All Forum Posts by: Zach Quick

@Brandon G. Are you going to do a feasibility study to see if you should actually build self-storage on the property? Or what kind of unit-mix/square footage/etc.?

@Luke Bloxham that's going to vary widely based on competition around your project, growth rates, etc. 'Healthy' facility generally speaking would be 85%+ full. But if you are regularly 99% full you aren't raising rates enough. I'd highly recommend you spend the money on a feasibility study on whether or not you SHOULD build. 

@Ronald Rohde What's your bread and butter puchase look like? I think if I ever veered that's what attracts me.

@Ari S. I was just stating that they are REITS. You stated that REITS and large chains are struggling, and all the companies mentioned were REITS in the article. Anyways, below you can see commentary from these 4.

https://www.fool.com/earnings/call-transcripts/2020/05/01/public-storage-psa-q1-2020-earnings-call-transcrip.aspx

https://www.fool.com/earnings/call-transcripts/2020/05/09/life-storage-inc-lsi-q1-2020-earnings-call-transcr.aspx

https://www.fool.com/earnings/call-transcripts/2020/05/09/cubesmart-cube-q1-2020-earnings-call-transcript.aspx

https://www.fool.com/earnings/call-transcripts/2020/05/08/extra-space-storage-inc-exr-q1-2020-earnings-call.aspx

@Ari S. All those companies mentioned are REITS not ‘large chains’.

And quoting stock prices to paint a brush on how an industry has done thus far in COVID means nothing right now. SUI, ELS, UMH are down for the year too so are MHP’s way down? I would assume most would say the market isn’t mirroring what’s actually happening on Main Street right now.

I’d question the data that they used for the NYT article, go read each of the SS REITS quarterly notes. I can assure you they don’t have 50% empty facilities now, so what exactly are they tracking by dating ‘down’. Maybe they had slower move-ins that week, that I can get behind considering the start of stay-at-home orders.

For the record I agree that storage isn’t as ‘resistant’ as like MHP’s but look but at 08-11 data and it faired fairly well.

Thanks @Mitch Messer . "Change in spending from 2019 for the week ending April 1". Not sure what 'data' they had to make that bubble, but sure net move in's for that specific week were probably down about 50%. Don't think that means as a whole people are spending 50% less on storage as the OP suggested.

Have you looked at/listened to the storage REIT's earnings reports or calls during this? I wouldn't say 'suffering' is how I view what they are experiencing right now.

I also went thru the article again and even Ctrl+F 'storage' and didn't get one single hit. Did you link the right article? 

@Ari Kapel I skimmed this and must have missed the self storage notes. What was the exact #’s quoted?

But across my portfolio, and every other operator I know has been largely un-impacted thus far.

@Jess McLaughlin would still want liability, business income, wrongful auction/towing/gates/cameras, etc. I’d recommend still reaching out to MiniCo or World Insurance Associates

@Josh Smith have you done any diligence or feasibility studies on if there is solid demand for it?

They can unbiasedly give you info if you should or not. And if they think it’s a good idea then they can help with a unit mix as well.