SSAA Insider October/November 2022

Insider

127

OCTOBER / NOVEMBER 2022

real estate

SSAA Convention 2022 Unlocking the next normal The rise of offshore investment

MAGAZINE OF THE SELF STORAGE ASSOCIATION OF AUSTRALASIA

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Scaling the self storage summit

What's next for self storage

INDUSTRY NEWS | HUMAN RESOURCES | OH&S | LEGAL | TRADE DIRECTORY

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CONTENTS 3

SSAA BOARD OF DIRECTORS

Chairman – Michael Alafaci Storage King Group, New South Wales Shaun Bain Keepsafe Storage, Western Australia Ryan Coom National Mini Storage, New Zealand Martin Coote Lock Distributors, New South Wales Ned Coten City West Storage, Victoria

Wayne Dade Glenelg Self Storage and Western Self Storage, South Australia David Daddow Able Self Storage, South Australia

10

20

Cover image:

Taken by Jonathan Layton of Storco during the SSAA Ski Summit in Queenstown.

Ivor Morgan Jim’s Self Storage, Victoria

Makala Ffrench Castelli CEO Sandra Evans Office Manager

Georgia Dogger Member Relations

www.selfstorage.org.au TOLL FREE – AUS: 1800 067 313 TOLL FREE – NZ: 0800 444 356

T: +61 3 9466 9699

Address: Unit 4/2 Enterprise Drive, Bundoora Vic 3083 E: admin@selfstorage.com.au Connect to our Social Media via our website

10 GC CONVENTION 2022

Unlocking the Next Normal

13 QUEENSTOWN SUMMIT 14 LOOKING AHEAD 16 CENUS INSIGHTS

Making sense of the Australian Census

LIFETIME MEMBERS

SSAA STAFF

SIP UPDATE

All markets now live

What’s next for self storage?

Thomas Whalan Rent A Space, New South Wales Mark Bateman Frank Cooney Elaine Coote Liz Davies Dallas Dogger John Eastwood Simone Hill Neville Kennard Sam Kennard Bob Marsh Jim Miller Jon Perrins Phil Robbie Mark Snooks Richard Whalan

8

18 REAL ESTATE EVOLUTION Self storage real estate evolution

REGULARS 4 6

12

CEO’s Report Chairman’s Report

Industry News

36 OH&S – Safety

considerations

37 HR Help Desk –

20 INSURANCE

Impacts of supply and cost challenges on your cover

22 MARKET VIEW

Maximising the outcome

23 SSAA ANNUAL REPORT 2022 Highlights

24 QUEENSTOWN SUMMIT Scaling the self storage summit

The importance of performance reviews

29 OFFSHORE INVESTMENT

the self storage world

30 INTERNATIONAL NEWS

38 Legal – Retail leases in 40 Trade Directory 43 Membership Desk

The rise of offshore investment

2022 UK self storage report

34 RISK MANAGEMENT

Taking risk off the table

Insider is published and edited by: Social Ties / E: vforbes@socialties.com.au

Designed by: Keely Goodall / E: keely@itsallgood.net.au

Printed by: Homestead Press / E: printing@homesteadpress.com.au Insider magazine (Insider) is published bi-monthly by the Self Storage Association of Australasia Limited (ABN 23 050 341 725). This publication may not be reproduced or transmitted in any form, in whole or in part, without the express, prior written permission of the publisher. While every care has been taken in the preparation and publication of Insider, none of the Insider’s publisher, editor nor any of the publisher’s employees, subcontractors or contributors give any warranty as to the completeness or accuracy of the publication’s content, nor do any of them assume any responsibility or liability for any loss, damage or expense which may result from, or arise in connection with, any inaccuracy or omission in the publication. The views or opinions expressed in Insider are not necessarily those of Insider’s publisher or editor. Furthermore, Insider has the right to accept or reject any editorial and advertising material. All letters addressed to Insider will be regarded as ‘for publication’ unless clearly marked ‘Not for Publication’. All submissions to Insider may be edited for reasons of space or clarity and opinions expressed in letters published in Insider are those of the author, not of Insider’s publisher or editor.

OCTOBER / NOVEMBER 2022 INSIDER 127

4 CHAIRMAN'S REPORT

Michael Alafaci Chairman SSAA

“

As we look towards the end of the year, we shift gears from exploring peak performance to unlocking the new normal at Convention 2022.

INSIDER 127 OCTOBER / NOVEMBER 2022

W

hat a week it was in Queenstown!

It was wonderful to see so many members at the inaugural Ski Summit – a format that we’re looking forward to continuing in the coming years.

The collegiate and supportive nature of our industry was on full display as everyone warmly reconnected, shared stories and unpacked the insights our speakers delivered over the two days.

For those who couldn’t join us, we hope you enjoy some of the key highlights from the Summit shared in this edition (and a few snippets of the social activities too). It seems members were just as keen to explore the outstanding wine region of Otago as they were to hit the slopes - I’m not all that surprised!

All in all, it was a fantastic few days and it is member attendance and feedback that drives these events, so please share your thoughts if you’d like to see more of this style of event.

Our sincere thanks to our Major Partners in VISY Boxes & More, PTI, USC, Storco, Storman and Southwell Lifts & Hoists whose ongoing support makes these events possible and of course to the SSAA team who worked tirelessly behind the scenes to ensure everything went smoothly.

As we look towards the end of the year, we shift gears from exploring peak performance to unlocking the new normal at Convention 2022. I’m excited to be able to reconnect with owners, executives, managers, suppliers and more on the Gold Coast this November. If the energy and attitudes in Queenstown were any indicator, it’s bound to be a great week capped off with our thirty-ish anniversary celebrations and applauding our industry’s best and brightest at the SSAA Awards for Excellence, presented by VISY Boxes & More.

I look forward to seeing you there! l www.selfstorage.org.au

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6 CEO’S DINK REPORT

Makala Ffrench Castelli CEO SSAA

“

Self storage has advanced into a standalone asset class that attracts significant global investment interest and has demonstrated resilience at almost every turn.

Considering selling now or in the future?

Call for a confidential chat regarding the potential of your self storage facility.

■ Financial ■ Property

■ Compliance ■ Upside

Matt Walsh

Highway Frontage Real Estate

0411 880 054 1300 661 950 L1. 146 Chapel St, St Kilda VIC 3182

mwalsh@highwayfrontage.com.au www.selfstoragerealestate.com.au HIGHWAY FRONTAGE ARE SSAA MEMBERS

INSIDER 127 OCTOBER / NOVEMBER 2022

I

t’s hard to believe we’re again in the midst of preparations for our next landmark research report, State of the Industry 2022.

This report exemplifies SSAA’s ongoing commitment to industry research, reporting and insight for the benefit of members. It’s a significant undertaking which would not be possible without the support of members and industry partners – thank you for your support.

The 2020 report highlighted strong fundamentals in an industry full of opportunity.

The growth and success the sector has seen since then has been unprecedented, and as we unpacked peak performance and macroeconomic trends at our inaugural Ski Summit in Queenstown, many of us asked – what’s next?

Since the inception of the self storage industry in Australasia, members have turned to our trusted valuers and advisors for their views on the sector. Once seen as alternative or fringe assets, self storage has advanced into a standalone asset class that attracts significant global investment interest and has demonstrated resilience at almost every turn.

In this edition of Insider, we’ve asked a range of experts from across the real estate and valuations sectors to share their thoughts on the evolution of the industry and where to from here.

We also explore what’s happening in the UK market and look forward to some reports back from the SSA Fall Show in Las Vegas and the FEDESSA Conference in Portugal in our next edition. The global storage community is enjoying being back together for events and here in Australasia we are no different.

Join us as we unlock the next normal at Convention 2022 and launch State of the Industry 2022. I can’t wait to see you all on the Gold Coast this November. l www.selfstorage.org.au

8 SIP UPDATE

All markets now live

T

he latest Storage Interactive Platform update includes all self storage facilities across Australia and New Zealand.

The Storage Interactive Platform (SIP), launched by SSAA in partnership with Urbis in 2019, has undergone its largest update yet, with the expansion of coverage from major capital cities and regional markets to all self storage facilities across Australia and New Zealand.

SIP was originally established as the industry sought reliable data on supply and geographic spread of self storage across Australasia.

The current data set includes information on facility ownership, size, net storage area and location, and planned facilities' development status.

SSAA and Urbis continue to work together to maintain SIP's data integrity, with information gathered and verified from a range of sources, including owners/operators, existing Urbis records, SSAA data, service members and publicly available records, including council development consents and other approvals databases. The platform is updated quarterly, and SSAA encourages members to email admin@selfstorage.com.au if their data needs updating, particularly for new supply.

Over the coming months, SIP will undergo further upgrades to enhance the user experience and expand the platform's capability.

The updates will feature a revised dashboard layout with simpler

SIP

Storage Interactive Platform

search functions and enhanced mapping capabilities, plus additional data sets for major markets, including demographics and recent Census updates related to self storage. These upgrades are being undertaken to better assist members in understanding the current and future state of self storage markets. l You can login to SIP via the SSAA Member Portal to review your local area or an area of interest.

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INSIDER 127 OCTOBER / NOVEMBER 2022

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10 DINK

Gold Coast | Nov 9-11 2022

PLATINUM SPONSOR

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Join us for the premier self storage event of the year!

Trans-Tasman Golf Tournament presented by VISY Boxes & More – Links Hope Island The SSAA Trans-Tasman Golf Tournament returns at Links Hope Island, following by lunch at the Club House before heading back to the Sheraton for an afternoon of learning.

Getting Started in Self Storage presented by Regis Built Hear from experienced industry suppliers and operators as they share practical steps to achieve exceptional success in self storage.

Welcome on the Water

Keynote Speakers

Welcome aboard the Yot Club!

Join us for drinks, dinner and a spectacular evening sailing the Broadwater at sunset.

Hear from renowned behaviourial scientist Darren Hill, finance commentator Michael Pascoe and urban futurist Lucinda Hartley as they help us unlock the next normal.

State of the Industry Join us for the launch of the SSAA's highly anticipated research report, State of the Industry 2022.

Together, we'll unpack the data, insights and trends across the sector in the wake of the pandemic and examine where to from the heights of 2022.

SSAA Awards for Excellence presented by VISY Boxes & More Celebrate the best of industry at the SSAA Awards for Excellence gala evening.

Bring your dancing shoes!

To learn more and explore the program, visit www.selfstorage.com.au Places are limited and November is a busy time in the Sunshine State, so secure your place today.

12 INDUSTRY NEWS

Safety Champion Software Certified as a B Corp SSAA OHS Help Desk Partner, Action OHS Consulting, built safety software Safety Champion to support businesses to implement a sustainable and effective safety program. The team recently took the B Corp assessment and achieved B Corp Certification.

Put simply, B Corp certification is awarded to for-profit businesses that pledge to balance profit and purpose, measuring and improving impact on its workers and customers, and the community and environment around it.

This means that Safety Champion meets high standards of verified performance, including accountability and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. To achieve certification, a company must: l Demonstrate high social and environmental performance by achieving a B Impact Assessment score of 80 or above and passing the risk review. l Make a legal commitment by changing the corporate governance structure to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status if available. l Exhibit transparency by allowing information about their performance measured against B Lab’s standards to be publicly available on their B Corp profile on B Lab’s website.

Kennards locks away former Masters Hardware at Roxburgh Park, Melbourne

TAXIBOX expands into Adelaide Congratulations to the TAXIBOX team as they mark the next chapter in their growth story.

TAXIBOX launched in Adelaide this September, adding to their suite of mobile storage and moving services in Sydney, Melbourne, Brisbane and the Gold Coast.

Storman Software welcomes Haydn Salvas

A warm welcome to Haydn Salvas, who has recently taken up the role as General Manager of Storman Software.

Prior to coming on board with Storman, Haydn led the school finance business unit within Sentral – a software business servicing schools and education departments across Australia. He has a wealth of experience in delivering businesses with scalable software solutions that help them operate efficiently and effectively.

Haydn is looking forward to working alongside the Storman team to provide storage operators in Australasia with a responsive, modern solution that makes self storage management simple, and to connecting and engaging with Storman’s customer base. He says “We are a small but dedicated team, and I am excited to lead Storman into the future: 2023 and beyond will bring many exciting opportunities and advancements for Storman Cloud!”.

Keep an eye out for an in-depth article with Haydn in an upcoming edition of Insider.

Kennards Self Storage (KSS) has quietly acquired one of the last unused 13,000 square metres Masters Hardware stores for $35 million.

This is a 5.4-hectare property with 362 car parks and is located with exposure to Pascoe Vale Road at Roxburgh Park.

The car parks will exceed requirements and the surplus will be redeveloped for drive-through restaurants.

Kennards Self Storage innovative concept envisages a mixed-use scheme with retail, fast food, and self storage.

The self storage centre will occupy most of the building, while retail users will fill spaces facing the car park. KSS will occupy 9000 square metres of the existing building with a vast two-level self storage centre. It will be one of the company’s largest, boasting over 12500 square metres of rentable area and over 1300 storage spaces.

“We are very excited about the Roxburgh Park acquisition” Sam Kennard, KSS CEO explains. “When complete, it will be a flagship for the company in Melbourne’s growing northern suburbs. We will equip it with the latest general of technology and design thinking to provide customers with the easiest, cleanest and most secure storage experience possible”.

