Keith-

Here in CA the storage market has gone through some major changes since we started back in 1987. Back then, we had 50 units and kept track of everything on a piece of graph paper. Now, we're still relatively small at 400 units, but we're totally alarmed, 2 story with elevators, electronic gates, video surveillance and the whole bit. We are 100% family owned and operated.

The CA market is recently turned for us too, due in some part to the incredible overbuilding of storage on every corner and also the real estate market falling rapidly. What we have noticed is that there has been little effect on overall occupancy, but there has been a turnover of tenants that is higher than normal (and delinquencies are up just a tad). I think those that had storage as a "luxury" have decided to move out and save money, and they have been replaced with people that have been forced to either move out of their larger home, been foreclosed upon or have moved to our area in search of work. Unfortunately, we have noticed a few of our long term business tenants are giving notice, trying to trim their operating costs. My response to them leaving is to direct market to CPA's, attorneys and insurance salespeople that are paying MUCH higher office space rent to store their files at their offices. In this area office space can rent for $2-3$ per foot, and I can offer them prices closer to $1.50 per foot depending on size. This was another reason for us to get into the "free truck" angle, which is the genesis for this thread.

There are opportunities in every type of market, the trick is to market to them at the appropriate time and in the appropriate manner. For example, some businesses would save money by downsizing their business space and renting offsite storage with us.

I'm going to get right on this as soon as we return from England, we are coming to visit your area, leaving tomorrow!

....got to get to packing, it's hard to pack cold weather gear when it was 85f here today.