Self-storage businesses in Florida are suffering, as foreclosures and bankruptcies force customers to forego storing their goods, according to an article in Florida Today.
David Fahmie, owner of Acorn Mini Storage in Melbourne, Fla., said many customers can’t keep up with their storage payments. He estimates his business is down 30 percent because of the economy as well as a surplus of storage units in the area. Since 2005, approximately 29 storage facilities have opened in Brevard County.
Self-storage operations in Brevard County and Fort Myers have been hard hit, according to Mike Mele, vice president of investments and senior director for the national self storage group of Marcus & Millichap, a national commercial real estate firm with offices in Florida. He said business is down about 15 percent statewide, and he’s seen rental rates drop as well.
Occupancy at NASA Warehouses in Melbourne is down 20 percent, said owner Dennis Basile. Business is also down 30 percent at Beachside Business Center & Storage in Indian Harbor Beach. The facility provides commercial storage and services for small businesses. Owner Scott Calabro said he has seen his customers going out of business, selling off goods and consolidating.
Source: Florida Today, Self-storage boom intensifies its bust