Fighting The Good Fight: Combating New Development In An Over-Supplied Market By Tammy LeRoy

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    imagesIt’s an all-too-familiar scenario. You’re struggling in a particular market where the numbers aren’t what they should be. The problem is not your marketing plan. It’s not your curb appeal, your rates, or your manager. Your competitors are strug- gling as well. The problem is that the market is oversupplied. Then, as if it wasn’t enough of a challenge to stay afloat in this flooded market, you discover that a new self-storage developer is applying for permits to build in the vicinity. What can you do, if anything, to keep a difficult situation from getting worse?

    Nearly all operators, large and small, face this challenge at some point. If there was a simple solution, overbuilding would never occur. But one thing is for sure: if no action is taken, oversupply won’t resolve itself. Many operators have found it worth their while to take reasonable action against such new development. Even the best efforts aren’t always successful, but as they say, “Nothing ventured, nothing gained.”

    The increased attention self-storage has received and its ascension to a well-respected asset class has been good for the industry. Along with this piece of good fortune has come a new wave of investors who want to share in the good times. And although that can be a good thing, this new surge of interest has attracted many developers who are not well- educated about the self-storage industry.

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