Featured post

The Nuts and Bolts of Revenue Management

Register today for NeSSA’s first webinar of the year on February 27, 2020 with Jim Ferguson of Storable as he covers the following aspects of revenue management:

  1. Learn how to offer the best rate possible for new customers and existing tenants.
  2. Understand when to raise rates, how much, how often, at what occupancy level, what time of year, and the other key factors that play into each rate change.
  3. Are you being too aggressive?
  4. Are you not raising rates at all or enough?
  5. Find out the key data points of YOUR tenants and units, to offer the right price at the right time.

Featured post

Save These 2020 Dates!

The Northeast Self Storage Association is excited to announce its dates for our live events of 2020! Mark your calendars with the following information, and keep your eyes peeled for more about both of these events (as well as our webinars) coming soon!

Spring Retreat

Self Storage How-To: A Guide to Facility Success
Featuring Christina Alvino of Fine View Marketing, Charlie Fritts of SIMI, and Scot Vayo of iStorage
Wednesday, May 6, 2020
The Publick House Historic Inn
Sturbridge, MA

Northeast Storage EXPO

October 7-8, 2020
MGM Springfield
Springfield, MA

We hope to see you at the shows!

Featured post

2020 Member Renewals

Membership renewals for 2020 are in full swing at the NeSSA office! If you haven’t received your invoice for the new year, please contact us.

As a reminder, you can pay for membership four different ways:

  1. With a check made payable to NeSSA mailed to our new address:
    17047 Goldcrest Loop
    Clermont, FL 34714
  2. Through PayPal via an online invoice (ask us to send you one)
  3. With a credit card over the phone – call our office at (617) 600-4481
  4. Log in to your account on www.NeSSA.org and pay through your Account.

Membership with NeSSA ensures you maintain benefits offered through the association including discounts to attend events, free attendance to six bimonthly webinars, four annual newsletters, an extensive online member resource library, an indirect membership to the national SSA, government lobbying on your behalf, and more!

Be sure to double check your company and contact information and let us know of any updates or corrections to your business. This will help your profile look more complete when possible customers search our facilities list for available storage.

Prospective members can join any time! Simply go to our Join Us tab and select the membership option that best fits your business.

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New Member Benefit Coming

The Northeast Self Storage Association is excited to launch a new member benefit called the Member Discount Program. This idea will allow vendor members the opportunity to promote a benefit or discount from their companies to NeSSA facility members.

Vendors are invited to send in a brief submission explaining their offer, along with their company name, contact person, email address, and phone number to Courtney by 6:00 PM on Friday, November 22nd. Offers should short, sweet, and to the point (less than 30 words).

The board will review all submissions, and vendors will be informed of offer approval or any needed changes in early December.

The Vendor Discount Program will launch January 1, 2020.

Need some ideas? See below for examples!

Self storage website design and development: Exclusive to NeSSA members only! $495 (regularly $749)

Free insurance consultation and insurance quotes for self storage facilities.

Special new Work Comp program and new exclusive policies offered for NeSSA facility members.

Sign up today and run your first 4 online auctions for free.

 

Any business conducted is strictly between the facility and the vendor.
Featured post

NeSSA Has a New Address

Please note that the Northeast Self Storage Association (NeSSA) has changed our address effective immediately. Please update your records to reflect our new location:

17047 Goldcrest Loop
Clermont, FL 34714

The old PO Box will remain under NeSSA’s name until it expires later this year and will be checked regularly. Once it expires, all mail will be forwarded to our new address.

Thank you for attention to this matter!

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2019 Five-Star Sponsors

Thank you to our annual 2019 Five-Star Sponsors!


Boardwalk Storage Solutions, LLC
44 Wood Ave., Suite 7
Mansfield, MA 02048
508-337-9035
www.boardwalkstoragesolutionsllc.com
Boardwalk Storage Solutions creates individualized self storage solutions to suit your development needs and build the best project for the cost. Our turnkey approach allows the owner to focus on his/her business strengths while being assured of quality and timely projects. Of course, you can tailor our services to specifically suit your particular needs. We sell success and nothing else!


Storage Insurance Brokers
750 Old Main St.
Rocky Hill, CT 06067
860-372-4159
www.storageinsurancebrokers.com
Storage Insurance Brokers, a Division of World Insurance, is a leading national provider of business insurance for self storage facilities. We develop exclusive, comprehensive programs designed specifically for the unique needs of your self storage facility, at the most competitive premium available. Give us a call today at 860-372-4106 or visit www.storageinsurancebrokers.com.


