One area in particular is the overall drop in credit card usage. A recent report by Javelin Strategy & Research showed that 37 percent of Americans had reduced spending on their credit cards. Fifty-four percent of those surveyed said they plan to spend less on discretionary or luxury items in the year ahead, and only 5 percent anticipated spending more. Within the target market of 35 to 64 year olds, the percentage of those spending less was even higher.
However, a supplemental chart submitted by Public Storage from their second quarter shows minimal revenue impact from the housing slowdown. The chart specifies major metro markets, the time of peak housing values in each market, the number of homes in the foreclosure cycle and the company’s self-storage facility’s occupancies and net income within each selected market. It is a chart worth reviewing and using as a model for constructing our own target market areas.
Keeping a close eye on tenant payment trends and taking maximum advantage of every inbound telephone call from a prospective customer will be important for a long time to come—for obvious reasons. The days of the next replacement renter walking in the door are gone. We all need to be more aggressive in our closing techniques. The mantra: If they walk into the office, don’t let them leave without renting a unit!
I am still an optimist about the future of our industry, but we have to have patience and maybe work a bit harder to keep things positive.
Music to My Ears