Self-storage growth slows, but the pipeline still isn’t shrinking [Article]

Sue_C

The steady and strong growth of self-storage is softening after years of success in the sector, market indicators show.

Self-storage has for years outperformed all other major commercial property types in terms of earnings growth and company stock performance, but self-storage companies are now actually trading at a 2 percent discount to the estimated market value of the properties they own, according to Green Street Advisors analyses cited by the Wall Street Journal.

That’s still much better than the discounts on office and mall real estate investment trusts, which are trading at 9 and 13 percent discounts, respectively. Industry leaders say the sector is just coming back down to earth, but isn’t shrinking...[Read More]

karen700

Knew it had to slow down sometime...just in a 6 mile radius of my property there are 12 properties with 2 new facilities being built. I'd say we are just about swimming in units!

ThriftyStorage

A half of mile from my store UHAUL just put up 800 units. I think that this will help my store out a lot!

karen700

@ThriftyStorage....omigosh!

Orkocean

Well Thrifty, on the bright side at least in my experience not many people think of uhaul for storage when they need it unless they're already using one of their trucks. Plus a good majority of uhaul sites i've seen that do storage are on the "low end" of quality. With it being a new one i'm sure that's not the case but even so they usually don't push the storage aspect hard as talking with our uhaul AFM's they even say it's not their priority.

Orkocean

@karen700 sounds like the property we ran when we lived in Florida. We had 2 uncle bobs*life storage* within half a block and any direction down the roads were numerous others. At once section you had 3 facilities side by side by side.

karen700

It has been interesting trying to market and compete with A properties, I can tell ya!