Q. Self-storage facilities seem to be popping up all over O'ahu, but on a national level we still have less storage than other places. The Self Storage Almanac this year reported that O'ahu has 2.03 square feet of self-storage space per person while the national average is 5.54 square feet per person. What's going on?

A. It is driving a lot of Mainland-based companies to look at Hawai'i. The big push in storage is because construction was deferred over the last 10 years. Now, there's so much activity that people are downsizing, renovating, moving to a larger place — and they temporarily need to store their goods. Look at the transition from small homes to high rises. For the most part, people are downsizing. We have two self storage facilities (in Salt Lake and Pearl City) with a third scheduled for completion in November in Kaimuki and two more starting construction later this year, for eight facilities by 2008. We're targeting O'ahu. In the next two years, the market will be flooded.

Q. Who is renting all of that storage space?

A. Twenty-five to 30 percent of our customers are small businesses. We offer free receiving of goods around the clock, 66 security cameras in Pearl City, conference rooms and business centers to conduct your business here. It's a main distribution center for a lot of small companies. They're long term. Probably 15 percent is military that stays nine months to two years. The rest is general households going through a transition. The average dollar per square foot is $3.

Q. What are the keys to attracting business?

A. Customer service. In Hawai'i, who you know is very important. Forty percent of the customers are either referred or return customers. Therefore how you take care of your current customers — by being polite or off-loading for them when they need help — is what they'll recognize. Our guys and gals are expected to go the extra mile to let customers know that we appreciate their business and we want them to come back. When we actually help customers off-load, we're going above and beyond. When it comes to closing deals and handling customers, you can't be so mucka mucka that you won't help them move. Team members need to see you doing that and at times picking up a piece of paper that's flying around the facility. It lets the staff know that all positions here are important.

Q. What new ideas are you looking at?

A. Canoe racks. At the Outrigger there's a two-year wait list just to store your canoe. It'll be like $25 per month.

Q. With continued low unemployment, how are you attracting and grooming employees?

A. We are kicking off internships with the University of Hawai'i School of Business in the fall. Storage (jobs) are no longer what people perceive — that you cleaned up, start selling lockers and then became an assistant, then you're a manager making mid-30s. I've got assistant managers making mid-30s to managers making anywhere from 40s to even six figures, with an opportunity for equity. We're grooming them here to turn around and run a store.

Q. This year you also provided scholarships of $1,000 per year to 10 students from nine public high schools: 'Aiea, Farrington, Kaimuki, Kapolei, Mililani, Moanalua, Pearl City, Radford and Waipahu.

A. They're awarded the scholarship based on an essay on what they would do to make Hawai'i better. There were hundreds of applicants. They get $1,000 for each year as long as they maintain a 3.0 grade point average. The purpose is to give back to the community. Based on one of the essays this year on Hawai'i literacy, Hawai'i Self Storage will donate a (yet-to-be-decided) percentage of all sales to buy books for various elementaries. We're working with Read to Me International. It was all based on one of those essays.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com.