen on the REIT strategy, especially when transparency is lacking. “We don’t recommend that our clients follow suit,” he says. “We know it can be tempting for the short-term revenue boost, but it’s not good for the customer experience. I do not believe it is good for the industry long term.”

To elaborate on the potential harm these tactics could cause operators, he points to the hospitality industry. In that world, some social sites and review aggregators have begun taking customer ratings into account, potentially altering the hotel’s traditional AAA or Forbes rating. “A hotel may have been deemed a five-star operation, but if customers are saying it is a three-star experience, this is what is highlighted,” says Kuyumcu. “Once that happens, the hotel is not able to achieve the high rates they want because those negative reviews have lowered their rating.”

Ultimately, Kuyumcu says the focus should be on maximizing revenue in the long term and keeping tenants on your good side.

Stevens acknowledges the varying philosophies on ECRIs, but he says that some people’s hands are tied. “For a while, they may have been hesitant to pull the trigger on rate increases, but because of the competition, they’re being forced to start doing them—and doing them more aggressively.”

Helping in the decision-making, of course, is move-out probability. “Understanding move-out probability will help clients achieve their revenue goals without taking a big hit in three months when half the people who took the bait move out,” says Stevens. “Obviously, when using aggressive ECRIs, move-outs are expected when the hike takes effect. But if you’re prepared for it, and know what to expect and can reconcile that, you’re still in good shape.”

The Economic Impact
The economy is weighing on the minds of most these days. Many political pundits believe the re-election of Trump was due in large part because of his promises to fix the economy. So, it’s no surprise that trying times can have an impact on MOP. “Rising costs of housing and food have put extreme pressure on consumers, and as a result, we experienced record-high vacates of storage units in 2024,” Jason Koonin, CEO of Sunbird Storage in the U.S. and Bluebird Self Storage in Canada, told MSM for “The 2025 Outlook,” which ran in last month’s issue of Messenger.

This doesn’t surprise Stevens. “It’s not 2021 anymore,” he states. “Most facilities aren’t at 98 percent occupancy, with everybody happy and leaving early for the weekend. Now, many are really sweating, and that’s where we come in. Our technology helps them see how to close the gap between what they forecasted and the current reality.”

Stevens says their tool has analyzed several scenarios that apply to the state of the economy. “During economic downturns, move-out probability might increase due to financial strain on customers. In this case, self-storage is a discretionary spend and on the chopping block.”

There is another possible scenario, however. In this universe, Stevens says that self-storage unit isn’t discretionary, but rather a necessity. “They may be stuck in a holding pattern. They can’t move into a larger home or office, but they refuse to discard their stored belongings, so they essentially have no choice but to keep the unit.”

“During economic downturns, move-out probability might increase due to financial strain on customers. In this case, self-storage is a discretionary spend and on the chopping block.”

— Jackson Stevens
Predictive tools help in decision-making as they can look at factors like median household income, employment status, and so on to predict whether the economy is likely to have an impact on the facility tenants; if it doesn’t appear to be, then it becomes less risky to raise rates.
Convenience Counts, Size Matters
It may not surprise you to learn that unit convenience can impact someone’s sensitivity to price increases. After all, many customers are willing to pay a premium for prime units—those with easy access, close proximity to an elevator, or situated in one of the most brightly lit and secure corridors. However, it may surprise you to know that all units fall onto a “convenience spectrum,” so to speak. It’s something Lieberman has discovered through the Veritec platform.

“We all know those five units by the elevator are in demand, but it’s broader than that,” he says. “The next 10 units may be less sensitive to a rate increase than the next 10 down the hall. And those 10 will be less sensitive to an increase than the 10 after that.”

Lieberman says this is an exciting development that operators can definitely capitalize on. “Think of it this way: When it’s time to raise rates, you might add an extra two percent to those first 10 units, 1.5 percent to the next 10, and one percent to the next. And then the remainder just get the regular increase. Those extra percentages on those 30 units can really add up.”

The size of a rental unit can also be a factor for MOP. Kuyumcu says that, in general, people renting a large unit tend to stay longer and are less susceptible to price increases. For one, they may be a commercial client using the unit as an extended arm of their business; they’re typically not going to fuss over a rate increase unless the business is in dire straits. Individual renters may also be less sensitive to increases if they have a large unit because, typically, that unit is full of a lot of stuff—heavy stuff. “Whereas someone renting a 5-by-5 can easily pack that up and move to a less expensive facility, someone with a full 10-by-30 doesn’t want to go through the hassle of moving,” he says, adding with a laugh that “They may not be happy about it, but for them it beats the alternative of moving!”

“You don’t want to exacerbate income inequality or be price insensitive in a specific ZIP code or market that results in some kind of gender or ethnic discrimination. Even if it’s unintentional discrimination, it’s still illegal …”

— Dr. Warren Lieberman
The Importance Of Autopay
If you can get tenants to treat their unit like a Netflix subscription that automatically renews each month, MOP drops considerably, says Stevens. “Of the 19 data points Prophet looks at, autopay is by far the highest predictor of whether or not someone will move out. When tenants ‘set it and forget it,’ well, they do tend to do just that—forget about it.”

It makes sense, and would explain why a manager’s ability to increase enrollment in autopay often comes up in MSM’s annual Manager of the Year submissions. In 2024, for example, PJ Richards, director of learning and project management at Metro Storage, nominated manager Darryl Bridges for the recognition, citing that, among other things, Bridges was able to “increase autopays by 37.3 percent year over year.” This feat has been attributed to a 12 percent increase in revenue and keeping occupancy at 91 percent.

Demographic Dos And Don’ts
Demographics can play an important role in MOP, however it’s important to be careful about what data is used. “It’s best to stay away from demographic or geographic information about customers,” warns Lieberman. “You don’t want to exacerbate income inequality or be price insensitive in a specific ZIP code or market that results in some kind of gender or ethnic discrimination. Even if it’s unintentional discrimination, it’s still illegal and you could wind up facing a lawsuit.”

Kuyumcu agrees, which is why the Prorize platform analyzes the demographic of the facility in the surrounding areas. “For instance, if most of your tenants are rural residents, and research shows they tend to be more sensitive to price increases, you’ll want to proceed cautiously when implementing ECRIs,” he says. “You might also consider tenant attributes such as commercial versus residential usage, autopay versus manual payment preferences, or even the distance between where they live and where they store their belongings. For example, tenants who live far from the facility are less likely to move their items due to the inconvenience of the distance, making them more likely to tolerate a higher ECRI. These demographic insights are safe to use and help ensure you stay clear of any legal risks.”

Making Your Move
With all of the data and insight a platform with move-out probability capabilities can put at your fingertips, why are some operators not embracing it? It could boil down to feeling like they’re not in control, however this couldn’t be further from the truth.

“Prophet is a recommendation engine, not an all-powerful oracle saying ‘This is how it should be and don’t dispute it,’” says Stevens. “During onboarding, the operator establishes inputs that the algorithm abides by, like the maximum dollar value increase, the highest percentage increase, the occupancy threshold, the highest acceptable MOP, and so on. That way, they can be as aggressive as they want to be, or not at all. They always have control of the levers.”

Kuyumcu concurs. “Operators can set the frequency and limits for rent increases, and the algorithms operate within those parameters to determine eligibility and calculate the optimal increase for each rental to maximize expected revenue. Ultimately, customers have the flexibility to accept or adjust Prorize’s recommendations based on their specific circumstances.”

“We’ve basically flipped the process on its head,” says Lieberman. “Veritec helps facility operators understand not just who you can increase rates on, but who not to. This allows you to raise rates with less churn, which is of enormous value to the facility and their customers.”

Brad Hadfield is MSM’s web manager. He’s also a staff writer for MSM.
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Feature
Lisa Jackson
Dubai's Storage Queen typography

The Life Of Lisa Jackson

By Alejandra Zilak
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any years ago, it was common to believe that going down a specific path was the only way to reach success. This could be going to law school or studying medicine. Or maybe it didn’t matter what you went to school for, as long as you obtained a degree in higher education.

Lisa Jackson used to think that if she didn’t get such coveted diplomas, she might get held back in life. But it turned out she was wrong. Her story shows how having a strong work ethic and continuously striving to be the best will open doors. At the end of the day, excellence, no matter where it comes from, eventually gets noticed.

In this feature, we’ll take a look at how she went from working retail at a bakery in Manchester to running extensive self-storage operations in the United Arab Emirates (UAE).

A British Baker
Jackson was born in Manchester in the United Kingdom. When she was three, her parents moved to Ireland with her and her brother, David, to a beautiful coastal town called Galway. She went to school there for several years, until her family moved back to the U.K. when she was 15. At 16 she received her GCSE (General Certificate of Secondary Education, which is the British equivalent of a high school diploma), and then she had to get a job. “It could’ve been any job, as long as I was working,” she recalls. “I wanted to go to college, but I didn’t get the opportunity to go.”

Although she would’ve liked to pursue higher education, she didn’t dwell on it. As she explains, “I don’t like negativity. I only want to talk about the positive things in life.”

So, she got a job at Hampsons Bakery. Soon enough, she learned that she enjoyed the fast pace of the food industry. “Everyone’s running around and shouting orders,” says Jackson, “and I loved it.”

Jackson's son Michael, his girlfriend Chloe, and their daughter Amelia

Jackson’s son Michael, his girlfriend Chloe, and their daughter Amelia

At the beginning, she worked part time because she had a small son, Michael. Once he started school, Jackson began working full time at the bakery. Eventually, she was promoted to store manager, then to area manager. “I covered all the stores in the northwest of the U.K.,” she says. “In total, there were over 80 employees reporting to me.”

