Tag Archives: connecticut

Webinar: Maximizing Tax Savings for Self Storage Owners and 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.

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.

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.

Webinar: Your Reputation Matters

In 2019, your online reputation is more important than ever. Our presenter, Melissa Stiles from Storage Asset Management, Inc., will help you learn about the tools and techniques to monitor, protect, and defend your storage facility. Discover 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.

2019 Northeast Storage EXPO – Attendee

Our annual Northeast Storage EXPO is being held at the new MGM Casino in Springfield, MA October 2-3, 2019!

Exhibitors: Please go here.

As you can tell from the topics in our agenda below, we’re adding a technological spin to this year’s show! The educational sessions on day one will boast the knowledge, experience, and success of the three founding members of Atomic Storage Group including Rick Beal, Magen Smith, and Matthew Van Horn. On day two, we’ll add the always-enjoyable and helpful attorney Jeffrey Greenberger of Greenberger & Brewer, LLP to the mix as well as a panel of experts who will explore the trends and advancements of technology in today’s world. Throw in roundtables, exhibits, and networking and we have the makings of a groundbreaking show at a can’t-miss location!

MGM is offering beautiful, brand new luxury rooms for our attendees at an astounding rate of $179 per night. You can book online here. The deadline to make your overnight hotel reservations is Sunday, September 1, 2019.

Wednesday, October 2, 2019
2:00 PM   Registration
2:30 PM   Breakout Sessions
(attend one)

Buying, Operating, or Selling: The Numbers You Should Know with Magen Smith, CPA of Atomic Storage Group
Whether you are buying, operating, or selling a storage facility, there are a handful of numbers that can make or break any deal. In this session, we will cover the numbers you should know, where to find them, and why they are important. Buyers will learn the key metrics to review to know if the property is a good deal. Owners and operators will understand numbers beyond rentals and revenue. What else should you review daily, weekly, and monthly? And sellers will learn how to clean up their business to get top dollar in today’s market.

How Tech Trends Improve Your Hiring with Rick Beal of Atomic Storage Group
Storage is a difficult industry to attract talent. Owners and operators are continually challenged to find the best candidates with the methods given to them. These manual processes slow down an organization’s resources and make it difficult to optimize workflows. In this session you will learn how technology will help you through recruitment to hiring. Because, as you know, the most important decision you can make is who is behind the counter.

3:45 PM   Break
4:00 PM   Bringing Your Storage Operations into the 21st Century with Rick Beal, Magen Smith, and Matthew Van Horn of Atomic Storage Group
Self storage owners face a wide variety of challenges, often including staff, revenue, and competition. In truth, most of the biggest challenges owners have is around one central theme: the bottom line. With the changing scene of technology in storage, it is even more important to understand what you need to improve and why. In this session, we will open our operations and show you the tools you need to bring your storage business into the 21st century without taxing the bottom line. Bring your questions for an active panel discussion.
5:15 PM   Annual Business Meeting
5:30 PM  
Tradeshow and Reception
Join us in the tradeshow hall and on the terrace for mingling, exhibits, hors d’oeuvres, drinks, and networking.

Thursday, October 3, 2019
Registration begins at 8:00 AM. Wake up with breakfast and networking before a day of education and conversation. The schedule and education sessions are listed below.
8:00 AM   Registration, Tradeshow, and Breakfast
8:30 AM   Welcome and Opening Remarks
8:45 AM   Roundtables
(attend 3)

  • Free Tech Tools to Run Your Facility, Rick Beal of Atomic Storage Group
  • How Cloud-Based Access Control Systems and Technology are Changing the Self Storage Industry, Christian Thurgood, Easy Storage Solutions
  • Late2Lien: The Turnkey Solution to Automating Late End Lien Sale Notices, Jeffrey Greenberger of Greenberger & Brewer, LLP
  • Owning Your Numbers & Understanding Reports, Magen Smith of Atomic Storage Group
  • Self Storage Q&A: Ask an Expert, Matthew Van Horn of Atomic Storage Group
  • Specialty Storage and Other Options to Increase Revenue and Improve the Bottom Line, Connie Neville of SVN Commercial Real Estate Advisors
  • Using Smart Technology to Compete in the Self Storage Industry, Devin Zucker of Janus International

10:00 AM  What is New and How It Can be Utilized by Self Storage Facilities with panelists Thomas Brooks of PTI Security Systems, Stephen Tranni of Stor-U-Self, and Tully Zipkin of Global Integrated Technologies
Topics covered by our panel include:

  • Cloud base solutions: What does it mean and is it important to you?
  • Access control options, including: Mobile applications, automated payment notifications and applications, and automatic locking and overlocking options.
  • Artificial intelligence surveillance cameras and what opportunities they present for actual surveillance with optional PA announcements vs. “after the crime” video recording systems.
  • Dollars and sense: How does the ROI work?

