Self Storage Income 309. Self Storage Demand 101: Know What (and What Not) to Buy
72 snips
Aug 12, 2025 A deep dive into measuring real-world demand for self storage and spotting misleading occupancy metrics. Practical tactics for on-the-ground research like secret shopping and owner conversations. How unit mix, pricing, new supply, and local demographics shape who will actually rent. Strategies for identifying underserved customer segments and avoiding risky buys in declining markets.
AI Snips
Chapters
Transcript
Episode notes
Choose Higher Rates Over Perfect Occupancy
- Prioritize revenue per square foot over raw occupancy when choosing between full-but-underpriced and partly-vacant premium assets.
- AJ prefers 20% vacancy at much higher rates to 100% full at deep discount.
Never Ignore Incoming New Supply
- Always check new supply pipeline and how past new facilities performed.
- AJ advises rejecting deals where a single planned development adds a massive percent of market supply and could crash rates and occupancy.
New Supply Hurts Markets More Than Existing Vacancy
- New supply is worse than existing vacancy because developer inventory starts at zero revenue and forces price-driven fill strategies.
- AJ: new units will often push pricing down as competitors fill at any price.