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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Lien Law Seminar – Register Today

Thursday, May 30th at the Falls Event Center in Manchester, New Hampshire. GPS address is 21 Front Street, Manchester NH 03102.

Lien Law Seminar featuring Attorney Jeffrey Greenberger and SSA Legal Counsel Joe Doherty. Event begins at 12:00pm with lunch. Please register today, available seats will fill up fast!

As of April 2019 we are awaiting our updated lien law to be passed by the NH House after previously being passed by the Senate. When this occurs, we will be sending an email to the membership to let them know when the changes will be effective! We are thrilled to have been able to implement this proposed bill for our industry in New Hampshire, and we thank SSA’s Joe Doherty for his support and continued counsel.


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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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Register Today! Lien Law Seminar

May 30th 2019 Lien Law Seminar ~ NOT TO MISS

 

Thursday, May 30 at the Falls Event Center in Manchester, New Hampshire.

Lien Law Seminar featuring Attorney Jeffrey Greenberger. Event begins at 12:00pm with lunch. Please register today, available seats will fill up fast! Guests welcome!

 

This event is proudly sponsored by Easy Storage Solutions 


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Globe Magazine Blog: Transactions and Deals by Laura Williams-Tracy

Go Store It goes island hopping

Go Store It has acquired a newly constructed storage facility located on Nantucket island in Massachusetts. This is the company’s first acquisition in the northeast. The climate-controlled facility features 672 units and 63,000 rentable square feet.

“On a personal level we are big fans of Nantucket and see the demand for quality self storage on the Island. Nantucket has significant barriers to entry, and we are very pleased to now own an institutional quality asset there,” said Ryan Hanks, founder of Go Store It.

Charlotte, North Carolina-based Go Store It finished 2018 with 13 acquisitions and delivered four new development projects. While Go Store It’s primary foot print has been in the southeast, the company is now looking to expand in select northeast markets, Texas, and the southwest. Go Store It will also begin offering third party management services in 2019.

West Coast gains WA management contract

West Coast Self-Storage Group will manage Airport Self Storage in Olympia, Washington. The facility is located at 7547 Henderson Blvd SE, just east of the Olympia Regional Airport. The storage business has been in operation since 1985 and is owned by a local private investor. It features 309 units.

West Coast Self-Storage Group is a self storage property management, acquisition, and development company headquartered in Everett, WA.  The company currently has 55 managed and owned locations with thirty-nine stores in Washington, nine stores in Oregon, and seven stores in California.

Report: New inventory drives down US rents

A new report from Yardi Matrix illustrate that recent self storage property completions put downward pressure on rents in November 2018. Overall U.S. street-rate rents for 10×10 non-climate-controlled units declined by 4.1 percent year-over-year that month while rents for climate-controlled units of similar size dropped by 2.2 percent.
Units under construction and in the planning stages currently account for 9.7 percent of the existing national inventory, a 10-basis-point increase over November, reflecting construction starts in high-demand markets. Development activity is highest in Portland, Nashville, Orlando, Seattle, and Miami.
The December 2018 report compiles data from more than 26,000 U.S. self storage properties, including more than 2,000 properties in the development pipeline.

Canadian City Halts Storage

The Vancouver, British Columbia, City Council voted unanimously in December to institute a six-month moratorium on applications for new self storage facilities in all of the city’s commercial and industrial zones where self storage is a permitted use, according to the Columbian.

The moratorium also applies to expansions of existing facilities but does not prohibit maintenance, repair or city-mandated health and safety improvements.

Elected officials said the purpose of the moratorium is to give city staff time to develop a comprehensive strategy for regulating self storage facilities, which would be incorporated into the Commercial Corridor Strategy, a package of new land-use codes that the city intends to create next year.

The city has 48 self storage businesses in operation and 11 applications for new facilities have been submitted in the past five years.

10 Federal raises money, buys in VA

10 Federal has raised $10 million toward self storage acquisitions and has purchased the Store-It-Right portfolio of two properties in Virginia.

The properties are located at 2399 Leake Square in Charlottesville, and 15142 Spotswood Trail in Ruckersville. These acquisitions mark the 9th and 10th acquisitions.

Raleigh, North Carolina-based 10 Federal will deploy its suite of technologies to support unmanned operations which includes the installation of a kiosk rental center, model unit, proprietary overlock system and extending 10 Federal’s call center services to this facility.

PA town approves new storage facility

The East Union Township Zoning Hearing Board has granted a zoning change to move forward on a planned 230-unit self storage facility in Oneida, Pennsylvania, according to the Shenandoah Sentinel. The plan must be approved by the East Union Township Planning commission.

Property owner Tyler Shustack plans to build the facility on a 6.4 acres site. Plans include six sets of storage units, as well as canopy storage for boats or other vehicles.

