Question #
How is current income growth in self-storage facilities changing?
Answer #
I am even having to modify the Storage World Analyzer to adjust for this future in the industry as I see it.
You have got to know, in your trade area, what the current pricing required is and what the next 12 to 24 months will most likely be based on supply coming online, and underwrite to that reality.
The days of 3% to 5% income growth per year are over in many trade areas for the foreseeable future and beyond.
Your success in the storage business will be a function of the decisions you make.
Given that this is a hyperlocal product, it is critical you know all the different trade areas you are contemplating and end up doing business in.
You have got to have access to fairly accurate data these days.
Given how critical marketing is today, especially online marketing, you have got to know which channels are producing results and which are not.
These can vary from facility to facility, even in the same city or market.
We have got to have multiple subscriptions or have operating systems today that peer into the data needed for owners to channel their resources in a way that impacts the bottom line.
New operating systems like Cubby or Monument will quickly make legacy operating systems become a thing of the past.
Speaking of operating systems, it will not be too long before even the current high-tech and very functional operating systems also become relegated to the pile of vintage things of the past for our industry.
Source: The Storage Business I Knew Is Gone–Here’s What’s Coming Next