INSIDER 127 OCTOBER / NOVEMBER 2022

www.selfstorage.org.au

QUEENSTOWN SUMMIT 13

www.selfstorage.org.au

14 LOOKING AHEAD

WHAT’S NEXT FOR SELF STORAGE? At the SSAA Ski Summit, Linda Sharkey and Hugh Davies of Cushman & Wakefield unpacked industry performance since the pandemic with a focus on New Zealand and shared what’s next for self storage.

PERFORMANCE GROWTH PERFORMANCE GROWTH

Average Storage Fee Rate Growth

Occupancy by Area

20.00%

100.00%

15.00%

95.00%

10.00%

90.00%

5.00%

85.00%

0.00%

80.00%

-5.00% Mar-2

Sep-20

Mar-21

Sep-21

Mar-22

75.00% 1-Mar-20

1-Sep-20

1-Mar-21

1-Sep-21

Australia East Coast

Auckland

Wellington

Australia East Coast

Auckland

Wellington

Christchurch

Hawkes Bay

Bay of Plenty

Christchurch

Hawkes Bay

Bay of Plenty

1-Mar-22

FIGURE 1

Performance

Thinking back to early 2020, it was hard to foresee a pandemic’s impact on the self storage sector. Navigating through such unprecedented changes in how we live and work generated unprecedented demand for self storage, propelled by so much disruption and resulting in significant revenue growth across all markets.

The initial reaction to the pandemic is apparent. The key drivers of revenue for self storage - storage fee rate and occupancy – tell the story. Except for Christchurch, all markets recorded a decline in average storage fee rate, though this trend was short-lived.

The growth that followed saw the average storage fee rate soar to new heights. Places like Christchurch and Hawkes Bay recorded 17% growth over the two years, 13% in Wellington and Bay of Plenty and 7% in Auckland.

Comparatively, the capital city markets across the East Coast of Australia saw around 10% growth.

Coupled with significant occupancy growth, with most

INSIDER 127 OCTOBER / NOVEMBER 2022

markets hitting 90% occupancy or above, the two main revenue drivers for self storage have delivered very strong results over the past two years.

Insights across the Tasman

Looking across the Tasman, comparing some key statistics from New Zealand and Australia provides more insight into the different markets and what might lie ahead for both (all displayed in NZD for comparison). See Figure 2.

Such strong performance numbers are in stark contrast to some of the key cost of living indicators, which help paint a picture of what life is like for self storage customers. The annual gross household income in New Zealand is $110,451 compared to $142,106 in Australia. Disposable income shares a similar differential, at approximately $50k for New Zealanders and $65k for Australians. Petrol prices are skyrocketing, at averages of $3.11 / litre in New Zealand and $2.58 / litre in Australia. Inflation is at 7.3% in New Zealand and 6.1% in Australia.

Not surprisingly, consumer sentiment and business confidence are noticeably weaker in New Zealand.

Across the ditch, business confidence in Australia remains stable. The New Zealand market may prove a bellwether for Australia as changes in monetary policy and cost of living pressures continue to play out.

Supply boom

The boom in self storage supply shows no signs of slowing, though completions may be delayed due to the supply chain, weather and labour challenges experienced across both markets.

Auckland’s supply rate is set to sit around 2.27 (units per 100 people), with some markets like Rotorua and Newcastle well above 3.3.

The major East Coast capital cities are expected to climb to a supply rate of over two within the coming year (Brisbane is expected to reach 2.5), and the number of proposed facilities continues to grow, with Sydney forecast to see more than 30 new self storage www.selfstorage.org.au

ACROSS THE TASMAN

Storage Performance

Auckland $331.73 avg storage fee rate

Sydney $428.15 avg storage fee rate

REVPAM $299.51

REVPAM $368.63

92.10% occupancy

Continued movement of people and a rebound in population growth will be critical to demand for self storage in the coming years. The recent announcements about increased migration levels will bode well for self storage and any further increases should further strengthen this key demand driver.

The rise in self storage supply is expected to impact some markets, particularly in metro areas where significant supply is expected to come online in the next two years, as illustrated above.

The investment market is expected to stabilise, after a landmark year for transactions in 2021 totalling more than $1 billion and a slower start to 2022, at circa $200 million for the first half. Buyer behaviour is starting to shift, existing operators are focusing on development and whilst interest from new entrants and offshore capital remains strong, limited opportunity for portfolio acquisitions means a repeat performance of the significant transactions seen in recent years is unlikely.

Later this year, Cushman & Wakefield will partner with SSAA to publish State of the Industry 2022, where you’ll find detailed market analysis, the latest insights and more on what’s next for self storage. l

90.18% occupancy

Official Interest Rates

May 22 – 3% Oct 21 – 0.25%

May 22 – 1.85% Oct 21 – 0.10%

Inflation

7.3%

6.1%

Unemployment

3.30%

3.40%

Population Growth

0.25%

0.50%

FIGURE 2 facilities. Before the pandemic, East Coast Australia was growing at a rate of 2 – 3% per annum. The expected growth rate for 2022 lies in the vicinity of 10%, depending on development completions.

Directions

Over time, the trend in capitalisation rates has shown an extraordinary sharpening. For major markets in Australia and New Zealand, capitalisation rates have compressed from 8.5% to 5.5% which equates to a 55% increase in value from capitalisation rate compression alone.

Despite the trend line showing a continued decline, there appears to be a strong mental barrier at the

5% mark (Sydney assets). The few sub 5% highlighted in the chart represent large portfolio sales which attract a premium.

It’s early days but there hasn’tyet been any evidence of a softening in capitalisation rates as a direct result of interest rate rises – rather, increasing interest in self storage from institutional investors is expected to keep capitalisationrates low.

So where to next?

Some of the drivers that have been key to growth in recent years are expected to soften, so a strengthening in other demand drivers will be required to see continued growth in storage demand.

CAP RATES PLATEAUING? CAPITALISATION RATES (NEW ZEALAND & AUSTRALIA) 10.00%

9.00%

8.00%

7.00%

6.00%

5.00%

4.00% 2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Capitalisation Rate Premium of 25 to 75 bps for Portfolio Transactions

www.selfstorage.org.au

OCTOBER / NOVEMBER 2022 INSIDER 127

16 CENUS INSIGHTS

MAKING SENSE OF THE AUSTRALIAN CENSUS

I

n the Australian 1966 Census, nearly two in every five people were Baby Boomers. Fast forward to 2021, and the Australian Bureau of Statistics (ABS) Census results show the Millennial generation becoming the nation’s largest, displacing the post-war Boomers, and creating new market trends. Given New Zealand has a similar demographic breakdown it would be safe to assume these details also reflect the population there and are interesting to note.

So what does that all mean for the future?

At Urbis, a few of their brightest minds delved into the residential sector and showcase how the Millennial generation is redefining the Great Australian Dream.

A budding Millennial cohort shifting housing preferences

Australia remains one of the most highly urbanised populations in the world with a concentrated and established pattern of settlements in eastern Australia and our capital cities. This urban concentration will continue to test city shapers as issues of social and economic participation, sustainability and resilience will need to be addressed.

INSIDER 127 OCTOBER / NOVEMBER 2022

“

This generational shift in Australians’ lifestyle preferences highlights the need to respond to, and meet, the preferences of those driving change.

Richard Gibbs, Director

As the nation undergoes a significant generational shift with Millennials in the ascendancy, this urban concentration continues to present challenges in housing accessibility which are re-shaping consumers’ housing preferences.

While there is a shift nationally towards apartments over separate houses (except in Tasmania), we are also noticing a shift towards the regions and higher density living.

For example, as affordability continues to decline in Melbourne with median household incomes increasing by 4% while median rents and mortgage payments have both gone up 11%, Geelong remains an attractive destination – at least for the time being. As the region continues its transition away from

manufacturing towards health and professional services, there is a trend of migrants from the Indian continent and professionals with higher incomes and no children choosing to move to Geelong, thereby driving up demand for housing. Those who move, in the short term, stand to benefit from this relative affordability, however, prices continue to rise in Victoria’s second largest city in response to increasing demand.

These trends indicate further imbalance in our city housing systems may be yet to come, unless we can find ways to: l Meet the increasing weight of demand and expectations of the growing Millennial group; l Increase the volume of rental homes available; and l Increase the provision of medium and high-density homes to balance out the housing system.

At this point in the cycle, however, we continue to see the national pipeline of higher density housing stock trending down, with diminishing approvals and fewer projects launching for sale. This raises questions about whether the future volume of medium and high-density homes can keep pace with demand. www.selfstorage.org.au

“

Over reliance on any one dataset can result in inequitable distribution of social and health infrastructure and services.

Julian Thomas, Director Census snapshot tool Urbis have built a free tool to help you investigate Census data on your own terms,

in your own time. You can

explore investigation areas and immediately access

demographic data describing population, household

characteristics, home life and

finances. The tool summarises the differences between your investigation area and the

relevant city benchmark, so

that you can quickly see what is unique.

People are the real story behind the numbers –

Census Snapshot brings

your investigation area to life.

Build-to-rent the key to unlocking housing accessibility

If we want globally competitive attractive cities, we need to be able to offer the Millennial generation – including those migrating to or within Australia – liveable, productive communities close to jobs and fun.

The key to unlocking this potential could very well be to tap into the core drivers that appeal to them such as: l Collaborative communities that are engaged and activated; l Security of tenure and onsite management; l Technology to boost user experience and operational efficiency for a better service; and

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l Sustainability features and other community-minded values that appeal to residents.

The emerging build-to-rent pipeline presents an opportunity to also start to balance the scales in housing supply by refuelling the pipeline and increasing the range of housing types supplied to the market. Urbis believe build-to-rent is part of the solution in an evolving housing spectrum. l The ABS released more data in October and more is scheduled at the start of 2023. This information will continue to paint a complete picture of the state of the nation.

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18 REAL ESTATE EVOLUTION

“

Well-managed self storage now forms part of investment wish lists for many . . . due to its proven resilience in all economic climates over many years. operators that allowed a greater appreciation of the real risks and strengths of the industry to be seen by financiers.

Professional management

Self storage real estate evolution

The shutters have come up on a professional and profitable self storage industry. By Malcolm Collins, Collins and Associates.

I

n its earliest years, the self storage industry was characterised by many small, often basicallyconstructed and poorly managed facilities that encouraged long-term customers to stay at cheap rates.

Millers and Kennards pioneered larger scale, professionally-managed self storage in and around Sydney.

While a group of owners started the SSAA and took up modern methods and systems, many established owners around the country continued to manage in a way that made informed valuations an art form.

Rolodex cards, pencils and erasers to list and delete customers, little or no historical data, jerry-built sheds with timber and meshed wire walls, very little or no security, no regular price increases and staying full as a priority.

INSIDER 127 OCTOBER / NOVEMBER 2022

Passive income

The practice of pricing long-held customers out of facilities to churn and grow rents and occupancy was not standard. Self storage created passive income from otherwise under-used blocks of land that generally existed in back streets and industrial estates.

In the early days, self storage was regarded as an industrial use of land, requiring little skill and even less proactive management to run.

Buildings and the self storage offer and presentation were second-rate in nature. Uni students or pensioners regularly manned front desks.

Sales evidence was rare, and industry knowledge was instrumental in analysing the transactions that did occur. The lack of evidence hampered valuers as deals were infrequent, and the parties involved did not easily share information.

Banks had little idea of the asset class and preferred to fund leased properties rather than take on the unknown risks of multiple tenants in a single self storage property, each of which only signed monthly tenancies and all of who could move out at once.The risk of let-up was a significant problem for the financiers, especially on greenfield properties.

Industry awareness grew, and transactions multiplied via statebased brands and quality local

Self storage expanded in many locations in the 2000s, and the much-wider adoption of computer operating systems, the internet and professional management was concurrent with its discovery as a retail business.

Brands and institutional owners expanding around the Australasian market and small owners and operators doing the same in their local catchments have been instrumental in underpinning value and trust in the asset class. Small operations in small populations are equally viable as major sites in major urban areas.

Well-managed self storage now forms part of investment wish lists for many cashed-up parties, here and overseas, due to its proven resilience in all economic climates over many years. The Australasian market retains opportunities for small operators and large brands alike, and capital values continue to rise due to unmet demand. The future of self storage, subject to future changes and disruptions, looks bright. l Collins & Associates maintains an ongoing involvement with the SSAA. As a former Board Member Malcolm regularly addresses meetings and presents papers concerning industry and valuation matters to Members, banks, financial lending organisations, corporates and institutions.

www.selfstorage.org.au

20 INSURANCE

IMPACTS OF SUPPLY AND COST CHALLENGES ON YOUR COVER Exploring the links between the construction sector and underinsurance. By Mark Klenke, Managing Principal, AON Global Risk Consulting.

U

increases have typically started in residential construction, but we are now seeing the above factors starting to influence all forms of construction, including self storage.

This is emphasised by data released by the Australian Bureau of Statistics that shows that in the year to 30 September 2021 Australia saw a record value of construction work commenced, valued at more than $141.2b, up more than $10b on the previous record of $131.8b set in 2018.

Table 1 provides insight on construction cost increases by state and construction type for Australia in the year ended 31 December 2021.

