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Self storage industry has been found to be the fastest growing new industry in the commercial property sector that has emerged in the country over the last three decades. The estimate has been made on the basis of the registration of new companies, setting up of new facilities and the amount of total square feet of area added for the purpose. The number of companies whose prime income is from providing storing facilities is phenomenal and it is still growing. The amount of gross revenue in the year 2007 has crossed 20 billion dollar and the per-facility revenue has been over three hundred thousand dollars.

Self storage industry has gained from the popularity of the concept and it has grown so fast that in the last twelve years the use has grown from one in every seventeen households to one in every ten. Converted to percentage growth it comes to sixty-five. The concept of self storing has caught on so fast and the revenue generated has been so lucrative that many companies have joined the fray tough the primary income of these are from other sources. There are almost nine thousand such companies operating in the country. These statistics are based on the actual figures that are available to the authorities. The actual size of the industry is larger and there are many facilities that are lying beyond the record of the authorities.

Self storage industry has a variety of members. There are companies who have multiple facilities all over the country and there are some that end in themselves. There are quite a few operators who just operate a single unit and it is the source of primary income. Of the large companies that are doing business in the country, the top five operate about one facility in every ten that are operated in the country. The rest are operated by over thirty thousand companies spread all over the country. An estimate provides that the current area available for self storing in the country is over two billion square feet which converts to about six square feet per person.

The users profile has shown that the self storing facility is quite popular among the military personnel and the usage near the domestic military bases grows higher with sometimes the military personnel using almost all of the available storing units. The self storage industry values the military personnel and the associations of self storing facility operators often provide discounts and incentives like discounts on rental rates, free period of usage, gift certificates, and no change in rent during overseas deployment, waiver of deposits and fees, etc.

The competition within the self storage industry is hotting up with a survey saying that the market is overbuilt at almost every level, local, state or national. The industry has confessed that at every instance a self storing facility has to compete with anything between three to twenty facilities to get customers. This is the urban scene. The rural scene is not very different as each facility has to compete with three to ten facilities. The rapid growth in the self warehousing industry that was seen during the late nineties and early parts of the new millennium has slowed down considerably though it has not stopped altogether. The last two years has added fewer facilities that what was added in the previous years.

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There is a great difference in the self storage industry of the United States versus the self storage industry of Canada. While the United States has seen growth in this industry over the past few decades, Canada is comparatively in its infancy and just beginning to see the growth that the U.S. has already experienced.

The positive influences of American business persons who are offering advice about what they have seen work and what they have seen fail, is, in some parts, creating a more rapid growth in the Canadian self storage industry . The growing pains of the American market can certainly be a lesson to the Canadian, and other markets beginning to develop the storing market.

The supply and demand ratio in the United States has caught up in many rural and urban markets. Storing facilities are typically anywhere from 75 to 90 percent full, depending on the region and the season. Whereas, the demand still largely outweighs the supply in Canada and rural and urban facilities alike are commonly enjoying the luxury of having their facilities 85 to 95 percent or more full.

Perhaps the difference in occupancy is a contributing factor to the vast difference in customer service between the American and Canadian industries.

In a study conducted in May, 2008 by a self storage industry call center in Columbia, Missouri, an astonishing 94 percent of Canadian store room facilities did not ask the customer for a phone number and only 18 out of 63 facilities asked the customer for his or her name. This is either indicative that the Canadian market is doing a very poor job or a very great job. Perhaps a very poor job because the lack of asking fundamental and imperative questions such as this could indicate a deeper sales and service problem rooted in complacency or inexperience.

Perhaps a very great job because asking for a name and phone number is unimportant, for now, to the Canadian market because they are experiencing great success with the occupancy of their businesses. Why ask for a name and number when you know the unit will be rented out within the week? This may be their mind frame. However, they should take a cue from their neighbors to the south and keep a close eye on how the market is changing.

The self storage industry is no secret to business owners looking for property in Canada. Like the American industry, soon enough, Canadian owners will find themselves battling with competition and looking at their sales and customer service practices to get an edge over their competitor.

