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>> It took the self-storage industry more than 25 years to build its first billion square feet of space. It added the second billion square feet in just eight years (1998-2005). Total self-storage rentable space now totals 2.22 billion square feet — an area more than three times the size of New York's Manhattan Island.
>> There is a self-storage space inventory of 19.2 square feet per U.S. household. There is 7 square feet of self-storage space for every U.S. resident, so it is possible every American could stand under self-storage roofing at once.
>> There are more than 46,000 self-storage facilities in the United States. Ninety percent of all self-storage companies are small businesses that own and operate just one facility.
>> Self-storage facilities employ an average of 3.5 employees per facility. U.S. facilities annually pay a total of more than $3 billion in property taxes to local government jurisdictions.
>> More than 4 percent of all units are rented to military personnel, but in communities adjacent to bases, occupancy can be from 20 percent to 95 percent of all rented units.
Source: Self Storage Association
James Kavan knew it was a gamble, but he wanted it.
"Yeahhhh," he shouted to alert the auctioneer of his $750 bid.
He continued to peek around the abandoned storage unit without stepping inside. He used a flashlight to get a better look. "If only I knew what was in that pile," he said, referring to a bunch of bags and boxes near the back of the unit.
Then, there was a bid from someone else. And another.
"I'm looking for $775," yelled auctioneer Ed Bergmann of Weeping Water, Neb.
But Kavan didn't go for it. "I'm already $50 over my limit," he said.
Four of the 15 people at a storage auction Tuesday afternoon at Armor Storage near 72nd Street and Hartman Avenue competed with Kavan for the unit filled with boxes and bags and such items as a four-wheeler, two ladders, power tools, a big-screen TV and a remote-control truck.
It was like a scene out of the A&E reality television series "Storage Wars," a show that has helped attract more people to local storage auctions. For years, thrift store and auction house owners would make up the few people at an auction. More recently, Kavan has been to a weekend storage auction that attracted at least 100 people.
Owners of storage facilities routinely sell the contents of units they consider to be abandoned because the renter failed to keep up payments. The amount of time before an auction can be held varies, depending on company policies and, for Iowa facilities, state law.
Aaron Muhr of Coon Rapids, Iowa, battled with Kavan Tuesday to win the storage unit with the tools and four-wheeler for $770. He's working on opening a thrift shop in Coon Rapids, and buying abandoned storage units is one of the cheapest ways to get inventory, he said.
"Most of the stuff in there will be easy to resell, especially the four-wheeler and RC truck, if they work."
There's an element of gambling in the auction bids. Bidders don't know what's in the bags and boxes and can't go inside the storage unit to look. Instead, they have to look from the outside in and go with their gut feeling on the value. That's why Kavan said he bids only on units that look fully packed and untouched.
From the entrance, Kavan had his eyes on the tools and furniture he could see. He had hoped to resell them at a new store he opened Saturday called Man Cave and More near 13th and Howard Streets, in the basement of his other retail business, the Imaginarium.
He also recently opened the Imaginarium's second location, at 6022 Maple St. At both Imaginarium stores, Kavan and several vendors sell everything from antiques, collectibles and handmade goods to toys and clothes. At the Man Cave and More, Kavan sells tools, furniture, beer signs, sports memorabilia, games and more.
"We literally are a mixture of an awesome garage sale, cool flea market and eclectic antique store," he said. "And storage auctions are one way to find cool stuff."
Kavan usually buys two to 10 storage units a month to stock his stores.
Mike Wiggins, who has been bidding at storage auctions in the Omaha-Council Bluffs area for several years, said the A&E show created the illusion that there's a ton of money to be made, drawing a lot of people out to give it a try.
"Everyone is looking for something better in someone else's junk," he said.
Before the show, a typical storage auction would draw less than a handful of people to auctions at Dino's Storage, which has nine locations in Omaha, said Abby Bynum, operations manager. Now, she said, they average about 20 people each auction.
Sushma Dewan, general manager of Armor Storage, has witnessed the same increase. "More people come out — but we don't get the high bids like the show."
Armor Storage, which has eight locations in the Omaha-Council Bluffs area, holds its auctions on the second Tuesday of every month. Dino's Storage has its auctions on the last Friday of every month.
"We are still getting a few newbies that want to try their hand in it," Bynum said.
On Tuesday, two cousins new to the scene won a small storage unit at Armor Storage near 58th Street and Ames Avenue for $80. They planned to resell what they could in hopes of making a profit.
Dewan said there's a misconception that every storage unit will make money. It's rare to find gold coins or diamonds or collectibles and antiques worth thousands of dollars, she said. "Who wants to put their collectibles in storage?"
Bynum agreed. "It's not like what's on TV," she said. "The people who make money do this for a living and have a very good system to resell the items. James (Kavan) is a perfect example."
Some of Kavan's best finds: a pocket knife worth $300, tool sets, African masks and carvings made in Kenya, an Xbox 360, retro furniture and gold jewelry.
Tuesday, he scored two storage units with furniture, a washer and dryer set, end tables, lamps and video games for $125. He said he'll easily be able to "flip" the items to make a profit.
"When I'm bidding I'm hoping to double my money and if I'm lucky, I'll do better than that."
But before he makes any money, he'll have to load the unit's contents into his van, unload it and go through all of it. Some of it he'll sell. And other stuff, he'll trash.
For a $60 storage unit he won Tuesday, he will easily make $130, he said. He ended up selling the other unit's contents back to the original owner after she contacted Armor Storage at the last minute to get her property. It had already been sold, but Dewan passed the opportunity along to Kavan.
Kavan said that's what makes storage auctions difficult.
"You're bidding on a person's property that likely can't afford to pay for the storage anymore," he said. "There's been times when owners of the units are there and they're crying. But I don't bid on those ones. ... How can you?"
Bynum and Dewan said there is no Nebraska law that mandates when property can be sold in an unpaid storage unit, but both have companywide policies.
At Dino's, contents of an unpaid storage unit can be sold after 30 days delinquent. Bynum said the company follows the Landlord and Tenant Act.
At Armor Storage, Dewan said because Armor has two locations in Council Bluffs, the company follows Iowa's law for all the company's locations. That means before Armor can sell the property, it's required to send the tenant a certified letter and advertise in a local newspaper for two weeks before holding the sale.
Dewan said that process usually starts after 30 days delinquent and typically the sales don't occur until after 90 days.
The money made from the auctions covers the unpaid balances and, for most companies, is deducted from the balance sent to collections for the tenant.
A spokeswoman with the Nebraska Attorney General's Office said "it will come down to the contract" and encouraged consumers to know the details of their leases and contracts and read the fine print.
Kavan said he's enjoyed buying storage units over the last year.
"It's a lot of work, but it's worth it," he said. "You never know what you'll find."
Contact the writer:
402-444-1336, leia.mendoza@owh.com
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