Nearly all operators, large and small, face this challenge at some point. If there was a simple solution, overbuilding would never occur. But one thing is for sure: if no action is taken, oversupply won’t resolve itself. Many operators have found it worth their while to take reasonable action against such new development. Even the best efforts aren’t always successful, but as they say, “Nothing ventured, nothing gained.”
The increased attention self-storage has received and its ascension to a well-respected asset class has been good for the industry. Along with this piece of good fortune has come a new wave of investors who want to share in the good times. And although that can be a good thing, this new surge of interest has attracted many developers who are not well- educated about the self-storage industry.