Storage in Paradise Facilities in Tropical Locations Cater to Unique Tenant Needs
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FOUNDATION VOL. 14, NO. 12 DECEMBER 2015 ISSUE $8.00 / ANNUAL $96 THE OFFICIAL VOICE OF THE SELF STORAGE INDUSTRY Storage in Paradise Facilities in tropical locations cater to unique tenant needs. P10 Also Inside: Wrapping up 2015 P16 The Leader in Self-Storage Management Soft ware For 19 Years More Than 11,000 Installations Worldwide • Protect customer data with PCI DSS Level 1 & SOC 1 Type II Certi fi cati on • Easily integrate with more technology partners • Automate more management functi ons • Increase revenue and profi ts Schedule a Demo of SiteLink’s Award-Winning Software htt p://go.sitelink.com/ssa 919-714-7374 [email protected] 2011 • 2012 • 2013 Facility of the Year 2014 • 2015 www.sitelink.com Winners trust SiteLink VIEWPOINT You Impede Industry December 2015 By Tim Dietz, SSA President & CEO Education News .............6 The SSA collaborates with and manages many state associations. The headline inCrains NY read, “Mayor finally unveils plan to protect industrial businesses, which calls for freezing out hotels and self storage.” Government Relations ........8 Regulations, lien laws lead SSA agenda. TheNew York Post headline was a little more direct, “Delusional de Blasio is bringing back the 1940s.” Another Day in Paradise ......10 The mayor and his city council allies announced their “Action Plan to Grow Storage facilities in tropical locations cater to a unique clientele. 21st Century Industrial and Manufacturing Jobs in NYC” November 5 amidst great fanfare. The action plan amounts to support of public proj- Wrapping Up 2015 ..........16 ects while impeding the development of hotels and self storage in several Operators offer end-of-year checklists to do right by employees, the community protected industrial zones. Forget that the city’s much maligned high rents are a direct deriv- and the bottom line. ative of demand, and supply, which will now be artificially influenced. It calls for nearly half a billion dollars of public sector investment in manufacturing jobs. The Sizing Up the Competition ....26 Knowing what nearby facilities are doing balance, if not all, of these manufacturing jobs will be public projects such as the city’s Navy is crucial to your success. Yard. Reports say the plan came together with the input of “manufacturing advocates.” The self storage advocates, namely us or the NY-SSA, were not asked to participate in the planning European Success ..........30 process. FEDESSA’s conference in Amsterdam was a big hit. Interestingly, ships are not really built in New York City anymore. In fact, the city is pretty far removed from its industrial heyday. The Garment District has not produced many slacks Legal Q&A .................33 since a time when people actually called them slacks. Most of those jobs have moved to Asia. How to handle cleaning and disposal fees in rental agreements. Machinery, furniture, tools… for the most part are all being produced somewhere else. Industrial demands now are being satisfied in places where it is cheaper to do business, and by Executive Ski Workshop ......35 This five-page section explains that I don’t simply mean cheap labor, but places where it is less expensive and easier to conduct everything you need to know about business generally. For example, in my home state of Virginia, taxes are much lower, and red SSA’s event next month in Vail. tape due to regulations has been mitigated, deliberately, to attract and retain all types of jobs. Businesses that support big industry, from real estate to contractors, have been encouraged State Association News ......43 to make the Old Dominion home. Around Self Storage .........59 Even the massive Newport News Shipbuilding and Drydock Company (now Huntington Ingalls Industries) is privately held, and is the largest industrial employer in Virginia. Its success Globe Advertisers ...........61 over the years was certainly tied to the nearby naval shipyard, but zoning-out private devel- opment, businesses that support the larger industry, did not play a role in its storied history. Data Depot ................62 We take a look at storage in the By contrast, New York’s small businesses contend with suffocating bureaucracy, steep tax Northeast region of the United States. rates, and, of course, fees. To be fair, NYC has offered some zoning protections, tax credits and other benefits… to industrial and manufacturing interests. Unfortunately, as has been the case since the advent of government, sprinkling the favors to only some sectors, particularly to publicly-dependent labor, is not the model for a frothy incubator economy. On the cover: Fortress Self