ast week, The New York Times published a story titled, “Americans Went All-In on Self-Storage. That Demand Is Suddenly Cooling.” The piece argues that many developers, spurred by the pandemic to invest money in new self-storage facilities, have been caught short by this drop in demand. While the story does contain many truths, it does not consider certain industry nuances-many of which could be found by picking up a copy of our 2024 Self-Storage Almanac (which is why we’re sending them a copy!).

However, the outlet continues to drive home underperforming occupancy with this quote from Michael Elliott, an equity analyst at the investment research firm CFRA: “We’re probably closer to what would be a quote-unquote bottom with occupancy and rental rates,” he writes.

Additionally, while occupancy is down from the highs of COVID, the NYT doesn’t note that it has simply rebalanced; it is now back to where it was pre-pandemic, as evidenced by Table 7.1.

Based on this perspective, the most recent data places self-storage occupancy right in the sweet spot.

Again, this can be viewed as a bit of a course correction. Looking at national rental rates for climate-controlled units in Table 8.1, for example, we see that rates increased during the pandemic, as did demand. The post-pandemic cool off, naturally, would result in rates balancing out. However, they remain higher than pre-pandemic rates and even some of the rates during the pandemic.

More commentary on rates follo, with the outlet stating, “Storage companies have been making up for lower rates — usually offered as promotional prices — by raising rates on existing customers. The rate increases are happening at a much faster pace, too.” The NYT further quotes Kristin Millington, the director of the self-storage and manufactured housing groups at Crow Holdings Capital, a real estate and investment firm, saying, “Previously, the increases would happen after customers had been renting for around a yea…Now, that’s hitting in month two or three — the move-in rates now are almost like a promotional rate.”

While some large operators have been implementing extreme rate hikes a few months after a tenant moves in, and MSM has addressed this in a series of articles and in the Almanac, it’s not necessarily because they’re performing poorly. Rather, they understand that most tenants tend to stay in a facility for 10 months or longer; so even if they miss out on some revenue in the first couple of months, they make up for it on the back end once the rate hikes have been implemented.

While we believe there should be more transparency about these rate increases with tenants, it’s also never been uncommon for REITs and other large operators to offer low entry pricing (Public Storage was famous for $1 move-in pricing for years). Additionally, REITs and large operators only represent a fraction of the self-storage industry. “They’re not the majority,” says R. Christian Sonne, executive vice president and specialty practice co-leader–Self Storage at Newmark Valuation & Advisory. “There are plenty of independents that don’t play pricing games. They look for other ways to supplement income.”

While this is true, the story fails to acknowledge that the drop in demand is correcting a previous imbalance. “There was a staggering amount of new self- storage development across the country from 2016 to 2019 that diminished demand in some of the major metropolitan statistical areas (MSAs) and secondary markets within the United States into 2020,” reports the Self-Storage Almanac. It further states that post-COVID, supply chain issues, material shortages, and a lack of labor due to the pandemic caused new development to come to a temporary halt. “That brief hiatus, coupled with unprecedented pandemic-related demand for storage space and drawn-out approval processes for development, helped correct the imbalance,” concludes the Almanac.

That said, development is by no means dead. “Many professional, well-capitalized developers continue to find locations in major MSAs as well as secondary and tertiary markets for successful projects,” says Travis Morrow, chairman/CEO of Store Local Corporation and the president of National Self Storage, though he adds that as with any development, a professional study should always be conducted before moving forward.

The NYT story seems to purport otherwise, however. “Higher interest rates make it harder for developers of storage facilities to finance construction,” the article concludes. This is in contrast to a new Self Storage Association (SSA) report that was released on April 30^th. In the report titled “Building Momentum,” the SSA states that “Despite the higher cost of construction and capital, new self- storage supply is on the upswing and builders remain busy.”

The SSA also writes that contractors say business is brisk, and speaks with a number of industry experts from Baja Construction, Elevate Structures, MakoRabco, Morton Buildings, Steel & Metal Systems, and Trachte Building Systems. All six vendors are optimistic. 

“Despite higher building costs in the industry, we are still seeing strong interest from clients wanting to build new self-storage facilities and existing owners looking to expand their operations,” says Matt Milby, general manager of commercial business at Morton Buildings. 

Kelly Crawford, executive director of operations at Steel & Metal Systems, concurs. “Construction in the storage market is thriving. Demand seems to remain constant and possibly growing.”

“Ultimately what we’re looking at is a reversion to mean, or a return to normal,” says Sonne. “Stock prices may be down, but the Times is forgetting that they were up 80 percent a few years ago. If you invested back then, you’re still doing great. Through boom and bust cycles, and even the great financial crisis, self-storage performs better than any other real estate asset class.”

The NYT selected this quote from Public Storage President and Chief Executive Joe Russell: “The new customer environment remains challenging.” However, it didn’t include this follow-up statement from the same call: “We are well positioned in 2024 with our operating model transformation enhancing the industry’s highest margins, our high growth non-same store pool comprising nearly 30 percent of the portfolio, and our balance sheet positioned to fund significant external growth.” 

The outlet also uses this quote from Joe Margolis, chief executive of Extra Space Storage: “The industry as a whole will likely face headwinds from lower new customer rates in the near term.” It fails to acknowledge, however, that immediately succeeding that statement, Margolis added, “We are confident in the durability of self-storage, our highly diversified portfolio, and our platform’s ability to capture customer volume when sector demand accelerates.”

Further, the article leaves out Christopher Marr, president and CEO of CubeSmart, who said, “Looking to 2024, [CubeSmart is] well-positioned to execute our growth strategy in any macroeconomic climate,” as well as David Cramer, president and CEO of National Storage Affiliates Trust, who stated, “[NSA] is in an attractive position to take advantage of external growth opportunities as they arise.”

The REITs have scheduled their Q1 2024 financial statement calls, which MSM will be sure to follow up on.

Angie Guerin, executive vice president with MakoRabco, even sees another benefit to the rebalancing. “I think a normalized market adds some runway for ideas to take root and innovation to thrive,” she told the SSA. “I think we’ll see some other great things developed by our industry in the near future.”

“Although trade area specifics can vary dynamically, I would say supply/demand overall is at equilibrium to under-supplied,” concludes Sonne. “Predictions for self-storage remain bullish, and our practice group appraised over 300 properties this past quarter. Things may be a little slower at the moment, but the powder is ready to be lit again.”

ou can elevate your self-storage business to new heights with a comprehensive approach to sales, marketing, and systems optimization. If you want to be an elite self-storage operator, you need to deploy systems in platforms in your daily operations. Create a smooth customer experience by personalizing every interaction. This is made possible through a strong customer relationship management (CRM) system that empowers your sales team.

