The recession hasn’t drastically affected the self-storage industry, but facility operators are going to give concessions to keep their units full this summer, according to an article in USA Today. Paul Puryear, director of real estate research for Raymond James, said the industry will attempt to lure customers by offering more discounts. The assumption is unit occupancy will jump 4 percent to five percent this summer.
The self-storage industry is resistant to the effects of the recession because customers use storage when they need to downsize or suffer life changes, such as a job loss or home foreclosure. Puryear said his organization is trying to measure how serious the downtown will get before consumers abandon the self-storage product. Right now, need is driving the business.
Three major self-storage operators have planned summer marketing campaigns. U-Store-It will run its first TV ads next month, promoting a low-price guarantee. If a customer finds a lower price in the market, the company will beat it by 10 percent of the difference. Public Storage is promoting the first month of rent for $1 at 2,000 of its facilities. With Extra Space Storage, customers who rent online can get a free month of storage.
Source: USA Today, Self-store units balance slump to still fill their spaces