Here is Adam Pogoda's article, previously published on List Self Storage.
If you talk to anyone in the storage industry, they will tell you that they have never seen a market as hot as this one. Existing facilities are full, rents are rising, cap rates are at historic lows, and every supplier is so inundated with orders that they cannot keep up. The word ‘unprecedented’ has been used an unprecedented number of times in the last 16 months, but there is no better word to describe the self-storage market – what is happening right now is unprecedented.
Hollywood often portrays Detroit as a desolate wasteland, but it’s quite full of life as a self-storage market. Read why owners and investors are encouraged by the dynamics driving the industry in the Motor City.
In many movies, the once-mighty Motor City is portrayed in almost post-apocalyptic terms—a desolate, dilapidated city gutted by the long, painful decline of the U.S. auto industry. It isn’t a flattering image. In contrast, local self-storage professionals see a hard-scrabble city in the early stages of a comeback, surrounded by affluent suburbs in a state steadily diversifying its economy. From that vantage point, Greater Detroit looks much more promising.
Here is a copy of the article Michael Pogoda published at Inside Self Storage.
The process of buying self-storage assets has changed during the coronavirus pandemic. Learn to navigate the various obstacles and get deals done from the vice president of Pogoda Cos., which managed to increase its portfolio by 11 facilities from March to October.
The coronavirus pandemic has created a ripple effect across the business world. Self-storage hasn’t been as negatively impacted as other real estate classes, but the landscape in which assets are bought and sold has indeed changed.
Here at Pogoda Cos., we’ve thus far effectively navigated the shifting conditions. In fact, we took advantage of opportunities to increase our owned and managed portfolio by 11 facilities from March to October. Following is our advice on how to get self-storage deals done in this unprecedented environment.
Jack Day of Pogoda Companies in Michigan taps into the power of positivity in his professional, personal life. When a tenant enters his office, Day said he does everything he can to make them feel relaxed and home.
"I want them to feel like their moving process is going to be the best, smoothest moving process ever.
When asked how he could achieve something so many of his predecessors failed to do, Day again circled back to the power of a kind word, a big smile, and treating others as he'd like to be treated.
Read the Self Storage Association’s (#SSA) article about our Jack Day on p. 18: https://www.ssamagazine.org/Magazine/Issue/ArticleId/143/May-2021
The year is 1984. Macintosh aired its iconic “1984” ad, “Purple Rain” is a splash at the box office, and a new mini-storage facility in Pontiac, Mich., is built. Like many first-generation facilities, it fits the standards of the day.
Fast forward to 2019: The facility, which is still in the same family as when it was built, is also much the same as it was in 1984, with few updates and neglected capital improvements.
Pogoda Companies, who owns more self-storage facilities in Michigan than any other company, took notice. “We saw a real opportunity to renovate a dilapidated, largely vacant facility into a like-new property in order to lease up and provide the best service to our tenants,” says Adam Pogoda, developer of the project and director of acquisitions for Pogoda Companies.
Since 1987 Maurice Pogoda created an amazing family business and now after having successful careers the boys are coming home. The following article focuses on Adam Pogoda, who spent a successful 10 years in high pressure Real Estate roles in both San Fransisco and New York.
Adam conintues to build upon his father's work with an agressive growth strategy that is beginning to show an exponential growth for the business.
In March, I signed a contract to buy a self storage portfolio right before the pandemic hit its stride. Luckily, we were able to negotiate an extension of our diligence period, but immediately upon signing I thought to myself, are my assumptions from January still valid? How much will rents drop? Will we be able to rent any units in a pandemic? Will any of the lenders I spoke with still be at their terms? Lastly, will my investors have an appetite for a new deal?
April and May were dicey months, but fortunately self storage in this market took off after Memorial Day and the numbers were so rosy that the debt and equity raises were a (relative) breeze. That being said, I pared back the rent growth numbers, lowered the mark to market rents, removed ancillary income and pushed out my stabilization from year three to year four. The deal penciled to slightly lower returns than originally underwritten, but I slept better at night knowing that the risk adjusted return felt stronger and was likely to outperform.
Read the full article here on listselfstorage.com
Fall 2020 kicks off with the acquisition of six new properties by Pogoda Companies. These recent additions increase Pogoda’s portfolio by 2,114 units and 240,757 sq. ft. Pogoda now has 51 locations with over 3.5 million sq. ft. in the Michigan and Ohio markets.
Raising rents. Just those two words can strike fear into many managers. However, experts in the industry say raising rents is not only a necessary, but it should be done on a regular and consistent basis. Not only that, managers should never be timid or ashamed of raising rents.
Our own John George, SVP of Operations is a top expert consulted on this important process. Read the full article here at ministoragemessenger.com
Pogoda Companies, who has over 3.5 million square feet of self storage space under Ownership and Management in 51 locations, recently hired Jihad “Jay” Catrib as Payroll and Training Coordinator. Jay will play a key role in creating and implementing training programs for Pogoda’s growing self storage portfolio.
Jay has over ten years of experience in retail training and operations as well as a BBA Degree from the University of Michigan. He has a proven track record of hiring, training, and mentoring employees to build cohesive teams.
It has been a remarkably busy Summer 2020. Pogoda Management Co. is pleased to announce the addition of five more properties totaling over 308,000 square feet to its growing management portfolio with 6 more properties in the pipeline.
The Pogoda Group is pleased to announce the brokerage sale of two self storage properties; Gold Coast Storage in Ludington, Michigan and Southside Storage in Wyoming, Michigan.
Pogoda Companies is pleased to announce the addition of three more properties to its growing management portfolio. National Storage Centers - Royal Oak, A Plus Self Storage - Flint, and A Plus Self Storage - Swartz Creek have joined the family of trademarked locations managed by Pogoda Management Co.
Pogoda Management Co., Michigan’s largest self storage operator, has launched its 100% online rental experience on www.selfstoragespecialists.com. Potential tenants are now guided through the entire rental process: From selecting the location, size, and features of their unit to completing their reservation and signing the lease online. This completely contactless rental option gives tenants a quick, easy way to rent their space, providing a safe alternative to coming into the office.
Backed by his 10+ years of real estate experience in both identifying and sourcing acquisitions, Pogoda Companies’ Director of Acquisitions, Adam Pogoda, is aggressively leading the charge in purchasing both existing and conversion self-storage sites throughout the Midwest. To read his insights on how buyers and sellers can best bring a transaction to a successful close, please click on the following link: https://www.sparefoot.com/self-storage/news/7927-top-ten-things-self-storage-brokers-want-buyers-know/
Pogoda Companies’ Director of Acquisitions, Adam Pogoda, speaks with SpareFoot about his strategy to expand the company’s portfolio beyond the Midwest. To read more about his plans for growth,
please click on the following link https://www.sparefoot.com/self-storage/news/7767-pogoda-cos-looks-beyond-midwest-ramps-self-storage-acquisitions/
Pogoda Companies’ Director of Acquisitions, Adam Pogoda, explains how he continues to find opportunities for long-term growth and development in the self-storage industry in the article “Reflections on Buying and Developing at the End of the Cycle.” To read his article in its entirety, please click on the following link https://radiusplus.com/post/reflections-on-buying-and-developing-at-the-end-of-the-cycle