However, it is not just a rise in costs that have affected the construction industry over the last year.

The industry in Australia and New Zealand has seen significant time delays in completing projects due to labour shortages and also a global supply shortage in many popular construction materials, such as

nder insurance is tipped to be a challenge with long-term implications for the self storage industry if left unaddressed. As costs increase dramatically, it is now time for property owners to properly assess and value their assets.

Before COVID, the construction industry was lulled by consistent and modest price increases in materials.

The pandemic has led to skyrocketing costs across the board, and while the industry is experiencing high activity in both the residential and commercial areas, it has exposed a new issue facing the industry.

Massive price increases affecting the industry

Building construction has seen significant price growth across most states in both Australia and New Zealand due to a broad range of factors, including a tight labour market, input cost increases and increased demand on the back of government incentives. Cost

TABLE 1 STATE

OVERALL HOUSE BUILDING CONSTRUCTION CONSTRUCTION

timber, cabinetry, cement, some electrical components, steel and paints. Building material wait times during the pandemic for the above materials have, at best, doubled, to at worst, extended by more than 10 times over pre-pandemic times.

Furthermore, cost increases have not been limited to building construction. The table below indicates the variation in price growth across a selected number of categories in the Australian economy.

As with building construction, accompanying the cost increases

OTHER RESIDENTIAL CONSTRUCTION

NONRESIDENTIAL CONSTRUCTION

INFRASTRUCTURE

NSW

8.05%

8.52%

7.41%

8.02%

3.18%

VIC

3.51%

6.58%

1.71%

1.87%

4.69%

QLD

11.88%

18.59%

7.94%

8.81%

2.85%

SA

7.32%

14.59%

3.05%

3.19%

7.32%

WA

14.51%

15.93%

12.56%

14.18%

9.24%

TAS

15.12%

20.06%

12.59%

10.87%

N/A

NT

4.45%

7.00%

2.51%

4.03%

N/A

ACT

3.37%

9.88%

1.46%

1.71%

N/A

INSIDER 127 OCTOBER / NOVEMBER 2022

www.selfstorage.org.au

“

The [construction] industry has seen significant time delays in completing projects due to labour shortages and also a global supply shortage in many popular construction materials . . .

Cost increases are heavily scrutinised

TABLE 2

CATEGORY

12-MONTH % CHANGE

Aluminium rolling & extruding

25.22

Communication equipment

9.78

Computer equipment

2.18

Electrical cable & wire

26.87

Electrical equipment

9.71

Furniture

1.25

Lifting & material handling equipment

10.41

Machinery & equipment manufacturing

5.90

Prefabricated buildings

13.52

Specialised equipment and machinery

6.30

for these and other product groups, customers have also witnessed significant delays in delivery times for many of these products – for example; it has been reported that the wait times for some models of new light and commercial vehicles are up to 15 months from order.

Impacts on insurance

When there is an increase in building material and construction prices, it drives a rise in property replacement values and rebuild costs. This means that if your facility is severely damaged and/or you need to make a claim, the cost of rebuilding or repair work will likely be greater than what you calculated when you initially took out your policy, or last revised it. www.selfstorage.org.au

If you underestimate your rebuild cost for your property and the sum insured falls short, you may be left to pay the difference between your payout and the actual rebuild cost, which could be substantial considering the increase in construction prices and time delays (which could also impact how quickly your facility may be operational again).

When reviewing your insurance requirements, ensure you think about all aspects of any replacement works, including revisions of fit out costs, lifts and security. Owners are also encouraged to review their policies for relevant time-related clauses and indemnity periods to ensure coverage until any reparation works are completed.

Given the extent and variety of these cost increases, underwriters are scrutinising declared asset values far more closely and often demanding specific insurance valuations be undertaken to support those values. This factor is incredibly important to consider. Declaring the right value ensures the builder won’t fall into the underinsurance trap when making a claim. Taking ownership of the valuation process, through either obtaining a formal valuation or employing a risk program assessing the exposure of placing risk and not being complacent is more likely to provide a win-win situation so organisations are not caught out with inadequate cover.

What's ahead for 2022/2023

It is expected that price increases will continue, and while there is a range of opinions on where they may go, it is a reasonable expectation that increases will be sustained in the medium term.

It is expected we will also see more investment put into infrastructure developments into 2023, with the resulting diversion of materials and labour to this part of the sector.

Many privately funded projects – particularly retail and residential projects – will continue to see delays to start times and completions.

COVID and subsequent cost increases have impacted the construction sector in several ways, and these issues continue to have flow-on effects to many other industries and sectors. It is now time for the industry to account for these when assessing their risks now and into the future. l

OCTOBER / NOVEMBER 2022 INSIDER 127

22 MARKET VIEW

“

. . . sale preparation is synonymous with facility best practices.

Maximising the outcome Regardless of whether you’re selling now or in the future, it’s always best practice to ensure that all financial and compliance matters are up to date.

By Matt Walsh, Highway Frontage Real Estate.

bother with waiting lists anymore, and some are no longer actively marketing their facilities.

Adding the increased number of new buyers to the active existing buyer pool makes for an exciting market to sell in. During a recent sale campaign, Highway Frontage received more than 70 enquiries and multiple offers to purchase.

H

Are you thinking of selling – ever?

“

ow’s the market?,” is a daily question. It’s an interesting question as it has never been more important to understand some key drivers when answering. The last two years created one of the most vibrant market conditions for the sale of self storage assets that have ever been seen before.

First-time self storage buyers have been entering the market in much larger numbers, along with individuals and private equity groups looking to add self storage to their portfolios. Compared to traditional commercial leases, self storage has consistently attracted new buyers due to its stability and relative certainty of income.

Another significant driver has been the industry growth over the past few years, with many traditional and online retailers turning to self storage for their stock warehousing needs. Which has driven increased occupancy rates in almost all facilities, and it’s not showing any signs of slowing down. Many self storage owners have said they don’t

INSIDER 127 OCTOBER / NOVEMBER 2022

Every individual weighs up the decision on the right time to sell differently, as the current market conditions are only one factor in the decision. Regardless of timing, it’s always best practice to ensure that all financial and compliance matters are up to date, as it will iron out any inconsistencies in the running of a facility.

Finishing delayed jobs, such as cleaning up debtors, giving the facility a lick of paint if needed, or resurfacing will also help present the facility in its best light when it comes time to sell.

Most purchasers undertake a rigorous due diligence process – either in-house for larger companies or with accountants, banks and consultants.

While not an exhaustive list, these are a typical purchasers’ requirements:

Financials

l Financials for up to three years – Profit and Loss and Year to Date.

l Reports from specialist self storage software are only as good as the inputted data. The actual net lettable area per unit should be as close to the inputted area as possible. l Smaller facilities managed by local agents or running general software like MYOB rely more on their financial information as they don’t typically track historical occupancy rates. A list of all units (sizes, current rents) provides a good overview. l Utilities, invoices, and rates for the last 12 months. l Any ongoing contracts.

Property

Compliance is becoming more onerous, and organising documents can be very time-consuming. Easy access is essential and will be required during a due diligence period. l Site plan with building layout. l ESM certificates, planning and building permits, certificate of occupancy, stamped plans. l Dwelling plans and certificates (if applicable). l If properties have the potential for expansion – collated drawings and costings (if available).

It’s no surprise that sale preparation is synonymous with facility best practices. Presenting a wellorganised asset to the market ensures all potential purchasers clearly understand what is on offer, maximising the outcome. Chatting to a specialist agent costs nothing, as all discussions are treated with the utmost confidentiality. l Matt Walsh has been the director of a leading business broking and commercial agency for over 20 years. He has a thorough understanding of both the real estate and the business components of self storage complexes.

www.selfstorage.org.au

SSAA ANNUAL REPORT 23

2022 Highlights

2022 2022 Highlights Highlights Highlights This2022 is an excerpt of the SSAA Annual Report 2022 to be presented to members at the Annual 2022 Highlights General Meeting in November 2022. The full report is available in the SSAA Member Portal.

Members Members Members Members Members Members Members

The SSAA The SSAA had 825 had members 825 members as at atas as The The SSAA The SSAA had SSAA had 825 had 825 members 825 members members as as atat at The SSAA had(FY21: 825 members as at 30 June 30 June 2022 2022 (FY21: 813) representing 813) representing 30 June 2022 (FY21: 813) 813) representing 3030 June June 2022 2022 (FY21: (FY21: 813) representing representing 30 June 2022 (FY21: 813) representing 1562 facilities 1562 facilities (FY21: (FY21: 1529) 1529) across across Australasia.

Australasia.

1562 facilities (FY21: 1529) across Australasia.

1562 1562 facilities facilities (FY21: (FY21: 1529) 1529) across across Australasia.

Australasia.

1562 facilities (FY21: 1529) across Australasia.

Despite Despite industry industry consolidation, consolidation, the SSAA SSAA the SSAA grew grew Despite industry consolidation, the grew Despite Despite industry industry consolidation, consolidation, the the SSAA SSAA grew grew Despite industry consolidation, thewelcoming SSAAwelcoming grew its membership its membership base base across across FY22 FY22 its membership basebase across FY22FY22 welcoming itsits membership membership base across across FY22 welcoming welcoming its membership base across FY22 welcoming a record record record number number of provisional provisional provisional members. members. a number of members. aaa record record number number ofof of provisional provisional members. members. a record number of provisional members.

The split The between split between Australia Australia (86%) (86%) and New and New The The split between Australia (86%) and and New The split split between between Australia Australia (86%) (86%) and New New The split between Australia (86%) and New Zealand Zealand (14%) (14%) remained remained consistent consistent with FY21. with FY21.

Zealand Zealand Zealand (14%) (14%) (14%) remained remained remained consistent consistent consistent withwith FY21. with FY21.

FY21.

Zealand (14%) remained consistent with FY21.

1600 1600 1600 1600 1600 1600

1400 1400 1400 1400 1400 1400 1200 1200 1200 1200 1200 1200 1000 1000 1000 1000 1000 1000 800 800 800

800 800 800

600 600 600

600 600 600

400 400 400

400 400 400

200 200 200

200 200 200

0 0 0

0 0 0

Facility Facility Facility Facility AdditionalAdditional Service Service AUS AUS Total Total Total Total Facility Facility Facility Facility Facility Additional Facility Additional Additional Service Service Service AUS AUSAUS Total Total Total Total Total Total Under 50 Under Over 5050 Over Facilities 50 Facilities Provisional Members Members Facilities Facilities Facility Facility Additional Service Provisional AUSProvisional Total Members Total Facilities Under 50 50 50 50 Facilities Under 50 Under Over 50Over Over Facilities Facilities Provisional Provisional Members Members Facilities Facilities Under 50 Over 50 Facilities Provisional Members Facilities

2022 June 2022 June 2021 June 2021 June 2022 2022 June 2022 June June 2021 June 2021 2021 June June 2022 June 2021 June

Performance Performance Performance Performance Performance Performance Performance

The FY22 The financial FY22 financial statements statements report: report: The The FY22 The FY22 financial FY22 financial financial statements statements statements report: report: report: The FY22 financial statements report:

Total Total Revenue Revenue Total Total Total Revenue Revenue Revenue Total Revenue

$1,204,628 $1,204,628 $1,204,628 $1,204,628 $1,204,628 $1,204,628 (FY21:(FY21: $1,323,855) $1,323,855)

Total Total Expenses Expenses Total Total Total Expenses Expenses Expenses Total Expenses

$1,194,792 $1,194,792 $1,194,792 $1,194,792 $1,194,792 $1,194,792 (FY21:(FY21: $1,286,793) $1,286,793)

Net Profit Net Profit Net Net Profit Net Profit Profit Net Profit

$7,836 $7,836 $7,836 $7,836 $7,836 $7,836 (FY21:(FY21: $36,409) $36,409)

(FY21: (FY21: (FY21: $1,323,855) $1,323,855) $1,323,855) (FY21: $1,323,855) (FY21: (FY21: (FY21: $1,286,793) $1,286,793) $1,286,793) (FY21: $1,286,793)

(FY21: (FY21: (FY21: $36,409) $36,409) $36,409) (FY21: $36,409) Revenue for FY22 was down 9% on FY21 due Revenue for was down 9% FY21 due to Revenue Revenue Revenue for FY22 FY22 for for FY22 was FY22 was down was down down 9% on on 9% 9% FY21 on on FY21 due FY21 due to due toto to Revenue for FY22 was down 9% on FY21 due to the continuing impacts of the pandemic. the continuing impacts of the pandemic. the continuing the the continuing continuing impacts impacts impacts of the ofof pandemic. the the pandemic. pandemic. theacontinuing impacts of the pandemic.

As non-profit entity, the seeks to As non-profit entity, the SSAA seeks As aAs non-profit As aaa non-profit non-profit entity, entity, entity, the SSAA SSAA the the SSAA seeks SSAA seeks seeks to toto to As a non-profit entity, the SSAA seeksfunds to invest the majority of available funds into invest the majority of available into invest invest invest the majority the the majority majority of available ofof available available funds funds funds into into into investprojects, theresources majority of available funds into projects, and services for resources and services for the projects, projects, projects, resources resources resources and and services and services services for the the for for the the projects, resources and services for the benefit of members each year.

Prudential benefit of members each year.

Prudential benefit benefit benefit of members ofof members members each each year. each year.