She thrived with the responsibility. However, at some point, she had no work/life balance. She wanted to continue working in the industry but with more of a say on her schedule. So, she quit and opened her own sandwich shop called Jackson’s Sandwich Bar. “I knew this would allow me to have more time with my son, which it did. It was great. I worked from 7 a.m. to 3 p.m., and I didn’t work on weekends because the store was located in an industrial area, so there was no business there on Saturdays and Sundays.”

This schedule worked well while Michael was young, but, as children do, he eventually grew up. As he started becoming more independent, Jackson was bored in the afternoons. To add insult to injury, running the sandwich shop became too much of a routine. Every day was the same. She started questioning what else she could do. “When you wake up in the morning and dread going to work, it’s time to move on, so I sold the business. I can’t stand routine. I need excitement in my life.”

wide view of the The Box Self-Storage facility in UAE

The Box Self-Storage facility in UAE that Jackson manages

Storage Adventure
After she sold Jackson’s, she decided to take a few months off work to figure out what to do next. “I wanted to do something completely different,” she says. As someone who loves embarking on new adventures, she became curious when, in 2006, she stumbled across an online ad for Apex Self-Storage. “I looked at it and said, ‘Who the hell is Apex Self-Storage, and what is self-storage anyway?’” Since she had nothing to lose, she sent her CV (resume). As she thought about what self-storage could possibly mean, she thought that maybe it referred to renting hotel rooms or something along those lines. She didn’t have to wonder for too long.

“I got called in for an interview,” says Jackson, “and when I went to the facility in the Manchester City Centre, I immediately noticed that there were no women there.”

Then she received a call for a second interview; this time at one of their facilities in Cheadle. “Guess what?” she says. “No women there, either.” At the end of the interview, the general manager, Steve Dawber, told her, “In case you haven’t noticed, there are no women working here yet. You’d be the first.” Jackson thought it sounded like a challenge, but she replied with, “Let’s do it!”

She was hired to work as an assistant store manager. “I was on the floor every day, taking inquiries, creating invoices, and putting them in envelopes. I’d show customers around the facilities, sweep units, paint the unit floors, and clean toilets. You name it.”

Just as when she was working at Hampsons, she rose through the ranks. She was soon promoted to site manager and spent a few years in that position. She was becoming enamored with the industry and knew that she wanted to continue working in self-storage for the long haul. She was then promoted to senior manager. In this role, she was responsible for all Apex sites. “We had five of them at the time,” Jackson says. “I was in charge of training, marketing, networking, drafting contracts, and helping to close deals. I reported directly to Steve, who at this point had become my mentor.”

“Self-storage is so different here now. We go to customers’ homes or businesses to pack their items and move them to the units.”

— Lisa Jackson
As the years progressed, she wanted to keep growing as a professional. Working for a good employer such as Apex proved to be a double-edged sword. “Apex was such a great company that nobody ever left, but this wasn’t good for me because I couldn’t continue growing.”

As with her previous jobs prior to joining the industry, she started wondering how she could solve that problem. “What could I do next?”

Down To Dubai

Jackson knew she wanted to continue working in self-storage. But this time, she added some of her adventurous streak to the mix. “I had been holidaying in Dubai for a few years,” she says. “I loved the sunshine, and the place always felt so safe, so during one trip I started to look into self-storage there.” The industry was still in its infancy in the United Arab Emirates (UAE), so she knew its horizon was full of opportunities.

When she returned to the U.K., she told Dawber about it. Although he had enjoyed spending so many years working with her, he encouraged her, saying, “One day, you will be the queen of self-storage over there!”

Lisa Jackson pictured with three other employees of The Box Self-Storage in front of an employee appreciation wall
The Box Self-Storage team
candid shot of Lisa Jackson speaking on the phone at a desk being used by another employee
Lisa Jackson on the phone
Lisa and another employee walk down a unit lined hallway during a training session
Lisa Jackson training a staff member
Lisa Jackson giving a presentation to a new trainee
Lisa Jackson overseeing training
She started looking online for available jobs in Dubai. The Box Self-Storage kept popping up at the top of all search results, so when she saw an ad advertising a job there, she sent her CV. That same evening, she received an email from the CEO, Wadih Haddad, asking when she’d be back in town. “This was in August 2012, and I had already booked a trip to go in November for my birthday,” she recalls. “So, he told me, ‘OK, let’s meet up for an interview then.’”

She went on her birthday trip, interviewed for the position, and upon her return to the U.K., they offered her the role of operations manager.

On Feb. 1, 2013, she started her new job in Dubai. “There were four or five of us in this tiny office, and some of them are still with me today.”

Full-Service Storage
Similar to its growth in the U.S. and the U.K., the self-storage industry in the UAE has experienced an extraordinary expansion over the past decade. “Back then, self-storage units were little more than cages inside warehouses. They lacked the polished panels and colored doors we see today,” says Jackson. “Everything stored inside was visible, which highlighted the lack of expertise at the time. Even the general public was largely unaware that such facilities existed, so we had to build awareness.”

When comparing that with how the industry is today, it’s like she’s talking about two different universes. “Self-storage is so different here now,” she says. “We go to customers’ homes or businesses to pack their items and move them to the units.”

Tenants don’t have to lift a finger. “When I worked in the U.K., the industry was very price sensitive. Here, it isn’t,” she says. “People want the services. You handle everything from A to Z. They don’t want any hassles. The lifestyle is very luxurious, so people are used to having everything done. Why would it be any different when it’s self-storage?”

Lisa Jackson pictured in her white and neon green accented The Box polo shirt
Lisa Jackson
low angle view of an open unit at The Box Self-Storage facility featuring a staged small living room with a bookshelf, coffee table, a sectional couch and potted plants

A unit at The Box Self-Storage

In addition, The Box facilities offer coworking spaces, which are often used by startups. “We have a lot of ecommerce startups,” she adds. “They have so much stuff and nowhere to put it. Renting a warehouse would require paying for huge spaces. Here, they can rent a smaller space with us.”

At The Box, they get even more: The company also offers management of the facilities, stock inventory, and even order fulfillment. “We run them like mini Amazons.” This is a significant competitive advantage with The Box, since they are the only self-storage facility that currently offers these services.

The Box also does international shipping and importing. “Since the pandemic, a lot of people moved to Dubai from Europe and the U.K. because of the rising taxes,” says Jackson. “So, a lot of high-net-worth individuals moved here, and they come to us to import their items, whether it’s residential or business. We even do all of the logistics.”

The Box’s suite of white-glove services has positioned it as a leader in the self-storage industry. One of the standout features is their customer-driven approach, illustrated by their “customer wish list.” “If we hear the same request two or three times, it’s clear there’s a genuine need, so we find a way to make it happen,” she says.

Their commitment to service doesn’t stop there. When customers move to a new home or office, The Box handles the entire process, delivering their belongings, unpacking, and even hanging decorations to create a seamless transition. Every detail is designed for convenience and comfort. “You’ll never see tenants pushing carts,” Jackson says with pride. “Our team is always on the ground, ready to assist with anything customers need. It’s truly a premium experience.”

Reflecting On Successes
When looking back at her career trajectory, it’s clear she’s a hard worker with an admirable work ethic. While these traits have brought her so much professional success, when asked about her biggest accomplishments, she’s quick to mention motherhood.

“My son, Michael, without a doubt,” she says. “I was a single parent and brought him up on my own. And now, he’s all grown up and settled down with his lovely girlfriend, Chloe, whom I love very dearly; and they have my granddaughter, Amelia. Seeing him so happy and how he’s such a good dad makes me really, really proud. He’s definitely my greatest achievement.”

She then mentions that she’s also proud of the recognition The Box has received over the years. Most recently, The Box was listed as the 12th greatest place to work for women in 2024 and the 15th greatest place to work for millennials. “The women’s recognition was a particularly meaningful achievement, especially in this part of the world,” she notes.

The Box’s achievements extend beyond workplace culture. The company was named the Independent Store of the Year by the Self Storage Association Asia in both 2023 and 2022, a testament to their consistent excellence in operations. Their dedication to customer service was also acknowledged when they won the Best Customer Service Award at the DMCC Member Awards in 2018.

wide group photo of the team members of The Box Self-Storage

Team members of The Box Self-Storage

“If we hear the same request two or three times, it’s clear there’s a genuine need, so we find a way to make it happen.”

— Lisa Jackson
Reflecting on their earlier milestones, Jackson highlights The Box’s ranking among Dubai’s top 100 SMEs, coming in at No. 51 in 2015 and No. 72 in 2013. These achievements, combined with accolades like the Green Business of the Year Award at the Stars of Business Awards in 2015, showcase the company’s commitment to both innovation and sustainability.

She’s also happy to report that Wadih Haddad has become a great mentor, just as Dawber was and continues to be from her time in Manchester. “A great mentor doesn’t just guide you. They empower you to trust your instincts,” Jackson says. “Wadih taught me that mistakes are not failures but steppingstones to growth. As he often says, ‘We need to make mistakes to learn, but strive to make new ones, not the same ones over and over again.’ That mindset has given me the courage to move forward with confidence.”

Leadership at The Box is built on trust and empowerment, and Jackson appreciates the responsibility. “Wadih handed me the reins to run the operations,” she says, “and I always bring my best to the table.”

Free Time
When not working, Jackson loves spending time with her bulldogs, Churchill and Diva. “They keep me busy.” On weekends, she likes going to the beach. This past year, however, she’s been going back to Manchester almost every six weeks because she doesn’t want to miss out on her first grandchild’s first year of life. Thankfully, The Box has been pretty flexible with enabling her to balance her personal life.