Invest in employee training that not only imparts product knowledge but also hones effective communication and customer service skills. Don’t forget a first-class marketing strategy that enhances your online presence through SEO and social media and also captivates your audience with insightful content and local partnerships.

Think about automated systems reforming operations, from appointment scheduling to secure access control, ensuring a hassle-free experience for your customers.

By embracing these strategies and staying data-informed, your self-storage facility is poised for exponential growth, over the top customer satisfaction, and lasting success in a competitive market. Here are some strategies and tips for each area.

Employee Training
Invest in comprehensive training for your sales team. Equip them with not only product knowledge but also effective communication and customer service skills. A well-trained team following a well-designed system can confidently address customer inquiries, showcase the benefits of your storage solutions, and handle the sales process with finesse. Ongoing training ensures that your staff stays updated on industry trends and maintains a high level of professionalism.

Promotions and Discounts
This can be something as simple as a free lock or $30 off the first month’s rent. Consider implementing referral programs and encouraging existing customers to refer new clients in exchange for a credit or other rewards. Word-of-mouth marketing remains a powerful tool in the self-storage industry. It is OK if you are brand new to have a honeymoon discount to offer the community, but don’t build your business off discounts; it’s a race to the bottom when it comes to revenue.

Content Marketing
If you do not have a marketing calendar to follow, make this your No. 1 priority to initate today. Create valuable and informative content that resonates with your target audience.

Local Partnerships
Forge partnerships with local businesses or real estate agents to expand your reach. Cross-promotions with complementary businesses can benefit both parties and attract a wider customer base. Consider sponsoring community events to increase brand awareness and demonstrate your commitment to the local community. Have a “welcome to the community,” 8-by-11, branded envelope filled with discounts from all your fellow business partners. Building strong local connections can lead to valuable referrals and long-term customer relationships.

Security And Access Control
Investing in robust security systems is paramount in gaining customer trust. High-tech surveillance, access control measures, and secure entry points contribute to a safe and secure storage environment. Additionally, providing customers with convenient and secure access options, such as digital keypads or mobile access, enhances their overall experience and satisfaction. You need to have a hands-free access option where your customers have an app on their phone and either proximity and geo-fence or tap the app like a garage door opener and it opens the gate for them.

In conclusion, optimizing self-storage sales, marketing, and systems is a multifaceted approach. By focusing on customer relationships, embracing innovative marketing strategies, and implementing efficient systems, you can position your self-storage business for sustained growth and increased profitability. Regularly assess performance metrics, gather customer feedback, and stay attuned to industry trends to continuously refine and improve your operations.

hile a fix-it-the-first-time approach may be the gold standard of customer service, addressing potential issues before they materialize is the true mark of an exemplary user experience. Consider the pace of our modern world; customers today want instant solutions, and any hurdle might be a reason for them to jump ship to competitors. By ensuring their path is clear from potential obstructions before your customers encounter them, you can retain customers and create advocates for your brand. Let’s look at a few examples of forward-resolving in action.

Scenario: A customer signs up for a new broadband connection.
Forward-Resolving: The service provider sends an email with tips for optimal modem placement, a list of helpline numbers, and information on how to upgrade or modify the plan in the future.

Scenario: A customer books several rooms for a group event at a hotel.
Forward-Resolving: The reservation agent proactively reaches out to the customer, offering services tailored for groups, such as distributing welcome gift bags, arranging group transportation, setting up a special check-in desk, or organizing group tours.

Scenario: A user signs up for a new software application or a technical platform.
Forward-Resolving: The company sends tutorial videos and starter guides to ensure users can efficiently use and navigate the software from the start.

As those examples illustrate, strong forward-resolving skills differentiate great from good providers. Organizations that get this right realize multiple benefits:

• A Better User Experience – Whether it’s high-functioning internet, a great event, or software with a condensed learning curve, organizations that forward-resolve deliver a better experience than those that don’t.
• Enhanced Customer Trust – Organizations that deliver smooth experiences build trust with those who use their services.
• Positive Reputation – People who experience great service tell others. Over time, those experiences form a reputation.
• Operational Efficiency – When problems or challenges don’t have a chance to materialize, call volumes decrease, freeing customer service providers to focus on other tasks.

Forward-resolving is not a static process. It requires constant innovation. The methods and strategies used today might become obsolete tomorrow. Organizations should integrate it into every department, not just customer service, to cultivate a forward-resolving culture. Product development, marketing, and sales—every team should have an anticipatory mindset. When the entire organization operates with this proactive approach, it becomes a seamless, efficient machine geared toward optimal customer satisfaction.

Forward-resolving is not just a strategy; it’s a philosophy. It’s a commitment to ensuring a customer’s smooth, enjoyable, and hassle-free journey. In the long run, businesses that adopt and perfect this approach are the ones that stand out, thrive, and lead in their respective industries.

hen you think of famous visionary leaders, you often think that they have something, know something, or do something that the rest of us don’t have, don’t know, or can’t do. The truth is, they don’t. The only thing they have is an intuitive understanding of how to open their minds and consider new ideas.

When you’re thinking about new ideas, you’re often thinking of the divergent phase of the brainstorming process, where you generate many new ideas.

However, the convergent (deciding) phase is equally important to ensure that those new, fresh, and interesting ideas thought of during the divergent phase actually get considered. Due to some basic neuroscience principles, it’s all too easy to instantly reject any truly new ideas. The very human tendency is to decide to select the ideas that make you feel the least uncomfortable. In other words, even if you managed to generate some really unique and innovative ideas, you’re actually fairly unlikely to decide to use them, unless you do some overt things to help overcome instinctive fears of anything new.

There’s an old adage that people are resistant to change. There’s some truth in that; most people are a bit resistant to change in most circumstances.

However, there are many instances where change is embraced with open arms. Events like marriage, the birth of a child, a career change, or moving to a new city are all dramatic life changes that are typically welcome. Most people are happy and excited to embark on these new journeys.

So, what is it about other types of changes that make the “people don’t like change” adage true? The difference is, with a few exceptions like the above, change is typically assumed to be negative.

To better understand this, think about this hypothetical situation. You’re at your desk, doing your work as usual, when your boss walks over and says, “Things are going to change around here.” If you’re like most people, your instant assumption is not that things are going to get better. You probably assume it’s going to be worse and that you will experience some loss of something you currently benefit from. Even if you can acknowledge that the change might be good for the department or the company, your go-to assumption is that things will be somehow worse for you personally.

