Inside Self-Storage

OCT 2018

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

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All Storage, Arlington, Texas Morningstar Storage, Charlotte, N.C. Atlantic Self Storage, Jacksonville, Fla. Morningstar Storage, Charlotte, N.C. Compass Self Storage, Ponte Vedra Beach, Fla. Metro Storage, Skokie, Ill. All Storage, Arlington, Texas National Storage Centers, Southfield, Mich. (Photo courtesy of Pogoda Cos.) "Property taxes in our areas have become outrageous. Cities are throwing the values at such a high clip—just irrational. There needs to be some fixed cap. We try to fight these with lawyers the best that we can." —Jay Schuminsky, Owner, All Storage "New supply. To combat it, we thoroughly research acquisition and development opportunities to target those markets that are at or below equilibrium and don't have too robust a development pipeline. To the extent new supply is coming online in markets in which we're already present, we're closely monitoring the competition and assessing our rates and occupancy, ensuring there's not too much of a pricing discrepancy in vulnerable units. We're employing targeted discounts and concessions where warranted." —Michael Wachsman, Director of Acquisitions, Andover Properties LLC "The biggest threat we currently face is the introduction of new supply from poorly conceived development projects. Competitive intrusion in our local markets always impacts our business, but in markets that have a dense population base and good demand fundamentals for our product, we can work through the absorption in short order without undue disruption to our performance. While there are certainly a variety of operational strategies to compete with new supply, most operators rely on discounting and price breaks, which can further impair a property and lengthen the timeframe for the market to get back to equilibrium. To date, our best strategy has been to try and avoid those markets altogether. We invest our time and capital in markets with some barriers to entry and in assets that are high quality, defensible from a market standpoint, and that we think will be relevant to our customers for the near and distant future." —William Stephens, Vice President of Marketing, Morningstar Properties LLC October 2018 I ISS 11

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