Too much of a good thing can be your demise. Is the self storage industry the Icarus of our day?
Saturated markets have hurt properties’ average op incomes & pro forma rates, but investor appetite is still strong.
Common consensus is that delivery of new supply should start tapering off in 2020.
According to Marcus & Millichap, a second consecutive year of aggressive self-storage development weighs on vacancy.
We’re getting toward a tipping point” said Marc Smith, president of Personal Mini Storage around Orlando Florida
Understanding the current development cycle, is it time to hunker down until the cycle bottoms out?
What is the norm, versus what is unique? Solar panels, climate control, and heightened security are trending.
Is self storage even desired by the governing bodies that vote on their site development? Or The public around them?
Pompano Beach joins other municipalities such as Miami and New York City that have also limited storage development.
"People who are ready for a 15 percent loss in occupancy or a 20 percent loss in gross revenue should OK."