This expectation that change equals loss is, surprisingly, grounded in neuroscience. All humans have a set of cognitive biases. Cognitive biases are mental shortcuts that you use for problem-solving and decision-making. There are a few things to understand about cognitive biases before you dive into why they’re problematic.

1. Cognitive biases are not the same kind of bias related to diversity and inclusion initiatives. That’s a completely different concept. Cognitive biases are a neuroscience concept; they have to do with how our brains operate.
2. Cognitive biases are not individual. All humans share the same cognitive biases. It is not as if you have one cognitive bias and somebody else has a different one. All humans share these same mental shortcuts.
3. Cognitive biases operate subconsciously. You are not aware you’re relying on these shortcuts when you are.

When it comes to the convergent phase of creative thinking (when you’re voting and deciding from a large list of ideas) the cliché that people don’t like change tends to hold true. You tend to shy away from the truly new ideas and only vote for the “safest” ideas.

This tendency is due to a specific cognitive bias called the status quo bias.

The status quo bias is the phenomenon just described: You instantly and subconsciously presume change to mean loss (specifically, loss to you personally and individually). You assume that the current state of affairs is the best, and anything other than that will be negative.

So, when you are looking for new ideas and have generated a list of possibilities, and it is time to choose among them, you tend to choose only the safest, most incremental, and least disruptive ideas. In other words, you lean toward the least amount of change possible.

But suppose the situation is something that actually needs real change. In that case, you need to ensure that the team making the decisions doesn’t let the status quo bias get in the way of considering a more radical idea, which may be the one that really solves the problem.

Here are two tips to help you get around the status quo bias:

• Overtly include in your list of criteria that you want ideas that are disruptive, new, and will make a significant impact. Clearly stating that as a criteria will make a difference and will remind people that they need to explicitly consider some of the more interesting, unique, and potentially harder-to-implement ideas.
• Another way you can approach getting around this status quo bias is to require the group to list the potential downsides of changing nothing. Changing nothing is a decision. And unfortunately, it is often the decision that is made by default. You can all too easily “decide to decide later,” once you have more information. Then, during the next meeting, you decide again to decide later, once you have even more information. You continue that cycle until you miss the window entirely, and it’s too late. So, when a group decides not to decide, they need to consider the true consequences of that decision. Given that they thought there was a need to get together and develop new ideas, there’s likely a definitive reason to create change by selecting a more impactful idea.

In order to become a more visionary and creative leader, you need to personally ensure that new, interesting, and more challenging ideas get real consideration. You also need to give your team some assistance so that they can do the same. These tips for getting around the status quo bias will help your team truly consider the potentially more disruptive ideas you may need to fundamentally solve the challenge at hand.

ndeavoring to market your local self-storage business organically (non-paid) is fairly simple when you take advantage of these three free tools: Google Business Profile, Facebook, and Instagram. Google, social media, and your website work together to help your potential customers find you when they need your services and/or products.

SEO (search engine optimization) is optimizing your online assets (website, social media, and your Google Business Profile) so you come up in the top 10 to 20 spots of Google search results.

(See Image 1)

1. GBP is directly connected to Google Maps.
2. You can highlight all your services, amenities, and products, as well as post your hours.
3. Customers can leave reviews.
4. Potential customers can ask questions like, “Can I store my car?”
5. You can post tips, blog posts, and even promote events like auctions.
6. You can upload your logo and lots of images.
7. People are going to search for either “self-storage near me” or “self-storage in your town or city.” Let’s look at both prospects.

Potential Customer Searching “Near Me”
This is the person who needs storage for a multitude of reasons and lives or works in your neighborhood. Of course, you don’t need to put the words “near me” on your profile or website. Google will know based on the searcher’s GPS location and pull up all the facilities matching the criteria.

Your exact address needs to be correct everywhere. If you’re new, your location will have to be verified local. Google will send you a postcard, by postal mail to your location, with a PIN. When you get the card, go to your account, find where it says “verify,” and enter the PIN. If you have more than one location, you need a GBP for each one.

A Potential Relocating Customer
For the latter instance, say I’m relocating for work to Prescott, Ariz.; my new home won’t be ready for a while, yet I must be there to start the job. More than likely, I can find a temporary place to live, but I need to store my furniture somewhere. In this case, I need some specific information:

• How close is the facility to my work and new home?
• What are your hours, and can I access it 24/7?
• Is the facility air conditioned or just “climate-controlled?”

I’ll also read reviews and visit your website.

(See Images 2, 3, and 4)

If they know your name, that matters also. Just looking at the several self-storage facilities that came up in Prescott, this one caught my eye because they have a logo. When I searched for their exact name, Arizona Street Mini Storage, I could get more info from their website. Notice in this screenshot, that their Facebook page came up in the search. That’s your next free tool!

But first, let’s go over what your GBP should look like. Go to https://business.google.com/ and log into your Google account. If you have a Google Business Profile, it will come up. If you don’t, then follow the steps and it will guide you in setting up your profile.

(See Images 6 and 7)

• Business Profile Settings — This is where you can add other managers. I recommend at least two people have access to your profile.
• Notifications
• Add a New Business Profile — This will apply if you have multiple locations.
• Help & Support, etc.

Go through each of these and make sure that everything is filled out and optimized with keywords.

Is the information you provided correct?

• Are your hours correct? Do you have holiday hours? Believe it or not, this is important.
• Are your blog articles posted?

How do you know if your profile was suspended?

1. Your GBP listing is no longer visible on Google and Google Maps.
2. You’ve lost control of your listing. This may happen when there’s a change in management or ownership, or an employee leaves and takes all your passwords with them.
3. Your business is “unverified.”

You may have received a notification like: “Your access has been suspended (or disabled) because this profile doesn’t follow the guidelines.” They should provide a button for you to be able to edit your profile.

They also send you an email saying, “Your business profile has been suspended. Violation type: Content that violates our policies on deceptive content and behavior isn’t allowed. Deceptive content intentionally misleads or deceives others.”

You’ll see an “Appeal” button to appeal this discussion. Most times, they won’t tell you the offense. It’s up to you to determine what it was and avoid doing it again. You must fix what’s wrong before you submit your appeal.

It’s possible that you’ve been overzealous in your posting and Google thinks you’re spam. Maybe something you posted offended someone with a lot of clout. Don’t be surprised if a competitor is behind bad reviews or reporting your facility.