“True success isn’t just about what we achieve at work; it’s about creating space for what matters most in life. The flexibility I’ve been given allows me to prioritize my family. As long as we’re meeting targets and driving results, there’s freedom to live fully.”

When she’s back in Dubai, she loves to enjoy the local food. “We have a saying as expats: You will definitely gain some Dubai kilos. The food is so amazing. Arabic food is to die for—grilled meats, salads, and hummus—all sharing platters, so you enjoy them with friends.”

All in all, Jackson is an example of how great life can be when you listen to your heart and let it guide you. She only does what makes her happy, and everything has turned out exponentially well. In her own words, “Hard work pays off.” And once it does, the sky’s the limit!

Alejandra Zilak studied journalism, went to law school, and now writes for a living. She also loves dogs.
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Development
Pick A Plot

Choosing The Right Development Site

By Alejandra Zilak

Noah’s Ark Self Storage in San Antonio, Texas
Noah’s Ark Self Storage in San Antonio, Texas
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veryone knows it: Investing in real estate tends to be a good financial decision. The operative word being tends. There are many variables that have an impact on how profitable a project could be, and self-storage is no exception. So, before you start developing a portfolio, take a step back for some thorough prep work.

It would also serve you well to have a lot of patience and sense of humor, since, depending on the location you have your sights set on, city planners could take you on a wild joy ride with interesting requests. By the same token, it’s almost guaranteed that some unexpected issues will pop up, so plan accordingly and have extra cash reserves on hand.

It’s also important to keep in mind that even when you know what to do and how to do it, you’re only one piece of the puzzle in any development project. However, when everyone communicates early, regularly, and clearly, it can all move forward like a well-oiled machine. Then you can celebrate and laugh all the way to the bank.

Background Research
“The first thing to do is to identify a market that has potential and has the need for self-storage,” says David Meinecke, vice president of business development at Jordan Architects, a full-service design firm in San Clemente, Calif. “It’s nice to have a commercial zone with a good street presence. Although a lot of tenant traffic is driven by the internet, there are still a lot of people who find out about self-storage facilities by driving by.”

Eric Blum, president of BMSGRP Self-Storage Consulting, a company that provides services on development projects nationwide, agrees. “You have to consider what is going on in the area in regard to existing housing and retail development,” he says. “Is the site zoned for storage? And if it’s not, you’ll want to find out ahead of time if the city would be willing to support the change of zoning. Do they want storage?”

If they do want storage in the area, it’s also essential to delve deeper into what kind of product that particular market needs. “Market research aids in understanding consumer preferences,” says Cecelia Parra, vice president of development at The Parham Group’s Noah’s Ark Development, which specializes in consulting services for self-storage land acquisition and investor opportunities. “These can include unit sizes, facility features, and pricing, which are key to attracting customers. Paying attention to all of these details ensures that you’re optimizing your investment and increases the likelihood of long-term success.”

Put together, it may all seem like a tall order, but crossing all the Ts and dotting all the Is will save you a lot of money and discord in the long run.

Business Intelligence Tools

Thankfully, we’re well past the days when you used to have to look up numbers in the Yellow Pages to get information on a site. Excel spreadsheets can also be left in the past. Today, you can evaluate potential self-storage investments by utilizing software that gathers data you can use to prepare market reports and feasibility studies. “Radius+ is good to evaluate the market and surrounding competition,” states Meinecke, who also uses CCMI technology to investigate the demographics of a geographical location.

Blum also likes Radius+, as well as Stortrack, and recommends TractIQ to start your search and locate potential areas.

When conducting your research, you’ll also want to evaluate rental rates in that specific market, as well as the population growth trends and the existing self-storage competition. And when assessing the surrounding population, Meinecke also advises to record their income and the square feet per capita. A denser population with a good income is desirable; and you’ll want to compare the square feet per capita vis-à-vis with the national and state averages. He also suggests going the extra step to determine what’s in the development pipeline. “This will have a definite impact on lease-ups,” he says.

On her part, Parra shares a wealth of insights about what different business intelligence platforms have to offer. “We use Track IQ, Regis Sites USA, and CoStar to narrow down ideal locations for self-storage investments. Track IQ offers over 200 datasets into consumer behavior and storage utilization trends, while Regis Sites USA is a mapping software providing demographic key data; and CoStar delivers detailed real estate market intelligence, including property data values and competitive landscapes. Together, these platforms enable us to make informed decisions by identifying high-potential markets and mitigating investment risks.”

“Paying attention to all of these details ensures that you’re optimizing your investment and increases the likelihood of long-term success.”

—Cecelia Parra
She also recommends taking into account data points such as population density, age, and income levels to fully understand your target market. You’ll also want to look at traffic patterns to gauge accessibility and visibility, as well as growth trends, such as residential or commercial development, which can drive future demand.

Finally, she also advises to examine additional market demand indicators when you’re scoping out the local competition: What’s the occupancy rate? What are the rental trends in the area? “Together, all of these factors will provide a comprehensive framework for selecting an optimal site,” Parra says.

Artificial intelligence can also play a useful role in this step of the process. If you’re an investor seeking to work with privately held companies, you can enter the information from Offering Memorandums (OMs) or Private Placement Memorandums (PPMs) into commercial real estate underwriting platforms such as Cactus AI. You can then use its features to create models on how fast you can establish rates. This can help you streamline your decisions.

Before you get too excited thinking that you can delegate this portion to machines, think again. “AI can be an excellent tool to speed things up, but it’s not infallible and should never be the final step,” says James McLean, head of business development at Radius+. Once all the information has been extracted, review it carefully to see if anything needs to be updated or adjusted. And before deciding on which platforms to use, make sure you compare interfaces and features, as well as how quickly their customer service reps can get back to you. After all, software is only useful if you can learn how to use it properly—and when their personnel are easily accessible to help you and your team as you navigate the inevitable learning curve.

Common Challenges

Once you know where you’d like to build, you then must take into account the idiosyncrasies of the jurisdiction you’ll be working in. “Los Angeles is a prime example of a difficult location,” Meinecke says. “And their parking requirements are insane. They forced us to put in a high number of parking spaces for bikes, and they required a large percentage of the parking spaces to be set aside for electric vehicles.” He advises enlisting experienced entitlement experts to work in your project, since they can get creative to get around such demands. For example, they’ll know of lesser-known exceptions to parking requirements, such as if the facility is being built within half a mile of mass transit.

Hiccups like these, as well as failing to have experts who know how to handle them, will have an impact on a project’s timeline. Therefore, you don’t want just any experienced entitlement expert. You want one who’s specifically well-versed with working in the jurisdiction where you’re developing your project. You also want to work with seasoned developers, since they’ll usually have a good idea of what it’s going to take to build in a specific area cost-wise.

Other experts to have on your team include structural, mechanical, plumbing, and dry utility consultants. “This is something that is typically overlooked in project management,” states Meinecke, “having consultant coordination and making sure there’s a complete team involved.”

wide side street view of a multi-story Extra Space Storage facility
Extra Space Storage facility
wide front view of a multi-story Extra Space Storage facility
Extra Space Storage facility
office of a Noah's Ark Self Storage facility in Rhome, Texas
Office of a Noah’s Ark Self Storage facility in Rhome, Texas
Knowing all the insights these professionals bring to the table prior to starting your project is crucial to set a realistic budget. “Things can get complex because you’re trying to keep costs down, but depending on the jurisdiction you’re working on, costs can keep going up,” says Meinecke. “If your project is located in a commercial area, they typically will want the facilities to look upscale and not like traditional storage. This can also be an issue in industrial areas.”

One way to make sure you’re enlisting a stellar team is to work with companies that have experience working specifically on self-storage projects. “This will make the process infinitely easier,” states Blum.

Keep In Mind
Now you know what to look for when conducting market research, as well as which SaaS platforms can provide you with the features you need. While that may feel like a marathon, it’s just the equivalent of toeing that start line.

As part of any complex projects, plan for the unexpected. Even when you get all your ducks in a row, there will likely be surprises and hurdles along the way. Knowing what some of these may entail, and how to get around them, will help things run along as smoothly as possible.

  • Bureaucracy – Another reason to round up experts in self-storage and in your desired jurisdiction is because, in addition to knowing the nuances required by local regulations, they also know what the city is seeking and how long it typically takes to review and approve plans. “If the city is behind, it could take three months just to get plan reviews back,” warns Blum. “Knowing what the city will allow you to build, working with the city planner and manager can save time and money.”
  • Frequent Communications – Parra states that optimal construction planning management requires a thorough project timeline and budget considerations, yet even seasoned industry veterans could easily overlook steps such as soil and environmental assessments, which can prevent costly delays. “You’ll also want to engage with local governing jurisdictions early to address potential concerns,” she says. “And you’ll want to maintain clear communication with contractors, suppliers, and project managers. Doing so regularly is frequently underestimated, yet it’s critical to ensure the project stays on track and meets quality standards.”
  • Discretionary Permits – If a particular geographical location isn’t zoned for self-storage, it’s not the end of the world. You may be able to get around it by requesting discretionary permits, such as variances or special-use permits. The requirements will vary from jurisdiction to jurisdiction, and they take into account project impacts, such as effects on the surrounding neighborhood as well as environmental concerns. You’ll also want to keep in mind that some permits may be revoked if certain conditions aren’t met, such as allowable square footage or restricting certain activities in the facilities. According to Parra, these issues can be resolved by engaging local officials early, presenting them with thorough impact studies showing compatibility with current and future land use plans, and fostering community support.
  • Unforeseen circumstances – Sometimes, even if you’ve been around the block many times, life can throw you a curveball. Knowing this, it’s sometimes wise to build some wiggle room into your timelines, if possible. “I’ve seen projects where construction has been delayed due to weather or supply chain disruptions,” says Parra. “These have been managed efficiently by building in contingency periods, pre-purchasing materials when feasible, and maintaining close coordination with contractors and suppliers to ensure a timely completion.”
  • Managing Expectations – If you’re in the business of consulting, start each project by going through the rough site plans with the jurisdiction. “This will give you a good idea of what the city will demand, what you may be able to get away with,” says Meinecke. “That gives the client an indicator of what those demands will be, right from the start.” All things considered, people are much more likely to stay in a good mood if they already know what to expect going in.
high angle view of a Trojan Storage facility on a bright clear day
Trojan Storage facility
“You’ll also want to engage with local governing jurisdictions early to address potential concerns.”

