Come & meet the SVN – Storage Realty Team at the NE-SSA Expo @ the MGM Grand Resort in Springfield Massachusetts this Thursday October 3rd, 2019 and again at the NY-SSA annual conference at the Westchester Marriott Hotel in White Plains, New York – Friday October 11th!
Nick Malagisi, SIOR – Connie Neville, JD and Hans Hardisty, CCIM
Self Storage Sector Continues Growth Spurt – By Nick Malagisi, SIOR
Despite the record number of new build starts across the country, there are really only a few problem markets where too much supply is coming onto the market too quickly. None of those markets are located within the northeast USA. The barriers to entry remain strong there, because of the lack of vacant land, zoning restrictions, and cost of land.
Much of this new-build supply is coming from Institutional capital attracted to the industry because of the growth in demand, steady returns, and hedge against the other sectors. Self storage has performed well ever since the last recession and returns in comparison to the other sectors have not been unnoticed by Wall Street and private equity groups.
I have just returned from the national Self Storage Association’s annual fall conference in Las Vegas where a new venue has allowed even more vendors and sponsors to participate in the industry’s success. Dr. Arthur B. Laffer gave a keynote address during our Economic Summit and had everyone’s attention talking about working in economics for four decades and under six different presidents.
The real estate sector of self storage remains robust and presents many challenges in acquisition and development. Vacant “Big Box” retail stores offer interesting high profile conversion locations. And new entrants into our industry bring new ideas and ways to do business, such as W. P. Carey structuring a sale leaseback of a portfolio of Extra Space facilities earlier this year. It is an exciting time to be working in this sector.
New York Self Storage Association:
Northeast Self Storage Association: