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In this Session, John and Stacey break down the economic shift in the 2008/2009 financial crisis versus the current global health crisis. They discuss the current bidding landscape for self storage investors and why it’s still a great time to buy, as well as looking into self storage trends across the map.
Moderators: Tommy Nguyen and Melissa Huff
Featured Speakers: John Chang and Stacey Gorman
Category: Real Estate
Focus: Owners and Managers
Aired: June 18, 2020
Gabfocus Sessions are virtual workshops for self storage owners, managers, and operators. Brought to you by the team behind Gabfest: StoragePug and MR Management.
Each session features hand-picked industry pros who will dive deep into relevant topics surrounding our industry, share best practices, and explore trends in the market. It's our hope that these sessions help you navigate your self storage business better during these uncertain times.
Want more tools for your managers? Join us on Gabfocus weekly on Thursdays.
These are just a few of the questions answered during this session! Get your pen and paper ready!
Our panelists will be happy to answer any questions you have. We hope you enjoyed this Gabfest Session. Talk soon!
“It is recession-resistant because some of the behaviors that are driven by recessions actually bolster demand for self storage. This recession has been relatively good for self storage.” - John Chang
“Private investors who have access to the market have an intrinsic advantage right now because so many of the REITS and institutions really don’t have the ability to come in and play in the bidding process.” - John Chang
“Having those auto payments, the properties I’m hearing are suffering more are ones that don’t have auto payments and rely on tenants paying cash and coming in the door.” - Stacey Gorman
“Online fulfillment, that’s critical, square one necessity. If you can’t order, reserve, and pay for a unit online you are missing out on 60% of the market, especially with the millennial generation.” - John Chang
“Over the last couple of years, we have had this huge wave of construction in the self storage sector- in terms of supply and demand the huge wave of construction has been met with really good demand.” - John Chang
“If you are investing for the long haul, storage has been so strong through ups and downs in the economy that (for me) it’s an easy decision to make.” - Stacey Gorman
We asked our panelists: What are the key factors to look at when investing in self storage real estate?
“Understand the long term supply and demand drivers from the big picture level, the national level, the regional/local level, and that one street corner that you are going to be on - is the key ingredient for your success.” - John Chang
“Look at real estate rental rates are and looking at your rent per square ft, that is key to making sure you are getting into a profitable endeavor.” - Stacey Gorman
Compared to the 2008 recession, the self storage industry is in a great place. Vacancy rates are low and new facility construction has been on-par with market demand. If you are a self storage investor that’s looking to wait out the storm, you may need to re-think your strategy as there are key factors at play keeping the REITS and bigger institutions from bidding against you. And, with the rise in market demand among the millennial generation, it is critical to have online fulfillment for your facility - without it you are missing out on 60% of the market.
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