Storage Investment Management, Inc.
40 Lily Brooke Court
East Amherst, NY 14051
716-689-7377
www.simi.org
Storage Investment Management, Inc. (SIMI) is a professional self storage management company. SIMI employs a hands-on focus along with cutting edge strategies to create profits and value. Our clients work with a highly experienced principal owner who is always accessible to you. Because SIMI thinks and acts like owners, we have a unique understanding of this business and will always do our best to achieve success on your behalf.


SVN | C.M. Neville & Associates, Inc.
PO Box 193
Lexington, MA 02420
781-696-6241
www.svn.com
SVN | C.M. Neville & Associates is pleased to be a resource to owners, investors, and operators of self storage facilities offering complimentary, confidential valuations, feasibility studies, consulting services, and complete brokerage and marketing services to owners who wish to sell their properties. Contact Connie Neville at (781) 696-6241 or nevillec@svn.com for your self storage solutions.


Trachte Building Systems
314 Wilburn Rd.
Sun Prairie, WI 53590
800-356-5824
www.trachte.com
Trachte Building Systems designs, manufactures, and erects a full line of durable, pre-engineered, customized steel self storage systems including single and multi-story, portable storage, interior partition and corridor, and boat/RV. Trachte’s knowledgeable sales team is committed to helping owners make informed decisions. This commitment, along with over 115 years of experience, has given Trachte a leading edge in the industry.

Out of the Office

Thank you for visiting the Northeast Self Storage Association website!

Please be advised that staff is out of the office today, Monday, December 9th through Friday, December 13th.

You are more than welcome to email us or leave us a voicemail at (617) 600-4481, and we will get back with you once we return.

We will be back full time starting Monday, December 16th. Thank you for your understanding and continued support!

Maximizing Tax Savings for Self Storage Owners & Operators

The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. This marks the first comprehensive tax law reform since 1986 and the legislation has created a wealth of new opportunities for the thoughtful owner of self storage properties. A thorough cost segregation study is the vehicle by which TCJA benefits may be obtained. The Tangible Property Regulations (TPRs) are still in play in this post tax-reform era, and in fact augment the utility of the TCJA. Again, a thorough cost segregation study is the key to fully leveraging all possible benefits. We will also discuss several case studies to illustrate how self storage owners and operators have realized tax savings through these strategies.

Learning objectives:

  • Understand how cost segregation is the vehicle by which tax savings opportunities are obtained.
  • Use a TPR flowchart to assist in the expense vs. capitalization decision-making process.
  • Identify possible opportunities for leveraging the TPRs.
  • Explain the significance of the date 9/27/17 in determining bonus rates for new construction projects and acquisitions.
  • Review the current status of Qualified Improvement Property under the TCJA.
  • Become familiar with Section 179 and Opportunity Zones under the TCJA.

Join us for a webinar on December 2nd where our presenter, Carly Ferris of Capstan Tax Strategies, will walk you through these changes and answer your questions on what this means for you.

Your Reputation Matters

In 2019, your online reputation is more important than ever. Join our presenter, Melissa Stiles from Storage Asset Management, Inc. on Tuesday, October 22nd at 2:00 PM EST to learn about the different tools and techniques you can use to monitor, protect, and defend your storage facility. Discover in this webinar how to proactively manage your facility’s online reputation.

Some CT Communities Put Storage Facilities on Pause

September 30, 2019
Gregory Seay, News Editor, Hartford Business Journal

Self-storage facilities, a development staple nationwide in recent years amid shrinking household spaces and limited realty-investment opportunities, are losing luster with some Connecticut communities.

Wethersfield, one of the state’s oldest settlements whose pool of developable acreage has shrunk considerably over decades, Sept. 11 imposed a 180-day, extendable moratorium on new applications for self-storage units within its borders.

That followed a similar ban Milford imposed last December to allow it to update its land-use ordinance so that future self-storage facilities are restricted to a specific zone.

The city of Hartford has also amended in recent years its zoning to limit new storage facilities to industrial zones, after a multi-story one was erected next to I-84, in the city’s historic Parkville neighborhood.

New York City several years ago also restricted storage facilities to certain zones, while Birmingham, Ala., has a stay underway as it reviews self-storage zoning.

Municipal officials leading the self-storage pushback say they are concerned about the number of facilities popping up, the amount of space they are taking in an already densely populated and developed state, and the limited economic impact they have both in terms of the number of jobs they create and nearby development they spur.

“We want Hartford to be an equitable, thriving, vibrant and sustainable city,’’ said Sara Bronin, chair of the city’s Planning & Zoning Commission. “Self-storage facilities don’t help us achieve any of those goals.”

Bronin said Wethersfield and Milford are taking reasonable steps because storage facilities “do little to contribute to urban vitality.”

