Customer Profile: Life Storage, Inc. is a fully integrated, self-administered and managed real estate investment trust (REIT). Headquartered in Buffalo, NY, the company operates approximately 1,050 self-storage facilities encompassing over 67 million square feet in 34 states.
Customer Challenge: Life Storage, Inc. has more than 1,000 stores nationwide with limited portfolio-wide visibility into energy spend, utility terms, and pricing alignment.
Stark Solution: Stark’s Intelligence team was hired to conduct an energy audit of all current and previous utility agreements. During the discovery phase, Stark was able to identify which agreements were up to date and which had expired. Stark categorized all accounts in deregulated networks and created buying strategies based on market factors and Life Storage’s risk tolerance. Stark was able to leverage the supply of Stark’s Commodity Advisor‘s portfolio to negotiate the best possible prices with ideal contract terms.
Results: Stark was able to lock in a rate for 550 deregulated accounts within the first 6 months of the initial engagement.
Life Storage saved $532,000 over the first 12 months compared to year over year costs prior to engagement. The savings from year 1 will pay for the procurement services for the next seven years.
All deregulated accounts have been identified and are currently under management by Stark Intelligence’s Commodity Advisors team.
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