— Cecelia Parra
While the list is long, and there are things that you can only learn through experience, heeding advice and using the right technologies can make the process run significantly more efficiently and ensure that you end up making sound investments. Once you start seeing that bottom line grow, you’ll want to do it over and over again.

On the other hand, failing to do your due diligence could result in throwing cash into a money pit. So be meticulous with your planning, don’t skip steps, and ask for help when in doubt. There are plenty of self-storage consultants who are willing and able to offer guidance. And Messenger is always here to be a resource to get you on the right path. Good luck, Godspeed, and make it rain!

Alejandra Zilak studied journalism, went to law school, and now writes for a living. She also loves dogs.
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Development
Third-Party Perspective

Benefits Of Using A Property Management Company

By Sascha Zuger

minimalist vector illustration of a red hand with three grey plus signs floating from the palm
S

ome new owners and investors in the self-storage industry might be unfamiliar with the practice of bringing in a third-party management company. Likewise, some established owners and operators might feel they have enough knowledge and experience to handle their businesses on their own. Both groups might be surprised at what the right team can do to help a facility reach the next level.

“A skilled property management team can elevate facilities of any size by combining strategic insights, operational excellence, and a dedication to delivering an exceptional customer experience,” says M. Anne Ballard, president of marketing, training, and developmental services of Universal Storage Group (USG). “They go beyond simply handling daily operations—introducing cutting-edge technology, efficient processes, and targeted marketing strategies that attract and retain tenants.”

Bringing a fresh perspective to a business with a focus on branding, curb appeal, and efficiency within the operation can enhance a property’s market presence and profitability.

“You want a team that’s not only competent but exceptional—one that genuinely has your best interests at heart,” says Ballard. “Ultimately, a strong property management team doesn’t just maintain a facility; they actively grow its value, helping it reach its full potential.”

Seven Benefits Of A Management Company
Ann Parham, CEO and president of the Parham Group, an all-in-one construction, consulting, and management services team that has been specializing in self-storage for over three decades, shares the top benefits of bringing in a professional organization for your facility.

  1. Management companies take responsibility for the manager and coverage of the property. If the manager calls in sick, the owner doesn’t have to worry about it.
  2. The management company is abreast on all laws regarding self-storage and can keep the property out of legal troubles.
  3. The management company knows when to raise rents and when to run specials to promote rentals.
  4. The management company takes care of the ins and outs of the complicated auction system that can get the owner into trouble if not conducted properly.
  5. The management company deals with all problem customers that the manager can’t handle.
  6. The management company can maximize revenue and minimize operating costs.
  7. The owner can sit on a beach in the Bahamas and collect their distribution checks with no effort!
Communication Is Key
As is true in so many relationships, the best way to reach success is by quality communication. Property management teams can tailor this communication to best fit the needs of their owners.

“A truly great team collaborates closely with ownership to understand and bring their vision to life, ensuring the facility not only meets but often exceeds industry standards,” says Ballard. “They will listen to your goals, offer insightful feedback, and provide expert guidance rather than simply agreeing to every suggestion. You hired them for their expertise, and an exceptional team will leverage that knowledge to take your facility to the next level.”

Property management teams are opening the industry to a new field of investors who might be interested but felt their lack of experience would leave them at a disadvantage.

“I’m opening up a new facility next month under that exact premise,” says Diane Gibson, owner and president of Cox Armored Mini Storage Management, managing 20 facilities in Arizona for the past three decades. “They decided they didn’t know enough about the mini storage world to do this effectively, and at that point in their life, didn’t want to learn it. Even though it does cost to have a management company, that cost far outweighs the net income you can earn by having it professionally managed.”

It’s important to get on the same page with your management team about the logistics and schedule of connecting to make all sides comfortable.

“It really depends on each individual owner,” says Gibson. “Some want to talk once a week; others prefer a weekly email. Some want to be hands-off, so I just email the budget every year. I give them the option as to how much of my time they want.”

When times are tougher, less rosy financial statements can include a letter outlining details of what is being done and marketing plans to shift the trajectory.

“We include details of how we are managing the income, the occupancy, etc.” says Gibson. “I’d rather be proactive than reactive. Most of my owners are out of state, so they’ve hired a local management company. We answer any questions right away so we earn their trust.”

Another important element where a management team can shine is through their local knowledge and understanding of the most effective plan for marketing.

“We go to the community events—trunk-or-treats at Halloween, farmers markets in the summer,” says Gibson. “We get the managers involved and they become our eyes and ears for the communities. They get involved in the chamber; in one facility, the mayor knows our manager. That’s how involved she is. We strive for that. A lot of other facilities don’t have their on-site staff do that, so that’s how we can compete.”

This background knowledge informs rate adjustments to maximize income, in addition to reducing expenses by buying at scale to lower costs across multiple managed facilities. This type of insider know-how isn’t easy to achieve and is even harder to fake.

“The biggest challenge is knowing what you have and how to deal with it,” says Gibson. “That just comes from experience. Someone just starting out in the business is going to have a really difficult time trying to figure that out themselves. You could have a management company step in and make twice the amount of money in your first year. Effectively, we’re paying for ourselves.”

Vetting A Company
Investing in self-storage management is a multimillion-dollar decision that demands due diligence when choosing the right company to guide your facility to the next level.

“Whether you’re in the development stage or already operational, it’s crucial to vet potential partners thoroughly,” says Sarah Beth Johnson, vice president of sales and development of Universal Storage Group. “Consider their operational policies, financial transparency, and branding philosophy to ensure your investment is in the right hands.”

Johnson shares which three areas most significantly impact the success and profitability of a facility, with red flags and tips on how to assess a prospective management company.

1

Understand their market policy and competitive management practices.

Why It Matters: Protecting your market territory is essential. Ask potential management companies where they currently operate and what their policies are regarding managing other facilities within proximity to yours.
What To Ask: Do they manage competing facilities in the same area? If so, how do they handle potential conflicts of interest? What safeguards do they have in place to ensure your success isn’t compromised?
Example Policy: “USG provides a protected five-mile radius for our owners. We will not manage another facility within that radius unless all parties agree, ensuring a fair and conflict-free operational environment. This arrangement can even be beneficial when one facility offers all climate-controlled units and another offers drive-up options, fostering collaboration rather than competition.”
Red Flags: Be wary of management companies that also own properties in your area, as this can lead to potential conflicts of interest.
2

Insist on a clear and comprehensive proforma/budget.

Why It Matters: A clear and precise budget ensures you know exactly where every dollar is going. It is also a tool for accountability and sets realistic expectations for your facility’s financial performance.
What To Look For: A proforma that includes detailed line items without vague terms like “miscellaneous” or “other.” A clear explanation in the contract for how and when funds outside the budget can be spent. Inclusion of all management fees and service costs in the proforma, alongside lease-up rates and expected monthly income.
Best Practices: The budget should be adhered to meticulously once signed, and any deviations must be clearly justified and agreed upon in advance. At USG, every dollar is accounted for, providing owners with peace of mind and financial clarity.
Red Flags: Management companies that provide generic or overly simplified budgets without detailed line items may lack the transparency and accountability needed to manage your investment effectively.
3

Clarify branding expectations.

Why It Matters: If your facility is already open, rebranding could be a significant and often unnecessary expense, particularly if you have established a positive reputation in your community. USG prioritizes helping you create your own identity. Maintaining a strong, local presence is vital, and your unique brand should reflect that.
What To Ask: Will I need to rebrand my facility if I sign with your management company? Are rebranding costs included in the agreement, or are they hidden within other fees?
Red Flags: Management companies that require rebranding without demonstrating its value or that attempt to hide related costs can create unnecessary financial strain and disrupt customer loyalty.
Sascha Zuger has nearly two decades of experience as a freelance journalist writing for national magazines, including The Washington Post, LA Times, Christian Science Monitor, National Geographic Traveler, and others.
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development

Groundbreaking Development

Martin Self Storage in Oak Island/St. James, N.C.
By Brad Hadfield
high angle, exterior view of the Martin Self Storage lobby in Oak Island/St. James, N.C.
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ince the first Martin Self Storage opened in 1994, tenants have come to “Expect the Best.” After all, owner James Martin trademarked those words around that same time. Now, customers at Martin’s latest facility in the small town of Oak Island/St. James, N.C., can look forward to those same high standards.

Situated on 4.88 acres and comprising 75,000 net rentable square feet, the multistory facility boasts 566 units (65 percent of which are climate controlled). Martin himself designed the storage structures and unit mix, and his company Martin Development Inc. handled the build, with an assist from Alternative Architecture’s Michael Connor, who’d fly with Captain Martin (yes, he’s also a pilot) to random facilities for inspiration.

During construction, Martin was known to make last-minute changes to suit his vision, swapping storefront glass for residential window units and sheet metal for Fiberon composite decking on the main sign.

