10 Ways to Boost Your Value

by Mike Miggins, CBRE

1. MARKET INTELLIGENTLY

Are you maximizing your marketing dollar? Are you thinking creatively? An effective website can be essential to capturing today’s savvy consumer. Approximately 80 percent of your tenants will come from a certain demographic and are coming from a select few marketing programs. Know your demographic!

2. DON’T GIVE IT AWAY FOR FREE

Are concessions hurting or helping you? Concessions are a powerful tool to attract tenants. However, be careful not to advertise blanket specials. Instead, concessions should be strategically targeted to increase income by discounting specific unit types that have historically low occupancy levels. This will not only increase the productivity of those unit types with higher vacancies, but will also sustain the economic productivity of unit types heavily demanded by the market.

3. IMAGE IS EVERYTHING

What first impression does your facility give to potential customers? The best tenants will be looking for high-quality, attractive facilities. Simple practices such as a fresh coat of paint, pressure washing doors and exteriors, picking up trash, and sweeping out units are all affordable ways that please those paying attention to detail. A few flowers and nice landscaping will also add greatly to your facility’s curb appeal.

4. MAXIMIZE UNIT EFFICIENCY 

Is the layout of your facility negatively affecting your income generating potential? Maximize the productivity of your property. Remember that overall income trends upward as unit sizes decrease in most markets. To the degree that the market will absorb them, partition unnecessary large units into unit sizes that rent at a higher price per SF to recapture lost potential income. Again, know your demographics! Ending up with too many 5x5 units could result in low occupancy and unsatisfied income expectations.
 

5. LEVERAGE ZONING

Are you aware of the extra value hidden in the land beneath your facility? Knowing the zoning code that governs your parcel can open up opportunities to create substantial income streams that are steady, dependable, and low maintenance in nature.

6. PUT YOUR BEST FACE FORWARD

Who is the face of your facility? Your choice of staff will be the face of your business. Managers who can give a good impression to potential tenants with charisma and attentiveness as well as capture your vision of professional service will attract and retain your tenants.

7. TRACK YOUR PERFORMANCE 

Do you know exactly what your facility’s weakness is? By keeping detailed records on a per-unit basis you can address individual supply and de- mand issues. By keeping track of your customer service and tenant flow you should notice trends that may help you capture more business. In both instances, tracking your performance can help you chart your path to increased value.
 

8. KNOW YOUR NEIGHBORS

Do you participate in your community? Get involved with businesses and residents, and you will gain a more intimate knowledge of your market area, which will allow you to customize yourself to their needs.

9. UTILIZE SECURITY

Do tenants know your facility is safe? Reliable and visible security features will attract high quality tenants and lend to the credibility of the facility. Video surveillance, electronic gates, fencing, individual unit alarms, and on-site management are all becoming standards in the self-storage community.

10. STORAGE INCOME IS NOT EVERYTHING

How much ancillary income does your facility produce? The most successful operators in this industry have recognized that income is not limited to the monthly rent of their units. Additional income generators include RV/boat storage, specialized wine storage, safe deposit boxes, and a host of other creative ideas. Also, look at miscellaneous income items which could include administration fees, late fees, merchandise sales, truck rental, video conference rooms, and auctioning services.

 

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