Meanwhile, regional self-storage operators acknowledge siting concerns are increasing even as demand for their products-services continues to grow, not just from homeowners short on closet space, but businesses and municipalities in need of short- or long-term storage for equipment and inventory. The industry estimates one in 10 U.S. households uses self storage at some point.

“This is a demand-fed business,’’ says Charlie Fritts, secretary-treasurer of the Northeast Self Storage Association, whose Buffalo, N.Y., company operates 14,000 self-storage units from Maine to New York, including some 300 in Bridgeport. “You wouldn’t build it unless you were sure somebody was going to rent it. … People just have a lot of stuff they don’t want to get rid of.’’

Wethersfield Town Planner Peter Gillespie said local land-use officials felt the town “was saturated’’ with storage facilities so they ordered “to see what we want to do or not do’’ with them.

Gillespie said this is Wethersfield’s first development moratorium in his 14 years with the town. The ban runs through March and can be extended up to another six months, he said.

Growing demand

Decisions as to where, when and how real estate — residential, commercial and public — within communities’ borders is used or developed has long been the province of local leaders.

When the Great Recession hit in 2008, most commercial and residential real estate grounded to a halt. Residential, in particular, was hit with the extra whammy of a dramatic drop in house values and subsequent climb in foreclosures in most of the nation due to the subprime-lending crisis.

Homeowners who bought at the peak but later could not afford their dwellings after losing jobs or unable to sell, surrendered the keys voluntarily or through foreclosure.

As a result, need grew for rented apartments and townhomes, typically smaller and with less storage space than the single-family dwellings they abandoned. That surge coincided with the desire for aging Baby Boomers and empty-nesters to downsize.

So, developers, many flush with capital from investors eager for the next new thing, or at least a steady realty-income stream, stepped in to build storage facilities in urban and suburban markets.

For example, Extra Space Storage, one of America’s largest operators, partnered with a New Jersey self-storage developer to erect two years ago a multi-story storage building at 31 Pope Park Highway, at Park Street, in Hartford’s Parkville neighborhood. It was designed to resemble an earlier, office-to-storage conversion next door.

In Bristol four years ago, Los Angeles investor DealPoint Merrill LLC paid $2 million for a mothballed Shaw’s supermarket at 1045 W. Main St., that it converted to self storage as part of a trend of converting former “big-box’’ retail sites to storage.

According to Marcus & Millichap’s 2019 Connecticut self-storage market report, developers delivered nearly 730,000 square feet of storage space over the last year. In 2018, the region’s self-storage inventory grew by more than 1 million square feet, Marcus & Millichap said. They forecast just 623,800 square feet of storage will be built in this state in 2019.

Completions, M&M said, remain historically elevated in 2019, with the bulk of construction concentrated in suburban Hartford.

M&M’s report also said ongoing storage development has pushed unit vacancies in the New Haven-Fairfield County area to a six-year high of 9.8 percent.

Storage appeal

It’s easy to see why communities and users initially found self-storage facilities appealing. With few infrastructure needs beyond walls, lighting and a door, they are relatively cheap to erect and operate. They also generate property taxes, but unlike residences, self-storage facilities require minimal town services and do not burden local schools.

In communities with strict rules against extended curbside or driveway parking of oversized or off-road vehicles, some storage facilities offer outdoor lots large enough to accommodate them as well as off-road vehicles, boats and trailers.

“Nobody wants to see a 30-foot camper parked in a driveway all winter,’’ said Fritts, who is president of Storage Investment Management Inc. (SIMI).

But their appeal is dimming amid questions about their relative economic-development value to communities, said Julie Nash, Milford’s director of economic and community development.

Milford and other communities nationwide are realizing that self-storage facilities are not always the highest and best use of land, especially undeveloped acreage, within their borders.

This shoreline community of 53,000 was growing inundated with storage facilities, and Milford had gotten word more may be coming, Nash said.

Nash said she calculated that Milford harbored enough self storage for more than every resident to rent, based on the industry standard of roughly seven square feet per capita.

“There was a proliferation of storage units going up,” Nash said. “They are valuable spaces, but they don’t contribute jobs. We need to make sure we’re making the best use of our land.’’

Milford’s location off I-95, between New Haven and Bridgeport — two cities with little developable acreage — make it attractive even to shoreline residents living outside Milford to use the town as their personal closet, observers say.

Fritts said SIMI’s Bridgeport storage facility benefits from New York City clients who come long-distance to pay suburban Connecticut storage fees that average 40 percent less than the Big Apple’s. Typical storage users live less than four to five miles, or within 15 minutes, of one, he said.

“We want people to come in,’’ Milford’s Nash said, “but we don’t want to be a dumping ground for their stuff.’’

Michael Legacki, acquisition manager for The Hampshire Cos., the diversified New Jersey landlord/owner of Parkville’s Extra Space Storage, said his company deems Milford’s self-storage market overbuilt and won’t operate there.

