As a real estate investor or developer, finding your next self storage site can be a time-consuming and costly process. Part of the initial investment is getting a thorough analysis and study of the market before making any decision to move forward with a project. However, a key piece of analysis often overlooked is the micro-level data that exists within a market which can be very telling of its nuances. Demographic data surrounding a site, such as population growth and income trends are imperative, nevertheless understanding the pricing landscape of the local self storage market can help you comprehend where your potential for growth exists. While this information has been available to investors and acquisitions teams for years, the data is often limited, outdated or incomplete. Luckily, in the last couple of years, solutions have emerged to help operators and investors alike obtain updated and real-time information on their local markets.
Although the self storage industry has lagged in the adoption of new technology for years, many operators are now using software systems to obtain and incorporate this pricing data into their pricing optimization models. Some have also adopted dynamic pricing techniques to help them become or remain more competitive in their markets. Like the retail and hotel industries, the demand for self storage has forced many operators to pay attention and place high importance to pricing, especially in markets where a large self storage saturation or growth exists.
The move to dynamic pricing has created a wealth of data from which analytics and trends can be derived. For example, getting insight into the volatility of pricing on 10 x 10 climate controlled units over time might be relevant to how you approach a project or might be a decision factor on the feasibility of it. Solutions tracking this data can provide insights such as this which can be of tremendous value to those still in the research stage.
About the Author
Cindy Rivera is the Support & Marketing Manager for StorTrack. Launched in 2014, StorTrack is the premier source for pricing data and analytics for the self-storage industry.