Holiday Dinner Event Wrap-up. Thank You Members!

Our Annual Christmas Party, sponsored by Connie Neville, SVN | C.M. Neville & Associates, Inc., was December 3, 2019 at the Concord Country Club. Attendees from many member facilities attended. We thank all for making this an enjoyable evening. Paul Maglio of Storage Auction Solutions gave a great performance auctioning off raffle baskets and other goodies to benefit the NHSSA TD Bank Scholarship Fund. A total of $525.00 was raised for the scholarship! What an incredible show of care and support from our membership! The scholarship application can be found on our website; children and grandchildren of operators/vendor members can apply. Please spread the word!

A special thank you to those who generously donated items to be auctioned off to benefit the scholarship, and to Paul Maglio for using his auction skills to benefit and entertain the group. And, thank you to members who made winning bids on items.
 

Best wishes for a Happy, Healthy, and Prosperous 2020 from The NHSSA BOD!


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Vendor Spotlight – Thank you Vendors for attending our Oct Showcase!


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NHSSA Lien Law Link

Click below to access the bill text for NHSB192, our new lien law enacted in 2019.

https://legiscan.com/NH/text/SB192/id/1863587


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BUILDING CODES UPDATE: SSA

BUILDING CODES UPDATE

Changes to the International Building Code Affect Self Storage

With the support of its Code Committee, the Self Storage Association successfully pursued several key changes to the 2021 International Building Code. 

  1. An exception has been added to IBC Section 2902.3.3 to permit an increase in the location (to greater than every other floor) and maximum distance of travel (to greater than 500 ft) for restrooms.  The location and travel distance must be approved by the code official.
  2. The maximum allowable height of sprinklered facilities made of Type IIB materials (unprotected steel) and Type IIIB materials (noncombustible or fire-retardant-treated wood stud exterior walls and any interior construction) has been increased from 3 stories to 4 stories.  The Code continues to have total floor and building square footage limits. 
  3. Pursuant to modified IBC Section 903.2.9, storage facilities are exempt from the automatic sprinkler system requirement if: (1) the total fire area is 12,000 sq. ft. or less; (2) the combined total fire areas are 24,000 sq. ft. or less; (3) the facility is no greater than one story above grade plane; and (4) all storage spaces are accessed directly from the exterior. 

These changes go into effect as they are adopted by local and state governments over the next several years.  Prior to the adoption on the local and state level, storage developers can request that the code official rely on the 2021 changes as acceptable alternative methods of construction pursuant to section 104.11 of the existing International Building Code.

Please email Joe Doherty with any questions or to receive supporting documentation for these changes.


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TechCrunch: Clutter Raising Funds (read on)

Sources: Clutter is raising $200-250M led by SoftBank for on-demand storage and moving

Marie Kondo’s rise as a cultural icon shows there’s big business to be had in sorting out a mess. And startups are also hoping to get in on the action.

TechCrunch has learned that Clutter, a storage-on-demand service that packs up, takes away, stores and returns your possessions at the click of an app, is raising between $200 million and $250 million in funding.

Sources tell us that term sheets are out but have yet to be finalised while investors go through due diligence, and that currently the plan is for the round to be led by SoftBank.

Clutter’s  CEO and co-founder Ari Mir declined to comment for this story, as did SoftBank. Other investors contacted for the story did not respond.

Clutter last raised money in 2017, when it picked up $64 million from backers that included Atomico, GV, Sequoia and Fifth Wall. Pitchbooknotes that the round was done at a $240 million post-money valuation. That could give Clutter a valuation of between $400 million and $500 million in this latest round — a figure our sources also mentioned.

Clutter currently operates in the Bay Area, Southern California, Seattle, New York and Chicago, and it’s likely that this funding could be used to help it expand to more regions.

For it and a number of its competitors, the target users are consumers based in urban areas who live in smaller spaces with less storage options; have the disposable income not only to buy stuff but to pay to keep it somewhere else; and likely already use of other app-based on-demand services for food, transport, work-space and so on, making them familiar and ready to work with startups offering the same services to manage their material possessions.

But the business of storage on demand is nothing short of, well, cluttered.

For starters, there are a lot of startups in the space angling to take on a wide array of incumbents like Public Storage, U-Haul and others that offer services to clear away your possessions and store them in lockers. In a market estimated to be worth some $40 billion annually, other hopefuls include MakeSpaceOmniTroveLivible, and Closetbox.

As with other on-demand e-commerce services like transportation, accommodation and food delivery, there is a race for economy of scale and market penetration. In the case of storage, that race includes working with or building facilities where space can be filled out in the most optimised way, as well as building the most efficient tech platform to manage the safe collection, storage and retrieval of people’s items. That’s before the human aspect of the service is considered. As with other on-demand collaborative economy startups, Clutter and its competitors rely on being able to hire the right people to get the job done well.

Clutter will be hoping that a big cash infusion will help it come out ahead in all of these areas: when and if this round closes, it will have raised more funding than the rest of its (many) startup competitors combined.

But the business of moving things is also tricky for an other reason: companies are dealing in people’s personal possessions, and so when something doesn’t go right — an item is lost or broken in the process, for example — the bad experience takes on an especially emotional angle.

Clutter may be the biggest in its category, but it has had its share of negative feedback on platforms like Yelp, Trustpilot and Twitter. It can be hard to vet the truth of all public comments, but it will be interesting to see how and if customer feedback plays a role in the company closing this round and its bigger efforts to scale.

