One of the most popular science fiction television shows of all time (Star Trek) began each episode with a few simple words that ring true to the self storage industry: Space….the final frontier. Now the industry may not be the final frontier, but it knows a lot about entering in to new frontiers.
How could a business that deals in a product as simple as space enter in to new frontiers? That’s easy—bring to people that don’t have enough of it.
The concept is most visible in overseas markets where the industry is still establishing a foothold and has plenty of room to grow. In the United Kingdom the self storage industry is expanding slowly in to new markets, but with profitability on the rise that could change in the near future.
South African self storage company Stor-Age would be just another small to medium business owner in the United States with its 33 facilities in the country’s six major cities. In South Africa it is the nation’s leading provider.
While in other countries new frontiers refer to just that—territory without a self storage facility—in the United States it’s a little different. With over 50,000 facilities across the country when a company expands in to a new frontier it is probably not one without any self storage facilities, but one without any under its banner.
So in a way the challenge is even greater. When you expand in to a territory with no facilities there is no competition. Expansion for companies in the United States requires facilities to be cognizant of the competition and wary of over-extending itself.
To avoid those and any other potential issues a company has to do its homework ahead of time. Storage Post—a company based out of Atlanta with facilities up and down the East Coast—did just that before the big move it recently made in to South Florida, an eight facility portfolio in Fort Lauderdale.
“We’ve been watching the self storage climate across the U.S., and we’ve pinpointed cities and metropolitan areas with the highest barriers to entry and the most storage demand. Florida’s self storage industry has been thriving, and we knew we wanted to enter the market,” said Storage Post Chief Operating Officer Dylan Delaune. “When we saw this multi-property portfolio with its fantastic locations in both residential and industrial areas, we jumped at the chance to add it to our brand.”
Unlike the intro to Star Trek Storage Post is likely hoping to be in the South Florida area for more than just a five-year mission!
“Storage Post Expands Brand with Multi-Property Self Storage Portfolio in South Florida.” PRNewswire; 29 May 2014.
“Self Storage Industry Remains on the Rise in South Africa.” Self Storage Industry News; 27 May 2014.