When Thomas I. Shields, Sr. observed the existing self-storage situation in the Waynesboro, Virginia area back in 1975, he liked what he saw. Why? There were no serious competitors. In fact, he would be the first developer of this new concept not only in his

local area (Waynesboro/Augusta County, VA) but also in the surrounding region.

It was a time when the “mini-warehouse,” or “mini-storage” industry was in its infancy, and quite frankly, the public didn’t know much about this type of business or its product. In fact, “self-storage,” as it came to be known,  had a very low profile. Building construction for this type of use was utilitarian at best with no frills and more often than not, facilities were relegated to those parts of town zone industrial.
Shields, whose primary business was construction and homebuilding, determined it was going to be a growing business with considerable potential. If he built brand new, freshly painted and sparkling clean storage buildings, and if he marketed the concept and priced the space properly, he would attract local residents and small businesses to use his facility for their “extra” storage needs.

He was right.

His first site, the Bayard Blvd. facility, was the beginning of  what would eventually become a stand alone business of seven facilities and three offices serving Waynesboro, August County, and the immediate surrounding areas located in this part of central Virginia area.

Today, the Bayard location consists of six buildings, five 2-story structures and a single-story building – and predictably, as demand grew the facility expanded in phases over a period of three to four years.

As family businesses often go, Thomas Shield’s son, Todd, after growing up
in the real estate business, and graduating from college, also got into the self-storage business by building a 5-acre facility with his father in the historic area of Charlottesville,VA in Albemarle County, which was subject to very strict architectural control.

Two years ago, Todd developed a business plan and budget to rebrand the business, update all computer and management systems, install the latest state-of-the-art security systems, oversee the design and developmemt of a new main office and perform the renovation and other site imrovements for all of the other storage facility locations.

The ultimate goal was to continue Shields Self Storage’s reputation as the premier self-storage operator in the area and maintain the highly-prized title of “Best Storage Facilities” bestowed annually by a local publication.

Todd then sought the assistance of his longtime friend and colleague, Wes Folger, to serve as Project Manager for the endeavor.

Once the Shields’ finalized their plans, they set about to renovate, upgrade and rebrand all seven locations. There was a good reason for this: The self-storage business is becoming more highly competitive these days, and Shields Self-Storage wanted to make sure their leadership role in the market was maintained and continued to lead the competition.

The Bayard location was their first priority.

Even though the buildings on the Bayard location were properly maintained and repaired over the years, normal wear and tear caught up after thirty-five years of service. It not only meant renovating the buildings, it also meant making sure that the latest ancillary products and services were available to their tenants.

The decision to select the company to handle the refurbishing of the buildings came next. Ideally, Shields and Folger wanted a turnkey job, to simplify the process as much as possible – have only one company responsible for the scope of building work and avoid dealing with several suppliers. While they were in the construction business themselves, it was important to find a single-source manufacturer who could provide all needed components and services, plus their own construction crews experienced with this type of work.

To that end, they began a search for such a manufacturer. After meeting with David Montane, a BETCO sales consultant, more detailed information on the company was provided. Shields was convinced that BETCO had all of the necessary credentials and met all the requirements to do a first-rate job. Ultimately, BETCO was selected over another company Shields had worked with in the past.

The project began in the Fall of 2009, and was completed in February of 2010. Because the original exterior veneer of the buildings was primarily a wood composite material, it had deteriorated to the point whereby it needed replacement. As a result, new metal siding was put up on all buildings and new gutters and downspouts were installed. In the course of BETCO’s involvement in the renovation at the Bayard location, they were also selected to convert a second phase of a large warehouse to climate control storage space.

During the process, Virginia was hit with some of the worst winter weather on record. Snowstorms and freezing temperatures interrupted the work and caused delays, but Shields and Folger were the first to complement BETCO for their perseverance through it all.

In addition to the building renovations handled by BETCO, other important upgrades were necessary and were taken care of by Shields and Folger. Since the Bayard facility was non-manned, a centralized security system, including cameras, was put in place to cover exterior areas and inside hallways. A security gate was installed with a keypad to control ingress and egress. New exterior and interior lighting was added. A new 2-story fire escape and stairwell were built and new bollards installed.  As a part of the new branding of all Shields’ locations, a new exterior sign with a new logo
was put in and attractive landscaping topped off the new appearance of Bayard.

The Bayard location of Shields Self-Storage is looking great these days, thanks to an owner who recognized that self-storage is a business where curb appeal counts and an unattractive environment and out of date facility can adversely impact occupancy levels. In addition, the good work of a single-source manufacturer that was able to make their part of the renovation happen in the manner it was intended, was a big help in the process.

Terry Campbell is Vice President of Sales & Marketing for BETCO, the leading single-source manufacturer of metal self-storage buildings. tcampbell@betcoinc.com

The subprime mortgage crisis wasn’t so hard on the storage business.

After a period of slowed growth during the U.S. housing crisis, self-storage has bounced back – largely because it was already better insulated against economic forces than the housing market. According to IBISWorld, revenue growth in 2009 was expected to be 2.5 percent. And expected annual industry revenue increase growth in the next four years will be 3.3 percent.

The subprime mortgage crisis caused a wave of foreclosures, meaning families needed places in which to store their possessions. The $22 billion industry has a remarkably low barrier to entry, with 90 percent of self-storage companies owned by small business entrepreneurs.

Read article at Inc.com

BETCO has exclusive sources for self-storage construction financing, which means no other self-storage supplier or their customers will be able to access this service that includes extend discounted fees to BETCO customers.

