Self Storage in St. Pete Concerned About Future Business Prospects although Only a Hint of the Economic Downturn is Showing in Overall Self Storage Businesses
Articles, Shopping January 18th, 2010Personal storage in St. Pete, Fl among others across the country is showing signs of just a hint of a slow down in the self storage business. At one Ohio self storage facility, customers can receive their first month’s rent for only $1. With housing sales falling, some investors worry that fewer homeowners will be storing computers and lawnmowers in the coming year.
A question on many personal storage in St. Pete facility owners’ minds, and those across the country, is self-storage about to suffer a crash? Probably not. The industry currently has little in the way of data on total vacancies, some markets are remaining strong. Consumers searching the Internet could find a few bargains in cities like Boston and San Diego. Overall, the national picture appears mixed, say the industry experts.
Some people may think they see a self storage facility on nearly every corner but analysis’s say few businesses suffer from over saturation. Many people think of self-storage facilities as mom-and-pop companies but the attitude has been changing as public REIT’s are emerging in the past decade and the industry is showing its ability to produce steady returns in soft periods.
Self storage in St. Pete and other cities have proven to be more resilient with many reporting gains of one percent during the past year or two which have been weak years for many businesses.
The storage industry is relatively steady because of its broad customer base, while an office or warehouse typically depends on one or two major clients. Approximately one third of storage facilities’ clients are small business people, in recessions, space users have less need to store equipment or documents.
About two thirds of self storage patrons are private individuals which include college students, military personnel, and people going through life changes like a divorce, death of a loved one, job transfer or move to a smaller house. Many of these individual self storage tenants would need self storage no matter how good or bad the economy is fairing.
