Extra Space Storage will hold all of its auctions online through a new partnership with StorageTreasures.
“They chose to switch from live auctions to online auctions because our platform makes it easier for a storage facility to conduct their required debt collection lien sales, and in the same time, recover more loss recovery,” said James Grant, CEO of StorageTreasures.
With 1,146 facilities, publicly traded Extra Space Storage is the second-largest storage operator in the US. Another major storage REIT, CubeSmart, also lists auctions on StorageTreasures.com along with several other top operators.
The site allows buyers to bid on storage units in their area without having to leave their home, although they do have to venture out to pick up their loot if they win. StorageTreasures collects a small commission on each transaction.
Extra Space actually tested its own online auction system about six years ago, but put it on hold until certain legalities were clarified. With the Self Storage Association recently supporting online auctions, Extra Space decided to step back into the online auction space.
“We were waiting for that endorsement,” said David Decker, director of operations at Extra Space.
Decker said the company evaluated several online auction companies before choosing StorageTreasures.
“The company makes it very simple to administer, load and post auctions, allowing our facility managers to save costs and be more efficient,” said Decker.
Leader in the space
StorageTreasures has quickly become a leader in the online storage auction space, hosting 10,000 auctions a month on its site. The company has 900,000 active bidders and 6,500 facilities on its platform.
Grant said the company is working on a mobile app for buyers and sellers in addition to other improvements. The company merged with competitor StorageBattles.com in February 2014.
“Conducting auctions either online or live will always fail unless you’ve got buyers,” Decker said. “And buyers go to StorageTreasures.”