In the past few weeks, we’ve seen more positive headlines about bank profit and the stock market gaining ground. And while it’s good news compared to all the bad stuff just a few short months ago, does it mean the country is emerging from the recession? Not exactly, experts say.
While many large financing institutions reported billion-dollar profit in the first quarter, it doesn’t even out the huge losses these banks suffered in previous quarters. Layoffs are still a huge issue, with more than 500,000 jobs lost in March alone; and dismal retail reports for March sent the stock market plummeting for a couple of days earlier this month.
Yet, there are what President Obama calls “glimmers of hope.” The number of new jobless claims is slowing; banks are working with more homeowners on streamlining mortgages to avoid foreclosures; and, best yet, the stock market has enjoyed six weeks of upward movement. Plus, the housing market is beginning to show signs of recovery due to the generous $8,000 tax credit.
What does all this mean for you, the self-storage operator? Hopefully, it could translate into more rentals and fewer delinquent tenants in the coming months. Last week on the Self-Storage Talk forum, a poster asked if other managers are seeing a pick up in rentals. A handful of posters responded positively. “The phones have started ringing again,” Cramalot posted.
One drawback could be the cost it takes to get more tenants through the door. More self-storage operators are willing to offer concessions as the industry heads into the busy summer season, according to a recent article in USA Today. Three big players in the industry—U-Store-It, Public Storage and Extra Space Storage—all have concessions in the works to attract new tenants.
Are you seeing fewer move-outs? Are move-ins up this month? What’s your take on concessions? Share your comments with us by posting a comment.