Already, in cities like Okotoks, Alberta the market has a cluster of storing facilities within a short radius of one another. And while larger cities like Toronto can easily host a handful of storing facilities, the guarantee of filling up after the first few weeks of your grand opening is narrowing as likeminded business men and women are opening their own facility.

Competition is what morphed the American storing industry from a few metal sheds crafted from wobbly aluminum and chicken wire to top notch steel constructions equipped with individual alarms and video surveillance. It would benefit a new business owner in Canada or the States to learn under the wings of well established storing associations and business persons.

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Self storage companies and their owners have been asking a lot of questions lately. How will the threat of recession affect the storing industry? Will rising gas and food costs mean people cut out the extra cost of their store room unit? And now a new question has posed itself. What about those mobile storing guys, are they going to take away business?

Depending on who you ask and where their experience is in the storing industry, you will hear different answers. Some will say that a housing slump means people will stay in their homes collecting clutter and needing a place to store it. Others may say that a lull in the housing market is bad for the storing industry because people are not moving.

No doubt about it, rising gas and food means families have less money on discretionary funds. Just how that filters down to local storing facilities remains to be seen.

The truth of the matter is that self storage companies have not seen as great a moving season as it has in past years. The typical busier months are not over yet, and it could make a comeback, but if the past few months are indicative of the coming months, this year will be less than the growth the industry has seen in the past, with 10-20 percent less rental volume than last year.

So what about the newest face of moving? Mobile storing pods advertise to be a quick, easy answer for families who are relocating. While they romanticize the idea of moving or relocating, they do not disclose the ugly side of the business. It is often hard to get the units delivered to your doorstep the same day or even the next day, especially if you live in a densely populated city. Mobile storing companies usually deliver 2 units and the cost of bringing you more than that begins to add to your bill. Additionally, there is a high cost to deliver the unit upfront. Moreover, there are more costs to redeliver your box to a new location or back to your existing home. Add to that, the monthly rental cost, per pod, per month. In some cases, there are extra costs for accessing your box in the warehouse where it is kept and it usually takes 45 minutes or longer for the company to get it down and ready for you.

No matter what the dark side of mobile storing is, customers do draw to the convenience that these companies advertise. If a customer phones the mobile storing company to inquire about prices and the sales associate is any good at all at his job, then self storage companies have just lost a tenant.

So what can self storage companies do to battle the new kids on the block? Well, if your facility is in a rural area, you are not likely to be affected, by these mobile companies, yet. No matter how your local business is feeling the affect of mobile storing, there are things you can do to attract renters and impress them once they call or stop by your facility.

For starters, you should make sure the store front appearance is neat and fresh. Peeling paint or missing siding only indicates to a prospective tenant that you do not maintain the facility well.

Also, when customers call your self storage companies , they should be impressed with the friendly service and even more impressed with the informative and helpfulness of it. The managers of your self storage companies should guide the customer to the best unit size, based on their needs. The manager should offer the caller choices and get agreement from them. Selling the amenities and security features is also important in helping your facility stand out from all the other self storage companies and mobile options. And most importantly, your managers should be great at closing the sale and reserving a unit on the phone.

The idea of mobile storing is hard to combat, but perhaps the self storing industry has lucked out a little bit with a lull in economy. If moving families already have less money to spend because of gas and food and rising interest rates, then paying expensive delivery, redelivery, monthly and hidden fees may be out of their price range.

But make no mistake, mobile units are not going anywhere in the long run. So, as they say, if you can not beat them, join them. Exploring the cost and profitability of adding a mobile service to your self service facility may be worth a look.

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Along with the twenty first century came the baby boomer retirees. And instead of traveling around the country in their posh RVs and puttering their time in 18 holes at the golf course, many are starting their own businesses. The self storage business is a good fit for many of them.

After working for 30 or more years these people suddenly want to work for themselves. The average age of someone likely to begin a new business ranges from about 55 to 64 years of age. These people are ready and have the money and experience to be their own boss. They have the contacts built up from years in the workforce.

