Self-Storage Owners in Redding Feel the Impact of Economic Downturn: Good and Bad

Though the self-storage industry is often considered recession-proof, it is it still being hit by hard times. Self-storage owners in Redding, Calif., are feeling the impact of economic slowdown as tenants vacate their units. Richard Kelly, owner of AAA Mini & RV Storage for 22 years, said his occupancy rate is down to 90 percent from his usual 97 percent to 98 percent, and he won’t be surprised if it reaches as high as 80 percent before the recession is over.
 
Jim McNamee, president of the California Self Storage Association, said there are still demand drivers for storage, and the slowdown operators are seeing may be that typical of the summer months. The affect of the recession is small, he said.  
 
According to Deborah Owens, manager of Redding Mini Storage, her facility is experiencing a 70 percent occupancy rate, down from its usual 95 percent. Some customers just leave their belongings and stop paying rent, she said.
 
Charles Barker, who manages American Storage, said his vacancies have also gone up.
 
On the other hand, Andrea Fierro, manager of 4 Corners Mini Storage and Hartnell Mini Storage, said the economy hasn't negatively impacted her sites. Her company is actually adding 200 units. From her perspective, the economic downturn has helped her business.
 
Source: Nathan Morgan/Record Searchlight (Redding.com), Storage Unit Owners Hit by Economic Slowdown