Prudential year.

Prudential Prudential benefit ofmanagement members each year.

Prudential financial delivered a of financial management delivered profit financial financial financial management management management delivered delivered delivered a profit profit aaa profit profit of ofof of financial management delivered a profit of $7,836 to be retained for future requirements. $7,836 to be retained for future requirements. $7,836 $7,836 $7,836 to be toretained to bebe retained retained for future forfor future future requirements. requirements. requirements. $7,836 to be retained for future requirements.

Member Member Benefits Benefits Member Member Member Benefits Benefits Benefits Member Benefits Member Benefits

The SSAA The SSAA supported supported members members with a range range of The The SSAA The SSAA supported SSAA supported supported members members members withwith awith with range aaa range range of ofof of The SSAA supported members with FY22. a range of In light resources resources and services and services throughout throughout FY22.

In light resources and services throughout FY22. light resources resources and and services services throughout throughout FY22.FY22.

In light InIn light resources and services throughout FY22.

In light of COVID-19 and following and following member member feedback, feedback, the the of COVID-19 and following member feedback, the of COVID-19 COVID-19 ofof COVID-19 and and following following member member feedback, feedback, the the of COVID-19 and following member feedback, the SSAA SSAA invested invested in projects in projects and resources and resources for for SSAA invested projects and resources SSAASSAA invested invested in projects inin projects and and resources resources for forfor SSAA invested in of projects and resources for members members in lieu events. events. members in lieu of events. members members in lieu lieu inin of lieu events. ofof events. members in lieu of events.

Some Some notable notable highlights highlights include: include: Some notable highlights include: Some Some notable notable highlights highlights include: include: Some notable highlights include: •• Delivered • Delivered Industry Industry Snapshot Snapshot 2021 research 2021 research Delivered • • Delivered Delivered Industry Industry Industry Snapshot Snapshot Snapshot 20212021 research 2021 research research •• Delivered Industry Snapshot 2021Supplier research Published • Published the Self the Storage Self Storage Supplier Guide Guide • Published • • Published Published the Self the the Self Storage Self Storage Storage Supplier Supplier Supplier Guide Guide Guide •• Published the Self Storage Supplier Guide Advocated • Advocated for industry for industry on insurance on insurance and and Advocated industry insurance and • Advocated • • Advocated for industry forfor industry on insurance onon insurance and and • Advocated for implementation industry on insurance and supported supported the the implementation of the of DSM the DSM supported the implementation the DSM supported supported the implementation the implementation of the ofof DSM the DSM the implementation of the DSM •• supported Invested • Invested in the in revitalised the revitalised StorerCheck StorerCheck Invested the revitalised StorerCheck Invested • • Invested in the inin revitalised the revitalised StorerCheck StorerCheck •• Invested inSIP the revitalised StorerCheck Upgraded SIP include include all all storage self storage Upgraded SIP to include all self storage • Upgraded Upgraded • •• Upgraded SIP to to SIP include toto include all self self all storage self storage • Upgraded SIP to include all self storage facilities facilities across across Australasia Australasia facilities across Australasia facilities facilities across across Australasia Australasia across Australasia •• facilities Launched Launched the the SSAA new SSAA public-facing public-facing website website Launched the new SSAA public-facing website Launched • •• Launched the new new the new SSAA SSAA public-facing public-facing website website • Launched the new SSAA public-facing website to better to better reflect reflect the offering the offering and refreshed and refreshed the the better reflect the offering and refreshed the to better toto better reflect reflect the offering the offering and and refreshed refreshed the the to better reflect the offering and refreshed the SSAA SSAA Member Member Portal Portal SSAA Member Portal SSAASSAA Member Member Portal Portal Member Portal •• SSAA Updated Updated the the storage self storage agreement agreement suite suite Updated the self storage agreement suite Updated • •• Updated the self self the storage self storage agreement agreement suitesuite •• Updated the self storage agreement suite Offered • Offered access access to Family to Family Business Business Australia’s Australia’s Offered access Family Business Australia’s • Offered • • Offered access access to Family toto Family Business Business Australia’s Australia’s • Offered access to Family Business Australia’s education education and resources and resources education and resources education education and and resources resources education and resources •• Answered Answered more more than 650 than enquiries 650 enquiries via via Answered more than 650 enquiries via Answered • •• Answered more more thanthan 650 650 enquiries enquiries via via • Answered more than 650 enquiries via the SSAA the SSAA Help Desks Help Desks the SSAA Help Desks the SSAA the SSAA Help Help Desks Desks SSAA Help Desks •• the Published Published more more than 90+ than articles 90+ articles Published more than 90+ articles Published • •• Published more more thanthan 90+ 90+ articles articles •• Published more than 90+ articles Uplift • Uplift in member in member engagement engagement online online – Uplift member engagement online • Uplift • • Uplift in member inin member engagement engagement online online – ––– • Uplift in member engagement online – 88% increase 88% increase in Member in Member Portal Portal visits visits 88% increase Member Portal visits 88%88% increase increase in Member inin Member Portal Portal visitsvisits 88% increase in Member Portal visits 120% audience 120% audience growth growth across across social social media media 120% audience growth across social media 120%120% audience audience growth growth across across social social media media 120% audience growth across social media

Governance Governance Governance Governance Governance Governance Governance

The Board The Board continued continued to deliver on on 21/22 the 21/22 The The Board The Board Board continued continued continued to deliver deliver toto to deliver deliver on the the on on 21/22 the the 21/22 21/22 The Board continued to deliver onfive the 21/22 extended strategic plan and met five times extended strategic plan and met times in extended extended extended strategic strategic strategic planplan and plan and met and met five met times five five times times in inin in extended strategic plan and met five times in FY22.

The next strategic planning workshop FY22.

The next strategic planning workshop FY22.FY22.

The FY22.

The next The next strategic next strategic strategic planning planning planning workshop workshop workshop FY22.

The next strategic planning workshop will be held prior Convention 2022. will held prior to Convention 2022. will be be will will held be be held prior held prior to prior Convention toto to Convention Convention 2022.

2022.

2022. will be held prior to Convention 2022.

The Audit, The Audit, Finance Finance & Committee Risk Committee met six met six The The Audit, The Audit, Audit, Finance Finance Finance & Risk Risk && & Risk Committee Risk Committee Committee met met six met six six The Audit, Finance & Risk Committee met six in times times in FY22 in and FY22 played and played an active an active role in role times times times in FY22 inin FY22 and FY22 and played and played played an active anan active active role role inrole inin timesrefining in the FY22 and played an process active role inupdating the budgeting and refining process and updating refining refining refining the budgeting budgeting the the budgeting budgeting process process process and and updating and updating updating refining the budgeting process and updating the risk management framework for SSAA. the risk management framework for SSAA. the risk the the management risk risk management management framework framework framework for SSAA. forfor SSAA. SSAA. the risk management framework for SSAA. The Audit, Finance Risk Committee also The Audit, Finance & Committee also The The Audit, The Audit, Audit, Finance Finance Finance & Risk Risk && & Risk Committee Risk Committee Committee alsoalso also The Audit, Finance & Risk Committee also of considered the appropriate amount considered the appropriate amount of considered considered considered the appropriate the the appropriate appropriate amount amount amount of ofof considered the appropriate amount of (at least current assets/retained earnings current assets/retained earnings (at current current current assets/retained assets/retained assets/retained earnings earnings earnings (at least least (at (at least least current assets/retained earnings (at least one year operating expense coverage) one year of operating expense coverage) one one year one year of year operating ofof of operating operating expense expense expense coverage) coverage) coverage) one year of operating expense coverage) and reaffirmed the SSAA investment policy. and reaffirmed the investment policy. and and reaffirmed and reaffirmed reaffirmed the SSAA SSAA the the SSAA investment SSAA investment investment policy. policy. policy. and reaffirmed the SSAA investment policy.

The SSAA Office Bundoora, Melbourne was The SSAA Office at Melbourne was The The SSAA The SSAA Office SSAA Office Office at Bundoora, Bundoora, atat at Bundoora, Bundoora, Melbourne Melbourne Melbourne waswas was The SSAA Office at Bundoora, Melbourne was valued at $760,000 at June 2022, up 25% from valued at $760,000 at June 2022, up 25% from valued valued valued at $760,000 atat $760,000 $760,000 at June atat June 2022, June 2022, up 2022, 25% upup 25% from 25% from from valued atvaluation $760,000 at June 2022, up 25% from the the 2019 valuation of $610,000. the 2019 2019 the the 2019 valuation 2019 valuation valuation of $610,000. $610,000. ofof of $610,000. $610,000. the 2019 valuation of $610,000.

The SSAA acknowledges the ongoing support of industry, including major partners VISY Boxes & More, Southwell Lifts &

The SSAA The SSAA acknowledges the the ongoing support support of industry, including including major major partners partners VISY Boxes VISY Boxes & Hoists, Storman ,acknowledges Storco , Universal Storage Containers and PTI Security, our advertisers and all those who The The SSAA The SSAA acknowledges SSAA acknowledges acknowledges the ongoing ongoing the the ongoing ongoing support support support of industry, industry, ofof of industry, industry, including including including major major major partners partners partners VISY VISY Boxes VISY Boxes Boxes & contributed && & The SSAA acknowledges the ongoing support of industry, including major partners VISY Boxes & our More, More, Southwell Southwell Lifts & Lifts Hoists, & Hoists, Storman, Storman, Storco, Storco, Universal Universal Storage Storage Containers Containers and PTI and Security, PTI Security, our expertise and advice for the benefit of members.

More, More, More, Southwell Southwell Southwell Lifts Lifts &Lifts Hoists, && Hoists, Hoists, Storman, Storman, Storman, Storco, Storco, Storco, Universal Universal Universal Storage Storage Storage Containers Containers Containers and and PTI and Security, PTI PTI Security, Security, our our our More, Southwell Lifts &all Hoists, Storman, Storco, Universal Storage Containers and PTI of Security, our advertisers advertisers and all and those those who contributed who contributed expertise expertise and advice and advice for for benefit the benefit of members. advertisers advertisers advertisers and and all and those all all those those whowho contributed who contributed contributed expertise expertise expertise and and advice and advice advice for the the for for benefit the the benefit benefit of members. members. ofof members. members. advertisers and all those who contributed expertise and advice for the benefit of members. www.selfstorage.org.au OCTOBER / NOVEMBER 2022 INSIDER 127

SCALING THE SELF STORAGE SUMMIT

PHOTOGRAPH: JONATHAN LAYTON, STORCO

Informative speakers, the chance to gather together in person and Queenstown’s spectacular mountain scenery ensured this year’s summit was a success.

I

t’s a wrap from the inaugural Self Storage Association of Australasia SSAA Ski Summit. From insights on the economy to the future of automation and what’s next for self storage, here are the key takeaways from our week in Queenstown.

With a focus on ‘Peak Performance’, conversations between the 85 members at the Queenstown, NZ, conference were driven by the current state of the industry and the challenges that lie ahead, as well as the need to equip owners and operators with the right tools to achieve success across all aspects of their self storage business.

At a time when occupancy rates are high, consumer confidence is waning and the macroeconomic environment presents some uncertainty, the summit highlighted the opportunities ahead for those willing to focus on performance.

INSIDER 127 OCTOBER / NOVEMBER 2022

High altitude economics

The first session was with Gareth Kiernan, chief forecaster and director of NZ economics consultancy Infometrics. Gareth gave us an in-depth overview of the economic environment.

With record low unemployment on both sides of the Tasman, the labour market remains tight, despite the reopening of borders. For businesses, the challenge will be to attract and retain workers.

Gareth expects inflation could stay higher for longer and forecasts more rate rises to come. Consumer confidence has dropped sharply, particularly in New Zealand, and the rising costs of living are starting to be felt with household spending growth now close to zero.

In a boon for self storage, housing affordability is driving floor area down – particularly in Auckland – and the rise of more dense living

arrangements in apartments and townhouses should add further strength to the intensification of housing-related demand drivers.

An increase in online retail activity has also led to a higher demand for warehousing and domestic production, which has left industrial space in short supply. This also reflects the global disruption of supply chains, as more businesses turn to warehousing to keep stock in hand locally. “Stock management is shifting from ‘just in time’ to ‘just in case’,” Gareth said, “because you never know what’s around the corner.”

While both Australian and New Zealand economies saw massive stimulus in 2020-21, Gareth says it’s going to be more difficult for the economy to grow over the next few years and the slowdown might feel worse than it is after such buoyant demand. www.selfstorage.org.au

QUEENSTOWN SUMMIT 25

The Self Storage Association of Australasia Summit was held at the spectacularly scenic Hilton Resort & Spa just outside Queenstown, New Zealand, from 23-25 August.

The 85 members were welcomed with drinks on the shores of the stunning Lake Wakatipu and after two years of not being able to meet, the energy was palpable.

Cheers were heard all round as members reconnected over dinner and prepared for a busy few days ahead (the balance of storage and social events seemed just right).

Everyone enjoyed the chance to meet in person and connect, share insights and engage with their industry peers after two years of lockdowns and border closures because of COVID.

His advice? Competing on price is difficult in an inflationary environment so invest in your brand, points of difference and your customer experience. It’s also time to start thinking about finding efficiencies that might not have been so important over the past two years.