There are two types of suspensions: a hard or soft suspension. A hard suspension is when your business profile doesn’t appear when you Google your business name and city. This is bad. Google may have suspended you if it thinks your business is closed or you’re using spammy tactics. A soft suspension is when your profile comes up and you have access to your dashboard, but it looks like it’s never been verified as a local business and you can’t manage or update your listing. Here’s how to avoid being suspended by Google:

• No keyword stuffing (that’s overusing your keywords or your business name.)
• Don’t make a lot of changes or edits to your profile in one sitting.
• Listing your business hours as 24/7. If you have 24-hour access for your customers, that should be in your description and/or your services. State your office hours clearly. If you have a live-in manager, state the after-hours contact info clearly. Google may suspend you if your information is confusing in any way.
• You accidentally created more than one listing for the same location. In this case, disable the one that’s less complete. By no means should you create a new listing if your current one was suspended!
• Make sure any managers of your listing(s) are in good standing with Google.

Don’t violate any of Google’s terms of service (https://support.google.com/business/answer/7667250).

(See Image 7)

On Facebook, I did a search for “self-storage;” after the big corporate companies, the first independent self-storage facility that came up was Sitzes Self Storage in Abilene, Texas. This is a fairly nice Facebook page. It could be improved by adding more information in the About section, like services, however, I was impressed by the video they posted and the fact that they’re posting regularly.

Given that the self-storage business is not as glamorous as a restaurant, you’re not going to get many folks “checking in” at your location or taking pictures of themselves in their storage units. Nevertheless, you need to ask your happy customers for reviews, not just on Facebook but on Google, too.

This is easy to do if you email receipts to your customers. Just add a link to both and they can choose their preferred platform.

One more important, helpful thing: Every time you upload a video or picture, tag your location. If you have more than one location, you need a Facebook page for each one.

1. Make sure your address is on your profile.
2. Tag your location on every video or picture you upload.
3. If you get an interesting customer, like someone storing a classic car, ask if you can take a picture of them in front of their car nestled safely in the storage unit with their phone. They, in turn, can upload it to their account and tag your business and location.
4. Post stories (images or a short vertical video) at least once or twice a week. Tag your location, add your website, and any promotional information. Share them on Facebook, too.

A few points to remember:

• Links work in Facebook posts (in the text area) but not in Instagram posts.
• Links work in Instagram stories but not in Facebook stories. Yes, I know it’s confusing.
• You have less space in your Instagram bio than on Facebook, so use it wisely.

All in all, if these profiles are set up and optimized, and you post regularly, your search results, and ultimately your conversions (AKA sales), should improve.

aintenance is a structured process that can easily be altered from external sources. As the seasons shift and climates evolve, so too must the approach to facility maintenance. Just as nature experiences its ebb and flow, so does the rhythm of maintenance. This experience varies around the world, making it unique to every region.

Alternatively, every facility and its maintenance requires collaboration among various stakeholders, including facility managers, maintenance personnel, architects, engineers, and environmental experts. By fostering interdisciplinary cooperation and harnessing collective expertise, facilities can develop holistic maintenance strategies that address diverse challenges posed by changing seasons and climates.

Crafting a meticulous maintenance schedule entails understanding the nuanced protocols inherent to each season, adapting strategies to meet the challenges presented by changing weather conditions, and ensuring that facilities remain efficient, safe, and welcoming year-round by collaborating transparently with the correct individuals involved.

One should not wait for turmoil to ensue. Taking early preventative measures for the harsh weather conditions works greatly in any facility’s favor. Winter conditions to take into account are heavy rain, low temperatures, snow, ice, sleet, high winds, and even blizzards. These conditions can change a maintenance schedule monumentally, but hopefully will not have a strong impact upon a facility with the right measures in place.

Various types of materials are prone to deterioration during extreme seasons. Metal buildings can be corroded by extreme rain and storms, ropes necessary for opening doors or sustaining heavy materials can freeze and fray, and paint in a myriad of places is prone to chipping. All of this can be either prevented, or treated, with reactionary measures. Refurbishing metal with the necessary product and buying new rope, springs, or whatever materials necessary should be considered in reaction to extreme weather. There are some things that cannot be prevented, and in return will be responded to accordingly.

In regions where snow is a common occurrence, rock salt or ice melt is thrown onto common walking grounds to avoid slipping. Adam Pogoda, president of Farmington Hills, Mich.-based Pogoda Companies, says that while this is a solution for civilian safety, “it may cause corrosion to asphalt and surrounding materials.”

Teresa Sedmak, president of Rancho Cordova, Calif.-based Everbrite, Inc., noted that they also throw down salt for the winter, depending on the region of the country, and further mentions that Everbrite’s product, “ensures metal is maintained by a clear coating that is salt resistant, and is further rinsed and cleaned with fresh water.”

In certain areas of North America, there is the issue of paved surfaces becoming precariously prone to potholes. The extreme fluctuations in temperature, combined with normal deterioration, can cause a seasonal occurrence of potholes, providing all the more reason for maintenance teams to keep a close eye on their facility and the neighboring roads.

Sarah Beth Johnson with Universal Storage Group noted that, “having your site in tip-top shape is even more crucial in attracting potential tenants to your site over others.” Making sure external aspects of any building are presentable, updated, and safe is an essential aspect to a facility’s maintenance. She also suggests “having a friend secret shop your site. Others tend to see what we don’t. Just like at your house, you might not notice the mantle is dusty, but if you have company, they are sure to find that hidden dirt and deferred maintenance.”

Many companies care about upkeeping the appearance of their facility. For example, bollards, which play a critical role in protecting buildings and directing traffic, can be inspected, painted, and repaired to ensure their effectiveness and visual appeal. These, and many other facets of a facility’s external appearance, should be painted and checked for chips during the spring and fall.

A small, but imperative, example of preparation that should be taken during these seasons is assuring the main points of entry into the facility are functional and up to date. Neglecting to address issues with entry points like electric access points or manual locks could result in inconvenience or even safety concerns for tenants or facility workers, especially during extreme temperatures. When facility managers take precautionary measures prior to extreme weather, they will rarely be bothered with dealing with external problems such as points-of-entry issues during the winter and summer.

In regard to presentation, there is landscaping to consider, as spring will elicit a profound amount of vegetation and growth. Similarly, fall brings its own set of challenges, particularly with the accumulation of fallen leaves that must be cleared to maintain safe and accessible entryways. These two seasons are ideal as they provide the perfect temperature to upkeep laborious maintenance of any landscape.