These changes paid off; customers love the facility’s modernized take on a mid-century drive-in, along with small details like the heritage oak trees, symbolic of coastal North Carolina, incorporated into building letters. Since opening in March 2024, the facility has been leasing up fast with no signs of slowing down.

interior view of the Martin Self Storage lobby
exterior of the Martin Self Storage lobby at night
wide shot of the Martin Self Storage welcome desk
low angle view of the Martin Self Storage signage
drone view of the Martin Self Storage facility and its surrounding area
high angle view of the small pond on the Martin Self Storage facility grounds
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Investment
Narrow
The
Uncertainties
A Data-Driven Approach
To Storage Investments
By Ian Levin
Narrow The Uncertainties
A Data-Driven Approach To Storage Investments
By Ian Levin
Adobe Stock photograph portrait orientation of a person's hand/fingers in the middle of a visual digital futuristic internet data representation of digital currency, showcasing advanced technology and signifying the message of innovative global financial concepts/transactions as there is a orange illuminating glowing screen across from this person's hand/fingers
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nvesting in self-storage might seem straightforward: rent out some units, collect payments, and repeat. Simple, right? But anyone who’s been in the industry knows it’s far more nuanced than that. Long-term success in self-storage requires a balance of understanding markets, customers, and, most importantly, data. A rules-based, data-driven approach isn’t just helpful; it’s the foundation for building a predictable, repeatable investment strategy that can deliver consistent results over time. That said, data alone won’t get you there. While it provides a powerful foundation for decision-making, it’s only part of the equation. Your experience, your team’s expertise, and your collective understanding of the customer bring the context and nuance that data may lack. These layered qualitative dynamics (the subtle market shifts, cultural behaviors, and customer motivations) are important to translating data into actionable strategies.

A rules-based, data-driven approach isn’t just helpful; it’s the foundation for building a predictable, repeatable investment strategy that can deliver consistent results over time.
The key is to let the data serve as your guide, pointing you in the right direction, while the knowledge and experience interprets what it means in practice. It’s about marrying quantitative insights with qualitative expertise to create a balanced approach. This result allows you to navigate complexities, adapt to market idiosyncrasies, and ultimately make decisions that are not only informed but also deeply aligned with the realities of the market and the needs of your customers.
Parking Data With Market Expertise
Why does data matter so much? Because it takes the guesswork out of investment decisions and gives you a clear foundation to build long-term success. But here’s the thing: Data on its own isn’t enough. Pair it with strong market knowledge and you have a powerful combination that can uncover opportunities others might miss.

Take self-storage demand, for example. Every market has its quirks. In colder regions like the Northeast and Midwest, many homes have basements, which can reduce the overall need for storage. Meanwhile, in warmer areas like Texas and Florida, where basements are rare, storage demand often spikes. It’s one of the many examples of data that can be overlooked when just referencing data alone. That’s where the context of real estate experience and the team you build comes into play. Marrying these elements with the right data and critical factors allows strategies to not only excel but also adapt to the nuances of each market.

Demographics, however, might be the biggest piece of the puzzle. Sunbelt states, with their growing populations of young families, tend to use more storage compared to the Midwest, where populations are older and more stable. This isn’t just about numbers—it’s about understanding the story those numbers tell. When you combine these demographic trends with transformative data and the insights of an experienced team, you can align your investment strategies with the unique factors that make each market tick.

Consider path-of-growth submarkets as an example. These areas, often on the edges of larger core markets, are less dense and positioned at the forefront of expansion. Their growth patterns and infrastructure are still emerging, making it tricky to predict precisely. This is where data becomes indispensable. By analyzing real estate trends, demographic insights, and mobility patterns, you can identify submarkets likely to thrive over time. Data narrows the uncertainties and helps you focus on the opportunities that make the most sense. However, this is where experience steps in; your understanding of local nuances can confirm or challenge what the data suggests, creating a more robust decision-making process.

In the end, it’s not just about having data or knowing a market—it’s about putting the two together. Data sharpens your focus, and local insights add the context you need to make smarter, more confident decisions. That’s the power of pairing numbers, real-world expertise, and a strong team to create a winning strategy.

Finding The Balance
Self-storage pricing is a prime example of where data and experience come together to create effective strategies. In high-demand areas with strong barriers to entry and limited new supply, rental rates tend to be inelastic. Customers in these markets have fewer alternatives, and their pressing need for storage often allows operators to charge a premium. Although some pricing strategies, like offering lower introductory rates, may obscure this trend in the near term, the long-term reality remains consistent: High demand and moderately to low supplied markets generally support stronger pricing resilience. You need the right data paired with the right market perspective to uncover the opportunities.
Data sharpens your focus, and local insights add the context you need to make smarter, more confident decisions. That’s the power of pairing numbers, real-world expertise, and a strong team to create a winning strategy.
In markets with too much supply or more price-sensitive customers, rental rates can be much harder to hold steady. When competition heats up and rents get squeezed, operators must stay sharp and adaptable. Anyone who’s owned self-storage knows the feeling of being in an oversupplied market and watching pricing power slip away—it’s a tough spot that requires long-term perspective and smart strategies to navigate. The most successful strategies strike a balance: targeting markets on the cusp of growth while maintaining controlled new supply. This can be achieved by leveraging natural barriers, such as geographic constraints or policy-driven limitations that prevent overdevelopment.

By pairing detailed data with real-world insights and perspective, investors can better navigate the complexities of pricing elasticity. Understanding when and where demand supports higher rents versus when competition may force adjustments is critical for managing risk and optimizing returns. It’s about reading the market, anticipating shifts, and maintaining discipline in your approach, turning data into action and insights into growth.

Knowing Your Customer
Equally important is understanding your customer. Storage needs vary widely depending on where people live and their life circumstances. In dense urban areas, storage demand often comes from renters looking for extra space. In suburban or Sunbelt markets, families may need storage for seasonal items, outgrown belongings, or life transitions like downsizing or relocating.

Understanding these drivers allows operators to tailor their offerings to meet customers’ needs while simplifying the experience. Think of easy leasing processes, convenient locations, and layouts that make sense. When you focus on the customer’s perspective, you build trust and stronger relationships—key ingredients for long-term success.

The Right People
Don’t forget that success is never a solo journey. The people you work with (your team, vendors, partners) play a large role in your outcomes. In self-storage, this might mean hiring operators who understand market nuances, partnering with data providers for actionable insights, or collaborating with contractors who know how to build cost-efficient facilities. The best teams amplify your strengths and help you navigate challenges more effectively.
Disciplined Investment Strategy
Equally important is knowing your organization’s strengths. At 10 Federal, for instance, we’ve built our reputation on excelling in automated self-storage investments, focusing on value-add and development projects in our target markets. Our strategy is laser-focused: We know what we do best, and we stick to it. Automation and data-driven decision-making are at the heart of everything we do. From dynamic pricing systems to remote management tools, our technology-first approach allows us to operate efficiently while delivering exceptional customer experiences. By staying true to our strengths, we can scale without compromising quality or focus.

Discipline, however, is where even the best-laid plans can falter. It’s tempting to bend the rules when an opportunity seems too good to pass up—maybe a property in a market you didn’t plan to enter or a deal that doesn’t quite meet your criteria. But these are the moments when sticking to your strategy matters most. A rules-based approach only works if you follow it consistently. Think of it like a map: It’s only useful if you stay on course. Let the data and your plan guide you, but use your experience to interpret and adapt without abandoning your foundational principles.

Stay The Course
Ultimately, self-storage investing is about finding what works and sticking with it. It’s not about chasing trends or jumping on the latest opportunity. It’s about combining discipline, data, and experience to build a strategy that works over the long haul. For us at 10 Federal, that means leveraging technology, focusing on our core markets, and adhering to a rules-based framework. This approach not only keeps us focused but also allows us to deliver the predictable, long-term success our investors count on.

Self-storage does not have to be complicated. By trusting the data, understanding your customers, working with the right people, and staying disciplined, you can navigate the complexities with confidence. Every market has its challenges, but it also has its opportunities. The key is knowing where to look, having the tools to find the right answers, and building the team to make it happen.

Ian Levin is the vice president of acquisitions and capital markets at 10 Federal.
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Investment
Restless
Reality
The Sleepless Nights
Of Self-Storage
By Frank DeSalvo and
David Perlleshi
Restless Reality
The Sleepless Nights Of Self-Storage
By Frank DeSalvo and David Perlleshi
Adobe Stock photograph landscape orientation of a male man in a white t-shirt and light sky blue sleeping pajama sweatpants that contain black plus white vertical lines style pattern as he is situated seated down in his bed looking down at the ground with his arms resting on his kneecaps and hands on top of head signifying a facial expression of restless anxiety
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ot so long ago, the self-storage asset class was booming. Investors and owners were sleeping soundly, dreaming of all the profits that they were earning. Investors were attracted to the asset’s high profit margins, its ability to adjust pricing monthly as market factors dictates, and its minimal overhead when compared to other commercial asset classes. Industry experts were calling it a recession-proof opportunity, a business that practically ran itself with minimal expense.

However, today, what was once considered an easy-to-run business is now facing challenges. From mom-and-pop operators who’ve owned their businesses for decades to financial institutions eager to jump on the bandwagon, self-storage owners and investors are now tossing and turning at night.

The changing landscape of self-storage means that industry players are wondering how they can control the myriad of factors now affecting their businesses. Understanding the issues and potential solutions may offer self-storage operators ways to rest a little easier.

Let’s take a look at the nightmare scenarios causing angst and hesitation in the industry.