Self storage flourished through COVID

Linda Sharkey, who leads the self storage practice at Cushman & Wakefield, and Hugh Davies, Associate Director, took us through how the industry has performed throughout the pandemic.

While COVID was initially challenging for everybody, the self storage industry ultimately thrived.

Talk of a “mass exodus” at the onset www.selfstorage.org.au

of the pandemic saw operators offering concessions and credit offerings to customers to keep them from moving out. But as we know, this mass exodus never eventuated – instead, demand kept on growing, occupancy rates remained high and storage fee rates remained strong.

For a more detailed look at what’s next in self storage, read Linda and Hugh’s take on page 16.

Climbing your own Everest

While our industry is home to a few high performance athletes, there were none quite as adventurous as keynote speaker, mountaineer and explorer Peter Hillary.

Peter spoke candidly of his expeditions around the world – including climbing Mount Everest,

twice – and shared his reflections growing up as the son of Sir Edmund Hillary who, along with Tenzing Norgay, became the first climbers confirmed to have reached the summit of Mount Everest.

What Peter loves most about climbing is managing uncertainty – something we’ve all had to confront in recent years.

OCTOBER / NOVEMBER 2022 INSIDER 127

26 QUEENSTOWN SUMMIT

“When I first climbed the summit of Mount Everest, it occurred to me that posthumous success is overrated,” he said. “You want to achieve your goal, but you’ve got to get yourself all the way safely back down to the bottom again.”

Peter’s advice for coping with stressful situations is to take action on the things you can do something about, and be cognisant of the things you can’t – but don’t let them get you down.

“Fear is a human response to pressure,” he said. “The upside of fear is that it makes us careful and good at what we’re doing. If there was no pressure in our lives, there would be no action. What matters is how we deal with it.”

After the first day’s sessions wrapped up, the ski bunnies headed to the slopes at Coronet Peak for night skiing, while the wine lovers headed to the cellars for lunch and a tour of three famous Queenstown wineries.

Advocacy efforts continue

Day two started with a breakfast update from our CEO, Makala Ffrench Castelli, who spoke about the SSAA’s continued advocacy efforts around the challenging insurance landscape.

Makala also introduced the revamped StorerCheck platform, which helps businesses make informed decisions about the customers who use their facility.

INSIDER 127 OCTOBER / NOVEMBER 2022

Makala said the next phase would be advanced identity verification.

“The more data and insights we have in StorerCheck, the more valuable that platform becomes to all of you, which is why we’ve invested in automation,” Makala said.

SSAA has also been busy building a new operational knowledge base for the industry, upgrading backend technology to deliver a better member experience with easy access to the soon-to-be-updated CSA guidelines and new online training modules.

Taking self storage construction to new heights With an unprecedented number of new facilities coming online, who better to share their thoughts on supply than those delivering it? For our first panel discussion, Makala facilitated a discussion between Jonathan Layton and Jerry Garton from Storco and Hayden Gage from Steel Storage.

The panel agreed there has been a swing towards existing operators expanding their portfolios, rather than new entrants coming into the market. This is due to a number of factors, including increased land values, fluctuating material costs and delays in council approvals right across the industry.

From a planning and approvals perspective, the panel agreed that operators need to double down on

communication and time frames for preparation and approvals.

“Demand has grown faster than our capacity across the industry to produce, so lead times have blown out,” Jonathan Layton said. “Keep the communication lines open to minimise impact.”

“The key is to make sure you use planners and consultants that understand the industry and what’s involved,” Jerry Garton added.

“Good consultants can fast track the process.”

“With the industry growing as quickly as it is, many councils haven’t come across self storage facilities before,” Hayden Gage added. “As part of that growth and understanding, we need to be part of the education process for councils to ensure positive results.”

Makala asked what needs to change in our industry to help take construction to new heights and the panellists shared some interesting perspectives.

For the Storco team, the answer lay in advocacy work around building codes and construction agreements that upheld the high standards of industry. Hayden Gage tipped technology and customer experiences as key drivers for innovation. Despite some of the current acute time/cost challenges which are expected to ease, the industry is more than ready to scale to new heights. www.selfstorage.org.au

Fresh perspectives on automation

The next panel – Jason Keane, Storage Security Group, Ben Parsad from Steel Storage, and Michael Dogger, R6 Digital – focused on the role of technology and how it can be implemented in business.

The panel explored opportunities in technology and automation from three key perspectives – owners, staff and customers.

There are opportunities right across the technology and automation spectrum. Whether it’s enhanced security systems, smart entry technology or apps that deliver a seamless customer or staff experience, everyone agreed it’s about finding the right solutions for your business and your customer base that will generate long term returns.

The most important take out?

Technology is an enabler, not a threat.

Ben spends his days integrating technology into facilities and training

“

The upside of fear is that it makes us careful and good at what we’re doing.

staff. He says there’s no need to fear technology replacing jobs.

“Today, automation is about investing in technology to help you bring in more customers, be more efficient and have smoother processes. It helps staff sell better and it’s pleasing to see people start to understand this shift.”

Consumers have come to expect an omnichannel experience – they expect facilities to take bookings online – but they also might like someone to be on site to show them around the facility.

“We’re in this transition period in Australasia,” Michael said, “because as an industry we’re not fully online yet, but not everyone wants to come into the facility to make a booking.

This will continue to change over time as the next generations come through. The technology is here now, the adoption will follow”.

The panel also discussed return on investment and how this applies to technology and automation.

Jason explained that while there are some upfront costs investing in new technology, gone are the days of on-site, localised hardware. The market is developing products that are flexible, interconnected and designed to evolve as the tech does, so the investments operators are making now will be long term and update easily as technology evolves.

“Lock automation won’t be a fad,” he said, “We’ll be able to retrofit that technology and that will become a big part of the market.

The advances in artificial intelligence will see enhanced security systems play a more important role in the industry too.”

Resilience for the road ahead

The final speaker, wellbeing expert Dr Denise Quinlan, was an audience favourite. As the founding director of the New Zealand Institute of Wellbeing and Resilience, Denise armed members with practical tools and resources to face whatever challenges might lie ahead.

While we often worry about software and hardware, Denise encouraged us not to forget about peopleware. She explained the importance of rest and recovery, and factoring in breaks and selfwww.selfstorage.org.au

care so you don’t burn out trying to cross the finish line.

As a recovering perfectionist, she reminded everyone about the importance of self-compassion and that sometimes the simplest strategies are those that make the biggest impact (yet are the easiest to forget).

Perhaps the biggest takeaway was her advice to let the people around you know how positively their work has affected your day, or someone else’s. It’s most powerful when feedback is shared in a timely manner, and authentically. Denise calls it “filling up someone’s cup”, and she says it’s a simple strategy that can help strengthen your bond with your team and in turn, your organisation as a whole.

It’s a wrap

The summit wrapped up with an unforgettable dinner at the historic Stoneridge Estate. A big thank you to all our members who joined us in Queenstown. We would also like to thank our keynote speakers, panelists and of course, our major partners VISY Boxes & More, USC, PTI, Storco, Southwell and Storman for their important contributions.

We hope everyone left the summit with an elevated understanding of where our industry is, a view of how the future might look, and a few new ideas. There’s already talk of where to next – so stay tuned. l

OCTOBER / NOVEMBER 2022 INSIDER 127

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OFFSHORE INVESTMENT 29

The rise of offshore investment

By Dylan Adams, National Director – Alternative Assets and Emily Quick, Associate Director – Alternative Assets, CBRE | Valuations & Advisory Services.

A

ustralia’s self storage investment market has evolved significantly over the past 24 months. Historically, it has lacked the level of sophistication seen in other storage markets globally, given it is of a smaller scale and still in its infancy, having taken off in the 1970s. If we look at more established markets, the level of stock, operators and market participants are significantly more developed/evolved, resulting in highly transparent, active and competitive market sectors. Consequently, investment parameters in these markets are often less lucrative for owners and investors. This has ultimately caused an influx of potential new offshore investors looking at our market in Australia as it is seen to be “undervalued” relative to the broader global markets.

The first major show of offshore institutional investor interest in the sector occurred in early 2020 with the potential takeover of National Storage REIT (NSR). Takeover bids were placed by three individual parties from the US and Asia, with the strongest offer from the US-based and listed entity Public Storage for $2.40 per stapled share. Ultimately, the deal didn’t eventuate as Public Storage and the other interested parties withdrew their offer due to global concerns surrounding the emergence and uncertainty around COVID. Notwithstanding, the event can be viewed as the first actual move from large-scale overseas investors looking to enter the Australian market. www.selfstorage.org.au

“

The first major show of offshore institutional investor interest in the sector occurred in early 2020.

In late 2020 the KeepSafe portfolio in Western Australia was offered for sale to a select group of parties (including two offshore investors) on an off-market basis.

This approach created a new level of competitiveness to secure the portfolio, which became evident with all parties submitting strong bids. Ultimately, the portfolio was acquired for $80 million with the Real Estate arm of United States private equity firm Blackstone as the winning party. The transaction represented Blackstone’s first foray into the Australian self storage market, having also acquired a significant portfolio in the United States around the same time. Following this, Blackstone continued to invest in the market by completing one of the largest transactions in Australia’s self storage history, acquiring the Fort Knox Portfolio in Victoria for $400 million. The second transaction highlighted the firm’s intent to grow its market share and, coincidentally, has further fuelled the fire, increasing overall market appetite and pricing across the board.

More recently, it is mooted that Warburg Pincus, another listed private equity firm, is actively looking to enter the market in a bid to emulate the steps taken by Blackstone and secure scale. On the other end, Swiss investors Partners Group committed $100 million by establishing a strategic partnership with StoreInvest.

They are affiliated with StoreLocal to grow their portfolio through acquisitions, new development, expansion of existing facilities and third-party management offerings.

As evident by the recent activity, the industry is receiving high levels of offshore investor interest, particularly from existing self storage portfolios in other global markets, even under the current economic conditions. These investors are shifting their focus to the Australian market given the “undervalued” nature of the market, with the expectation that it will track in line with other self storage markets with the outlook reflecting the continuance of firming yields.

The continued offshore investor interest has increased overall market appetite, with the existing domestic groups implementing successful equity raisings to ensure they can maintain their historical growth patterns through developments and acquisitions. The current domestic investor, coupled with the growing offshore investor interest, has ultimately led the industry into a new era of sophistication. Watch this space! l

OCTOBER / NOVEMBER 2022 INSIDER 127

2

41.2%

30 INTERNATIONAL NEWS

SUMMARY OF KEY FINDINGS

OF SELF STORAGE CUSTOMERS HAVE USED SELF STORAGE PREVIOUSLY.

2022 UK SELF STORAGE REPORT

I

t's always interesting to see

how international markets are A DEATH IN THE performing and what insights FAMILY IS THE MOST might transfer down under.

COMMON LIFE This is the 15th year the Self EVENT THAT PEOPLE Storage Association UK (SSA STORAGE FOR.and UK)USE surveyed its members

produced an Annual Industry Report.

The report covers all viewpoints of the industry, collecting data from operators, customers and the general public.

Cushman & Wakefeld collated the data from 2021 and 2022. The SSAA has extracted some information that may be of interest to members.

The UK industry only started acquiring prominentIS stores and OCCUPANCY actively marketing itself around 20 years ago, so most people in the UK have used self storage and, ONnever MATURE don’t have a clear understanding of STORES. what exactly the industry offers. In more mature self storage markets such as the USA and Australia, there is a greater knowledge and understanding of the product.

86.2%,

© SELF STORAGE ASSOCIATION UK AND CUSHMAN & WAKEFIELD. ALL RIGHTS RESERVED.

Operators survey

Profitability for the industry PEOPLE RENOVATING improved to an even higher level THEIR HOMEwith ARE in 2021 compared 2020. New development continued, resulting in an increase in occupied self storage MORE LIKELY TO feet. space of 2.17 million square These figures indicate that demand CONSIDER OF BUSINESSES forTHAT the product isSELF growing at a faster USING SELF USE rate than supply. Normally, operators STORAGE STORAGE HAVE are overly optimistic about their LESS THAN 10 expansion plans. However, last STAFF. year they predicted to develop 44 sites and added 41. With delays in acquiring building products and

3 TIMES 84%

86 % OF BUSINESSES

Y OF DINGS

ALLOW CUSTOMERS TO RESERVE OR PAY FOR THEIR UNIT ONLINE.

ON UK - CUSHMAN & WAKEFIELD

INSIDER 127 OCTOBER / NOVEMBER 2022

OCCUPANCY ON CURRENT LETTABLE SPACE IS

83.3 %, 82.3 %

UP FROM

LAST YEAR.

staff in 2021, and the escalating price of construction, this can be regarded as a positive return for the industry.

The lead time for building a new store has increased significantly since 2019. Not just the construction time, but delays in planning due to pandemic backlogs and staff shortages mean projects are typically taking months longer to get to construct. This, coupled with the increasing cost of construction, means it will be interesting to see if all the predicted new stores in 2022 and 2023 come to fruition.

There has been a marked swing toward operators considering mixeduse for future development, but the number definitely committed to do so DIVORCED in future developments remains OR low.