Working through BETCO’s Special Services Department, developers can now proceed with their self-storage plans with a single-source manufacturer that has over a quarter century of leadership experience in the self-storage industry.

BETCO’s ablity to offer customers access to favorable construction financing is yet another way BETCO will bring value to their customers. Not only will this help qualifying customers to obtain financing for their project, but it will offer them the convenience of engaging a single firm for all of their self-storage needs from start to finish.

For more information contact:
BETCO, Inc.
1-800-654-7813
specialservices@betcoinc.com

When it comes to the overall appearance of your facility, image truly has an important impact on your success. In today’s business environment, perception becomes reality to most people, so whether you like it or not, your tenants and prospects alike look at your facility with a critical eye and if they don’t like what they see, it will surely affect your bottom line. 

One of the most important facets of your facility’s appearance is the condition of your buildings. Even if your landscaping is relatively attractive, the curb appeal of your buildings is the key.

From the Customer’s Viewpoint 

Picture this: a tenant comes by to deposit or retrieve inventory from their unit it’s difficult to open or close the rollup door or its paint looks faded. What kind of impression does this leave? Or prospects drive by your facility thinking about where to store their valuables and the facility appears unkempt and shabby, when earlier they had passed another facility that looked newer and more appealing. Where will they eventually go?

The answer to these questions is simple. Customers notice the appearance of your facility because they want to make sure their valuables are in an environment that is safe, clean, dry and attractive. In fact, did you know that 60%-70% of self-storage decision-makers are women? They tend to be very discriminating and demanding and the better they feel about the appearance of your facility, the more likely they are to rent from you.

To fully understand the impact of your building’s appearance on the mindset of self-storage customers, you must realize that today, they have options and choices. It’s called competition. If they don’t like the looks of your facility, they can go elsewhere, without ever leaving their neighborhood.

Here’s a good rule of thumb when it comes to your facility’s apprearance: If your competitior’s buildings look better than your’s, it’s time to refurbish.

The State of the Economy

Another more practical reason to consider refurbishing now is the state of the economy. If you have had to put planned expansion or new construction on hold, a viable alternative is to refurbish your existing buildings to make them look like new. It will cost less than new construction and has other advantages as well. For example, refurbishing your buildings may increase rental rates and occupancies, reduce maintenance, eliminate roof leaks and the cost may mean a tax write-off.

This preoccupation with facility appearance and image on the part of customers is a relatively new phenomenon. It hasn’t always been this way. To get a proper perspective, a little industry history might be in order.

Self-Storage Beginnings 

Anyone who has been in the self storage business for a few years will tell you that in its formative years, it didn’t have the best reputation, as businesses go. In fact, it didn’t have much of a reputation at all. Not too many people even knew self-storage existed.

But as the business moved from the west coast eastward during the 1960s, more and more people began to see rows of cinderblock or tin buildings popping up. Sure, they were on the wrong side of the tracks, because no self-respecting neighborhood wanted these unattractive, and in some cases eyesores, polluting its landscape.

As a result, self-storage facilities were relegated to the industrial and commercial sections of town. And in spite of it’s modest, somewhat questionable and unheralded beginnings, people from all walks of life began to recognize the value of self-storage. Whether folks were moving, getting divorced, downsizing, or simply needed extra space for their extra possessions, finding a suitable storage facility at a reasonable price, became important.

Predictably, the business grew because there was a public need, and when businesses grow, people pay attention. That includes potential customers as well as potential investors. Wall Street began to take notice, because entreprenuers soon discovered that self-storage was a much better investment than most real estate. So many of these new investors developed multi-facility locations in several cities.

But the majority of investors in the business, close to 80%, are Mom and Pop operations, small business owners looking to supplement their retirement income, or folks who are already involved in business and are looking to invest in another business that won’t take up 100% their time. Plus, (and here’s the best part), the business can produce positive cash flow in one to three years.

A New Day in Self-Storage

Over time, the self-storage business moved from being a marginal investment to where it is today — a business with a good ROI, but a business with stiff competition in some areas. One that now operates from well-designed, state of the art complexes, often times in upscale neighborhoods and retail environments, offering the latest technological features. These are the reasons why facility image has become so important. 

So, here is a reminder: Look closely at your buildings for signs of deterioration. From a very practical point of view, look at your competitor’s buildings too. If they appear pristine and new, it’s all the more reason to level the playing field and reburbish your buildings to equal or exceed their appearance. Remember, if your facility has a few years on it, now might be the right time to consider a facelift.

More often than not though, owners have to go through the zoning process, so here are a few tips on how to handle it:

• Ordinances and land use codes are different from city to city, county to county, and are constantly changing, so be prepared for it.
• Do not buy any parcel of land until it is zoned for self-storage. Otherwise, you could possibly go through an expensive and time-consummimg process.
• If you already own property and it is not zoned for self-storage, you have no alternative but to get it re-zoned, or get a varience or special use permit. Some zoning board members may have personal issues concerning self-storage. If you feel you are being unfairly treated, you may have to get the assistance of professionals such as a land use attorney, a self-storage consultant or an architect.
• Be prepared for your neighbors to have negative impressions about the self-storage industry. They may incorrectly associate self-storage with meth labs, criminal activity and ugly, orange doors. Take the time and effort to contact your neighbors by mail or email and let them know the postive aspects of the business. They need to understand that a storage facility is quiet, has little traffic, has no strain on utility usage, and provides good tax revenues.