StorageTreasures.com, an online-auction website that serves self-storage businesses and auction buyers, has signed an exclusive agreement with real estate investment trust Extra Space Storage Inc. “to conduct all future auctions online using StorageTreasures' auction platform and services,” according to a joint press release.
Extra Space tested the use of online auctions six years ago after the popularity of reality-television shows like “Auction Hunters” and “Storage Wars” resulted in increased attendance during onsite lien sales that overwhelmed some managers. Concerned about legal ramifications, the REIT pulled back from using online auctions until the national Self Storage Association endorsed them, the release said.
"We were waiting for that endorsement, and we decided that this was where the market was going, and we already knew it worked,” said David Decker, director of operations for Extra Space.
"We're honored to be affiliated with a prestigious company such as Extra Space and have the opportunity to help facilitate all of their auction needs throughout the country," added James Grant, CEO of StorageTreasures.
Last month, StorageTreasures conducted 10,000 online storage auctions, according to the release.
"Honestly, we would rather not do any auctions," Decker said. "They're not good for us as far as recoverables, and they're not good for our clients, who lose their goods. This is the least painful way to do it and is best for all parties. The technology is there, and the laws are changing. This is the future of storage auctions, and people will eventually realize this is the only way to handle a lien sale."
Headquartered in Salt Lake City, Extra Space owns or operates 1,147 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 770,000 units and 85.1 million square feet of rentable space.
StorageTreasures.com is a free storage-auction locator and self-storage facility finder covering Canada and the United States. The website offers auction schedules and site-specific guidelines for auction hunters and self-storage owners. It has more than 6,500 self-storage facilities signed up to hold lien sales online and more than 900,000 active bidders.