Occupancy Rates
Stagnant occupancy rates have plagued the self-storage industry recently. Consumers relocating are responsible for approximately 25 percent of storage rentals. According to the U.S. Census, the percentage of people moving households has declined since 2006. In 2006, 16.8 percent of the population moved, but that number dropped to 12.1 percent in 2023. This downward trend is likely to continue due to many factors, including higher interest rates.

Oversaturated markets are feeling the strain, particularly those experiencing an influx of new competition within their trade areas, leading to declines in occupancy rates. Recently opened facilities in these markets are struggling with historically slow lease-up rates due to increased supply. The oversupply challenges are most prominent in primary and secondary markets across the Sunbelt region.

Only if the market normalizes or regulates and municipalities form valuations based on data drawn from period without rapid fluctuations will property valuations be more realistic. Until then, tax appeals may offer owners some relief.
However, since this summer, occupancy rates are trending upward across many markets. If interest rates continue to decline and inflation stabilizes, homeowners are expected to start house hunting once again.
Property Insurance Rate Insurances
The insurance market is rapidly changing, and extreme weather is driving massive increases in insurance rates—in some cases, increases of up to 200 percent year over year for self-storage owners.

Unlike a residential product, commercial insurance providers have not exited states or regions; however, challenges remain for self-storage owners in certain regions more prone to weather incidents.

Investors in states such as Florida and Texas who entered the market with high rental rates are now faced with both declining rental rates and increasing insurance costs. Investment in these regions will likely be stagnant until insurance rates stabilize.

The good news: If rates start to stabilize, it could mean more reasonable premiums in places that are not more susceptible to weather-related catastrophes. Regions that are more likely to be impacted by extreme weather may continue to pay higher insurance rates, but owners could also decide to self-insure and eliminate existing financing.

Inflated Property Taxes
For decades, the self-storage product was undervalued, a significant advantage for real estate investors. Assets were frequently traded at $30 to $40 per square foot. Today, the cost of entry averages $80 to $90 per square foot for a new facility and upwards of $150 per square foot to acquire an existing, stabilized asset, depending on the market.

Since 2020, municipalities have reassessed property values based on more relevant factors, such as sales comparisons and construction costs, and they’re taxing accordingly. Previously, tax liability could be negotiated and restricted for four years based on property values of $20 to $30 per square foot. Now in some municipalities, negotiations only apply to the current tax year as asset values are re-evaluated annually.

Likewise, millage rates are on the rise, especially in high-growth markets where exponential demand is driving housing and commercial prices higher. Some municipalities are following that trend, although actual self-storage property values may be far less as the data used to establish millage rates is now outdated by two years. This, combined with the recent drastic shifts in interest rates, construction costs, and other factors, and the resulting valuation is unrealistic at best.

Only if the market normalizes or regulates and municipalities form valuations based on data drawn from period without rapid fluctuations will property valuations be more realistic. Until then, tax appeals may offer owners some relief.

Inflation
Losing sleep over inflation is an issue familiar to most Americans. Grocery bills, rent, utilities, and other expenses now cost between 10 percent and 30 percent more than they did two to three years ago.

These rising costs are also affecting the self-storage industry. Increases in the cost of material goods, labor, repairs and maintenance, and other expenses are negatively impacting profitability. Couple that with lower occupancy rates and rental rates, and self-storage operators are feeling the squeeze. Simultaneously, rising costs also affect the housing sector limiting new construction and residential moves, also contributing to the aforementioned low occupancy rates.

A perfect storm of high-priced materials, costly labor, and expensive financing is taking new facility builds off the table for many. The good news is inflation is already cooling, and prices should mimic the decline.

Rental Rates
Rental rates are in a race to the bottom, particularly in oversaturated markets. For most markets, rates are 25 percent below the peak of the pandemic, but that number drops to 50 percent in markets with too much inventory. The evolution of the self-storage industry has created variations from market to market, resulting in broad swings for what is acceptable.

This, coupled with all the other economic factors, is damaging this sector’s bottom lines.

A perfect storm of high-priced materials, costly labor, and expensive financing is taking new facility builds off the table for many. The good news is inflation is already cooling, and prices should mimic the decline.
Now is not the time to push rental rates, as saturated self-storage markets make it too easy for tenants to switch facilities. Owners and operators should work to build occupancy, so that when the economy returns, existing and new customers are more receptive to price increases. Promotions and discounts give tenants a reason to stay put.
Sweet Dreams
While there are certainly nightmares keeping many self-storage investors awake at night, dawn is on the horizon.

With more institutional capital entering the market, the industry is emerging more sophisticated and savvier than ever. New and existing operators are embracing technology and developing a more informed understanding of how to run successful self-storage operations.

Booming industries tend to hatch new third-party service providers, and the self-storage sector is no different. For instance, owners now source accurate and timely sales comps, market rents, and other valuable statistics that result in more proficient operations and business strategies.

There are still safe havens. For every market that is oversaturated, there are plenty that are still relatively untapped. Even today, secondary and tertiary markets, those outside of the top 50 markets, as well as rural markets, offer sound investment opportunities for those seeking self-storage opportunities.

The occasional sleepless night is to be expected in any industry. Understanding those nightmares, and how to avoid or mitigate them, is key to finding success in this business moving forward.

Sleeping Easy

Self-storage operators can take these actions right now to sleep better at night.

  • Security – Ensure that the facility is secure with updated cameras and fencing, a reliable lock system, and proper lighting.
  • Customer Service – Employ reliable and competent staff or select a reputable management company. Excelling in customer service is key to customers renewing leases.
  • Spring Cleaning – Put your best foot forward with a clean, modern facility. Invest in effective marketing tactics including signs, website, and advertising that captures potential customers.
  • Harness Expenses – Understand the financial picture of each property so that expenses become a controlled, budgeted line item and business decisions are informed and proactive.
  • The Low Road – Invest in low-cost differentiators that improve operations such as overall beautification, curb appeal, repairing or replacing asphalt, and other general maintenance.
  • Question the Tax Man – Challenge the tax assessment by presenting comparable properties and other key analytics to the assessor.
  • Solid Ground – Start with a comprehensive and realistic investment plan that spans the life of the investment in order to protect potential yields. Planning capital improvements, staying informed of current property values, understanding the hold period, and restraining from over-leverage established a protected investor position.
David Perlleshi and Frank DeSalvo are the leaders of Franklin Street’s National Self-Storage Investment Sales Platform, providing comprehensive real estate solutions for owners and investors of self-storage assets throughout the country. They have a combined $500 million in self-storage transactions throughout their careers.
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investment
All About Leads
The Role Of An Effective Website
By Giselle Aguiar
Digital vector graphic minimalist illustration of a female person figure seated in a chair at a table with a laptop in front of her as floating in the air beside her is a gold funnel shape object showcasing digital customer user icons in red/black/white plus gold money currency symbols icons signifying the effectiveness of customer engagement and promotion selling products to customers financially
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ocial media and search engine optimization (SEO) are tools to drive traffic to your website. However, unless the website is set up to generate leads or convert a visitor into a customer, it does you no good.

Once you’ve driven potential leads to your site, it’s up to the site to capture the leads. Otherwise, it’s all been a futile effort. There are three “black holes” into which leads can fall, and if you don’t fix them, you’ll waste valuable time and effort with getting sales.

Black Holes Of Lead Generation Loss
  1. Lost Traffic – How many came and went? It’s possible that what was promised in the social media post or ad wasn’t delivered by the website.
  2. Lost Leads – How many visitors didn’t convert right away? Did they get lost in the site and then just give up? Did something on your site turn them off?
  3. Lost Customers – Captured leads that were not nurtured properly due to a lack of follow-up result in lost customers. Email automation will solve this problem.

When a visitor lands on your site, it should be clear what you want them to do. Don’t make them think or work! You have only a few seconds to capture their attention and keep it. Don’t take anything for granted.

CALL TO ACTION (CTA)
The CTA should be easily visible when you first land on a page. Visitors should not have to scroll down to see it. View your site on different devices to see what the visitor sees (different browsers, laptops, tablets, and mobile phones, too). In addition, there should always be a CTA at the end of a blog post. If you don’t tell people what you want them to do, they won’t do it!

LEAD GENERATION
The idea is to capture the lead’s information (email address, name, and possibly a phone number). Some folks may be reluctant to give out their numbers, but they’ll give you their info if they think they’re getting something of value.

Here are some ideas for lead generation CTAs:

  • If you partner with a local realtor, you can offer a free moving or house staging tip sheet. For B2B customers, use tips on saving space and getting organized.
  • Offer a free area newsletter for newcomers and partner with the local chamber of commerce. Offer a coupon or discount. Get creative!

Once you’ve captured their information, the leads have to be nurtured. Consistently feed them. Use a drip email system with email tools like MailChimp or Constant Contact, but don’t overdo it.

Don’t let them fall through the cracks either. Regularly evaluate your website’s analytics at least once a month. Review your email marketing reports. Take note of which networks are driving the most traffic to your website, your click-thru rates, and your conversion rates. If 100 people clicked on a link and only 50 converted, what happened to the other 50?

There is such a thing as too many leads. If you’re doing social media right and don’t have a marketing automation system set up to capture, feed, nurture, and follow up with the leads your social media efforts are generating, they’ll never convert into sales.

If you’re not getting qualified leads, then you need to rethink your marketing.

Elements Of An Effective Website
What do “effective website” and “results” mean to you? Would you like more visitors to your site? That’s nice, but are they buying or converting? In other words, are they doing what you want them to do? Conversions increase when a visitor to your site buys something, books an appointment, or downloads a freebie to be added to your email list.

The bottom line is more sales! Unfortunately, many small business owners only have a really nice online brochure that doesn’t come anywhere near being an effective website. It’s not your fault. It’s another case of not knowing what you don’t know.

