Thoughts on Storage units going into a recession.

[Eric Bilderback]

I saw a storage unit facility that I thought was a solid buy.  Does anyone have any thoughts on how storage units may perform in a recession or just in the current environment?

Thank you,

[Taylor L.]

Storage has preferable recessionary dynamics, as long as you're in a market that is not oversupplied and you are producing cash flow. Oversupply is the biggest weakness of the storage business. Competition can spring up quickly and more cheaply than in other asset classes. Many areas are cutting back on the amount of new storage development they allow, however.