Amy Campbell, Senior Editor

March 13, 2006

2 Min Read
Consolidate, Pontificate, Mediate, Alleviate?

Some of you may remember the song "Mediate," released in 1991 by rock group INXS. It was notable for it's assonant simplicity: a string of rhyming words that ultimately wove a philosopho-politcal message. I think of it today as I ready through the deluge of news posts generated by the Public Storage/Shurgard mergerespecially as one word continually leaps off the screen: consolidate.

 

Yes, everyone's curious to see how smoothly this merger will roll out, how it will affect the stock of both entities, and how the combined company will influence the industry as a whole. But I thought this was interesting: An article in Reuters last Tuesday said, "The deal marks another self-storage acquisition as the fragmented industry consolidates to cut costs and improve cash flows," and "The deal comes amid a rapidly consolidating self-storage industry."

 

I'm not disputing there has been a trend toward consolidation over the past few yearsjust look at the transaction history and REIT activity during 2005 alone. But I don't view this industry as "fragemented" simply because it encourages entrepreurship and an independent spirit. Must we be overrun by conglomerates to be successful? Why is a diversity of ownership painted as a weakness rather than a benefit?

 

ISS Expo TV!

 

I've mentioned in a couple of past posts that we managed to take some video in the expo hall during our Vegas Expo a couple of weeks ago. The companies that participatedas well as many of the onlookershave since contacted me, interested to see the footage. In response, we've created a new website feature: ISS Expo TV. Check it out if ya want. And if you're interested in being interviewed at our upcoming expo in Reno, July 19-22, give me a shout at [email protected].

 

Interesting Omission

 

Some of you are members of the national Self Storage Association (as is Inside Self-Storage), which means you receive a copy of the "Monday Morning Memo" each week. It's a decent e-mail newsletter containing association updates as well as some industry news highlights. I generally find it informative; but today I was interested to see what I shall call a "curious omission," and I'm wondering about it.

 

Last week, I gave props to industry legal expert Jeffrey Greenberger, who managed to land himself a nice feature in the Cincinnatti Enquirer (read it here). It was a fantastic plug for self-storage because it actually focused on something positive for a change. But surprisingly, there was no mention of it in today's SSA memo. I find it particularly odd because the article actually promotes the SSA's 2005 Self-Storage Demand Study. Furthermore, Jeff is an SSA member and has supported the organization as a speaker at SSA conferences.

 

I'm just wondering why SSA chose not to include a mention in this week's mailing? Seems like this is the kind of information the association would like to point out to its members?

 

About the Author(s)

Amy Campbell

Senior Editor, Inside Self Storage

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