Making the decision to go into business is never an easy one. The factors that can be taken into consideration are numerous to say the least. Chief among them of course are what sort of business and where it will be located. The two are not mutually exclusive; if the product doesn’t match a need for the location failure is eminent.
It would seem that an industry that is thriving like the self storage industry would be relatively easy to choose a location for. While the industry as a whole is doing well, picking the most profitable long-term location can be a challenge.
One indicator to consider is the number of facilities in the state already. Is there a shortage of self storage facilities in the state or is there an overabundance of them? If the number is high does that mean you shouldn’t invest there?
Some would say yes and site too much competition driving down rates, but others would say no. A high number of facilities could be an indicator of the market just trying to respond to the need.
“So many people are just building locations and not paying attention to the demographics of the area,” said Michael Caback, chief operating officer for National Self Storage, owner of Sunshine Self Storage. “You can’t create more demand for something, if it’s not there.
The State of Florida currently has the third highest number of self storage facilities of any state in the country with approximately 3,200; only Texas and California have more.
“[Florida] is a very transitional state,” said Joseph Sabga, president of Bekins of South Florida, a Fort Lauderdale moving and storage company. “People move around a lot. Many of them are empty nesters who are looking to downsize.”
Florida is known for being a popular place to retire; that likely does factor into the demand at least in South Florida where there is a higher population density causing builders to save space and as they build up rather than out. The demand is also due to the way homes and residences are constructed.
“Builders in Florida don’t put too much emphasis on storage,” said Caback.
In a nation that is full of people that put a value on stuff, a lack of storage in the home can only mean one thing—a high demand for somewhere else to store your stuff.
No wonder there are well over 3,000 self storage facilities in the state!
“Of the 50 states, Florida ranks No. 3 in self-storage facilities.” Sun Sentinel; 26 July 2012.
2012 SSA Fact Sheet; Self Storage Association.