Storage (seen in bottom right of photo) in St. Thomas, Existing hotel and self storage property owners may somewhat appreciate the competitive Virgin Islands. dynamic here, but let’s be clear, this is bad policy and a dangerous example of community enginnering on the country’s biggest stage. v Publisher The SSA Globe is published by the Art Director Timothy J. Dietz Self Storage Association Foundation Jan Sklennik [email protected] 1901 N. Beauregard Street, Suite 106 Alexandria, VA 22311 SSA Staff Writers Executive Editor Phone 703-575-8000 Marcus Dunn, Anastasia Malagisi Tom Comi D. Carlos Kaslow, Scott Zucker [email protected] ©2015 by the SSA Foundation. SSA and SSA Globe are trademarks of the Self Storage Association, Inc. Opinions expressed by authors and other contributors do not necessarily reflect those of the publisher or editors, Contributors nor do they represent the policy or positions of the SSA. Information Laura Fries contained within articles should not be construed as the primary basis Laura Williams -Tracy for legal or investment decisions. www.selfstorage.org Participate. Learn. Benefit. Succeed. SSA Staff SSA Board of Directors Timothy J. Dietz John Barry President & CEO Chairman [email protected] [email protected] Derek Knights Marc Smith Jon Hutto Michael Nunez Sr. Vice President Vice Chairman Treasurer Secretary Finance & Administration [email protected] [email protected] [email protected] [email protected] Terry Bagley Gwyn McNeal Ginny Stengel [email protected] [email protected] Sr. Vice President Robert Chiti Travis Morrow Education & Membership [email protected] [email protected] [email protected] Don Clauson Daniel Nixon Mike Blackett [email protected] [email protected] Vice President J.R. Clisham Steve Novenstein Operations [email protected] [email protected] [email protected] Joel Keaton Timothy J. Dietz Jennifer L. Pettigrew [email protected] [email protected] Vice President Maureen Lee D. Carlos Kaslow Meetings & [email protected] [email protected] Sponsor/Vendor Relations [email protected] Tom Comi Director, Communications SSA Foundation [email protected] SSA Foundation Board of Governors Marcus Dunn Director, Government Relations Joanne Geiler & William F. Kenney, Co-Chairs [email protected] Nancy Martin Wagner, Secretary Robert Schoff, Treasurer Michael A. Nunez, Liaison to the Board Anastasia N. Malagisi Director, Marketing & Outreach Paul Darden, John Gilliland, Nancy Gunning, Barry Hoeven, [email protected] Dean Keller, Maurice Pogoda, Patrick Reilly, Kenneth Woolley Nichelle Nassif Director, State Association Management Mission [email protected] It shall be the Mission of the SSAF to provide timely, accurate industry information, com- munication and exceptional educational experiences for SSA members and owner-op- Joan Marsha erators and investors across the United States and in affiliated nations. The SSAF will Operations & Finance Manager sponsor an “SSA Foundation Forum,” a general session executive education program, at [email protected] both national SSA conferences and conventions on topical and cutting-edge topics of interest to the industry at-large. Also, SSAF will provide information, education and Jessica Morin Manager, Member Relations training as to the SSA-adopted “Code of Ethics” and by promoting respect for the anti- [email protected] trust laws of the United States and foreign nations that must be adhered to by all com- panies involved in this industry. The Board of the Foundation is authorized to recognize Kevin Carter accomplishments, achievements and significant landmarks within the industry, including Meeting & Marketing Coordinator serving as the Nominating Body of persons to the SSA Board for annual induction into [email protected] the Self Storage “Hall of Fame.” The Board of the Foundation may from time to time acknowledge persons both inside and outside the industry who have contributed to the D. Carlos Kaslow, Esq. betterment of the industry by way of special awards and recognitions. Also, the SSAF will General Counsel make charitable contributions to worthy causes, efforts and for educational purposes on [email protected] behalf of the self storage industry. PAGE 4 SSA GLOBE DECEMBER 2015 EDUCATION National SSA Works Closely With States By Anastasia N. Malagisi, SSA Director of Marketing & Outreach Your national Self Storage Association collaborates with representing the U.S. self storage industry before the U.S. and manages many of the state self storage associations Congress and federal departments and agencies. The Asso- to create a meeting place at the state level and to facilitate ciation is also quite active in representing the industry content from the national level. before state legislative and regulatory bodies.