Self-storage operators in Hawaii are reporting increased occupancy from homeowners downsizing their residences and business customers trying to offset rising lease rates in commercial real estate, according to the source. The local storage market has been particularly robust in the last 18 months, according to Joe Hammon, director of self-storage management for Kokua Realty LLC, a full-service realty firm that manages several storage facilities in the state.
"The market has really rebounded since 2008, and it's been going up, up, up in the past year and half," Hammon told the source. "We've continued to raise rates because of the residential housing market and other reasons, but I know we're not alone. The competitors are doing the same thing."
On the island of Maui, Kokua Realty manages Central Maui Self Storage, Kihei Maui Self Storage and Wailuku Self Storage. The Wailuku and Kihei facilities are operating at nearly full capacity, and the Kihei property is adding 75 drive-up units to keep up with demand, Hammon said.
Among the businesses choosing to use self-storage in some capacity are the American Red Cross, IBM, Pepperidge Farm and Xerox, according to Hammon.
Elsewhere, StorQuest Self Storage, the operating brand of the William Warren Group, has reported record-high revenue and occupancy at its Hawaiian locations, according to the source. The national operator has two facilities in Honolulu and two in Waipahu.
A statewide boon in the storage business is likely to benefit existing operators more than potential new developments due to saturation in the marketplace, according to Shaun Salvador, vice president of marketing and sales at Hawaii Self Storage, which has six locations on the island of Oahu. "Overall, I think there's kind of a consistency in the market right now," he told the source.
- Pacific Business News: Hawaii Self Storage Industry Seeing Record-High Revenue, Occupancy Rates