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State of the Self Storage Industry 2015

ROBUST – high occupancies and low cap rates = increased property values! Our industry is in the midst of a very robust period since the beginning of 2013. There has been an increase in property transactions which mirrors levels seen back in 2004-2006. One main variable in the transactions today is they are based primarily on actual income not pro-forma income – meaning values are being based on real income numbers not speculative future income. Interest rates continue to remain low and there are numerous (and very favorable) financing options available to self-storage buyers.

The SSA and ISS recently held their Spring conventions in Washington DC and Las Vegas and the atmosphere at both events was exciting! Attendance continues to grow and the fact that there were so many first time attendees goes to show that the buzz around the self storage industry continues to be invigorating. More often articles are being written by investment professionals touting the self storage industry performance versus all the other real estate classes – self storage is a powerhouse!

New development appears to be on its way back albeit at a much slower pace than during the heyday period 2003-2008 but another good indication of how solid the industry is currently. Property expansions have risen sharply over the past 2-3yrs – another indication that occupancies are at high levels and there is needed supply in the market.
The question remains – how long will this robust period continue? No one can provide a definite answer but there is plenty of speculation. What won’t change is as long as you continue to improve operations – increase income, reduce expenses, effective & targeted marketing, property maintenance etc… – self storage will remain a lucrative & attractive investment for current owners as well as potential owners.

From The Blog

Creative Ways to Convert Traffic to Rentals

November 13, 2014

This blog entry features a guest blog by Holly Ritchie-Fiorello, Director of Marketing for The Storage Group.    What are Conversions? Self Storage Facility Operators like to spend time focusing on how to increase leads without actually looking internally at how they … Continued

Spring Cleaning Checklist

March 28, 2014

Spring is here! That means it’s time to spruce up your storage facility.  Along with regular maintenance and routine care, your facility deserves its own spring cleaning. Below is a spring cleaning checklist that you can download and print the list use … Continued