As with other on-demand startups, there is also the fact that it can be a capital-intensive business. From what we understand, Clutter has been working on this round for a while and had to downsize last year to cut down on its burn rate.

Others in the space have been tackling liquidity in other ways that also speak to some of the shifting and experimental nature of this still-young market. Omni — a storage company that also lets people rent out their possessions while they are not using them — last year took an investment from executives at Ripple and struck a partnership with the XRP company. Now it’s offering users an option to get paid in XRP instead of cash when they rent out their items.

The fact that SoftBank is the investor name that has come up to lead this round for Clutter underscores characteristics in common with other recent SoftBank investments.

Armed with hundreds of millions of dollars to invest across the tech industry, SoftBank has developed a reputation for wading into areas of e-commerce and other tech fields crowded with competition that will likely see inevitable consolidation — and it invests in the startup that it believes will be the winner, a pattern we’ve seen at Uber, WeWork, Fair, DoorDash, Compass and many more.

If all goes to plan, SoftBank’s investment, in turn, becomes something of a self-fulfilling prophecy. It’s not just a financial boost to help the startup grow, but also — given that it’s SoftBank — a mark of confidence to other investors that the business is solid and supported for the longer haul.

 


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U.S. Self Storage Industry Stats From Sparefoot

https://www-sparefoot-com.cdn.ampproject.org/c/s/www.sparefoot.com/self-storage/news/1432-self-storage-industry-statistics/amp/?inf_contact_key=e8640dfbbbf762f1ff123c096b87af6c

 

Updated 12/19/2018

This page contains statistics about the U.S. self-storage industry compiled by The SpareFoot Storage Beat. Statistics on this page will be updated as we receive new data. If you have data that you’d like to share or have a question about data on this page, please email editor@sparefoot.com.

Self-storage sector snapshot

 

U.S. self-storage sector snapshot Data
Annual industry revenue $38 billion
Number of storage facilities (range) 44,000-52,000
Total rentable self-storage space 2.3 billion square feet
Self-storage space per person 7.06 square feet
Percentage of households that rent a self-storage unit 9.4 percent
Average monthly cost for a self-storage unit $91.14

Average monthly construction spending on self-storage facilities

The chart below shows construction spending by month, according to the U.S. Census bureau. 2018 spending shown year-to-date through October 2018. Figures are not adjusted for inflation.

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Number of self-storage facilities in the U.S.

Between 44,149 (Self-Storage Almanac, 2018) and 52,000 (Self Storage Association, 2018). Sources vary depending on definition and methodology.

Industry ownership is fragmented, with 18% of facilities owned by the six largest public companies, 8% owned by the next top 100 operators (minus the REITs), and 74% owned by small operators. (Self-Storage Almanac, 2018)

Largest self-storage operators (publicly traded) in the U.S. (by annual revenue)

  1. Public Storage: $2.51 billion (2017)
  2. Extra Space Storage: $1.1 billion (2017)
  3. CubeSmart: $558.94 million (2017)
  4. Life Storage: $529.75 million (2017)
  5. U-Haul: $286.89 million (fiscal 2017 – self-storage revenue only)
  6. National Storage Affiliates Trust: $268.13 million (2017)

Data from most recently reviewed company earnings reports.

Largest self-storage operators in the U.S. (by number of facilities, owned or managed)

  1. Public Storage: 2,386
  2. Extra Space Storage: 1,483
  3. U-Haul: 1,482
  4. CubeSmart: 936
  5. Life Storage: 675
  6. National Storage Affiliates Trust: 533

Data from most recently reviewed company earnings reports. U-Haul number reported by MiniCo Storage Almanac 2018.

Self-storage revenue growth by quarter (REITs)

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Amount of rentable self-storage space in the U.S.

2.311 billion square feet (Self-Storage Almanac, 2018)

Amount of rentable self-storage space per person in the U.S.

7.06 square feet per person (Self-Storage Almanac, 2018)

Percentage of U.S. households that rent a self-storage unit

9.4% of households. (SSA Self Storage Demand Study, 2017)

Average storage unit cost

The national average cost for all unit sizes is $91.14 per month, according to SpareFoot data. (2017)

The national average cost per square foot is $1.01 per month. (2017)

Below is the average national cost by storage unit size.

 

Unit size Average monthly cost (2017) $/sq.ft. Year-over-year change
5×10 $66.44 $1.28 5.46%
10×10 $99.57 $1.00 3.62%
5×5 $48.26 $1.93 6.53%
10×20 $140.80 $0.70 2.73%
10×15 $134.83 $0.90 9.6%

Using our data we’ve found the average storage cost for more than 200 cities.

Self-Storage Data by State:

Use the links below to find detailed storage data by state.

Alabama Alaska Arizona
Arkansas California Colorado
Connecticut Delaware Florida
Georgia Hawaii Idaho
Illinois Indiana Iowa
Kansas Kentucky Louisiana
Maine Maryland Massachusetts
Michigan Minnesota Mississippi
Missouri Montana Nebraska
Nevada New Hampshire New Jersey
New Mexico New York North Carolina
North Dakota Ohio Oklahoma
Oregon Pennsylvania Rhode Island
South Carolina South Dakota Tennessee
Texas Utah Vermont
Virginia Washington West Virginia
Wisconsin Wyoming

 

Sources

Self Storage Association
IBISWorld
Seeking Alpha
Self-Storage Almanac
Inside Self-Storage
MJ Partners
Public Storage
Extra Space Storage
CubeSmart
Sovran Self Storage (Life Storage)
U-Haul (AMERCO)


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