Moove In expands in PA

Moove In Self Storage has acquired Trans-Am Self Storage in Lititz, Pennsylvania. Built in 1980, the property at 933 Lititz Pike includes five buildings comprising 23,400 square feet in 150 units. The 3-acre property was shared with Keller Bros. Motorsports until the dealership closed in March 2018.

Moove In plans to demolish the dealership and build a three-story structure comprising 66,000 square feet of climate-controlled storage and a new rental office. Additional property improvements will include new perimeter fencing and a keypad-operated gate.

The facility will be managed by Investment Real Estate Management, LLC.

Moove In Self Storage operates 24 locations in Maryland, New Jersey, New York and Pennsylvania.

Russell, Boyle take helm at Public Storage

On January 1, 2019, Joe Russell and Tom Boyle became chief executive officer and chief financial officer of Public Storage.

Russell has served as president at the real estate investment trust since 2016. He was previously chief executive at sister company PS Business Parks, Inc. Boyle has served as chief financial officer of operations at Public Storage since 2016 after working with the company as an investment banker at Morgan Stanley for more than a decade.

Ron Havner, the company’s chief executive officer since 2002, will remain as chairman of the board. John Reyes, the company’s chief financial officer since 1996, will join the board.

Jernigan Capital buys out development partner

Jernigan Capital Inc. has expanded its portfolio with the acquisition of its development partner’s stake in a new 105,300-square-foot, multi-story self storage facility in Bay Shore, New York, on Long Island.

Located at 1775 Fifth Ave., the CubeSmart-branded self storage facility offers 1,194 units. The climate-controlled property opened in 2017 and has a physical occupancy level of nearly 57 percent. With the closing of the transaction, self storage REIT Jernigan owns a 100 percent interest in seven on-balance sheet development investments.

ARCO/Murray completes TX facility

ARCO/Murray has completed a 123,000-square-foot self storage facility for The Jenkins Organization in Austin, Texas. ARCO/Murray provided a complete design-build solution including architectural and engineering design, permitting, construction, and final equipment. The energy efficient facility includes LED lighting throughout and an interior loading area. The façade consists of both metal panels and wood. ARCO/Murray’s Eric Fleps was the project manager, and Andrew Weiland and Dave Osborn served as the project superintendents.

ARCO/Murray Design Build is a national design build general contractor.

Tyson joins ASM in HR

Absolute Storage Management, Inc. has hired Amber Tyson as vice president of Human Resources. In her new role, Tyson will be responsible for developing and executing human resource strategy in support of ASM’s overall business plan and strategic direction of the company. She will also lead initiatives that continue to increase the company culture through the development of strategic HR plans in talent management, organizational development, performance management, and will continue to develop the policies and practices to align with ASM’s core values. Previously, Tyson worked with AlphaStaff, an HR outsourcing company, serving as an account executive to a wide variety of industries with diverse types of owners.

ASM is one of the largest, privately owned, third-party operators of self storage facilities in the United States. Founded in 2002, ASM holds its headquarters in Memphis, with regional offices in Atlanta, Charlotte, Nashville, and Jackson, Mississippi. The company operates over 85 properties in Alabama, Arkansas, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, North Carolina, Ohio, South Carolina, and Tennessee.

Developer plans Target conversion in IL

Midwest Self-storage Development LLC plans to convert a vacant Target retail store in Springfield, Illinois, into a self storage facility, according to the Springfield News-Sun.

Springfield’s city commissioners must approve a rezoning request to allow the vacant retail store to be converted. The Target closed in 2016 and was purchased by the LLC for $1.5 million in September. It’s a 105,000-square-foot building on 11 acres.

Storage sells in The Hamptons

Peconic Mini Storage, a 38,160 square foot storage facility with room for expansion located in Riverhead, New York, has sold

Charles “Chico” LeClaire, executive managing director investments, and Adam Schlosser, first vice president investments, in Marcus & Millichap’s Denver, Colorado office, had the exclusive listing to market the property on behalf of the seller, Mini Storage Companies.

“One of the interesting things about this transaction was that it was with a national REIT,” said LeClaire.  “It’s the third public REIT that we have closed within the last 30 days and the fourth of the five REITs is about ready to go under contract with us now,” he continued.  “It shows that there is still activity in this segment of the market.”

Peconic Mini Storage consists of 424 climate and non-climate controlled units.  It is located on Flanders Road servicing The Hamptons, one of the most affluent areas in the entire country and a popular weekend and summer destination for wealthy New Yorkers.

Developer plans Albany-area storage

Real estate developer Thomas Burke is proposing a four-story, 80,000-square-foot self storage facility in Glenmont, a hamlet of Bethlehem, New York, according to the Times Union of Albany.

The plan would include 18 storage spaces for boats and RVs and would be built on 1.8 acres on Chamberlain Street

Complete article here: http://www.ssaglobe.org/Industry-Report/ArticleID/110/Transactions-and-Deals-January-8-2019


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