There are a myriad of tedious actions to take when assessing a building’s astuteness. One must think in regards to comfortability for the tenants, workers, and overall structure of the facility. It is good to be mindful of cracks and open spaces in the building that can be filled during these seasons, as this will contribute to better insolation of building temperatures in extreme heat and cold. Johnson recommends checking spaces throughout the facility. “The restrooms must be clean, working, and stocked,” she says. “The hallways must also be checked and cleaned multiple times a day.”

Collaboration with energy specialists and HVAC engineers during this season is essential for optimizing indoor comfort and energy efficiency. By conducting energy audits, implementing energy-saving measures such as insulation upgrades and window tinting, and leveraging renewable energy sources, facilities can reduce reliance on fossil fuels, lower utility costs, and mitigate environmental impact.

Any tenant searching for a storage facility is going to prioritize their own comfortability and safety. It is paramount that any facility is safe for the sake of the staff, customers, and overall integrity of the institution. It is crucial to sustain optimal conditions for any facility, as it will contribute to attracting more tenants while keeping the staff comfortable and the facility in working order.

It can also be helpful to collaborate and implement interdisciplinary approaches to achieve effective facility maintenance across the four seasons. By harnessing collective expertise, sharing best practices, and fostering partnerships with diverse stakeholders, facilities can develop resilient, sustainable maintenance strategies that prioritize occupant safety, environmental stewardship, and operational efficiency throughout the year.

Ultimately, regardless of the season, the primary goal of facility maintenance remains unchanged: to provide a safe, functional, and welcoming environment for occupants while preserving the integrity and longevity of the building. The maintenance of facilities throughout the four seasons demands a multifaceted approach that considers the unique challenges and opportunities presented by each season. By implementing proactive measures, addressing maintenance needs promptly, and leveraging innovative solutions, facility managers can ensure that their properties remain safe, functional, and attractive year-round. Whether braving the winter chill, embracing the renewal of spring, savoring the warmth of summer, or preparing for the transition to fall, strategic maintenance practices are essential for the sustained success and resilience of any facility.

ack in the 1960s, an inventor formulated a liquid coating for the U.S. government. When applied to metals, the coating formed a protective barrier that prevented sunlight and saltwater from causing rust and corrosion. While protecting the metals, the coating also improved the appearance of faded metal.

After the coating’s inventor passed away, Teresa Sedmak, president of Everbrite, Inc., and her husband, Steve, purchased the rights to the formula. Working as contractors within the mobile home industry, the couple started using the protective coating to restore the aluminum siding of mobile homes in 1990. Business was going well, and all their customers were pleased with the restorative results of the coating. Then, in 1996, Everbrite discovered a new opportunity. They easily and quickly added another vertical market to their business when one of their clients, an owner of a self-storage facility, inquired about applying the coating on roll-up doors.

“He said, ‘My brown doors are old, faded, and ugly; they’re 20 years old and I want to make them look better,’” recalls Sedmak. “So, we restored his property in Roseville, Calif., and made the doors look brand new and thought ‘Wow! This is great!’”

“The first trade show we went to was in 1999 in Philadelphia to check it out. We have grown the business through the self-storage trade shows,” says Sedmak. “After we saw the potential of the trade shows and met some people in the self-storage industry, we decided to get involved. Our first exhibit was in Chicago in 2000, and people were lined up around our table. They were so excited to learn about something that could finally be done about these old, faded doors.”

Although chemicals were not permitted on the trade show floors, thus eliminating live demonstrations, Everbrite’s booth presented proof of the product’s effectiveness via impressive before-and-after photographs. “We had one of those trade show booths that was a pop up with carpet on it with pictures applied with Velcro,” she says. “We had lots of pictures; of course, the self-storage doors show so well because the before and afters are so in incredibly great.”

The pictures were definitely worth a thousand words, but the Sedmaks were always available to discuss Everbrite’s protective coating with interested individuals at trade shows. “They lined up and we got in touch with them,” she says, adding that Everbrite, Inc. became a vendor member of several self-storage associations after receiving such a warm reception at the company’s first trade show. “We are members of the SSA, and have been since I think 2000, and we are members of California and several of the states. We have been members of Texas [TSSA] because they have a really great show.”

In addition to Google Ads and YouTube videos, Sedmak says Everbrite’s website, which was launched in the late 1990s, enabled the company to start selling its products online. She also astutely incorporated trending keywords into the website each time a new industry contacted her about Everbrite’s products to take full advantage of organic SEO.

“As somebody in the jewelry industry would talk to us, then we would sell more to the other jewelry people,” she says about her keyword strategy. “If somebody with aluminum siding or copper roofs or other things started to need us, they tell their peers, we put it up online, and we get other people who use it … the internet really made us grow.”

Sedmak and Everbrite also focused on curating content, specifically how-to videos for their YouTube channel. “So, if somebody wanted to try it for their own storage, they could buy a kit, watch a video to show them how it’s done, try it on one or two doors, and then they can either do it themselves or we can get them a certified contractor in most areas of the country.”

Sedmak and the Everbrite team also wanted to expand the company’s product line to help owner-operators protect other surfaces within their facilities. “We needed something that was stronger for door handles and sinks and other areas that get a lot of use, elevators and that type of thing, so we invented ProtectaClear, which is a harder coating,” she says. “Since then, we have come up with a few variations, but our basic product line has stayed the same.”

Besides the Everbrite and ProtectaClear lines, the company also offers CrobialCoat, which includes Microban technologies to reduce the growth of bacteria and microbes, as well as cleaners and polishes for the various coatings. “All our coatings are made with no carcinogens; they are solvent based, so you don’t want to drink them, but we are very proud that there are no carcinogens in them. That is very important to us.”

Everbrite was reaching more customers than ever before thanks to its expanded product line, but COVID-19 shook up the company’s structure approximately a decade later. Because nonessential employees were not allowed to leave their homes during the lockdowns, Sedmak and the Everbrite team of contractors discontinued the application side of the business. Instead of applying the coatings themselves, the company elected to start a network of certified contractors to do it.

“We transitioned out of ourselves doing it because my husband [who ran Everbrite’s contracting division] was ready to retire and we didn’t have other people to take over that division,” says Sedmak, who mentions that it was a blessing in disguise as it eliminated the need to hire people to apply Everbrite’s coatings, which was becoming increasingly difficult, particularly in California. “So, in the meantime, we have trained other contractors. They come out to the company’s Rancho Cordova, Calif.-based office for training. We train them exactly how to do it; once they are certified contractors, then we refer them to other customers in the self-storage industry.”

