What negative impacts can you foresee regarding the self storage sector?
[{"id": "fnf7p24", "text": "Negative? The downturn is probably good for self storage. \n\nAt least from my experience, people that are downsizing or getting kicked out of apartments or losing their house rent storage.", "replies": [{"id": "fnfa1lx", "text": "Sad but true. Already had this sector in our M&amp;A advisory seeking stable investments but now will be increased focus over next 16-18 months imo.", "replies": [{"id": "fnfajcz", "text": "Would figure that people simply stop paying their rent and just leaving a lot of stuff/junk. Thought that the greatly increased supply that has come on line would have rents drop due to competition. What do you see?", "replies": [{"id": "fnfb7r3", "text": "I foresee demand skyrocketing. \nSome people will default and either vacate or forfeit their belongings. \nBut I think downsizing and relocations will increase over the next year. After 12-14 months the foreclosures will start. There might be some discounts to capture customers but I see stable or increased demand. \nMy prediction is these facilities will be a stable investment as I value these businesses based on cash flow and bank financing and appraisal value etc etc.", "replies": [], "depth": 4}, {"id": "fnq21ya", "text": "You would be amazed. I use to own storage units. People will pay for years to store absolute junk. Many of my tenant could have just not had the storage and bought all brand new stuff for the amount they paid. People attach very strongly to items.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fnfauzq", "text": "I think it has been hyped by a lot of folks over the past decade, and potentially oversold as having a countercyclical resistance to downturns. Too much talk in self storage imo", "replies": [], "depth": 1}, {"id": "fnfi7yh", "text": "I never looked into it seriously, but the barrier to entry seems low. Another question that I would ask myself is whether younger generations accumulate stuff at the same level that the Boomers did. What market data is available to learn about the typical self-storage tenant, and do the demographics favor growth or shrinkage of those particular groups?", "replies": [{"id": "fnfxx9z", "text": "The trend in storage has be been smaller, better units. Climate controlled especially. Younger people still got shit they want to keep, it's just smaller amounts of better shit.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fnfncrq", "text": "How high can you put up rent whilst land tax are not cheap ( i guess it depends where it located).  For those people have financial right now is more likely can not afford to pay rent medium or long term anyway.", "replies": [], "depth": 1}, {"id": "fnftg9y", "text": "I am building my first center now.  My partner says demand is through the roof, but we\u2019re in a rural market and he owns 2 centers there already.", "replies": [], "depth": 1}, {"id": "fnfunw9", "text": "Not able to develop a shopping, commercial center or housing. One can not do anything other than a self storage....", "replies": [{"id": "fngaszc", "text": "Wat", "replies": [], "depth": 2}], "depth": 1}, {"id": "fnfxlvp", "text": "It should be good for the self storage business. \ud83e\uddd1\ud83c\udffb\u200d\ud83d\udcbb", "replies": [], "depth": 1}, {"id": "fng8n0o", "text": "Wave of non payment duh", "replies": [], "depth": 1}, {"id": "fng9g59", "text": "YUUUUUUUUUUUP!!!", "replies": [], "depth": 1}, {"id": "fo6wirf", "text": "Lower levels of demand, but demand none the less, debtor issues on existing customers (who can work with or instruct to move out) potential funder attitude changes, lower interest rates, flatter home mover market, spike in demand from businesses needing flexibility, need to renovate home to stay home more, less leisure time.", "replies": [], "depth": 1}]