This business is a good investment for these baby boomers. It is relatively low in risk, with a high reward. Some of the rewards are below:

There is a good chance for success. The self storage business has a low failure rate, about 8 percent where many commercial real estate ventures have a rate of 50 to 60 percent, a rate nearly six times as high.

The loan can be paid off quickly. The average occupancy of these buildings is around 80 percent. Even with a loan against your land, material, the construction and everything else, you should be able to pay your entire loan off within six years.

You can manage the business yourself. The low maintenance might require you to hire one or two others for the day to day upkeep of the business, but most of the management can be done by you. After working in corporate world among thousands of others, the minimal workers you have might just be a blessing.

The self storage business is a growing industry in demand. It is one of the fastest growing areas of commercial real estate for at least 30 years. Revenues in 2006, for major facilities were on average over 400,000 dollars per facility.

All new businesses are risky. Those risks should be taken into account before taking the sinking any money into the venture. The risks of this business are lower than much other start up commercial ventures. Familiarize yourself with the self storage business in general.

Success in this business may look easy, requiring an empty building and a simple security system. But to be successful, the would be entrepreneur should develop a business plan that includes these risks as well as how they plan to market and grow the business. You should address your advertising plan, employee pay and lots of other issues related to continued growth. Write your plan to help get your startup funds and guidance for your workers.

There is no guarantee the business will survive, but with such a low failure rate, this enterprise is more secure than many investments.

It is not only a safe industry, but has steady growth and high demand. Many different people need places to store their goods. Businesses might need space for extra office supplies and equipment. Students returning home for the summer need to store their things when they go home for the summer and the military personnel use the space for their stuff when they are overseas. Even the homeowner uses the extra space to store their overflowing belongings.

The low risk and initial investment makes a self storage business a perfect retirement career for the baby boomer.

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Everything is bigger in Texas. That is what the saying is in the south. Well getting a rental space in Texas is very easy to do and not a big hassle. There are facilities in plenty in the lone star state. Texas is also the state with the largest rental organization in the country. This Texas Self Storage organization, has more than 3000 facilities under its banner. That number is unmatched by any other association in the country. With over 51k facilities in the country, Texas has 1 out of every 17 facilities located within its borders. If you take a moment to think about it, that is impressive. Texas has the second largest land area in the country over California by almost 100,000 square miles. California has more people located within its borders than Texas by over 13 million people. You would think that California would have more facilities.

Who are all these Texas Self Storage groups? They provides a great opportunity for property owners to share best practices, and improve on their own businesses. Their entire mission is to improve leadership, give opportunities to grow in your own business and to promote the code of ethics.

Why would someone want to join a Texas Self Storage group? There are many benefits of membership to an association for the property owners. One of the benefits includes a reference manual with details on state and federal statutes that speak about renting spaces in Texas, as well as,  step by step produces on foreclosures and evictions.

Other benefits include standardized forms so no one company has to try to create a form on their own. Texas Self Storage organizations allow property owners to save his or her company thousands of dollars in fees because they check and double check to ensure the rules are being followed. They review state and federal property ownership and rental contracts so that no one in the association is sued. Also, members have the pleasure of receiving a newsletter that gives you updates in the rental world and helpful tips on how to grow your business.

There seem to be many more benefits than what was listed above, so how do you join? You can look online for an application. Make sure that it clearly details the dues needed to join and how everything works. You have to make the decision whether or not this venture would benefit you and your company. It seems that over 3000 other property owners believed that joining the association was a good idea. You could also talk to fellow property owners and ask if they are members of any association and if they find it beneficial.

Some of the Texas Self Storage groups and organizations have been around for over twenty years now helping out the industry and trying to improve it. It looks like they bring a lot to the table in terms of training and organization of important federal and state documents. They do not look for any one company to fail and give you many tools to be successful. Some groups also have memberships for those companies that assist the industry and supply products and services to the facilities. By being the largest storing industry in the country with as many members as it has, it seems like everything really is bigger in Texas.