The training course, which was designed by Sedmak’s daughter, Jackie Belau, teaches them about Everbrite’s products and how to use them. “It’s not just classroom training or internet training,” she says. “They come in, they put it on metal, and then they take it off; then they learn how to put it onto other surfaces like stainless steel, and they take it off. Then they go out to a self-storage facility here locally and they actually restore some doors, learn how to do the work so that they can see what it’s like to do the doors the proper way. So, they get complete hands-on training.”

Currently, Everbrite’s contractor network has approximately 30 contractors who apply the protective coatings across the nation, thus enabling Sedmak and the other nine Everbrite employees to direct more attention on manufacturing and selling the products to more industries in more countries. Beyond self-storage applications, Everbrite’s products are used to protect historical and high-rise buildings, including the Empire State Building; metal art; automotives, including Tesla’s Cybertruck; boats; patio furniture; water treatment plants; and “any metal that needs protection from sun, salt, air, and corrosion.”

According to Sedmak, the company’s goal is to keep its industry list “very diversified” to ensure its success no matter what’s going on with the economy. “We sell in so many areas and so many industries, and there are so many different uses for it that if one thing turns down because of the economy, the other ones stand up.”

She goes on to say, “We have distributors in New Zealand, Australia, England, and South Africa. And we sell all over the world out of here [the Rancho Cordova, Calif.-based headquarters].” However, Sedmak notes that most the company’s self-storage customers are in the U.S., while a few have been from Canada and Mexico.

“We ship all our products out of our offices here, package, pack and ship; we do all the customer service and technical support as well,” says Sedmak. “We are a small company, but we like it that way. We can give individual help to all our customers. We’re not so large that we lose that friendly, helpful staff, but we’re well enough established, where even large companies can rely on us. We’re not going anywhere.”

In 2019, to further solidify Everbrite’s place within the self-storage industry, the company created a “Top Operators Program” that enables participants, like StoragePRO Management, the program’s first member, to learn how to apply the coatings but with ongoing support from the Everbrite team. Having an in-house facilities team trained in the Everbrite Restoration System process decreases maintenance expenses while increasing curb appeal.

There’s even a possibility that Everbrite will someday be passed on to Sedmak’s young grandson when he’s older. Until then, she’s more than content with her role within the company. “I will always keep my fingers in it … I love the advertising and the marketing and talking to our self-storage friends.”

And so long as Everbrite’s receiving positive feedback, her steadfast dedication to the company she built alongside her husband is all worthwhile. “We’ve had a lot of people who write and tell us thank you for making their property look great or thank you for helping them solve a problem with their buildings or that type of thing,” says Sedmak. “I think our awards are happy customers.”

s self-storage still a local business? While many developers have long adhered to the real estate principle that the three most important factors of site selection are “location, location, location,” David Dodge, president of Little Rock, Ark.-based Paramount Metal Systems, believes the internet has somewhat “taken away” the local aspect of self-storage.

Though most renters still prefer to store their belongings near their homes or workplaces, with 69.2 percent traveling 19 minutes or less to their storage units, according to the SSA’s 2023 Self Storage Demand Study, nearly 30 percent are 20 minutes or farther away from the self-storage facility where they rent units. The ability to search online for “self-storage near me” likely provides prospective customers with more options than they were aware of, but Dodge, who entered the metal building industry in 1982, joined Paramount in 2004, and has contributed to more than $500 million in revenue over a 41 year span, was more so referring to the internet’s impact on the pre-development and development aspects of the business than the end user.

Their inability to “qualify information” prompts them to attend self-storage trade shows and speak with the various vendors to obtain professional guidance. However, Dodge states that they may not leave the trade show floor with a better understanding because there have been so many new entrants into the industry in the last few years.

“In the old days, we used to go through every detail of the job,” Dodge says, adding that thoroughness yields a more accurate estimate and can prevent change orders down the line. “The least expensive road isn’t always best.”

Alternatively, when it comes to providing ballpark figures, Dodge says it’s hard to hit the mark. “When you buy groceries, the cost depends on what you put into the cart,” yet one thing should be obvious: The more units, square footage, features, amenities, and high-end finishes included in a project, the more it will cost to develop.

Unfortunately, doing the latter oftentimes means cutting corners. “We’ve adapted as creative, out-of-the-box thinkers,” he says, “to encompass a broader stroke to offset these costs.”

As for increasing rates to offset inflation, Dodge says, “We don’t want to pass those along,” but volatility in the world markets has caused volatility in pricing. “We have no control over that.”

“Everyone wants the Cadillac for the Chevrolet price,” he says. “It doesn’t work that way. You get what you pay for. If the difference brings you pause, maybe you shouldn’t proceed.”

Dodge goes on to say that self-storage development is “not $50 per square foot like it was 20 years ago. The overwhelming explosion of new facilities built has moved that cost to a minimum of 30 percent or higher.”

For example, Dodge points out that there are five or six new self-storage facilities coming on line in the greater Little Rock metro. They are all within three to five miles of each other, with some even closer, which doesn’t bode well in a stagnant growth market. “The city hasn’t grown enough for that amount of new supply,” he says, adding that feasibility studies conducted by an unbiased third party are essential—not optional—for the continued success of the entire industry.

Due diligence and feasibility studies aren’t just prerequisites for new developers either; the most astute self-storage developers realize that each project is unique and there’s knowledge to be gained from each one. As such, Dodge likens self-storage development to deer hunting: The first time you go out into the woods, even though you’re prepared, you may not get to pull the trigger. When you finally shoot one, you may think you know everything about hunting, so you go looking for another buck. If you don’t bag another and find yourself stuck in a rut, it may be necessary to learn some new tips.

“In the beginning, building a facility starts with an idea (Phase 1),” he says. “You’re not sure how to go about that idea because you have so many choices to choose from, but in the end, you decide and jump in (Phase 2). After you have built your first facility and reap the benefits from it, now you have become an expert rather than a novice and earned the right to call yourself a developer (Phase 3). Success in doing it again sometimes requires reverting back to Phase 1.”

nterest rates are up, it’s harder to get a loan, it’s harder to make loan payments, business is slower than it was during the COVID pandemic, and we don’t know when or how much things will change for the better. That is the interest rate dilemma.

