Let’s talk Self Storage: Here is a map of all new self storage developments in my area
[{"id": "dyukadr", "text": "Trend is also happening here in Dallas/Fort Worth. ", "replies": [{"id": "dyv7hal", "text": "Yeah that\u2019s what I hear. Dallas, Austin, Denver, and Miami have all added a ton of self storage supply", "replies": [], "depth": 2}], "depth": 1}, {"id": "dyukeze", "text": "Is there a list of what companies/brands they are?", "replies": [{"id": "dyv7f5i", "text": "Yeah I have the data... 6 of of them are Extra Space, 3 Cubesmart, 2 US Storage centers, 1 Simply, and the rest are regional or local brands. ", "replies": [{"id": "dz8yf1u", "text": "It should be noted by \u201cbrands\u201d these are property managers. Similar to multifamily, the PM brings the branding in", "replies": [{"id": "dzbbl2n", "text": "Good point", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dyukmzp", "text": "I\u2019m leaning towards jumping into commercial investing with self storage. I think it\u2019s s great business and the returns are significantly higher than many other asset classes. Plus Americans love their things. ", "replies": [{"id": "dyv7jg9", "text": "I agree. It\u2019s a great asset class ", "replies": [{"id": "dyvu1t4", "text": "What do you think long term though, I've see arguments that millennials will kill this off in a few years as we tend to have less junk. My parents have like 3 and i can't imagine ever having so much stuff I need one. I'm in Denver and it's something we've talked about around the water cooler. It's interesting to see since so much is getting built", "replies": [{"id": "dyx2ccv", "text": "I\u2019ve often heard that argument and I don\u2019t believe it has merit. Using self storage tends to be event driven: the 4 demand drivers for storage are death, divorce, downsizing, and dislocation. Millennials will not magically stop being subject to these life events.\n\nOn the contrary, millennials are driving the rise of e-commerce and that plays well for self storage. Modern facilities offer drop-shipping and having a small storage unit is ideal for an entrepreneur that sells inventory on Amazon rather than paying 10x more to display the inventory in a retail space.  ", "replies": [{"id": "dyxkneq", "text": "I don't know about the death, divorce or downsizing, as I feel if you have less stuff overall there will be fewer things to deal with during those times. I know for me, we sold the storage unit to the storage company after double checking nothing too personal was in there on my grandfather's side. They auctioned it off. \n\nI do think the second point is great though - that maybe a new way to market the storage units if you added some amenities such as Wifi for them to run a small computer out of the unit as they get stuff ready. (keep your desk, printer and get orders done once a week kinda deal). That is interesting to think about. Something we also were tossing around was cheap housing for the homeless if they were fixed up a bit or simple retail outlets. In Denver, these little mini-mall type community outlets are getting popular - like the Market downtown. It's a collective of food, small shops and things to do. They are smaller than average units and filled with trendy little boutiques. \n\nI still don't feel as if the amount being built is in demand but I could be totally wrong on how much stuff people are hoarding. \n\nThere is also always the commercial clients, we used one for a bit at a warehouse job when we ran out of space. I think it is just interesting as they keep popping up in urban places here. I'd be interested in someone who manages a few to do a survey on why their customers have a unit. (death, divorce, moving, hoarder)", "replies": [{"id": "dyyb95e", "text": "The company I\u2019m part of manages over 90 facilities across the country. We can tell you first hand that younger people are no different than previous generations when it comes to storage. ", "replies": [{"id": "dyyqra2", "text": "That's interesting, thanks for the insight. Like I said it has been something we've discussed before at my office. I love data, it tells all. ", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dyxcgyu", "text": "OP, did you compile this info? If not, from where did you get this?", "replies": [], "depth": 1}, {"id": "dyzk6cv", "text": "Why is self storage an attractive investment in your eyes. Hope everyone can chime in...\n\n", "replies": [], "depth": 1}, {"id": "dyzno7a", "text": "Deals I've worked on typically take 2-3 years to stabilize... is that consistent with what you're seeing?", "replies": [], "depth": 1}]