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Climate controlled self storage and global warming actually have something to do with each other. Our call center services self storage clients in major markets like New York, Chicago, Miami, Oakland, Austin, San Antonio, Kansas City, Fort Lauderdale, Brooklyn, Queens, New Jersey and others. Most of these self storage facilities have climate controlled self storage units. If the temperature averages edge up a degree or two, the summers will become even more hot and humid than they already are in many of these markets. This means more people will want to store their belongings in climate controlled self storage. This means less business for people who own or manage non climate controlled self storage and higher occupancies and profit levels for people who own or manage climate controlled self storage.

However, it will also mean higher costs. If energy costs continue to rise and if it takes more power to cool and dehumidify climate controlled self storage facilities, then rents will need to increase to keep up with the rising costs. There may be a point where the cost of renting a climate controlled self storage unit puts climate controlled self storage out of reach of the average self storage consumer. However like most purchases, climate controlled self storage is a purchase of perceived necessity. If you think you need a climate controlled self storage unit, then you will figure out a way to pay for it. You might not stay as long as you would if it was priced lower, but you will use it if you think you need it. As more baby boomers retire and down size, they will be passing their nice furniture and the furniture of their ancestors down to the next generation. All this furniture will need to go into climate controlled self storage while the next generation figures out what to do with it.

There are other unexpected costs associated with global warming that will impact both climate controlled self storage and non climate controlled self storage. Our call center is headquartered in Central Missouri. Historically our winters have brought more snow than ice when we get precipitation. But global warming is changing the flow of gulf moisture and the power this flow has. This winter we have gotten many freezing rain and ice storm events because the powerful flow of warm moisture from the Gulf of Mexico has ridden over the top of cold arctic air. In years past, the warm flow would not have been as powerful and these precipitation events would have brought snow. Snow is much less costly than ice and freezing rain from every perspective.

The cost of salting and cleaning up ice on a self storage property is far higher than dealing with a few inches of snow. Ice causes car wrecks, electricity outages and lost work time. A few inches of snow has very little impact on self storage or other businesses.

However, one cannot anticipate how changing weather can impact costs, consumer behavior or forecasting a return on investment. This may be where the next group of mathematical geniuses and actuarial wizards will create huge wealth. The forecasters who can help companies and governments anticipate and manage changing cost structures and new events of financial consequence will put their organizations in a powerful position. Those who go to work everyday thinking that things are as they always have been may wake up one day so far in the red that hey have to sell off assets at bargain basement prices or just close the doors and walk away.

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Tata Motors, an Indian motor company, revealed today the revolutionizing and controversial Nano. (No, this new car trend is not sponsored by Apple nor does it even include a radio.)

Company Chairman Ratan Tata promised the Indian people a 100,000 rupee car, equivalent to $2,500 dollars, and that is exactly what he has delivered. India has seen a growth of per capita incomes now nearing $1,000 per year. Indian families most commonly travel by scooter, which pose dangerous circumstances for transporting a family, and specifically carrying small children. The Nano’s low cost is a promising step toward safety and convenience for India’s growing middle class.

Supporters of the Nano, and certainly Mr. Tata, are proud to highlight some of the cars environmentally friendly features. Although the basic Nano model has no radio, no air bags or passenger-side mirror, it boasts an impressive 50 miles per gallon, something U.S. cars could certainly improve on.  

Analysts say the Nano may compel other car makers to lower their costs as well. This is certainly undesirable news for the automobile industry, but consumers would welcome a break in auto prices. Pre-Nano, the least expensive car for Indians was $5,200 compared to the U.S where the cheapest option is $10,030, four times the price of the Nano and not nearly as efficient as 50 miles per gallon.

In fact, U.S. consumers can expect to pay upwards of $20,000 to get a hybrid car offering about 48 miles per gallon.