Mind you, most indicators in self-storage are still stronger than before COVID, and stronger than most other commercial real estate (CRE) sectors. However, many in the industry got used to the high-octane performance of street rates, in-place rents, and occupancy of the COVID era. This is especially true for those who entered the industry at that time, with 80/20 loan-to-value (LTV) debt and overly optimistic proformas, anticipating higher street rates and faster lease-up than we are seeing today.

Some seem to have forgotten that self-storage is a cyclical business, the economy itself is cyclical, and despite it all, self storage is still a great cash producing, appreciating asset.

But higher interest rates create a dilemma for business owners because they don’t know what will happen next, or when it will occur. In general, neither the market, nor self-storage owners, like uncertainty.

Business owners want to return to the 4 percent loans they could get until 2022. Jay Powell, chair of the Fed (the Federal Reserve system, the central bank of the U.S.), seems to want them and the entire economy to forget about getting back to those super low interest rates. The Fed uses “forward guidance” to tell us what it is likely to do. The most recent forward guidance on April 16, 2024, indicates that interest rates are likely to stay where they are longer than expected. This corrects the Fed’s March 2024 guidance, suggesting the likelihood of a 75 basis points (bp) drop by the end of 2024, perhaps starting as soon as this summer.

Why? Twelve-month core PCE inflation (which leaves food and energy out of the inflation calculation) did not improve from February to March, and it is actually higher than the prior 3-month and 6-month measures, said Powell. “Right now, given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us. Come what may, we remain committed to returning inflation over time sustainably to 2 percent.” Translation: Interest rates will stay higher longer, and the hoped for 75 bp decline by year end in two or three rate cuts is unlikely. Perhaps there will be one or two smaller rate cuts.

But even if there were a 75 bp drop, interest rates went up 525 basis points since mid-2022. Such a small decline wouldn’t bring CRE loans back down to 4 percent. Business owners long for those good old days but fear that they are in the rearview mirror forever. Or are they?

The Fed has a large quantity of long-term assets (Treasury bills and mortgage-back securities) on its balance sheet. It purchased them as a form of “quantitate easing,” a monetary policy tactic the Fed first used during the Great Recession. Congress’ goal for the Fed’s monetary policy is to promote maximum employment, stable prices, and moderate long-term interest rates. The Fed purchased longer-term assets to help achieve this in the long period of economic growth that followed the Great Recession.

Those longer-term assets are maturing. The Fed can extinguish them, letting them expire and using the principal to decrease its overall debt. But that leaves the government with less money, so it will likely roll the debt over at today’s higher interest rates. As Treasury bills mature and the Fed reissues new debt at today’s higher rate (5.25 percent), the government owes more because interest payments are higher. That means the government has less to spend, and we know how sad that makes the government.

Because of our government’s long-term practice of deficit spending, the Fed will likely have to borrow even more money to cover the deficit. As the government borrows more, it may “crowd out” lending in the private sector because there’s simply less money for businesses and individuals to borrow. All of this has a dampening effect on the economy.

So, interest rates are not just a dilemma for business owners trying to get a loan. The U.S. government is struggling too, as it tries to make the higher debt payments. Business owners have been grappling with the same problem.

Moss is not the only CRE investor drawing this conclusion. Others in the industry agree, thinking interest rates will return to the pre-COVID low and supporting their arguments with page 89 of Ben Bernanke’s book, 21st Century Monetary Policy. Bernanke argues that the economy (and the Fed) leans toward a “neutral rate of interest,” which Bernanke defines as the interest rate “… that prevails when the economy is at full employment with stable inflation.”

Before the COVID pandemic, economists and central bankers thought the neutral rate of interest was about 2 percent, arguing that, “The long-term decline in interest rates, continuing through both recessions and economic expansions, strongly suggests that the neutral interest rate is much lower today than it was a few decades ago.”

Or is it? That’s what Bernanke wrote before the Fed started reacting to higher inflation in the middle of 2022, after it underestimated the inflation threat throughout the prior year. The most recent struggle with inflation leaves the talking heads with a troubling question: Did the COVID pandemic change the economy in a lasting way? In other words, are higher interest rates here to stay?

The Fed certainly wants us to think so. Even in forward guidance about lower interest rates, the Fed is only talking about a small bp drop after a 525 bp increase.

When it uses “forward guidance” (another new monetary policy tool added as we recovered from the Great Recession), the Fed intends to impact the market, the banks, lenders, your decisions to spend and invest, and the economy in general. For the time being, The Fed wants you to think interest rates will stay higher than pre-pandemic levels.

To see how we compare, I surveyed industry colleagues on LinkedIn. They agreed with the primary dealers: 62 percent indicated they expect a decrease of 0.25 percent to 1 percent by the end of 2024. A fifth of survey respondents thought there would be no change at all; one added, “The Fed finally found some fragile balance and I don’t think they will risk disrupting it.” Less than a fifth of respondents thought there would be a decrease exceeding 1 percent.

In spite of “the sky is falling” chatter to the contrary, many in the industry say they are not waiting, watching, and wondering what the Fed will do. “You can’t just wait. Don’t let market conditions provide an excuse to sit on the sidelines. Make the best decision you can and go with it. No risk, no reward,” says Jeff Gorden, president of The Gorden Companies. “The interest rate on a home mortgage was 19 percent in 1981. People still bought houses; they just had to be more creative. They had to hustle.”

What does creativity in financing a deal look like? In a Toy Storage Nation blog, Bishesh Shrestha, senior vice president of self-storage lending at Live Oak Bank, summarized options: seller financing, adjustable-rate mortgages or hybrid loans, government programs, non-traditional lenders, interest rate caps, joint ventures or partnerships, developing in phases instead of the full project, and value-add strategies to attract investors and lenders.

Seller financing has certainly garnered a lot of interest in the investment community. It is when the seller provides some of the financing, standing in second place to the primary debt provided by a lender. For years it was a totally neglected tactic because there was no need. However, when interest rates on home mortgages were 19 percent, it was often the only way to make a deal work. Seller financing, including installment sales, is making deals work today.

One thing to keep in mind if you are a seller being asked to provide seller financing: Do you want to be in second position to another party? If the buyer can’t perform on the loan, and the lender takes back the property, where does that leave you? It’s a risk worth considering.

Clearly, the interest rate dilemma has complicated the capital stack (the combination of capital sources you use to fund your deal or its underlying financial structure). The main components are debt and equity. As interest rates increased, so did equity requirements, leaving the higher than they were a few years ago. LTV ratios fell from 80/20 or 70/30 during COVID to more like 60/40, or even 50/50 today. That means the same deal that required only 20 percent equity now requires 50 percent down. Putting together that much equity is harder and more complicated.

