Section 2 • Industry Ownership Google and other search websites make it easier for small compa-


nies to compete compared to five years ago. That’s because search engines are now more sophisticated in helping consumers find the best local business that fits their specific needs, regardless of size. In addition, by using the services of internet marketing companies, smaller operators can spend half of what large players pay per facil- ity and show similar results. REITs have to manage a large nationwide network of websites, whereas the smaller company only has to focus on one or two facilities.


True, industry consolidation may be years off, but many storage


experts look at major metros and see consolidation already taking root. That’s because the REITs are better equipped to overcome the various barriers to entry in larger markets. Very different dynamics are


  


  1 2 3 4 5 6 7


Storage Asset Management, Inc.


Argus Professional Storage Management StoragePRO Management Company Storage Investment Management, Inc.


Cox’s Armored Mini Storage Management, Inc. Right Move Storage, LLC


Donald Jones Consulting & Service


8 Joshua Management Source: MiniCo Publishing





 5,440,578 4,369,109 4,026,360 1,680,000 1,501,995 1,270,136 739,087 341,419


taking place in large markets; first, the larger opera- tors prefer these metro areas because they are able to get the highest rents in the market, often cou- pled with higher occupancy rates. Second, because the larger operators are typically better capitalized, they can afford to pay higher land costs to develop and higher acquisition prices to purchase facilities in these markets.


Google and other search websites make it easier for


small companies to compete compared to five years ago. That’s because search engines are now more sophisticated in helping consumers find the best local business that fits


their specific needs, regardless of size. In addition, by using the services of internet marketing companies, smaller operators can


spend half of what large players pay per facility and show similar results.


While the REITs and other top operators make up only a quarter of the entire self-storage industry, it is beneficial to review their data as their contin- ued success can become a benchmark for your own business. And, because the REITs are public compa- nies, their data is readily available; therefore, it’s easier to maintain quarterly comparisons. However, future editions of the Almanac may provide more insights into the remaining 74 percent of the sector as self-storage owners, operators, and developers continue to utilize Union Realtime for reporting their figures.


44 Self-Storage Almanac 2018


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