Usually, when a small business owner hires someone to build a website for them, they want the best price for what they think they need. You hired someone who told you that they could build a WordPress website for you. Well, anyone can. That’s the beauty of WordPress. It’s fairly easy to construct a site; however, like home construction, you need three critical things. First, you need the foundation and walls (bricks, wood, paint, etc.), which is also known as the design. Then you need the functioning parts (plumbing, electrical, etc.), also known as development. Finally, all the insides (furniture, appliances, decorations, etc.) could be considered the copy or content.

Each of these components, like when building a house, requires specific talents and skills to build a livable house and an effective website. Sometimes you find the perfect contractor or company who has all of the talents and skills needed, but that’s rare and it may be expensive. Let’s break each one down.

A WEB DESIGNER
A designer is a very creative person who can take your logo and color scheme and create a beautiful online brochure. Moreover, the designer might be a very talented graphic artist and make your site “easy on the eyes,” but can they write? Do they know the mechanics of creating effective calls to action, backing it up, creating a shopping cart, and securing it from hackers? Sure, you want to help out your relative who just graduated from design school, but you’re not going to have a site that works for you in the end.

For instance, a realtor contacted me and asked me if I could determine why their website wasn’t coming up at the top of Google search results. (Isn’t that everyone’s wish?) Well, the site was gorgeous. It was promoting a new condo in downtown Phoenix. There was no blog with fresh content touting the benefits and fun of living downtown. There was no way to capture leads. Yes, they had a contact form to set up a tour, but it wasn’t compelling enough. It lacked good copy and content.

A WEB DEVELOPER
This is the real techie person. They can figure out all the mechanical parts of the website. The developers will build a secure shopping cart or booking system and install all the proper plugins to make it secure. They should also cover backups, security, and make it search engine optimized.

It has to be easy to navigate; that’s part of the user experience (UX) and user interface (UI).

They’ll make sure that it passes the Google Core Web Vitals test, especially if you have a lot of mobile users. Additionally, they’ll install all the widgets and plugins needed to engage the visitor (what makes a site function).

A developer may not have an eye for design, and they probably aren’t creative writers. They usually put up the information that you give them, but is the text copy effective?

I was asked to review a website and in reading their “about us” section, I ran into the phrase “grown slowly.” It stopped me cold. Slowly is a negative connotation. That word doesn’t need to be there. Just having “grown” is sufficient. It implies logical growth, from a mom-and-pop outfit to a company with over 50 employees.

If you’re doing social media right and don’t have a marketing automation system set up to capture, feed, nurture, and follow up with the leads your social media efforts are generating, they’ll never convert into sales.
Another site listed on their “about us” page the reasons why they chose to sell what they sell. All text, no pictures. A good designer would have added graphics or videos to make it more attractive.

THE COPYWRITER
Good marketing copy walks the visitor through a logical progression to exactly where you want them to go. It’s compelling, enthralling, enchanting. (Don’t laugh; it’s what you need!) As a result, it captures the visitor’s attention with eye-catching, curiosity-piquing headlines and subheadings. Therefore, it keeps the reader going with bullet points (people don’t like reading long sentences or paragraphs) and bold and italics for emphasis.

To have effective copy, you really need to know your target markets and their storage needs.

Up The Ante
If you’re website is not effectively drawing potential customers and then converting them, it’s nothing more than a really pretty online brochure. Don’t you think you should do something about it?

Educate yourself on how it all works so that you don’t get “taken” when you do hire someone to do it for you. Recently, I worked with a client who thought the company she hired to redesign her website was honest and above board. Little did she know after she described her vision for her website, the company went to several of her competitors and used the same exact design. It was so obvious. That’s horrible business ethics!

What about doing it all yourself? Obviously, if your budget is tight, and you can’t afford to hire someone to do it for you, you can always attempt to build it yourself. However, there are a few things to consider.

You need time to build it, and if you’re not that familiar with the platform you’re using, it will take you longer. Also, you need time to learn how to build it in your chosen platform. How much is your time worth? Which platform should you use? Sure, you can relatively easily create a website using a website building or even the free websites that are out there, but is it going to do what you need it to do? Furthermore, you will probably outgrow it as your business grows and you require it to do more. Personally, I prefer WordPress. You have so many options on style and functionality that some of the “site builders” don’t have or are limited. And just like any technology, stuff breaks. Who’s going to determine where the problem is? Moreover, who’s going to fix it?

Most importantly, don’t build it then forget it! Even if your business doesn’t change much, you still have to check on your website at least monthly. This includes your analytics. Make sure it’s doing its job 24/7.

Giselle Aguiar, founder of AZ Social Media Wiz in 2011, is a social media content and digital marketing consultant and trainer. She’s been involved in internet marketing since 1995. Today, she specializes in strategic and tactical planning, social media setups, 1:1 digital marketing training and coaching, SEO copywriting, and WordPress websites. She is a trainer and mentor for the Arizona Commerce Authority as a founding mentor of its Digital Academy. She is also an avid blogger and lives in the Historic Roosevelt District of Downtown Phoenix, Arizona. Visit her website, AZSocialMediaWiz.com, for more information.

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Investment
Essential Asset
Twelve Reasons To Invest In A Great Website
By Gabriella Hill
Digital vector graphic illustration of a bearded male person figure pointing upward directionally at a red/black bullseye target with two red arrows on it, symbolizing determination, focus, and precision in a strategic planning goal-oriented achievement task while beside this bearded male person figure is a laptop depiction showing a red screen of white/grey/black curved shape statistics diagram
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n today’s world, having a strong online presence is essential for businesses in every industry, and self-storage facilities are no exception. As the demand for self-storage grows, so does the competition. A website has become one of the most critical assets in attracting and retaining customers. While some may see a website as an added cost, a well-designed, optimized site can be a game-changer. Here’s a look at why investing in a great website is vital for storage facilities and how it can impact growth, customer satisfaction, and profitability.

1

First Impressions Matter
A website is often the first interaction a potential customer has with a storage facility. When someone searches for storage options online, your website will be their first impression of your brand. If a website looks outdated, is hard to navigate, or lacks essential information, potential customers are likely to leave and continue their search elsewhere. An attractive, professional-looking website not only draws customers in but also sets the tone that can increase their trust in your facility.

2

Availability of Information 24/7
With a great website, customers can access information about your storage facility any time of day. Customers want details on unit sizes, pricing, availability, and security features before deciding to rent a unit. If potential customers can’t find these details quickly and conveniently, they may feel frustrated and choose a competitor. A well-organized website allows for 24/7 availability of information, which is a significant benefit in today’s fast-paced world.

3

Boosts Local SEO And Visibility
For storage facilities, local search engine optimization is essential. People searching for storage facilities are often looking for a location near their residence or business. A well-optimized website with high-quality, local-specific content makes it easier for search engines like Google to recognize and rank your site. By investing in SEO strategies, like including location-based keywords and having accurate, updated contact information, your website can attract more local customers. Additionally, having a website that is mobile friendly and fast loading can improve search rankings, as search engines favor sites that provide a better user experience.

4

Online Booking And Payments
In today’s digital age, customers increasingly expect the ability to manage their account, including their contact details. A great website for a storage facility can offer both online booking and payment options, providing customers with a seamless experience from start to finish. Online booking allows customers to reserve a unit when it’s convenient for them, reducing the need to call or visit in person. Plus, online payments mean that tenants can easily manage monthly payments, reducing late payments and streamlining revenue collection for facility owners.

5

Builds Trust With Security Information
Choosing a storage facility means entrusting a third party with their valuable possessions. Customers want to know their belongings will be safe, and a great website can showcase your facility’s security features. Details about 24-hour surveillance, gated access, or secure locks can go a long way in building trust. Videos, photos, and testimonials on your site can enhance this, showing potential customers that you prioritize security. When a website effectively communicates these security measures, it reassures customers and can significantly impact their decision-making process.

6

Improves Customer Support And Experience
Offering a frequently asked questions (FAQ) section can preemptively address common customer inquiries, saving both customers and staff time. Live-chat features or contact forms allow for immediate assistance with any specific questions or issues customers might have. Effective customer support options on a website can improve user satisfaction, encouraging positive reviews and recommendations that bring in more business.

7

Reflects Professionalism And Legitimacy
A website reflects a business’ professionalism. When a storage facility invests in a sleek, functional website, it indicates to customers that the business is legitimate and reputable. Customers may associate an outdated or poorly designed website with lower-quality service, which can deter potential renters. On the other hand, a high-quality website, complete with a clean layout, informative content, and modern design will likely leave a lasting impression that instills confidence in your facility.

8

Facilitates Communication And Engagement
A great website serves as a hub for communicating with potential and existing customers while also boosting your online presence. A blog, for instance, can be a platform to share tips about moving, storage best practices, or seasonal offers, helping to increase customer engagement. Regularly posting blogs not only keeps your audience informed and engaged but also provides a significant SEO benefit by driving more traffic to your site and improving its search engine rankings.

Additionally, a well-designed contact page with accurate contact information, social media links, and a newsletter sign-up option ensures that customers can easily stay in touch. Features like quick response times to inquiries or timely updates further enhance the customer experience, solidifying your business as a reliable and approachable resource.

9

Promotes Differentiation In A Competitive Market
The self-storage industry is highly competitive, and it’s crucial to stand out. A great website allows you to differentiate your storage facility from others. Through custom branding and standout features like climate-controlled units or 24-hour access, you can show customers what sets you apart. A well-crafted website can highlight your facility’s unique selling points in a way that appeals directly to your target market, making it easier for potential renters to understand why they should choose your facility over another.