This type of development SEPARATED includes adding shop fronts, PEOPLE ARE TWICE workshops, retail, residential or AS LIKELY TO USE other uses to their site in addition SELF STORAGE. to self storage. This can increase the prominence and appeal of the site and attract more customers as well as potentially open up different properties for viable development.

There was a significant drop in the churn rate this year indicating that customers are staying in their units for longer periods. As the industry matures it attracts more long-term customers, so STORAGE you would expect a OF SELF gradual drop in this figure, but the CUSTOMERS last two years have broken this longHAVE USED term trend.

SELF STORAGE Average rental rates have PREVIOUSLY. continued to rise, up 1% from 2020.

This is the highest average rental rate since the survey began.

41.2%

Discounts are traditionally offered to encourage customers to use the service and this report shows that customers often think they will only use storage for a short period of time, but tend to use it for longer. This gives the business the opportunity to recover this initial discounted rate over time.

Self storage stores themselves do not employ many people, with even the largest stores having on average only three full-time staff. However, while not direct employers, self storage stores are strong supporters of local small businesses.

Web-based enquiries continue to represent the bulk source of enquiries and have increased their share from 69% in 2020 to 75%. The number of companies that display prices on their website continues to increase. When you consider that all the major operators now display prices on their websites in some form, the number of stores displaying prices is much higher. There has been clear growth in the number of businesses that provide the facility for customers to reserve and pay for their units online. The pandemic has led more operators to look at “contactless” move-in procedures and online check-ins are now common on self storage websites.

Both web and phone conversions OF SELF STORAGE increased this year. Phone CUSTOMERS conversions the most significant, HAVE USED up 13% on last year. Walk-ins SELF STORAGE remained basically the same following the increase PREVIOUSLY. in 2020.

Overall the industry is converting more enquiries than last year.

41.2%

56 % OF OPERATORS

DECREASED THEIR LEVEL OF DISCOUNTS IN 2021.

www.selfstorage.org.au

PE TH

3

MO CO US ST

84 % OF BUSINESSES

USINESS

THAT USE SELF STORAGE HAVE LESS THAN 10 STAFF.

HOW WOULDOR YOU FIND A STORE TO CONTACT? DIVORCED

HOW WOULD YOU FIND A STORE TO CONTACT?

SEPARATED PEOPLE ARE TWICE % INTERNET AS LIKELY TO USE SEARCH SELF STORAGE.

73

41.2 % OF SELF STORAGE

10%CUSTOMERS DON’T KNOW

HAVE USED SELF STORAGE PREVIOUSLY.

26%

7%

19%

5%

PHONE DIRECTORY

YOU KNOW A STORE NEARBY

Public survey

3%

DIRECT POST

2%

ADVERTISING ON TV

4%4%

3%

ADVERTISING ON RADIO

3%3%

3%3%

2%2%

YELLOW PAGES

2%

When the public was asked how they became aware of their local self storage business, road visibility remains the clear driver of recognition as self storage is ON UK - CUSHMAN & WAKEFIELD a location-based business. The data supports this with 60% of respondents travelling 15 minutes or less and 75% travelling 20 minutes or less to their self storage store.

The COVID pandemic resulted in a big drop in people preferring to go into a store in the 2021 survey. eir local self storage business, While this has remained almost s not surprising thein 2022, the number of thegiven same ions. This, in part, can be people preferring to shop online eting aimed at growing the dropped and much of this moved to e industry, with hearing about telephone contact. The number of driver of business recognition. customers preferring to contact the he last 5 years. store in person has risen since the pandemic last year, not to the same levels it was pre-pandemic (over 41%). The percentage of customers preferring email has fallen back to its pre-pandemic levels, but the preference to phone the store has remained high. Online chat has also risen, albeit from a small base.

Since the pandemic, there has been a return towards in-store completion of the booking process, this is more prominent in males compared with females.

TOTAL DISSATISFIED

Summary

TOTAL DISSATISFIED

Despite two record years, increasing inflationary pressures, escalating costs of construction and a war th a similar in Europe, UK operators remain th a similar has historically optimistic about the future with historically has his is evidenced 62% of those surveyed expecting his is evidenced results will help to increase profits further in 2022. results willslightly, help also rose In Australia and New Zealand we also rose slightly, ries. watch the UK market with interest ries. and we also note the similarities.

Thanks to all the SSA UK members that contributed to the report by completing the industry survey. l 2022 2022

If any SSAA members would like to view the full 58-page report visit www.fedessa.org. www.selfstorage.org.au

ASK FRIEND/FAMILY

LOCAL PAPER

11%

1%

SOCIAL MEDIA

OTHER

Respondents were then asked how they would find information on how to contact a

store, this being the research stage of their purchase. They were encouraged to select ADDITIONAL SERVICES ADDITIONAL SERVICES all the methods they would use to research, hence the totals of this graph add up to 100%.

Each figure represents percentage of respondents that17% chose Whenover asked if they thought their storethe should offer additional services, of this option.

When asked if they thought their additional services, of customers said yes while 39% saidstore theyshould did notoffer know.

When given a list 17% of potential After increases in internet and social media searches between 2014 and the last customers said yes be while 39% said they did notwas know. given a list of2020, potential services that could offered, waste disposal theWhen most popular.

2 years remained consistent has mostly stabilised.

Use of the phone directory services that has could be offered, wasteand disposal was the most popular. continues to fall, down from its peak of 20% in 2014. The local paper is also in decline.

In previous years it DISPOSAL has been as high as 12%, but is now only 5%. This underlines WASTE 15%the importance of referrals to the industry, with asking friends or family being consistently WASTE DISPOSAL 15% 11% MORE LIGHTING around the 20% mark.

MORE LIGHTING SHELVING SHELVING EXTENDED/DIFFERENT OPENING TIMES EXTENDED/DIFFERENT OPENING TIMES ELECTRICITY/POWER ELECTRICITY/POWER WI-FI WI-FI PHONE APP FOR MANAGING YOUR ACCOUNT YOURYOUR UNIT PHONEAND APPACCESSING FOR MANAGING ACCOUNT AND ACCESSING YOUR UNIT RECEIVING PARCELS ON YOUR BEHALF RECEIVING PARCELS ON YOUR BEHALF HEATING HEATING LOGISTICS AND TRANSPORTATION LOGISTICS AND TRANSPORTATION ONSITE HELP FROM STAFF ONSITE HELP FROM STAFF OFFICE SPACE OFFICE SPACE MORE LIFTS MORE LIFTS FULLY AUTOMATED STORE FULLY AUTOMATED STORE BLUETOOTH ACCESS BLUETOOTH ACCESS INSURANCE INSURANCE

4% 4% 4% 4%

6% 6% 6% 6% 6% 6% 6% 6%

7% 7%

8% 8%

11% 10% 10% 9% 9%

SELF STORAGE ANNUAL INDUSTRY REPORT 2022

3% 3%

2% 2% 2% 2% 1% 1% 0% 2% 0% 2%

4% 4%

6% 6%

8% 8%

10% 10%

12% 12%

14% 14%

16% 16%

These results have not changed significantly from last year. The biggest change was These results have not9% changed significantly from last year.an The biggest change services was lighting moving from to 11%. This chart gives operators idea of additional lighting from 9% tocharge 11%. This chart gives ideaadded of additional that theymoving could potentially customers for operators use of as aan value service.services Some that they could potentially charge customers forthis usecan of as a value added service.

Some operators do not like offering waste disposal as lead to overflowing bins and operators do not like offering waste disposal as this can lead to overflowing bins and customers using the self storage store as a free dump for everything they don’t want. customers thedisposal self storage store as a free dump for everything they don’t want.

The cost ofusing rubbish is also rising.

The cost of rubbish disposal is also rising.

OCTOBER / NOVEMBER 2022 INSIDER 127

64

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INSIDER 127 OCTOBER / NOVEMBER 2022

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Taking risk off the table

Martin Le Marchant specialises in Audit and Risk Management and has a double degree at Charles Sturt University.

By Martin Le Marchant, Company Director Bishop Collins.

M

anaging risk is crucial for self storage business as it’s a critical business practice that identifies and evaluates issues by tracking and improving risk mitigation strategies. To understand risk management, we need to understand the different types of risk, positive and negative.

Risk management is the practice and synergy of 3 key things: l identification l evaluation l prioritisation

The responsibility for managing risk

The responsibility for overseeing and managing risk lies with an organisation’s board and management team. The board should be accountable for regularly reviewing and approving the risk management policies and frameworks. The board is responsible for deciding on the nature and extent of the risks it’s prepared to take to meet objectives.

Management is responsible for developing and implementing a risk management framework and any related internal controls.

What about the risks you don’t take – sometimes referred to as the “do nothing” approach? The risk of not taking action or taking ineffective action? Let’s recall how Netflix and Amazon shot to prominence,

INSIDER 127 OCTOBER / NOVEMBER 2022

“

outperforming well-established companies that focused on avoiding risk at all costs (Blockbuster).

Understanding this gives you a grasp of the significance of risk and how it can be more than just a defensive strategy. Properly managed risk can assist self storage facilities in developing a well-rounded approach, achieving objectives and making informed decisions.

Properly managed risk can assist self storage facilities in developing a wellrounded approach, achieving objectives and making informed decisions.

Risk management process

identification and analysis phases.

Risk analysis: Evaluation component of the broader risk assessment process, which determines the significance of the identified risk concerns. The actual quantification of risk (i.e. calculating the probability and magnitude of loss).

The five steps in a good risk management process comprise: l Identify risks – both current and potential risks. l Analyse the likelihood of each risk you identified and the impact of each one. l Prioritise which risks to focus on based on business objectives. l Respond to the risk conditions. l Monitor outcomes and adjust as necessary.

Develop a set of processes for identifying a facility’s risks. Unless the risk has an impact, it isn’t a risk.

What’s the difference?

Risk management: The continued process of identifying, analysing, evaluating, and treating loss exposures.

Risk assessment: Processes and technologies used to identify, evaluate, and report on risk-related concerns. A critical aspect of the broader risk management process and is mainly concerned with the

STEP 1: IDENTIFY THE RISKS

Risk identification can be undertaken using: l Risk identification can use either top-down or bottom-up approaches, or a combination of both. l A top-down, bottom-up approach: this involves identifying the mission-critical processes and working with stakeholders to determine the conditions that could impede them. The bottom-up approach starts with the source of the problem (natural disasters, economic downturns, cyber-attacks, etc.), considering their potential impact assets. www.selfstorage.org.au

RISK MANAGEMENT 35

Consequences → A

B

C

D

E

V

Medium 5

High 10

High 15

Extreme 20

Extreme 25

IV

Medium 4

Medium 8

High 12

High 16

Extreme 20

III

Low 3

Medium 8

Medium 9

High 12

Extreme 15

II

Low 2

Low 4

Medium 6

High 8

Extreme 10

I

Negligible 1

Low 2

Medium 3

High 4

Extreme 5

Description 1

Description 2

Description 3

Description 4

Description 5

Consequence scale 1

Risk categorisation:

There are 4 main categories: l Strategic risk (e.g. reputation, technical innovations, customer relations). l Financial and reporting risk (market, credit, tax). l Compliance and governance risk (e.g. ethics, regulatory, international trade, privacy). l Operational risk (e.g. IT security/ privacy, supply chain, labour issues, natural disasters).

Record the findings in a risk register to track the risks through the four steps of the risk management process.

Pro tip: Leverage the collective knowledge and experience, and ask everyone to identify risks they’ve either experienced before or may have additional insight about.

STEP 2: ANALYSE

How likely risks will occur? What are the ramifications? i.e. - the scope of the risk. How does it impact the storage facility and how many processes it will affect. Some risks will be minor and others can bring an entire business to a standstill.

To analyse the risks of an event consider: l the likelihood of the risk happening. l the consequence and impact if it occurred. l then work out a rating system. l 1 to 5 for likelihood (1 being highly unlikely and 5 highly likely) l 1 to 5 for consequence (1 being low and 5 for severe). www.selfstorage.org.au

STEP 3: PRIORITISE

Risk management solutions show different categories of risks. Prioritising gives a view of the possible exposure of the entire organisation. Low-level risks may not require upper management intervention. Even just one high-rated risk can be enough to require prompt intervention. The two types of risk assessments are either Qualitative or Quantitative Risk Assessments. l Qualitative Risk Assessment: Most risks are not 100% quantifiable. For instance, the risk of climate change is one that cannot be quantified as a whole. Note: when performing a qualitative assessment it is essential to maintain objectivity. l Quantitative Risk Assessment: This is common in the financial sector – whether it is with regard to money, metrics interest rates, or any other form of data.

STEP 4: TREAT AND RESPOND

There are four strategies to manage the threat the risk may cause, where the strategy selected depends on the risk’s likelihood and the severity of impact. l Risk avoidance: implementing policies, procedures, technologies, training and other steps designed to divert potential risks. l Risk reduction: a series of measures designed to reduce risk to an acceptable level. l Risk transfer: contracts with a third party to bear some or all costs of a risk that may or may not occur.

l Risk acceptance: accepts the risk because its potential to harm the organisation is very limited or the cost of mitigating it exceeds the damage it would inflict.

STEP 5: MONITOR

Not all risks can be eliminated – For example, market risks and environmental risks, will always need to be monitored. l Manual systems monitoring: This is conducted by diligent employees. These professionals must keep a close watch on all risk factors they are responsible for. l Digital systems monitoring: The risk management system monitors the entire risk framework of the organisation. If any factor or risk changes, it is immediately visible to everyone with access. Computers are also much better at being able to continuously monitor risks.