In addition to the equity you put down, banks have added deposit requirements that can be as high as 15 percent or more. In effect, that makes the LTV even less favorable to the borrower.

All of this means you must come up with more money to get your deal off the ground. So, you need to raise more capital than in years past. Current market conditions are making it harder to raise capital because returns are leaner than they were. That is another aspect of the interest rate dilemma.

While there are no immediate, easy solutions, one thing remains true: Self-storage is still a great investment, with strong fundamentals and better performance than many other real estate sectors. If not in self-storage, where will you invest to get comparable returns?

an you believe that a huge part of the human population has suffered from hunger since the world began? Hunger is a condition in which an individual lacks the physical or financial capability to meet their nutritional needs. It leads to malnutrition, wasting, stunted growth, and death. Hunger kills more people than AIDS, malaria, and tuberculosis combined, and it is primarily prevalent in Africa and South America. In 1989, Mission Feeding began with a challenge to feed 5,000 starving children in Mozambique. Since then, Mission Feeding has expanded and became instrumental in helping save the lives of over 18 million children across Africa. Those who suffer most in these times of food crisis are the children. Malnutrition remains one of the leading complications in the deaths of children under the age of five in developing countries around the world. Every year, 3 million children lose their lives due to malnutrition, food insecurity, and starvation.

For more than 30 years, Mission Feeding outreach has been a proven answer to the nutritional needs of starving and malnourished children, saving lives by supplying much-needed food, nutrition, and aid to malnourished and starving children in areas of desperate need. Currently, Mission Feeding feeds more than 350,000 children daily in villages and areas across Africa. A big breakthrough came when a formula for a simple, nutritional porridge was developed. This allowed workers to bag and ship large quantities to villages with the greatest need. Every bowl of food has the vitamins and nutrients needed to stop the cycle of malnutrition and death and rekindle hope in the hearts of children, families, and villages in need.

World Hunger Day is observed every May 28 to raise awareness about the over 820 million people living in chronic hunger and to encourage action to end this. The day aims to increase awareness of global hunger as our world and populations continue to grow. The website for World Hunger Day reveals various statistics on how hunger affects disadvantaged people around the world. The Hunger Project, the organizers of World Hunger Day, also hosts events and promotions to make these statistics public knowledge and garner action. The day hopes to contribute to helping reduce global hunger. It motivates and encourages organizations and individuals to contribute in one way or the other to reducing hunger in their communities. It also calls for action from governments to develop better food security policies. Along with increasing awareness and motivating others to get involved, World Hunger Day promotes global health. Undernourishment, which results from hunger, is a leading cause of death and disability worldwide. By driving efforts to deal with hunger, World Hunger Day invariably contributes to an improvement in global health.

After World War II, the newly formed United Nations began leading the fight against hunger. Following its establishment, the U.N. created FAO, W.F.P., and IFAD to promote food security and agricultural development. In the late 1970s, international organizations such as the I.M.F. and the World Bank began focusing on developing countries as starvation in countries like Ethiopia came into the global limelight. In the 20^th century, the prevailing view was that hunger was a problem of demand surpassing supply. However, this view was ended by the research of economist Amartya Sen, who successfully proved that hunger in modern times was a distribution problem or caused by government policies in developed and developing economies. In 1998, Sen won a Nobel Prize for this research.

1. Volunteer at your local food bank.

   Food banks are charitable organizations that distribute food to those without the finances to buy enough for themselves. Volunteer at a food bank in various roles, including fundraising, social media management, organizing food drives, and awareness campaign management. Check online for a food bank close to you.

2. Donate to charity.

   If you don’t have the time or resources to volunteer, start donating a weekly or monthly token to a non-profit that focuses on hunger. That could be a food bank, a soup kitchen, or a hunger project. Research for one that fits your ideal, get their account details, and start making donations.

3. Raise awareness.

   Social media is usually the go-to platform for raising awareness about anything. Use your social media account to draw attention to the plight hungry people suffer around the world. Stress the importance of actions like sustainable eating to reduce food wastage, donating excess food items to soup kitchens or food banks, and tasking governments to do more to end hunger.

ne of the reoccurring issues for self-storage owners is the persistent threat of states and municipalities enacting new taxes or increasing existing taxes on their operations. As part of our advocacy efforts, the SSA attempts to defeat or reduce those tax burdens where possible. The SSA is currently working to resolve issues in Illinois and Nebraska and succeeded in defeating a new tax in Virginia.

s we approach the 2024 rental season, I can’t help but feel cautiously optimistic. Have my rentals started to pick up? Not really. Are my street rates trending upwards after falling for the last 18 months? Nope. Are many ill-advised storage facilities in my markets still being built? Definitely! So, if demand is low, street rates are down, and new supply is up, why am I still cautiously optimistic? That’s just my feeling.

Although my feeling, here’s the evidence informing it. The housing market is the slowest it’s been in the last 40 years, but many people say they plan to buy or rent elsewhere this summer. Their life circumstances have changed, and regardless of what happens with interest rates, they’re ready for a move. It’s likely that this pent-up demand will materialize this summer.

As demand improves, rates will naturally start to rebound. While the REITs have been playing a dangerous game with extremely low web rates and then doubling or tripling customers’ rates after three months, I can’t imagine they’ll continue. It’s not good for their brands or the industry. When demand picks up, their rates should start to reflect in-place/achieved rates and buoy everyone’s street rates up to somewhere between where they are today and the 2021 peak. This is certainly what I hope happens; if not, there could be some serious implications for our industry.

As a family-owned company in it for the long haul, we’re by nature more conservative than most of the active groups in the acquisitions market. We have strict guidelines, yet we’ve still managed to buy 25 properties over the last few years. However, since the second half of 2021, we’ve found it more challenging to be competitive on broker marketed deals. Still, we offer on most deals in our markets. Until the last few months, we have come in 20 to 25 percent below where assets have sold. Fast forward to the first quarter of 2024, and even with our same underwriting guidelines, we have been competitive on almost every deal. For well-located, high-quality assets, and especially those below replacement cost, we are now willing to “stretch” to get to numbers that are maybe a little higher than we want to pay. For quality product, a slight “overpay” is nothing over a 10-year or longer hold. Even if the market doesn’t fully rebound until next year or 2026, we’ll be happy to own these properties because they will eventually perform.

I might look back at this article in a few years and comment, “What was I thinking!” as the world is an unpredictable place. Storage, however, still seems like a pretty good bet, and after a couple of slow years, we’re poised for a rebound.