Force of Nature: Hurricane Helene's Impact On Self-Storage

Mother Nature can be a cruel mistress. Making landfall as a category four hurricane in Florida, she tore through the Sunshine State with wind speeds of more than 100mph on September 26. But she didn’t stop there. Helene continued her destructive path, cutting across the southeast US and wreaking havoc on communities within Georgia, the Carolinas, and Tennessee.  

Analysts are saying that Helene may wind up being one of the country’s most devastating disasters on record, taking the lives of at least 121 people with hundreds more still missing. A preliminary estimate by Moody's Analytics says the storm could carry an economic cost in the tens of billions of dollars.

Self-storage facilities, which often play a role in recovery, have also taken a hit. U-Haul, which generously offers 30 days of free self-storage disaster relief to people impacted by natural disasters, is no exception. Although the company has 437 U-Haul stores providing disaster relief across multiple states, they’re not immune to the fury of Helene as seen in this photo from a U-Haul facility on Swannanoa River Road in Asheville, North Carolina. The before and after photos are both striking – and heartbreaking.

North Carolina

Go Store It Self Storage, headquartered in Charlotte, North Carolina, has seven facilities in or near Asheville, where heavy flooding destroyed roads and bridges and submerged vehicles and homes. 

“I’m happy to say that all of our employees are safe, and that our facilities fared very well,” says Beau Agnello, COO of Go Store It. “Only one property has suffered any serious damage, and we’re working with a restoration company to take care of that.”

Providing support to employees and the greater Asheville community is Go Store It’s main focus right now, continues Agnello. “We’ve put up all Asheville employees in hotels outside of the area until power and utilities are restored. We also have two trucks running back and forth delivering supplies like bottled water, non-perishable foods, and gas generators.”

Agnello notes that all Go Store It team members have paid volunteer leave, and the company is asking them to use it and help with Operation Airdrop, an organization that goes to the frontlines of disaster zones providing airborne aid and relief to those in need. “Operation Airdrop has flights from Concord Regional Airport, not far from our corporate office, to affected areas and they’re inviting community members to assist with their daily supply operations. If our employees are in a position to help out, we’re encouraging them to do so.”

Go Store It is also offering discounted storage to first responders and charitable organizations across its portfolio. “We’re grateful that our employees and properties were able to weather this storm, so now we want to help out those who weren’t as fortunate in any way possible.”

10 Federal Storage is also based in North Carolina – Raleigh to be exact – and their properties were also largely not impacted. 

“We had a few properties lose power, but that’s the extent of it,” says Andrew Capranos, President of 10 Federal. He acknowledges how lucky the company was, and is giving back to the community to show support. “We have more than 20 sites in communities impacted by the storm, so we’re offering 50 percent off for three months, no administrative fees, and a free lock to assist individuals and families affected by the storm.” 

Capranos says that while it's difficult to predict what a hurricane will do or what to expect if it does hit, the company has a dedicated risk management program. “That includes a team that monitors any named storm that may have an impact on our properties,” he explains.

To keep the team up to speed, Capranos says the company sends regular updates and has a checklist to follow when preparing properties in advance of storms. “This also includes notifying vendors and ensuring we have a disaster recovery plan in place for after the storm has passed,” adds Capranos.

SmartStop Self Storage, which has 15 properties around Asheville, has temporarily closed them all due to Helene, however only one property was significantly damaged due to flooding. Additional stores in several other markets were temporarily closed over the weekend, but several that sustained only minimal damage have since reopened after confirming the buildings were safe. The company’s Florida properties were largely unaffected.

"Our thoughts are with all the employees, customers, and communities affected by the recent storm surge and flooding,” stated H. Michael Schwartz, Chairman and CEO of SmartStop in a press release. “The safety and well-being of our team and customers is our top priority, and we are doing everything we can to support those impacted. While this has been a challenging time, we are already seeing incredible resilience and teamwork as we begin the process of cleaning up and making necessary repairs.”

Florida

How did Florida fare? After all, the Sunshine State was Helene’s first stop.

“Thankfully, none of our properties had any damage,” says Anne Ballard, Universal Storage Group’s President of Marketing, Training & Developmental Services. “But our hearts go out to all of those that were impacted by the storm.”

Marc Goodin, President of Storage Authority which is headquartered in Sarasota, Florida, reports that none of their franchisees were harmed, although his own condominium is now sitting under six feet of water. “Don’t feel too bad for me,” says a surprisingly cheerful Goodin. “I’m a self-storage owner. I can afford to fix it back up.”

