Inside Self-Storage

APR 2019

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.

Issue link: http://digital.insideselfstorage.com/i/1090015

Contents of this Issue

Navigation

Page 68 of 93

Tenant App DIGITAL LOCK CHECK OPEN YOUR GATE ADD UNIT NOTES VACANT LIST TENANT INFO MULTI SITE ACCESS sales@QuikStor.com www.QuikStor.com Manager App ALLOWS YOUR TENANTS TO OPEN THE GATE FROM THEIR PHONE 800-321-1987 Management Software Visit us at ISS World Expo, Booth # 609 Development also takes time. This is possibly the most important aspect to consider. A project started today most likely won't open until 2021 or later. Then this facility needs another 24 to 36 months to reach stabilized occupancy. That's why it's critical to look closely at what's going in any market you're considering. A good tip here would be to seek out areas with strong residential growth and especially where new shopping is being developed. Large retailers generally have studied population and demographic trends. Also, don't be afraid to look at secondary markets where land may cheaper. Just do your due diligence and build a quality product in a prime location. It's also important to remember that interest rates will go up. However, look back to the early 2000s when we added more self-storage projects than ever before. Interest rates were significantly higher then. And while it's true material costs have risen, it's important to work to "value engineer" a project and save where possible. Finally, when it comes to building, it's critical to know your numbers. Make sure your construction budget and operating pro forma are conservative and realistic. The takeaway here is that, though there are challenges, opportunities exist. Even with all the negative press, no one is saying self-storage is a bad business. Be clear in your financial objectives and what your appetite may be for what could be a drawn-out process. Make sure you have adequate resources and surround yourself with a qualified experienced team, and you'll realize your dream. David Blum is president of BMSGRP Self Storage Consulting, a consulting practice he launched in 2003 to help self-storage professionals worldwide with issues of development and management. He's worked in Europe, Greece and Israel, and currently has clients in Mexico, South America and the United States. Since entering the industry in 1996, he's worked as a district manager for Storage USA and vice president of operation for Budget Mini-Storage in South Florida. He helped co-found the Florida Self-Storage Association in 1998 and is a frequent contributor to industry publications. He can be reached at 954.255.9500 or davidb@bmsgrp.com. April 2019 I ISS 65

Articles in this issue

Links on this page

Archives of this issue

view archives of Inside Self-Storage - APR 2019