Not too long ago, self-storage was considered a recession-proof industry. When things were good, business was good; when things were bad, business was still good. At the top of the real estate bubble, new investors were pouring money into self-storage based on historic numbers and the expectation of similar results moving forward. It seemed self-storage was the investment of which everyone wanted a piece.
Then came 2008. The downtown in the economy has had such a pervasive effect on the American population that self-storage is seriously feeling the pinch. This, coupled with increased competition and rising expenses, has become the perfect storm keeping many storage owners from getting a good night’s sleep. Businesses that once were considered or expected to be cash cows are now finding the grazing pasture sparse.
A Second Opinion
In this economy, facility owners have to ask hard questions and make even harder decisions. It’s more critical than ever that these questions are answered with diligence and scrutiny, and decisions are followed by action and evaluation―not an easy task even in the best of times.