LOOK WHO'S TALKING
must focus on operations,” he says. “The big players are experts at operating stor- age facilities. Over the next five years, operations will matter even more.”
For this reason, it’s more crucial than
ever for new self-storage operators to de- velop systems that will enable them to compete with national operators. “Can they do that?” asks Tighe, who answers that they need to in order to capture a sufficient share of their markets.
They should have comprehensive mar-
keting campaigns, management and ac- counting software, cohesive operations, and exceptional customer service. All of those items help establish a brand.
“Brands build reputations,” says Tighe.
“That will be more important.” Equally as important is an operator’s
ability to create “geographic efficiencies.” “Canada is a huge country,” he says,
noting that it is difficult to operate as efficiently as possible with facilities spread across provinces. “Self-storage is an ongoing operational business that needs constant attention.”
As an example of a geographic ef-
ficiency, Tighe says that an operator with several facilities in a smaller area could purchase a snowplow to clear all the properties’ parking lots instead of hiring one or multiple local compa- nies to do the job. Though some cost analysis is required to determine the expense vs. the savings, efficiencies like this have the potential to bulk up the business’ NOI. Plus, the snowplow itself could then be considered a busi- ness asset for tax purposes.
Of course, geographic efficiencies
only work well if all the company’s fa- cilities are in close proximity, which is
why Tighe believes some self-storage facilities in Canada may end up trading hands among the national owners. “We may see them swapping assets to cre- ate geographic efficiencies,” he says, adding that it could occur as operators look at their portfolios for opportuni- ties for improvement. Other areas for potential progress include technology and remote or virtual management.
While operators go about fine-tuning
their operations, Tighe believes 2022 will bring “more of the same” that was experienced in 2021.
“It’s been an interesting evolution of self-storage,” he says.
••••••••••••••••••••••••••••••••••••• Erica Shatzer is the editor of Mini- Storage Messenger, Self-Storage Now!, and Self-Storage Canada.
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January 2022
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