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Some people
are fortunate enough to have the Midas touch when it comes to selecting
self-storage sites. The rest of us, however, need concrete guidelines
and a lot of luck. What would constitute the ideal storage site?
One that is:
The site would
also have:
-
A willing,
cooperative seller
-
10 acres
of land
-
Ingress
and egress at both ends of the property
-
Higher
than average incomes
-
Better
than average density
-
Minimal
competition, or competition that is full, high-priced, first-generation
or otherwise inferior.
The
Scientific Approach
In the case
of most development, the site will fall short of the mark in one
or several of these categories. There are several search tools available
to developers who are willing to make a greater than average investment
in locating good sites. Keep in mind, however, that even the most
sophisticated tools do very little if you do not have proper staff,
experienced in self-storage, to operate them.
Demographic
Applications and Services.
There are demographic software programs that allow you to create
layers and filters to search areas according to specific parameters.
These criteria might include population density, income, land availability,
traffic count, zoning, cost and size. To my knowledge, no single
application catalogues all of these factors. One could be created,
but it would be time-consuming and require data from a number of
dissimilar sources.
There are a
number of demographics services that can assist you in gathering
data. The best are available online and integrate with mapping applications.
Do not bother with those that are driven by ring studies. Markets
are rarely circular (i.e., contained in a perfect radius). If there
are any, I have yet to see them. There are a few sophisticated,
GPS-driven mapping applications that allow easy data importing.
The best two are MapPoint by Microsoft and Street Atlas USA by DeLorme.
Just a step
down from the GIS interface is standalone chartography, which requires
a dynamic link to demographic data. Adding zoning layers and parcel
data will be labor-intensive but can be done. The better of these
applications will permit you to import data, such as that collected
from competitors in an area, from Access or Excel databases.
Computer
Hardware.
It would be very difficult to use any of these tools if they were
only available through your desktop computer. The best solution
is to create and gather the data on a desktop machine and network
it via wireless connection to a laptop computer for field use.
The laptop
should not just have wireless access but allow you to use the Internet
even when you’re not in a “hot spot” (like at Starbucks).
I suggest a CMDA or similar wireless card. Your desktop and laptop
machines must have at least 1 gigabyte of RAM (memory), 100 gigabytes
of hard-drive space and fast processors. From there, you can weigh
your options for size, weight and screen size. The desktop computer
should have at least one 24-inch LCD or plasma display. If budget
allows, have more than one. Wireless keyboards and mice are a given.
Digital
Camera.
This will help you compare features of various sites once you’re
back in the office. Again, you can debate the issue of physical
size and added functions, but you need at least a 3.0 mega-pixel
resolution and 1 gigabyte of storage. I personally opt for the Casio
Slim Series, which offers form and function in a very small package.
Transferring images from your camera to your computer is any easy
challenge to address. The new cardto- CD direct transfer looks really
inviting.
Transportation.
This choice is governed by whether you have your own transportation
or are traveling to markets where you must rent. A conversion van
is my first choice. It gives you room to set up an onboard office
and allows for easy placement of LCD monitors. The generators can
provide continuous power. Give me an endless budget, and I would
have that previously mentioned desktop computer networked into the
van! If this dream machine isn’t practical, a good compromise
would be a comfortable vehicle with an inverter and plenty of 12-volt
power.
Seat
of the Pants
Even if you
equip yourself with a techno-office and ride, there is still an
important component missing. It doesn’t even require electricity.
It is the “H” factor, the most fallible of all: the human
being. You can invest thousands (or tens of thousands) of dollars
and still not be at the top of the game if you do not have experienced
eyes and ears to collect, interpret and analyze your data.
There is something
that just feels good about the right site; and an experienced professional
will be able to create a self-storage success even on a less-than-perfect
location. Instinct will tell him traffic patterns, site con- figuration,
visibility, access, and site size and price are optimal. In the
end, there is no technological substitute for the self-storage development
and ownership experience.
Let’s
take a look at the “perfect” site selector. We’ll
call this person “Sam.”
-
Sam is
40 to 45 years old, mature enough to have been around the block,
but young enough to have the energy to work in the field all
day, and then head back to the office for desk time.
-
Sam is
physically fit, with 20/20 vision and excellent hearing. He/she
is one of those blessed individuals with a built-in compass,
the type who always knows which way is North, even in the dark
and the rain.
-
Sam has
a doctorate in business administration and a master’s in
economics. It doesn’t hurt that he/she also has a degree
in chartography and accounting. For amusement, Sam teaches a
Dale Carnegie course.
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The former
mayor and chairperson of the city planning and zoning board,
Sam comes from a politically connected family. Dad is the current
chair of the zoning board; Mom is the head of permitting; and
Tina, the sister, is the head loan officer at the largest bank
in town. Let’s not forget Tom, Sam’s favorite uncle,
who is in charge of personal investments for Bill Gates. He
has held this position since he retired four years ago as Warren
Buffet’s personal financial advisor.
-
Sam has
developed at least five very successful self-storage properties,
three of which he/she still personally owns and manages. Two
were sold to a major self-storage company backed by an institutional
investor, one of Sam’s former employees.
Do
you get the picture?
Site selection is easy if you are incredibly wealthy, politically
connected or superhuman. For the rest of us, it requires sound research,
reliable data, experienced assistance and all the right tools.
RK Kliebenstein, president of Coast-to-Coast Storage, is a former
commercial lender and provides feasibility studies and financial
consulting to self-storage developers. He can be reached at 877.622.5508,
ext. 81.
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