POPULATION MOVES

Thanks for surfing over to the Self Storage Blog, PhoneSmart’s eye on storage.

I was looking at some population growth figures today. The number of people who continue to move into busy areaas like Southern California, Southern Nevada, the Phoenix area and parts of Georgia nd Florida are unbelievable. If these trends hold and you continue to see 6-8% growth in some of these markets, it may be difficult to get enough storage supply to absorb all the demand. Since it is difficult to find a piece of real estate that will pass the permit process and difficult to find a property price tag that will allow your project to pencil out, there may continue to be strong demand even as we build more facilitites in these areas.

If market conditions make it tricky to build a new facility, we may be in a good position. In the markets that are growing, where there are fewer barriers to entry you may see a different problem. Supply could overtake demand in these areas. Even so, the nicely presented facilities that are staffed by people with good customer service and sales skills will rise above the crowd. But I suspect some markets will beceome less interesting and difficult to propsper in, especially as the prices of current and established projects continue to rise. In some respects this is neither a buyers nor a sellers market.

It will be interesting to see how things develop.

bye for now, Tron

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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