11:00 AM  Exhibits
12:30 PM  Lunch, Exhibits

1:15 PM   Reconvene and Scholarship Award Presentation
1:30 PM   10 Things Self Storage Owners Do to Self Sabotage with Matthew Van Horn, Atomic Storage Group
Owning a self storage facility can be a trip down insanity lane, with a quick stop at the corner of confusion and overload. It only takes a few mistakes and all of a sudden your dream facility turns into a rudderless plane full of gremlins. This session will show you how to systematically analyze your self storage operation so you can avoid the gremlins and keep your facility on track. Bullet points include:

  • Why self storage isn’t like your other businesses
  • How to find the self storage manager of your dreams
  • Why your self storage facility’s bottom line isn’t the only line
  • How to create a stellar self storage marketing plan and why you need to market your facility all the time
  • Leveraging the lost art of communication
  • Why technology doesn’t solve every problem
  • Where to find help before the gremlins create havoc in your self storage operations
  • How to leverage revenue management the right way

2:30 PM   Why Can’t I Fall in Love with Online Rentals? with Jeffrey Greenberger, Greenberger & Brewer, LLP
Technology is rapidly evolving in the self storage industry, but at times we forget that our industry needs information and sometimes we just need to “see” our potential tenant. Our keynote speaker takes a look at how technology is evolving and reminds us to look at the legal implications of each technological step we take before we leap, as we may forget to protect our businesses.
4:00 PM   Closing Remarks, Adjourn

Member Registration: $179 ($199 after September 12)
Nonmember Registration: $199 ($229 after September 12)

 

Cancellation Policy: Refunds will be issued for full amount minus a $75 administration fee if received in writing by September 18, 2019. Refunds cannot be issued after September 18, 2019.

2019 Northeast Storage EXPO – Exhibitor

The Northeast Self Storage Association is hosting its annual Northeast Storage EXPO October 2nd and 3rd, 2019 at the new MGM Casino in Springfield, Massachusetts.

Attendees: Please go here.

All suppliers for the self storage industry are invited to exhibit at the event. Sponsorships are also available for added visibility. Register soon and select your booth space!

*NEW FOR 2019* There is one brand new sponsorship opportunity this year.
As a Drink Ticket Sponsor, your logo will be printed on complimentary drink tickets at the reception, you will be listed in the conference rogram and on signage, and you will be recognized as a sponsor on NeSSA’s website and from the podium at the general session.

If you would like to be considered for a roundtable presentation, please send your title and description to Courtney Kahler. Topics must be educational in nature, not a sales pitch, and will be approved by the Program Committee. Roundtables will be chosen by Monday, August 19, 2019.

Download the Exhibitor and Sponsor application for complete details, or click on the “Register Now” button below to register today. You can also view the floor plan. Five-Star annual sponsors received the benefit of first booth choice. Remaining space is confirmed on a first registered and paid basis. Please see the event schedule below:

Wednesday, October 2, 2019
12:00 PM – Exhibitor Move-In (must be ready by 4:00 PM)
2:00 PM – Registration
2:30 PM – Breakout Sessions
3:45 PM – Breakout Session
5:00 PM – NeSSA Annual Business Meeting
5:30 PM – Tradeshow and Reception
Thursday, October 3, 2019
8:00 AM – Registration, Tradeshow, and Breakfast
8:30 AM – Welcome, Opening Remarks
8:45 AM – Roundtables, Breakfast Available
10:00 AM – Panel Presentation
11:00 AM – Exhibits
12:30 PM – Lunch, Exhibits
1:15 PM – Reconvene, Scholarship Award Presentation
1:30 PM – Keynote Speaker
2:30 PM – Keynote Speaker Jeff Greenberger, Greenberger & Brewer, LLP
3:45 PM – Closing Remarks, Adjourn

The booth price for NeSSA members is $699 and includes the cost of two company representatives ($749 after September 15th)
The nonmember booth price is $999 and includes one company representative – But if you join NeSSA, you’ll save on your exhibit fee and get to bring a second booth representative at no additional cost.

Many levels of sponsorships are available and start at $200.

You can make overnight hotel reservations under our discounted room block at the MGM 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

Webinar: Making the Most of Your Insurance Claim

In this session, you will learn insurance basics that pertain to the self storage industry and receive tips on making the most of your insurance claim. Presenter Scott Greenwald is the Senior VP and Principal of Goodman-Gable-Gould/Adjusters International (GGG/AI), whose public adjusters represent policyholders in first-party claim negotiations with property insurance carriers for expeditious recovery, after a policyholder has suffered property damage. Insurance experts review and analyze insurance policies, measure damages (to building, business personal property including machinery, equipment, stock, etc., business interruption, loss of rental income/extra expense), prepare detailed claims, and negotiate for expeditious and equitable recovery with insurance carrier(s). Q&A is encouraged.