Legacki said he welcomes communities’ extra scrutiny of his industry, which he says has too many players and investors chasing too few salient development opportunities.

Still, he defends self storage “as a huge positive for communities,’’ claiming that nationally most storage facilities consistently have occupancy rates above 90 percent.

“Clearly, it’s a service the community needs,’’ Legacki said.

Fritts also countered criticism that self-storage centers don’t contribute meaningful economic development and jobs in a community.

“I don’t think that’s fair,’’ he said. “We pay real estate taxes like everybody else.”

You can see the original post here.

Is Your Business in Compliance with Overtime Regulations?

Is Your Business in Compliance with Overtime Regulations and Federal Employment Reporting Requirements?

First, the federal Department of Labor (DOL) recently proposed an increase to the minimum required salary for employees designated as exempt from overtime pay from $23,660 to $35,308. Although this change is likely about six months away from taking effect, it is advisable for SSA members to review their payroll structure now to plan for any changes that will be necessary when the change goes into effect. When the changes take effect, salaried employees who make less than $35,308 must either receive a salary increase or be converted to an overtime-eligible employee.

Moreover, the current and proposed federal overtime regulations allow for employees to be designated as exempt from overtime pay only if their job duties fall into one of the exemptions. Both small and large operators have been sued based on allegations that their employees were improperly designated as exempt from overtime pay.

Therefore, storage operators are strongly urged to review the OVERTIME MEMO to better understand the exemptions from overtime pay and to determine whether their employees are accurately designated as exempt from overtime pay. If the employee’s job duties do not fall into one of the exemptions, federal law requires that the employer pay the employee overtime for any hours worked in excess of 40 hours per workweek. The memo also discusses the proposed change to the minimum required salary and tips to prepare for the change.

Storage operators must keep in mind that federal law sets minimum requirements for employers. State and local employment laws often impose stricter requirements that employers must meet.

Second, the Equal Employment Opportunity Commission (EEOC) is requiring employers with 100 or more employees to provide additional compensation data by September 30, 2019.

The EEOC has for years required covered employers to submit information regarding employee sex, race, and ethnicity to assist with its enforcement efforts. During the Obama Administration, the EEOC determined that additional information was needed from employers to combat wage discrimination.

As a result, employers will now have to provide pay ranges for employees based on “box one” of W-2 forms and must report hours worked by employees. Information must be provided regarding ethnicity, gender, job category, and sex of each individual employee within the pay ranges.

To learn more, visit the SSA blog.

Daniel Bryant is the SSA’s Legal & Legislative Counsel. He advocates on behalf of the membership at the federal, state, and local level to protect and advance the interests of the industry. He received his law degree from American University, Washington College of Law and his undergraduate degree in political science from Virginia Tech. He is a member of the Virginia and the District of Columbia bars. Prior to joining the SSA, he was an associate attorney with a law firm in Washington, D.C. Daniel can be reached at dbryant@selfstorage.org or at (703) 575-8000 ext. 107.

Meet the Exhibitors of the 2019 EXPO

Our exhibit hall is once again booming with companies for the upcoming Northeast Storage EXPO. You can see the companies exhibiting this year listed in alphabetical order. Be sure to note those who are sponsoring!

All Risks
Atomic Storage Group
Automatit
BETCO
Bid13.com Online Storage Auctions**
BL Companies**
Boardwalk Storage Solutions*
Boxwell
Capstan Tax Strategies
Cushman & Wakefield
DBCI
Easy Storage Solutions
Elite Fire & Security
First Bank Financial Centre
G5 Search Marketing**
Global Integrated Technologies
Global Self Storage
Goodman-Gable-Gould/Adjusters International
Hillcrest Agency
Investment Real Estate*
Janus International
Karnak Corporation
Key Solar
Kidd-Luukko Corporation
Life Storage Solutions
Marcus & Millichap**
NAI Norwood Group
OpenTech Alliance
Package Steel Systems
Paramount Metal Systems*
Ponderosa – Safestor Tenant Insurance**
Professional Fire & Security
PTI Security Systems**
Rabco Enterprises
RightSpace Storage
Storable
StorageAuctions.com
The Storage Acquisition Group
Storage Auction Solutions
The Storage Group
Storage Insurance Brokers
Storage Investment Management, Inc. (SIMI)
Storage Structures
StorSmart Insurance
SVN Commercial Real Estate Advisors
Syrasoft Self Storage
Trac-Rite Door
Trachte Building Systems
TrinityPoint Wealth
U-Haul Self Storage Affiliate Network

*denotes sponsorship
**Event Sponsor
Hyperlinked companies are 2019 Five-Star Sponsors