Despite his personal setback, he’s happy that franchisee facilities have survived the storm, and he cites a few reasons why (and offers these up as tips to future developers, too). “Don’t build in surge areas,” warns Goodin. “None of our facilities are in storm surge paths.”

Goodin recommends avoiding the “100-year floodplain” areas as well. “First off, you’re required to tell potential tenants that you’re in a flood zone, which is going to be a turn off,” he asserts. “But laying down a foot of dirt and building in these areas is just not a good idea anyhow.” 

His assertion is a smart one: According to the Federal Emergency Management Agency (FEMA), floodplains come with a one percent chance of flooding in any given year and a 26 percent chance of flooding at least once in a 30-year period. 

Georgia

MSM also spoke with Roc Hughes at Janus International, which has distribution centers in Georgia and Florida. Both locations fared well, and each is already fielding calls. "It's a terrible situation," says Hughes. "Some customers have already called us, in search of assistance due to massive flooding and wind damage. Of course, it's still too early to know the full extent of damage because some facilities are not accessible.”

Hughes says that Janus contacted customers prior to the hurricane to lend their full support and has been proactively reaching out again to see how they can help. “We want to let them know our distribution and manufacturing facilities in the Southeast are open for business and that we’re ready to help them build back stronger than ever, be it new door and hallway components, roofing materials, access control solutions, concrete/asphalt repair, or signage through the Janus companies.”

To help with repair and rebuilds, Janus is currently offering several specials as it pertains to door replacements and access control solutions. “Janus provides complete product and service solutions, including wind-rated doors and installation services. Janus R3 and Facilitate divisions offer a wide range of planned maintenance, repair, and replacement services. Knowing who to call during a crisis is critical,” concludes Hughes.

For those in need of assistance, Hughes asks them to call Janus International Group at 866-562-2580.

Another self-storage company offering to lend a hand is Compass Self Storage, a member of the Amsdell family of companies. They are offering one month of free rent for a self storage unit to anyone dealing with the damage from Helene at any of their locations in Alabama, Florida, Georgia, The Carolinas, and Tennessee. 

“Dealing with the damage from this powerful hurricane can be very challenging. We want to help soften the impact by offering one month of free rent for a self storage unit to anyone dealing with this difficult situation. We will be ready to assist however possible,” stated Todd Amsdell, President.

Legal Issues

As Goodin noted, operators are required to notify potential tenants if a facility is located in a flood zone. It’s something that Scott Zucker, a partner with Atlanta-based law firm Weissmann Zucker Euster + Katz, just addressed in the most recent edition of his Legal Minute. 

Zucker writes that even though not all states are calling for this transparency just yet, “It may be advantageous to address flood disclosure in your leases… Such transparency can potentially shift the risk of loss back to the tenant if the tenant elects to lease the rented space after such a disclosure. As more and more states consider this issue, it is important for operators in all states to do the same, especially if their properties are in 100- or 500-year flood plains or if their facilities have experienced past flooding events.”

Monica McMillan, Storage Program Manager at Universal Insurance Programs, says that if a property owner’s policy has wind and hail insurance, damage from Helene should be covered. However, flooding remains a ‘tricky part.’ “Flooding is not covered on most policies, but hopefully a self-storage operator would have a business owners’ policy that will help with facility income and relocating stored property if it was impacted by this or another storm,” she says. “If you’ve made it through this one unscathed, now is the time to really look at your policies and your coverage.”

The Self Self Storage Association has noted that as a result of Hurricane Helene, multiple governors have issued a State of Emergency (SOE) in Florida, Georgia, North Carolina, South Carolina, Virginia, and Tennessee. Those SOEs trigger activation of the price gouging laws, which generally limit permissible price modifications for certain goods and services during the pendency of the emergency period. 

Additionally, a State of Emergency has been declared in the following Kentucky cities and counties: Ashland, Boyd, Breathitt, Clark, Catlettsburg, Clay, Lee, Letcher, Magoffin, Winchester, and Wolfe.

The SSA says members can review every state's price gouging law here, and recommends consulting with a legal advisor regarding any pricing modifications while the SOEs are in effect.

At MSM, we are dedicated to providing accurate and timely self-storage news – but our biggest concern right now is for our friends and colleagues in self-storage and related services who have been impacted by Helene. Our thoughts are with each and every one of you. If you have a story or photo you'd like to share, drop us a line and we'll contact you to highlight your personal story or plight.