There are fewer than 10 cars for every thousand people in India, 40 per thousand in China and 450 per thousand U.S. citizens. This is where environmentalists raise concern. In 2005, Indian vehicles emitted 219 million tons of carbon dioxide, which is the leading greenhouse gas and catches a lot of blame for global warming. The Asian Development Bank predicts that this number will increase by 1.5 billion tons over the next 30 years due to the expanding middle calls and a rise in demand for low-cost cars.

A representative from the Asian Development Bank claims this is a major concern for urban development. If there is an increase in the percentage of India’s population who owns a car, there will be even more traffic on crowded streets, traffic jams and long commutes.

Tata Motor’s Nano will have a rippling effect on other industries as well. As the number of car owners in India increase, the demand for parking and car storage will also increase significantly. The Indian self storage industry and marketplace should take notice of this new storage trend and look at the possibilities ahead. Parking garages, automobile self storage and streetside parking will be prime real estate for self storage owners.

The U.S. has one of the strongest self storage industries and could be a help to Indian self storage owners by showing them the successes and pitfalls within the industry. As the economy and middle class of India expands, so will residential and commercial real estate along with self storage and the niche car storage market.

Written by Sarah Little, TQAS Director

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Here is another one of StoragMarts Build It Green Design Challenge judges.

Introducing, Ellen Jordheim, Co-Designer for Hinge Collective in Denver, Colorado. Ellen is BSID and IDSA certified and has been creatively involved with Hinge since 2004. Hinge is an industrial design and building firm that is based on the philosophy that good designs improve the quality of life. Each piece of furniture is designed, prototyped and built in house with materials that have a lower impact on the environment.

If you would information about how to enter the Build It Green Design Challenge, please see the official contest rules.

Please submit your 200 to 400 description of your design the website to which it is posted to and call Tron for his email and put “green design” in the subject field.

Entering the Build It Green Design Challenge is a great way for you to get your name and Green ideas out into the self storage community. This will be a chance for publicity and networking to promote your Green self storage construction ideas. Submissions remain the property of the designer so don’t be shy to send your ideas in, we want to share them not keep them. 

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With everyone talking about Green Design, you cannot help but see a few green ideas out there that make you want to scratch your head and say, What?
 
There was a blackout at a Tokyo, Japan aquarium but they wanted to light up the Christmas tree. An inventor placed aluminum panels on each side of an electric eels tank so that he could capture its power. Eels are a very popular food item for the country but now they are harnessing the power. Many tourists are coming to see the eel and the Christmas tree.

A designer in California is building a bike out of bamboo. The design and bike have been winning awards across the country.

Turning an old water heater into a passive solar water heater, producing enough hot water for two people and saving the emissions of a regular hot water heater produces.

These are just a few things that I found on the Internet but I am sure that there are many more. There is even a show on TV that has this group of guys traveling around looking for great inventions. Many of these inventions fall into the green category with either the output or the materials the invention uses to power itself.

Written by Natalie Thomas, TQAS executive and business blog writer.

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For New Yorkers, the Christmas holiday season begins with the unveiling of the Christmas tree at Rockefeller Center. This season is no exception; however, the iconic Christmas tree has taken on more meaning by symbolizing the awareness of environmental consciousness.

The green initiatives demonstrated in this year’s Tree include installing an Ice Storage plant that will reduce energy used during peak periods and is powered by energy purchased from wind generated facilities, using 30,000 LED energy-saving bulbs to light up the Tree and hand cutting the tree in order to reduce energy use. The equivalent of all these green practices is equal to removing over 300 cars off the road each year or planting 450 acres of trees.

The Rockefeller Center Christmas Tree isn’t the first to use ice as a cooling system. The idea of using blocks of ice to cool rooms can be traced back to the 1800’s when a Floridian physician blew air over buckets of ice to cool hospital rooms.

Looking for green technology sometimes means looking back rather than forward and taking the time to find the efficiencies that history has to offer.

What could be more fitting than the world’s most famous evergreen symbolizing the Christmas season and environmental awareness?

Written by Sarah Little, TQA Director

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