As a self storage operator, knowing and understanding the pricing dynamics of your local market is essential to remaining competitive. The strong economies of many cities across the country have led to a growth in population. For self storage developers and investors, an increase in population means new supply opportunities. The influx of new supply brings new challenges for existing operators who often find themselves struggling to compete. Most developers have spent months researching extensive due diligence which enables them to come into any market and quickly take over market share.
Understanding how population growth and new supply impacts local rates and inventory is difficult when there is no system in place to track and monitor such changes. StorTrack reviewed the monthly average rates for 10×10 non-climate controlled units in five of Florida’s fastest growing cities. All of these cities have experienced new supply over the last few years. In reviewing the rates over the last 18 months, one can quickly point out that rates have been trending downwards.
As an operator, such market insights are essential, especially if your facility does not change rates dynamically or in any systematic way. Knowing exactly how rates are trending at any given time, tracking which stores are offering or not offering certain units or knowing how well your competition are marketing themselves, is part of the market intelligence that will drive your business to the next level. Fortunately, there are tools that can facilitate and automate this process for operators like you. Learn more.