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Capturing your Parking Customer

Here are some interesting facts from The Recreation Vehicle Industry Association. Their forecasts aren’t that granular in regards to specific cities, so everything is based on a national forecast. Nonetheless, these statistics shed light on the popularity of RV’s and hopefully “our” industry will continue to benefit.

According to the Industry Association’s RV Shipments and Sales data, “shipmates in 2014 are expected to total more than 335,000 units, which would be the highest total since 2007.” Additionally, RV ownership has reached record levels. “More than nine million American households now own an RV- the highest level ever recorded- a 16% increase since 2001 and a 64% gain since 1980.” The Recreation Vehicle Industry has a similar statistics to the Self Storage industry when it comes to Population and Demographic trends. The association states that both trends “favor long-term RV market growth and buyers aged 35-54 are the largest segment of RV owners, according to the 2011 University of Michigan study. Also, RV sales will benefit as aging baby-boomers continue to enter the age range in which RV ownership is highest.”

As always, I hope you find this information helpful and interesting.
Until next time

3Q 2014 Financial Results

Self-Storage Management Firms Report 3Q 2014 Financial Results
2 days ago0 CommentsPosted in News, Self-Storage Operators, Self-Storage Operating Performance, Third-Party Management Services, Self-Storage Suppliers Print

Several self-storage management companies have released operating results for the third-quarter ending Sept. 30. All showed improvements in same-store revenue over the third quarter in 2013.

Absolute Storage Management (ASM) released its third-quarter 2014 operational results as well as year-to-date results through Sept. 30 for its 80 properties. Same-store revenue increased 8.6 percent for the third quarter and was 9.7 percent higher behind occupancy gains of 5.7 percent for the year-to-date. Concessions were 13.8 percent lower in 2014 compared to the previous year.

“Operating results remained solid across most of our markets. Concessions have been declining throughout the year, while asking rents are nearly 4 percent higher,” said Michael Haugh, president. “Year-over-year revenue growth, however, appears to be slowing. The growth rate is trending down as occupancies reach all-time highs.”

Storage Investment Management Inc. (SIMI) reported results for the 28 self-storage properties it manages. Collectively, the facilities averaged an increase in same-store sales of nearly 6 percent during the quarter compared to the same period in 2013. Net operating income (NOI) for the period increased by 11.1 percent over the third quarter in 2013. The company attributes the surge to rent increases and steady occupancy, according to a press release.

Same-store revenue increased 7.6 percent year over year for the properties managed by Southeast Management Co. The increase was 7.8 percent higher, along with occupancy gains of 2 percent, according to a press release. The company’s NOI also showed a year-over-year increase of 13.1 percent year-to-date.

Founded in 2002, ASM owns and manages self-storage facilities throughout the Southeast. The company is actively seeking to add additional properties to its portfolio through traditional third-party management relationships and joint-venture/acquisition opportunities. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; and Jackson, Miss.

Based in Virginia, Southeast Management has a regional office in North Carolina. The company manages and owns self-storage facilities in Florida, North and South Carolina, and Virginia.

Headquartered in New York, SIMI is led by principals Charlie Fritts, president, and David Inman, chief operating officer, who have a combined 75 years of self-storage industry experience. The company manages facilities in Connecticut, Maine, Massachusetts, New Jersey, New York, Pennsylvania and Rhode Island.

Migration Patterns

Calling all Owners and Managers….aren’t you curious where people are moving to? Aren’t you curious where they’re leaving? You should be. The success of your business depends on information like this.

United Van Lines publishes an annual Migration Study each year with the top 5 states people are moving to and the top five states people are leaving. By requesting additional data from United, you can drill down to identify which cities within the states people are migrating to or from.

According to United’s 2013 Migration Study, “The Carolinas each made the top five with South Carolina at 60 percent and North Carolina at 58 percent inbound moves. North Carolina has been on the high inbound list every year since 1993, and South Carolina has held a spot on the top inbound list 16 out of the past 18 years.”

So, if your facility is in the Carolinas, this is great news. Make sure you keep tabs on future information like this and in the meantime, find out if your city/town has become a hot spot destination.

Measuring For Success

No matter how many times I hear a manager tell me that he or she does not have an annual budget to work off of, I’m still shocked. It never fails to amaze me.

Some of you may be asking, “why is that such a shock?”   Well, if you got in your car tomorrow and decided to drive somewhere that you’d never been before, would you not look at a road map, use GPS or ask someone for directions? So how is that any different with a facility manager?

If an employee isn’t provided a “road map” than they won’t know where they’re ultimately headed and they definitely won’t know how to get there. In order for any manager to excel and any facility to thrive, results have to be measured. There has to be a goal in sight. If we aren’t pushing ourselves and our facilities to considerably improve year over year, then we’re moving backwards.

So, for those of you who do not provide your managers with an annual budget, I strongly suggest you consider it for 2015 and beyond. A good exercise to help with consideration for this plan would be to review the last 2-3 years performance and see how your store(s) performed year over year. Perhaps your managers just need basic directions to bring you the results you’ve been looking for.