AZSA Featured on Money Radio
AZSA was featured on Money Radio, 1510 AM and 99.3 FM on Sept. 18. Fasturtle’s Eric Olsen interviewed the AZSA Executive Director, Anne Mari DeCoster, about the association, the self-storage industry, and the 19th Annual Arizona Self-Storage Conference, Sept. 26-28, 2017. Among topics of discussion:
Why the self-storage industry finds itself the darling of Wall Street,
as the real estate sector with the highest profit and lowest foreclosure rate.
It’s an interesting position to be in when you consider that - in its infancy - the self-storage industry envisioned itself as a way of warehousing property until population growth caught up and rendered its location prime for some other highest and best use. Most people in the industry never imagined that self-storage WOULD BE highest and best use, and now it is! Recent transactions in Arizona have come in as high as $200 per square foot.
Institutional money continues to flow into the industry, in spite of the fact that the REITs indicate a pause in their voracious acquisition appetite. And Class A, institutional quality product is not the only game in town, as the multi-generational family-owned businesses in our industry demonstrate.
On the impact of new how new supply, the Fast Money conversation turned to a point made by AZSA member Robert Chiti, in his presentation, “When the Golden Rule is Bad for Business.” He presented at the Self Storage Association’s Fall Conference and is also featured at the Tri-State Conference, October 26-27. The President & CEO of OpenTech Alliance challenged his audience:
“What would be the impact of going from 9% to 10% market penetration?”
That 1% increase in US consumers who use self-storage would constitute a 10% increase in demand for self-storage. Now that’s growth potential! In fact, that kind of increase would completely absorb the new supply coming online, also likely to be about 10%.
How can we do that? “Make self-storage effortless,” says Robert, and that was part of AZSA’s Fast Money message in the Sept. 18 radio show. Specifically, give consumers what they want:
- Be easy to find online,
- With a digital presence that inspires trust and confidence, and
- Enables consumers to find price and
- See space available,
- Call with the push of a button – and have their phone call answered by a friendly human being, or
- Click to rent space,
- Receive and sign a lease,
- Schedule move in, and
- Fall in love with self-storage, the effortless way to take care of their stuff.