Expansion—Bad For Waistline But Good for Self Storage Industry

Posted on Oct 25 2013 - 11:59pm by Kim Kilpatrick

The self storage industry inside the borders of the United States has become a popular investment, a lucrative business, and a part of American pop culture. It wasn’t that long ago that the industry was much smaller and a lot less popular, but over the years expansion has been good for the industry and for many individual companies.

While the industry has been primarily populated by small business owners, recent years have seen many companies trying to expand their portfolios. Due to the poor economy it became pretty hard to find a reliable investment, but the self storage industry provides a service/product that people will always need—space. As the industry appeared to get stronger as the economy continued to flounder it became clear to many that it was time to buy.

Many of them—including Storage Post, a self storage company based out of Atlanta—have done just that.

Since 2012 Storage Post has been actively seeking to expand its holdings and have done just that with nearly 20 acquisitions and plans to acquire more facilities in the near future. The company recently completed the purchase of another facility, this one from a private owner.

“This was a superb transaction. The property is in a great neighborhood with attractive demographics, and we’re familiar with the owner, which made the entire process go smoothly,” said Dylan Delaune, Storage Post’s chief investments officer. “The asset’s high-quality and good location will help develop our New York portfolio, and we are pleased to bring the property into our brand. This is another tremendous deal initiated by our director of acquisitions, Jack Giannola.” 

It is also the third purchase by the company in the last 60 days. In early September the company announced that it had acquired two facilities in New York on Long Island, one in Huntington Station and the other Islandia.

Dylan Delaune, Storage Post chief investments officer, adds, “Jack Giannola, our director of acquisitions, worked closely with the seller to engineer a competitive offer tailored to the unique qualities of the purchased assets. We look forward to folding these two facilities into the Storage Post brand and continuing to provide excellent service and valuable returns.”

But what if the market drops? Is this a pretty big gamble? 

If it was easy to predict how the business world was going to act and react it would be easy to invest, but it’s not.  The good thing is the industry does offer something everyone always needs more of—space.

Sources used: 

“Storage Post Acquires Another Self Storage Facility In New York.” StoragePost.com; 21 October 2013.

“Storage Post Purchases Two Long Island Self Storage Facilities.” StoragePost.com; 03 September 2013.