Since I started blogging for Storage Speak, I've been reading other blogs, too. Not overly often, mind you, because there are only so many hours in a day, and I spend quite enough time poking around our self-storage forum, thank you very much. It's a miracle I get anything done some days. Have you read some of the things people talk about on there? Anyway ... I digress.
Other blogs ... particularly any that relate to the storage business, which isn't many. But today "Lansner on Real Estate," a real estate blog for The Orange County (Calif.) Register, had this to say about our industry:
The National Association of Real Estate Investment Trusts reports that self-storage REITs remain the place to put your money this year. For the first four months of 2008, self-storage REIT stocks are up 23.83%. That should come as good news to investors who saw their self-storage REIT stocks plunge by an almost equal amount — 24.82% — last year.
Well, that's good and bad news for us, isn't it? Good for those who have stock in the REITs and a good indicator for the business in general. But again, investors/developers see this kind of publicity and get big 'ol dollar signs in their eyes. This year, I've seen much banter about whether self-storage is still a good place to invest your dough. Existing operators say the markets are saturated. The suppliers need new blood to keep afloat. So the answer to the question will differ depending on who you ask. This is nothing new.
In its semi-annual Self-Storage Research Report issued for the first half of 2008, Marcus & Millichap has this to say:
The long-term outlook for the nation's self-storage market remains positive, despite currently slow economic growth amid a soft single-family housing market. These challenges, as well as the corresponding reduction in demand created by residents not relocating into new homes, continue to impact occupancy levels across the country.
I'm not certain to whom this report is generally made available, but it was edited and prepared by Market Analyst Greg Clemmer, who can be reached at [email protected]. If you're interested in contacting the company for more info on industry trends, you can also try National Research Manager John Chang, [email protected].
But putting the pundits aside, I'm interested in hearing real reports from managers and owners. Those of you who operate self-storage from coast to coast and around the globe ... what do you see happening in your markets? How are your occupancy levels? Is America's struggle to make ends meet going to put more bread on your table, as the media perpetually publicizes? Or are you struggling, too?