Since Singapore’s Extra Space Storage opened in 2007, it has reflected a phenomenal leap in business of almost 13 times from its $4.8 million value when it first opened self storage facilities on the island nation. In the fiscal year 2010, total company assets were worth $62 million. Extra Space keeps an edge over its competitors because it puts an emphasis on service, offering customers highly personalized treatment.
With its trademark bold red and blue color scheme, Extra Space’s private and self-contained storage units are all 24-hour security surveillance including a personal access code system enabling customers around-the-clock access to their property. Because company CEO Michael Hagbeck was previously engaged in the wine storage business, Extra Space offers a niche in wine storage with facilities at Boon Keng Road and Eunos Link offering both lockers and walk-in cellars holding up to 400 cases, and climate control set at a strict 13 degrees Celsius and 65 to 75 percent humidity. Complimentary tasting rooms are located directly adjacent to the storage cellars.
From a pioneer outlet of 268,131 sq. ft., Extra Space today consists of five strategically located storage facilities islandwide, altogether totaling close to 617,000 sq. ft. in area, or 2.3 times larger than its starting size. Extra Space says that it outshines its competitors by a margin of roughly 20 per cent, in terms of growth speed - gaining an average of around 3,000 new clients yearly. Self storage was introduced to the country of Singapore in 2003 and since then, the Singapore self storage industry has been thriving. In land-scarce Singapore, space is a sought-after commodity and it is attracting business from overpacked households and inventory-heavy businesses. Singaporeans are also increasingly adopting less conventional hobbies - with both recreational and more serious aims - such as canoeing, mountain-biking, and even teddy bear collecting.
Currently, consumers are categorized into approximately three main areas: 20 percent of business comes from local small- to medium-sized enterprises (SMEs) who keep mostly inventory stocks and some documents. Home movers and lifestyle hobbyists (including wine collectors) both consist of about 40 percent, respectively.
CEO Hagbeck is optimistic that the market will pick up and plans on doubling the existing storage space slated for completion next year. Trends point to new entrepreneur businesses while SMEs continue to emerge. Also, the local community's interest in lifestyle and recreational activities keeps developing. Extra Space also builds strength by its unique ability to retain customers, having kept 34 per cent of their clientele for a period of a year or more.
Apart from Hagbeck, Extra Space Singapore Holdings Pte Ltd is also jointly owned by NYSE-listed Lazard Limited and Boustead Holdings, a listed Singaporean company, and run by CFO Kenny Tham, and GM operations, Jeannie Sng. The company is also a member of the Self Storage Association of Australasia (SSAA) and the Singapore Business Federation.
In the United States, Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self-managed real estate investment trust that owns and/or operates 820 self storage properties in 34 states and Washington, D.C. The company's properties comprise approximately 525,000 units and more than 57 million square feet of rentable storage space offering customers conveniently located and secure storage solutions, including boat storage, RV storage and business storage. Extra Space Storage is the second-largest owner and/or operator of self-storage properties and is the largest self storage management company in the United States.
Sources Used:
“A Store House of Opportunities.” The Business Times. June 7, 2011.
Gonzalez, Tony. “No Recession for Singapore Self Storage Companies.” Self Storage Industry News. March 23, 2011.