Monitoring risks also allows your business to ensure continuity.

A self storage company’s board needs to ensure that the risk management framework established by management is operating as intended by testing the effectiveness of the strategy from time to time through assurance providers such as internal and external audits. l To get help you get started, download the SSAA Health and Safety Handbook from the Member Portal.

OCTOBER / NOVEMBER 2022 INSIDER 127

36 OH&S

Safety considerations when purchasing and repurposing an existing building Buying an existing building for your next self storage facility?

Before you purchase, it’s important to consider your health and safety obligations as part of your due diligence.

B

“

uilding owners are responsible for the health and safety of anyone who completes work at their site from the time you take possession of the building. This means you need to ensure any hazards that could cause harm to a person have been identified, and a risk assessment has been completed.

The objective is to develop controls to eliminate or reduce the risk as reasonably practicable. You must conduct the risk management activities in consultation with those likely to be exposed to the hazard/ risk and provide appropriate training and supervision.

Health and safety must be considered as part of the due diligence process before a building purchase or modification.

What safety issues should you consider as part of due diligence?

Hazardous materials (including asbestos and lead paint)

Location

If lead paint needs to be removed, requirements must be followed. In most jurisdictions, there is a legal requirement for buildings built before 2003 to be inspected for asbestos at least every five years. Ask the vendor for a copy of the most recent inspection report, as this can heavily impact the costs of modifications to the building, as the asbestos most likely will need to be removed.

Plant/equipment and site layout

Think about the plant and equipment you will use at the facility and whether the infrastructure is appropriate or needs to be modified.

Forklifts, goods lifts and other plant all have specific requirements in terms of their maintenance and safe operation.

Is there enough space for forklifts, and does the staff have

INSIDER 127 OCTOBER / NOVEMBER 2022

the appropriate licence to operate them?

How will pedestrians move around the facility? Can they be separated from plant and vehicles?

Are there any blind spots around the facility? Especially if pedestrians and plant must interact.

It is important to review the location concerning: l neighbouring businesses and the activities that they undertake at the premises which may impact your business (e.g. traffic management, fire, odours, occupational violence) l if the location is isolated – There may be a risk to your staff if they work at a site with little activity outside regular business hours.

Tim is an experienced Health and Safety Practitioner, OHS and Environmental systems Auditor and Tertiary Qualified Engineer.

He has held operational and consulting roles, being responsible for Health and Safety and developed, implemented, and maintained OHS and Environmental Management Systems of global organisations in the manufacturing, construction, and logistics industries.

(e.g. hydrants, hoses, sprinklers and fire extinguishers) to extinguish a fire quickly?

The location of the closest fire and emergency service is crucial, as the longer it takes for support to arrive, the greater the chance of damage or complete loss.

Health and safety must be considered as part of the due diligence process before a building purchase or modification.

Failing to do so could mean high costs to set up and operate a safe facility. l

We’re here to help

Please contact the OHS Help Desk for further information or guidance on due diligence checks before a new building purchase.

Site security

How are you going to provide security for your staff and customers? Robust perimeter fencing, open visible spaces and monitored CCTV cameras are ideal for helping protect staff at the site.

Emergency preparedness

Consider the logistics of moving people off the site in an emergency, such as a fire in a storage unit.

Is more than one emergency assembly area required? Is there sufficient firefighting equipment

The OH&S Help Desk has been established by the SSAA to support its members. This advisory service is free. Free call 1800 067 313 (Australia); 0800 444 356 (New Zealand); or email admin@selfstorage.com.au. www.selfstorage.org.au

HR HELP DESK 37

The importance of performance reviews What is a performance review (or appraisal)?

A performance review is a formal meeting between an employee and their manager, where both parties provide feedback and discuss achievements and development areas. Employers and employees should embrace the opportunities performance reviews offer to improve relationships and productivity.

When done correctly, they bring out the best in your staff by offering growth, recognition, and real development opportunities. The employer can discuss with the employee how they are tracking, giving feedback, offering support, guidance etc.

Acknowledgement and constructive criticism can motivate and engage employees. By reviewing the performance of your staff members, they gain a greater understanding of how their position contributes to the company’s goals and can become more invested in the outcome. Performance reviews help reduce turnover.

Performance reviews can include behaviours, attitudes, the position’s technicalities or tasks, e.g. whether or not reports are filed on time or projects completed within budget are task-related, plus how employees engage themselves in the workplace - are they a team player? Are they punctual? Poor performance can be monitored and managed as ignoring it can lead to decreased productivity, affecting team morale and contributing to bad culture. And a business with a bad culture can lead to high turnover and make employing and keeping good staff difficult.

So how often should performance reviews be conducted?

It is better to conduct reviews quarterly or biannually, especially if you do not meet with your staff regularly. Quarterly meetings track www.selfstorage.org.au

employees against their goals and support them in reaching or exceeding them. If an employee has not been performing at the desired level and this hasn’t been communicated during the year, it can be a big shock at an annual review.

Preparation tips:

l Prepare: Whether the performance review is casual or formal, it is always best for both parties to prepare themselves for the conversation. l Take notes: Both parties should be encouraged to make notes before the meeting. This assists with keeping the meeting on track and giving meaningful feedback.

Many businesses have a set template of questions sent to the employee before the meeting.

The employee can answer the questions, make notes or ‘rank’ themselves in order of how they perceive their performance to be.

Reflect on how the employee has or hasn’t achieved their goals for the year. l Have examples: You should be able to provide examples for the feedback you provide. An example can help employees better their performance rather than feeling defensive. Make it clear and indicate how the situation could have been handled better. Hence, the employee understands the area where their performance

may be under par and that they have the resources and tools to handle things better.

l Always come with questions: This is a safe environment, so make the most of your time together. l Focus: This should be solely on the performance you are evaluating.

It is not a personal issue but about the individual’s role and how they are doing that role.

Try not to give the same feedback each review. Performance reviews are valuable to ensure tasks and duties are carried out according to job descriptions. Any issues an employee struggles with are discussed and supported, and that behaviour and attitude are also accounted for. l

We’re here to help

Contact SSAA HR Helpdesk for help creating a formal performance review process or guidance around underperformance, salary increases, and reward and recognition.

If you would like any further information call the SSAA

HR HELP DESK 1300 01 SSAA / 1300 017 722

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38 LEGAL HELP DESK

Retail leases in the self storage world

By Emily Clapp, associate and Sean Hollis graduate at law, Hunt and Hunt Lawyers.

L

eases are essential to operating any business and can significantly impact operations. Landlords and tenants must be fully aware of their rights and obligations under a lease to minimise unnecessary costs and help make informed business decisions. In Australia, leases are governed by the relevant state or territory legislation.

For facilities that operate their business under a lease, it is important to understand relevant rights and obligations that flow from the type of lease in place and the law that governs it. This article explores the pain points to look out for when operating under a retail lease and the potential consequences of not doing so.

What is a retail lease?

The meaning of a ‘retail lease’ differs throughout Australia, but generally, the purpose of retail leasing legislation is to provide for fairer and more transparent dealings between landlords and tenants. The relevant legislation also provides a clear process to follow if a dispute arises.

The following legislation applies in each state and territory of Australia: l ACT: Leases (Commercial and Retail) Act 2001. l NSW: Retail Leases Act 1994. l NT: Business Tenancies (Fair Dealings) Act 2003. l QLD: Retail Shop Leases Act 1994. l SA: Retail & Commercial Leases Act 1995. l TAS: Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998. l WA: Commercial Tenancy (Retail Shops) Agreements Act 1985, including the Commercial Tenancy (Retail Shops) Agreements Amendment Act 1998 and the Commercial Tenancy (Retail Shops) Agreements Amendments Act 2011.

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l VIC: Retail Leases Act 2003. l NZ: Property Law Act 2007 The applicable statute provides a framework for dispute resolution if a dispute between landlord and tenant arises about a retail lease.

However, some general observations that apply across Australia and New Zealand are: l that retail lease legislation imposes disclosure obligations on landlords. A disclosure statement must be provided seven days before entering into the lease (except in South Australia); l the definition of a retail lease differs is not uniform across different jurisdictions – the legislation will only apply to premises defined as ‘retail leases’ in the relevant state or territory where it is located; l in some states and territories, such as Victoria, there is a minimum time frame for a retail lease (i.e. five years); l most states do not allow landlords to charge the tenant for the preparation of a lease or to obtain the mortgagee’s consent (if there is one). This is usually left to the parties to negotiate in a commercial lease; l in some jurisdictions, a specialist retail valuer must be appointed if the landlord and tenant disagree regarding a rental increase; and l landlords who fail to comply with relevant legislation may have to pay penalties.

Why is this important to self storage facilities?

When it comes to retail leasing legislation, the specifics are important. Retail leases impose certain obligations on landlords and tenants that are not imposed for non-retail commercial leases. The Victorian case study highlights the complexity of leasing law and the importance of both landlords and

Emily Clapp.

Sean Hollis.

tenants being informed of the reality of their leasing arrangement.

Victorian Case Study

In Victoria, a retail lease applies if the premises is predominantly used for the sale or hire of goods or the retail provision of services. While this may seem obvious, in certain circumstances, knowing whether the premises are used for the retail provision of services can be unclear.

The case of IMCC Group (Australia) Pty Ltd v CB Cold Storage Pty Ltd [2017] VSCA 178 (‘CB Cold Storage’) considered leasing arrangements in place by a cold storage service business.

The outcome of the case and implications may be significant for those in the industry, both landlords and tenants.

The test set out in the Retail Leases Act 2003 is the ‘ultimate consumer’ test, which asks “, are services used by the person to whom they are sold, or are the services passed on by the purchaser in an unaltered state to some third party?”.

In CB Cold Storage, as with many facilities, the facility was open to anyone but was primarily used by large and small businesses for the storage of goods. Despite this, the Court of Appeal applied the ‘ultimate www.selfstorage.org.au

consumer test’ and determined that the services were retail.

Ultimately, as the business was generally open to the public and the storers were not required to pass on the service to anyone else, it was considered retail activity.

What to look out for

While the CB Cold Storage case only applies in Victoria, it is an important decision highlighting that tenants and landlords in all jurisdictions should be mindful of the lease terms and consider their obligations

under relevant legislation. For a tenant, the retail leasing legislation often provides greater protections, minimising business risk to the facility. It is also important to ensure a facility, as a tenant, does not breach the permitted use requirements in its lease. On the other hand, a landlord should ensure it is not breaching the legislation to avoid penalties.

A key takeaway is to consider leasing arrangements, what rights and obligations you may have, and to seek advice if unsure. l

“

Retail leases impose certain obligations on landlords and tenants that are not imposed for non-retail commercial leases.

Disclaimer: The information contained in these answers is of a general nature and is not intended as legal advice. It is important that you seek legal advice that is specific to your circumstances. Please refer to the SSAA’s website for more information on the SSAA’s Legal Help Desk.

www.selfstorage.org.au

OCTOBER / NOVEMBER 2022 INSIDER 127

40 TRADE DIRECTORY – TRUSTED SUPPLIERS TO THE SELF STORAGE INDUSTRY ACCESS CONTROL, FIRE & SECURITY PTI SECURITY SYSTEMS T: Sales: 1300 798 860 Support: 1300 159 473 E: apac-sales@ptisecurity.com www.ptisecurity.com AD-TECH Security Adrian Rostirolla T: 1300 306 090 E: adrian@ad-tech.com.au www.ad-tech.com.au –––––– AlarmQuip Security Systems Evan Richardson T: 1300 552 520 E: admin@alarmquip.com.au www.alarmquip.com.au –––––– QueAccess Pty Ltd Mike Bristol T: 1300 783 222 E: info@QueAccess.com.au www.queaccess.com.au –––––– Sentinel Storage Systems Jason Keane T: 1300 852 117/+61 3 9988 2035 E: info@storagesecurity.com.au www.storagesecurity.com.au

ANCILLARY SERVICES PACKAGING VISY BOXES & MORE Ralph Inglese T: 13 84 79 E: vbm_vic@visy.com.au www.boxesandmore.com.au Branches across AUS and NZ Homestead Press Ingrid Nammensma T: +61 2 6299 4500 E: printing@homesteadpress.com.au www.homesteadpress.com.au

CLEANING Sweepers Australia Michelle Maxwell & Vaughan Rose T: +61 3 9562 7533 E: info@sweepersaustralia.com.au www.sweepersaustralia.com.au

COMPUTER REPAIR & IT SERVICES Millennium Technology Shane Goodall T: 0800 724 376 E: info@millenniumtechnology.co.nz www.miltech.co.nz

LOCKS Lock Distributors Australia Martin Coote T: 1800 28 77 24 E: service@lockdistributors.com.au www.lockdistributors.com.au

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STORAGE AUCTION iBidOnStorage Brennan McLoughlin T: +61 2 4302 0605 E: info@ibidon.com.au www.ibidonstorage.com.au

TELECOMMUNICATION URL Networks Ashley Breeden T: 1300 331 178 E: support@url.net.au www.url.net.au

