By: Debra Stoss

Debra Stoss — Mon, 09 Nov 2009 20:09:31 +0000

That the self storage market in the Richmond metro area is “overbuilt,” as was mentioned in the original article, is a bit of an understatement. It is companies such as Space Mart Self Storage and Uncle Bob’s that do not do their due diligence in assessing the demand in a market that has caused oversaturation in this business. It is reckless to believe it is good news to report that “as the economy worsened, the number of self storage facilities in Chesterfield County grew … 13 percent. Supplying more space does not mean there’s a demand for more space. As new facilities open and undercut current market pricing, everyone’s physical occupancy drops as the current demand just adjusts and spreads itself out among all competitors. Then comes the decline in economic occupancy as prices have to fall in order for everyone to compete. This economy also doesn’t create the need for more storage space. The reasons customers use self storage hasn’t changed. As some find a new need because of downsizing or foreclosures due to the economy, current storage customers, also due to the economy, reassess their need and find free room in an attic, basement or garage or decide they don’t really need to keep all they’ve been storing in the first place. It bears repeating that we, in the self storage industry, do not create demand simply by creating more supply.

Comments on: Self-storage companies add units in Chesterfield

By: Debra Stoss