10

Allows For Easy Updates And Adaptability
The ability to update your website easily and instantly is crucial. Investing in a great website usually means having a reliable property management system, which allows you to update content, adjust prices, add new images, or announce special promotions easily. This adaptability ensures that your business stays relevant and you can make updates that appeal to current market trends or customer demands without needing a major website overhaul.

11

Collects Valuable Customer Insights
An effective website can integrate analytics tools that help you learn more about your customers. These insights can reveal what pages customers visit the most, which features attract the most attention, and even how they found your website. Understanding these patterns allows you to optimize your marketing efforts, catering to what customers value most. By analyzing these insights, you can make data-driven decisions, which can ultimately lead to more bookings and a higher return on investment.

12

Enhances Marketing Efforts
A great website serves as the foundation of your marketing strategy. It serves as the central hub for all digital marketing efforts, including SEO, social media, email campaigns, and paid advertisements. A website allows potential customers to click through your ads, social media posts, or newsletters directly to your site, where they can learn more about your facility. Whether they’re signing up for a promotional offer or simply exploring unit sizes, the website is the landing spot that bridges marketing efforts and conversions.

In a world that increasingly values convenience, security, and efficiency, a great website is one of the most valuable investments a storage facility can make. Beyond acting as a digital storefront, it builds trust, offers convenience, supports customer service, and ultimately drives bookings. A high-quality website not only ensures your storage facility is visible in search engines and accessible on all devices but also sets your business apart from the competition. Whether you’re an established facility looking to expand your market reach or a new storage business trying to establish a solid customer base, investing in a great website will elevate your brand, attract more clients, and increase overall profitability.

Gabriella Hill is the marketing cordinator at 6Storage.
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STORAGE GIVES
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Researching A Better Future
StorageGives Partners With Kure It
By Josh Huff
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ancer is a disease that touches everyone’s life, whether through personal experience or someone they know. Its far-reaching impact makes the fight against cancer an urgent cause, requiring collective effort and innovation. February, recognized as National Cancer Prevention Month, is a time to focus on raising awareness, promoting early detection, and supporting the research that drives new treatments and potential cures. In this context, Kure It Cancer Research plays a crucial role. By funding groundbreaking and underfunded studies, Kure It is helping to bring hope to millions impacted by cancer every year.

Kure It Cancer Research logo
Kure It Cancer Research
Kure It Cancer Research was founded in 2007 by the late Barry Hoeven, a self-storage industry leader who had personally experienced the challenges of fighting cancer. Diagnosed with kidney cancer, he recognized the critical need for funding innovative and underfunded cancer research. Instead of focusing solely on his own battle, he turned his energy into creating a legacy of hope for others, establishing Kure It to fill a significant gap in cancer funding.

Kure It focuses on funding research for cancers that often receive less attention and resources, such as kidney and other rare cancers. These underfunded areas of research can be critical to advancing our overall understanding of cancer treatment, yet they often lack the financial support necessary for progress. Kure It steps in to bridge this gap, providing researchers with the resources they need to pursue innovative studies that have the potential to save lives.

Since its inception, Kure It has raised and distributed over $10 million to support cancer research at leading institutions, including UCLA, Cedars-Sinai, and City of Hope. These funds have been used to fuel groundbreaking studies, from exploring new treatment methods to identifying genetic markers that improve early detection. Each grant represents a tangible step forward in the fight against cancer.

Kure It’s commitment to transparency and impact sets it apart. The organization ensures that all donations are directed toward research, maximizing the impact of every dollar contributed. By focusing on projects that are innovative and often overlooked, Kure It ensures that its funds go where they are needed most. This approach not only advances science but also offers hope to those battling cancers that might otherwise be ignored.

Beyond funding research, Kure It actively engages communities to join the fight. Its partnerships with businesses, including those in the self-storage industry, help amplify its mission. Through events, campaigns, and collaborative efforts, Kure It raises awareness about the importance of research and empowers individuals and organizations to contribute to the cause. The stories of patients who have benefited from Kure It-funded research underscore the transformative power of these collective efforts.

Partnering With Kure It
StorageGives is proud to partner with Kure It Cancer Research to advance the fight against cancer. As a non-profit organization that directs 100 percent of all donations to impactful charities, StorageGives focuses on supporting causes that truly make a difference in people’s lives. Cancer research is a critical area of need, and Kure It’s mission aligns perfectly with StorageGives’ commitment to creating meaningful change.

Through this partnership, StorageGives helps amplify Kure It’s efforts to fund innovative and underfunded cancer research. This collaboration ensures that researchers have the resources they need to explore groundbreaking treatments and uncover new possibilities for combating cancer. By supporting Kure It, StorageGives contributes to a mission that provides hope to patients battling rare and difficult-to-treat cancers.

For StorageGives, involvement with Kure It goes beyond financial contributions. The partnership also serves as a platform for raising awareness within the self-storage industry about the importance of supporting cancer research. Self-storage professionals and businesses have a unique opportunity to join this mission and play a part in funding life-saving studies.

This partnership exemplifies the power of collaboration in creating change. By connecting the resources of StorageGives with the impactful work of Kure It, the self-storage community is contributing to a cause that affects millions of lives. Together, they are advancing research, empowering patients, and bringing hope to families facing the challenges of cancer.

Since its inception, Kure It has raised and distributed over $10 million to support cancer research at leading institutions, including UCLA, Cedars-Sinai, and City of Hope.
Cancer Prevention Month
February is National Cancer Prevention Month, a time dedicated to raising awareness about the steps individuals and communities can take to reduce cancer risk. It’s also an opportunity to reflect on the critical role that research plays in early detection, prevention, and treatment. While prevention efforts like lifestyle changes and regular screenings are vital, the fight against cancer cannot be won without significant advancements in research—and this is where organizations like Kure It Cancer Research shine.

Kure It’s mission to fund under-researched areas of cancer directly ties into the goals of National Cancer Prevention Month. Early detection and prevention often depend on the breakthroughs made possible by innovative studies. By investing in research for cancers that have historically been overlooked, Kure It helps pave the way for new diagnostic tools, better treatment options, and, ultimately, strategies that can prevent cancer altogether.

StorageGives recognizes the importance of National Cancer Prevention Month and the opportunity it provides to highlight Kure It’s impactful work. Through their partnership, StorageGives helps raise awareness about the need for more comprehensive cancer research, particularly for less-common cancers that often lack sufficient funding. Together, they amplify the message that prevention and research go hand in hand in the fight against cancer.

This February, communities and businesses can come together to support these efforts. By contributing to Kure It through StorageGives, donors become part of a movement that fuels innovation and offers hope to millions impacted by cancer. National Cancer Prevention Month serves as a powerful reminder of the importance of these efforts and the potential for collective action to make a meaningful difference in advancing cancer prevention and treatment.

Join StorageGives in supporting Kure It Cancer Research during National Cancer Prevention Month. Your donation helps fund groundbreaking studies that advance cancer prevention, early detection, and treatment. Together, we can bring hope to patients and families impacted by cancer. Visit StorageGives.org to make a contribution or learn how your business can get involved in this life-changing mission. Let’s work together to fight cancer and pave the way for a healthier future. Every dollar makes a difference, and every effort brings us closer to a cure.

Josh Huff is a marketing specialist, licensed drone pilot, and StorageGives volunteer. His company, Lighthouse Storage Solutions, provides consulting, training, marketing, and drone services for the industry. His industry insights have been shared through his co-hosting of the Gabfocus Self Storage Podcast as well as state and national presentations.
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The Last Word
Matt Wess in a blue checkered suit with brown shoes, smiling.
Adaptability And Data-Driven Decisions
By Matt Wess, Broker at Lindsey Self Storage Group
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daptability in self-storage isn’t just a necessity, it’s the line between thriving and simply surviving. Over the last decade, transformative changes in technology, customer expectations, and economic pressures have forced operators and investors to evolve. But adaptability isn’t about reacting to trends, it’s about staying ahead. And data is the most powerful tool to guide that evolution.

To build a successful operation, controlling expenses to increase NOI (net operating income) is essential. With rising interest rates and inflation, effective expense management has never been more critical. Every dollar matters—whether it’s spent on utilities, payroll, marketing, or maintenance. Leveraging data allows operators to identify inefficiencies and optimize spending. By analyzing energy consumption, reviewing historical trends, and utilizing predictive maintenance technology, facilities can reduce costs without compromising service quality.

Technology also plays a central role in driving adaptability. Contactless rentals and automated systems have become industry standards, but their real power lies in the insights they generate. Customer behavior, lease patterns, and facility performance metrics offer a goldmine of data for refining pricing, enhancing customer service, and targeting marketing efforts. The best operators aren’t just gathering data, they’re using it to make smarter decisions.

Economic challenges further test the industry’s resilience. Construction costs and financing hurdles make it harder to rely solely on organic rent growth. To counteract these pressures, operators can turn to data-driven strategies to identify value-add opportunities like dynamic pricing, contract renegotiations, or enhanced security features, all of which strengthen NOI and position facilities for long-term success.

Adaptability also means meeting the expectations of younger, digitally focused renters. Millennials and Gen Z demand convenience, sustainability, and online accessibility. Facilities that integrate features like solar energy, EV charging stations, and green initiatives while tailoring their operations to an online-first approach can win their loyalty. Here, data again plays a key role, helping operators understand demographic trends and personalize customer experiences.

Adaptability isn’t just reacting to today’s challenges; it’s preparing for tomorrow’s opportunities. By controlling costs, embracing technology, and leveraging data, the self-storage industry can continue to grow and thrive.

That’s my last word. Adapt, innovate, and let the data guide you.

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