DESIGN & CONSTRUCTION STORCO STORAGE SYSTEMS

Jonathan Layton T: +61 2 6391 2800 E: jonathan.layton@storco.com.au www.storco.com.au Aluminium Specialties Group PTY LTD Peter McLean T: 1300 257 732 E: pmclean@alspec.com.au www.alspec.com.au –––––– Cloustruct Pty Ltd Robert Clouston T: +61 409 726 789 E: bobby@cloustruct.com.au www.cloustruct.com.au –––––– Gliderol Garage Doors Tom Ainscough T: +61 8 8360 0000 E: tainscough@gliderol.com.au www.gliderol.com.au –––––– Kiwimark Construction Ltd Travis Morgan T: +64 7 576 5494/+64 7 576 5491 E: travis@kiwimark.net.nz www.kiwimark.net.nz –––––– RegisBuilt Group Anthony Regis T: 1300 388 224 E: anthony.regis@regisbuilt.com.au www.regisbuilt.com.au –––––– Steel Storage Pty Ltd Stephen Boxall T: +61 7 3865 1600 E: sales@steelstorage.com.au www.steelstorage.com.au –––––– Storcad Pty Limited Javier Rezzonico T: +61 447 566 988 E: info@storcad.com.au www.storcad.com.au –––––– Taurean Door Systems Adrian Valente T: +61 3 9721 8366 E: adrian.valente@taureands.com.au www.taureands.com.au –––––– Total Construction Pty Ltd Steven Taylor T: +61 2 9746 9555 E: stevet@totalconstruction.com.au www.totalconstruction.com.au

FINANCIAL SERVICES Bishop Collins Pty Ltd Phillip Keenan T: +61 2 4353 2333 E: mail@bishopcollins.com.au www.bishopcollins.com.au –––––– Debtplacer James Cook E: support@debtplacer.com www.debtplacer.com

HR SERVICES HR Central Cath Grawe T: 1300 717 721 E: cath.grawe@hrcentral.com.au www.hrcentral.com.au

INSURANCE SERVICES AON Risk Services Darren Clauscen E: darren.clauscen@aon.com T: +61 2 9253 8350 www.aon.com.au/storage –––––– AON Risk Services NZ Jeffery Nathan E: jeffery.nathan@aon.com T: +64 9 362 9535 www.aon.co.nz –––––– Midland Insurance Brokers Gilda Mihran T: 1300 306 571 E: storage@midlandinsurance.com.au www.midlandinsurance.com.au –––––– Wallace McLean Ltd Insurance Brokers and Risk Advisers Simon Keenan T: +64 9 358 7233 E: simon@wallacemclean.co.nz www.wallacemclean.co.nz

LEGAL SERVICES Hunt & Hunt Lawyers Graeme Armstead T: +61 3 8602 9200 E: garmstead@huntvic.com.au www.hunthunt.com.au

LIFTS & HOISTS SOUTHWELL LIFTS AND HOISTS Hamish McGregor T: +61 2 4655 7007 E: sales@southwell.com.au www.southwell.com.au

ABT Loadmac Ltd Chris Walker T: +61 431 281 108 E: chris.w@loadmac.com www.loadmac.com –––––– Safetech Lifts & Hoists Tony Krlevski T: +61 3 5127 4566 E: sales@safetech.com.au www.safetech.com.au

www.selfstorage.org.au

TRADE DIRECTORY | 41 MANAGEMENT SERVICES Kennards Self Storage Management Services Fiona Harding T: +61 2 9764 9815 E: fiona@kss.com.au www.kss.com.au –––––– Pioneer Performance Leigh Thewlis T: +61 438 021 944 E: admin@pioneerperformance.com.au www.pioneerperformance.com.au –––––– Storage King Management Services Martin Richards, Australia/ New Zealand T: +61 2 9460 6660 E: martin@storageking.com.au www.storageking.com.au –––––– StorAssist Sally Chodan T: +61 403 533 640 E: sally@storassist.com.au www.storassist.com.au –––––– StoreLocal Mark Greig T: 1300 099 022 E: partners@storelocal.com.au www.storelocal.com.au –––––– Vision Self Storage Management Gavin Koorey T: +61 2 9432 2880 E: gavin@vssm.com.au www.vssm.com.au

OHS SERVICES OHS Action Consulting Craig Salter T: +61 409 772 499 E: craig.salter@actionohs.com.au www.actionohs.com.au –––––– Workplace Access and Safety Carl Sachs T: +61 3 9045 6200 E: carls@workplaceaccess.com.au www.workplaceaccess.com.au

REAL ESTATE & VALUERS CBRE Limited Peter Hamilton T: +64 9 355 3333 E: peter.hamilton@cbre.co.nz www.cbre.co.nz –––––– CBRE Dylan Adams T: +61 7 3833 9833 E: dylan.adams@cbre.com www.cbre.com.au/people-andoffices/corporate-offices/brisbane –––––– Colliers Baden Mulcahy T: +61 2 9257 0222 E: baden.mulcahy@colliers.com www.colliers.com.au

www.selfstorage.org.au

Collins & Associates Malcolm Collins T: +61 3 8456 5134 E: malcolm@malcolmcollins.com www.malcolmcollins.com –––––– Cushman and Wakefield Linda Sharkey T: +61 3 8359 0091 E: linda.sharkey@cushwake.com www.cushmanwakefield.com –––––– Highway Frontage Specialist Estate Agents Matt Walsh T: 1300 661 950 +61 3 9944 9350 E: matt@highwayfrontage.com.au www.selfstoragerealestate.com.au –––––– m3property Jeremy Hoffman T: +61 7 3620 7900 E: jeremy.hoffman_365@m3property.com.au www.m3property.com.au –––––– My Haus Property Group Kira Steinhaus T: +61 7 5478 9122 E: info@my-haus.com.au www.my-haus.com.au –––––– Savills Valuations Pty Ltd Basil Simitci T: +61 7 3221 8355 E: bsimitci@savills.com.au www.savills.com.au –––––– Urbis Shane Robb T: +61 2 8233 7627 E: SRobb@urbis.com.au www.urbis.com.au –––––– Valuation Partners Martin Fallon T: +61 3 9674 0374 E: mfallon@valuationpartners.com.au www.valuationpartners.com.au

SOFTWARE SOLUTIONS STORMAN AUSTRALIA T: +61 7 3319 1522 E: sales@storman.com www.storman.com

STORMAN NEW ZEALAND T: +64 9 280 3393 E: sales@storman.com www.storman.com

Centreforce Technology Group Pty Ltd Dallas Dogger T: +61 7 3889 9822 E: sales@centreforceit.com.au www.centreforceit.com.au –––––– Podium Taylor Cutler T: +61 478 180 191 E: taylor.cutler@podium.com www.podium.com –––––– Sitelink Michael Dogger T: +61 7 3889 9822 E: support@sitelinksoftware.com.au www.sitelinksoftware.com.au –––––– Stora Limited Gavin Shields E: hello@stora.co www.stora.co –––––– Storeganise Miles Davison T: +1 416 639 0873 E: hello@storeganise.com https://storeganise.com/

STORAGE CONTAINERS UNIVERSAL STORAGE CONTAINERS (USC)

Shay McQuade T: +61 438 256 541 E: shay.mcquade@universalstorage containers.com www.universalstoragecontainers.com BOS Containers Australia Elise Kelsey T: +61 3 9720 4455 E: ekelsey@aimhire.com.au www.boscontainer.com.au –––––– NZBOX Ltd James Scott T: 0800 818 818 E: james@nzbox.kiwi.nz www.nzbox.kiwi.nz –––––– Royal Wolf Trading Craig Baker T: +61 2 9482 3466 E: removals@royalwolf.com.au www.royalwolf.com.au

WEBSITE DESIGN Big Budda Boom Pty Ltd Andy Pudmenzky T: 1300 660 937 E: info@bigbuddaboom.com.au www.bigbuddaboom.com.au –––––– R6 Digital Michael Dogger T: +61 7 3889 9822 E: sales@r6digital.com.au www.r6digital.com.au

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42 NEW MEMBERS FACILITY MEMBERS Advance Self Storage Australia 13-15 Jura Street HEATHERBRAE NSW 2324 T: +61 2 4987 5552 E: adstorage2001@yahoo.com –––––– BH Partners 81 Randell Street MANNUM SA 5238 T: +61 8 8569 1003 E: rentals@bhprealestate.com.au –––––– Citilinked Self Storage Flemington 203 Racecourse Road FLEMINGTON VIC 3031 T: +61 3 9376 5975 E: flemington@citilinkedself storage.com.au –––––– Cotton Mill Self Storage 120 McKenzie Street WONTHAGGI VIC 3995 T: +61 3 5672 1833 E: RayWhiteWonthaggi@email. propertyme.com –––––– Mobistorage 112 President Street WELSHPOOL WA 6106 T: 1300 914 706 E: contact@mobistorage.com.au –––––– Moruya Budget Storage 36 Hawdon Street MORUYA NSW 2537 T: +61 455 558 713 E: moruyabudgetstorage@gmail.com –––––– Narooma Self Storage 6 Hopkins Place NAROOMA NSW 2546 T: +61 474 879 585 E: naroomaselfstorage@outlook.com –––––– Smoothmoves Relocations Unit 4A, 106 Old Pittwater Road BROOKVALE NSW 2100 T: 1300 122 007 E: info@smoothmoves.com.au –––––– Stegna P/L 225 Thewlis Road PAKENHAM VIC 3810 T: +61 407 744 463 E: spo1@me.com –––––– Storage at Te Puna 1 Loop Road TE PUNA TAURANGA 3176 T: +64 22 165 2953 E: storageattepuna@gmail.com

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StoreItSafe Hill Street PAKENHAM VIC 3810 T: +61 473 331 117 E: admin@storeitsafe.com.au –––––– Urangan Storage 5 Southern Cross Drive URANGAN QLD 4655 T: +61 439 906 826 E: mail@uranganstorage.com.au –––––– Warkworth Storage Ltd 37-41 Morrison Drive WARKWORTH AUCKLAND 0910 T: +64 9 425 7474 E: warkworthstorageltd@gmail.com –––––– Warragul Storage 230 Copelands Road WARRAGUL VIC 3820 T: +61 3 5625 1033 E:admin.drouin@raywhite.com –––––– Your Self Storage 6 Centenary Road MORGAN SA 5320 T: +61 439 416 188 E: info@riverlandboatstorage.com.au

ADDITIONAL FACILITIES Ezystor Christchurch 570 Russley Road HAREWOOD CHRISTCHURCH 8051 T: +64 274 111 424 E: christchurch@ezystor.nz –––––– Ezystor Palmerston North 55 Shelly Street ROSLYN PALMERSTON NORTH OTAGO 4414 T: 0800 786 725 E: palmerstonnorth@ezystor.nz –––––– Mannum Storage 12 Male Road MANNUM SA 5238 T: +61 8 8569 1003 E: rentals@bhprealestate.com.au –––––– Riverbank Storage 53 Riverbank Road OTAKI WELLINGTON 5583 T: +64 277 535 354 E: info@riverbankstorage.co.nz –––––– Riverland Self Storage 11 Verrall Crescent BERRI SA 5343 T: +61 8 8582 2744 E: rentals@bhprealestate.com.au –––––– Safeguard Self Storage Hautapu 105 Hautapu Road, RD 1 CAMBRIDGE WAIKATO 3493 T: 0800 437 640 E: hautapu@sgss.co.nz

Storage King Clyde North 11-15 Palladium Circuit CLYDE NORTH VIC 3978 T: +61 3 8903 8980 E: clydenorth@storageking.com.au –––––– Storage King Wagga Wagga 46-48 Nagle Street WAGGA WAGGA NSW 2650 T: +61 2 6053 5105 E: waggawagga@storageking.com.au –––––– StoreLocal Epsom (Bendigo) 87 Midland Highway EPSOM VIC 3551 T: +61 3 5448 4499 E: epsom@storelocal.com.au

PROVISIONAL MEMBERS Krukziener Properties Suite 102/Level 1 8 Commerce Street Auckland CBD 1143 T: +64 21 65 8655 E: sara@krukziener.co.nz –––––– Michelle Harwood PO Box 292 EDGE HILL QLD 4870 T: +61 439 818 191 E: admin@foursite.com.au –––––– Rudi Strobl 109 Paterson Road WAROONA WA 6215 T: +61 407 281 630 E: ameliaandrudi@bigpond.com –––––– Stor Safe 4 Pioneer Ave THORNLEIGH NSW 2120 T: +61 419 293 530 E: sgawn@hotmail.com –––––– Sunshine Coast Airport Pty Ltd Terminal/Friendship Avenue MARCOOLA QLD 4564 T: +61 409 764 995

SERVICE MEMBERS Cloustruct Pty Ltd 2/23 Stratton Street NEWSTEAD QLD 4006 T: +61 409 726 789 E: angelos@cloustruct.com.au –––––– Unwired Logic 2-2-15 Hamamatsucho MINATO-KU TOKYO 105-0042 T: +81 034 588 4511 E: info@unwiredlogic.com

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Better spaces for your first build - or your 50th No matter whether you’re an experienced developer or new to self storage, Storco’s decades of expertise means better spaces in every facility.

That means smarter designs, a more successful build, and higher returns on your investment.

Start your next build with Storco, the experts at creating better spaces. Contact our team today to discover what we can bring to your next project.

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