It is not uncommon when a person does their job really well that they eventually get a promotion. An increased work load and more responsibility will typically come with that promotion. To some that may sound undesirable, but to make it worth your while it usually comes with an increased paycheck as well.
So essentially when you are really good at what you do you will often get more work to do with more responsibility, but more money. The same concept can be applied to what goes on in the business world—the self storage industry or otherwise– as well.
Extra Space Storage is a perfect example of that. The real estate investment trust is the second largest operator of self storage facilities with 882 across 34 states and Washington D.C. It is also the largest manager of self storage facilities in the nation.
With the self storage industry doing so well these days it would be understandable if the company wanted to enjoy the benefits—and profits—that come with being one of the largest self storage providers in the nation and just maintain the already large portfolio that the company has. Instead they have opted to expand their holdings by purchasing a number of facilities in New York/ New Jersey area.
“We are excited to increase our footprint in the New Jersey and New York markets,” Spencer Kirk, chief executive officer of Extra Space Storage said in a statement. “We have forged a strong partnership with the Hampshire Cos. that is proving beneficial for both parties, now and into the future.”
The Hampshire Companies is a real estate investment firm with over $2.5 billion in assets; their self storage facilities operate under the name Hampshire Self Storage. The sale of ten of those facilities was recently sold to Extra Space Storage.
James E. Hanson, II, President and CEO of The Hampshire Companies had this to say about the sale:
“At Hampshire, we believe experience is one of our greatest assets, which is what continues to make our self-storage business so successful. The timing for this deal was right, and we felt confident entering into it, given Extra Space’s strong reputation and service standards.”
Extra Space Storage has also taken over the management of the other facilities Hampshire Companies maintained ownership of, just under 6,000 units and over 600,000 square feet of storage.
Just like the employee that performs well and gets promoted, Extra Space Storage’s success allowed for it to expand. With the added responsibility will also come what every employee and company wish for—more money.
“Hampshire Self Storage Sells 10 Property Portfolio to Extra Space Storage Inc.” Equities.com; 06 September 2012.
“Hampshire sells 10 self-storage facilities to Extra Space Storage.” NorthJersey.com; 06 September 2012.